ESR Group Limited
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:279,000 tCO2e
Scope 1 Emissions:14,000 tCO2e
Scope 2 Emissions:265,000 tCO2e
Renewable Energy Share:60% (ESR Australia)
Total Energy Consumption:2,332,000 GJ
Water Consumption:3,776,000 Mega litres
Waste Generated:71,000 tons
Carbon Intensity:0.02 tCO2e/sqm (2022)
ESG Focus Areas
- Human Centric
- Property Portfolio
- Corporate Performance
Environmental Achievements
- Installed approximately 100 MW of rooftop solar panels across the global portfolio.
- 39% of the Group’s portfolio of completed directly managed assets were awarded sustainable building certifications and ratings.
- Secured approximately US$3 billion in Sustainability-Linked Loans.
Social Achievements
- Increased female representation to approximately 45% in the workforce.
- Zero ESR workforce fatalities.
- Launched a series of comprehensive compliance online modules for all staff on topics relating to compliance, risk management and ESG.
- Established nine BARNKLÜBB day-care centres in Japan.
Governance Achievements
- Appointed two new female independent non-executive directors.
- Became a signatory of the UN PRI.
- Achieved “A” in MSCI ESG Ratings and “Low Risk” in Sustainalytics ESG Risk Ratings.
Climate Goals & Targets
Long-term Goals:
- Net zero carbon emissions by 2050 (Suntec REIT)
- Net zero carbon status for all assets by 2030 (ARA)
- 75% renewable energy by 2030, 100% renewable energy by 2040 (ESR Data Centre Fund)
Medium-term Goals:
- 50% increase in solar power generation capacity or the equivalent of 52 MW
- 20% reduction in energy consumption intensity
- 50% of our portfolio to obtain sustainable building certifications and ratings
Environmental Challenges
- Climate change poses a critical and existential risk.
- Cybersecurity risks arising from internal and external sources.
- Transition to a low-carbon economy.
Mitigation Strategies
- Developing a Group-wide strategy to reach net zero across all asset classes.
- Implementing a revised Counterparty Due Diligence Workflow.
- Establishing an Information Security Management System (ISMS).
- Incorporating climate-related risks into ESR’s overall Enterprise Risk Management (ERM) Framework.
Supply Chain Management
Supplier Audits: 6,233 third-parties screened in 2022
Responsible Procurement
- Supplier Code of Conduct
- Sustainable Procurement Policy
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events affecting assets, operations, supply chain, transport, and employee safety.
Transition Risks
- Policy, legal, technological, and market changes related to climate change mitigation and adaptation.
Opportunities
- Development of energy-efficient products and solutions.
Reporting Standards
Frameworks Used: GRI, TCFD
Certifications: ISO 45001 (ESR Data Centres), ISO 14001 (ESR Data Centres)
Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)
UN Sustainable Development Goals
- Goal 3: Good Health and Well-being
- Goal 5: Gender Equality
- Goal 7: Affordable and Clean Energy
- Goal 8: Decent Work and Economic Growth
- Goal 9: Industry, Innovation and Infrastructure
- Goal 13: Climate Action
ESR's Vision for Sustainable Development and ESG Framework are aligned with these SDGs.
Sustainable Products & Innovation
- South Korea’s first hydrogen powered fulfilment centre
Awards & Recognition
- GRESB Global Sector Leader (Suntec REIT)
- GRESB Regional Sector Leaders (multiple entities)
- MSCI ESG Rating A
- Sustainalytics ESG Risk Rating Low Risk