Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• People

Environmental Achievements

• Total energy consumption for Frasers managed properties in FY2015 was lower by 5% at 9.02 million kWh compared to FY2014. Energy intensity at 156.4 kWh/m² was also 5% lower compared to FY2014. Total GHG emissions and GHG intensity were 8% lower in FY2015 at 4.02 million tonnes of CO2e and 69.7 tonnes CO2e/m² respectively.
• 20.7% improvement in water intensity in FY2015.

Social Achievements

• No incidents of non-compliance with health and safety regulations or voluntary codes in FY2015.
• In FY2015, there were 5 lost-time injuries, resulting in 141 lost days, a lost-time injury rate of 6.9 and a severity rate of 193.8 per million man hours.
• On average, each employee receives over 40 hours of training per year.
• Hiring rate of 21% compared to a turnover rate of 7%.

Governance Achievements

• No fines for non-compliance of environmental regulation at any of our properties managed by Frasers Hospitality since listing date of 14 July 2014.
• No substantiated complaints regarding breaches of customer privacy or loss of customer data since our initial public offering.

Climate Goals & Targets

Environmental Challenges

• Softer performance in Singapore and Malaysia markets due to increased competition, asset enhancement project rescheduling, weaker economy, and political uncertainty.
• Reduced international long haul flights to and from Malaysia impacting occupancy.

Mitigation Strategies

• Asset enhancement initiatives at InterContinental Singapore (renovation of guest rooms, all-day-dining, and lobby lounge).
• Prudent capital and risk management, including diversified funding sources and hedging strategies.
• Active asset management to improve operational cash flow and identify asset enhancement opportunities.

Supply Chain Management

Responsible Procurement

• Contracts for procurement are being revised to include environmental considerations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core

Awards & Recognition

• Silver Award 2014 by the Green Tourism Business Scheme for Fraser Suites Edinburgh
• Bronze in the Green Tourism Business Scheme for Best Western Cromwell London
• Building and Construction Authority’s Green Mark Gold Plus Certification for InterContinental Singapore

Environmental Metrics

ESG Focus Areas

• Energy & Carbon
• Resilient Properties
• Responsible Investment
• Skills & Leadership
• Risk-based Management
• Innovation
• Materials & Supply Chain
• Biodiversity
• Water
• Waste
• Diversity & Inclusion
• Health & Well-being
• Community Connectedness

Environmental Achievements

• Secured seven green and sustainability-linked loans totaling about $1 billion in FY20.
• Increased the number of properties and projects with Green Mark certification in Singapore from 31 in FY19 to 35.
• Increased the number of properties and projects certified with Green Star in Australia from 129 in FY19 to 137.
• Increased the number of properties certified with BREEAM in the UK to 19.
• Generated a total of 4.4 GWh of renewable energy across our Singapore, Australia and Hospitality portfolios in FY20, equivalent to 3,655 tCO2e of avoided emissions.
• Procured 18.1 GWh of renewable energy in the UK, equivalent to a reduction of 4,224 tCO2e in Scope 2 emissions by our business parks.
• Over 90% of Frasers Hospitality’s managed properties phasing out single-use plastics
• 100% renewable electricity supplied to all landlord-controlled areas and buildings in our UK business parks

Social Achievements

• Introduced a Group-wide Corporate Social Responsibility Policy and a Group-wide Diversity & Inclusion Policy.
• Established a Group-wide Community Investment Framework.
• Contributed over $1 million and 6,000 staff volunteer hours in support of local communities.
• Achieved 38% female representation in senior management.
• Launched a Retailer Academy to support tenants’ learning and growth.
• Implemented an Employee Assistance Programme in Singapore, Australia and the UK.

Governance Achievements

• Established a Sustainability Steering Committee.
• Secured 12 green and sustainability-linked loans amounting to about $4 billion since 2018.
• Seven whistle-blowing cases reported, out of which two were substantiated and one is still under investigation.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations and energy/water consumption.
• Climate change risks (physical and transition risks).

Mitigation Strategies

• Implemented extensive precautionary measures to prevent the spread of COVID-19 across properties.
• Started climate risk assessment for Singapore and UK business units.
• Renewed climate risk assessments for Australian assets.
• Developed a Sustainability Finance Framework to enable the growth of green loans, bonds and financial models.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Modern Slavery Act compliance in UK and Australia.
• Development of industry-standard questionnaire and supplier reporting platform in Australia.
• Global Procurement Supplier Conduct Guideline at Frasers Hospitality.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products
• Access to green financing

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, TCFD

Certifications: Green Mark, Green Star, BREEAM, LEED, EDGE, WELL, ISO 14001, ISO 50001, ISO 45001, OHSAS 18001, AS/NZS 4801

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 3 (Good health and well-being)
• Goal 17 (Partnerships for the goals)

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Net-zero carbon homes at Minnippi Quarter
• Intelligent building platform at Frasers Tower

Awards & Recognition

• 24 awards at PropertyGuru Asia Property Awards (Singapore) 2019
• Second runner-up in Asean Energy Awards 2020 for Frasers Tower
• Green Star Champions award (GBCA)
• Australian Institute of Architects 2020 award for Stephen Choi
• Best Green Loan for Real Estate at The Asset’s Triple A Sustainable Capital Markets Regional Awards 2019
• Elizabeth Broderick Workforce Flexibility Award and Dame Quentin Bryce Gender Equity Award (Australian HR Institute)
• SG Clean audit for retail assets in Singapore

Environmental Metrics

ESG Focus Areas

• Risk-based Management
• Responsible Investment
• Resilient Properties
• Innovation
• Energy & Carbon
• Water
• Waste
• Materials & Supply Chain
• Biodiversity
• Diversity, Equity & Inclusion
• Skills & Leadership
• Health & Well-being
• Community Connectedness

Environmental Achievements

• Designed Williams Sonoma warehouse based on net-zero carbon principles, leveraging solar power, battery storage, and biodiesel backup.
• Installed a 1,500kW photovoltaic system (largest in Australia Industrial portfolio) at Nu Pure property.
• Procured 100% green energy for landlord-controlled areas in the UK and Malmaison/Hotel du Vin portfolio since early 2021.
• Five Singapore commercial buildings received GreenDNA certification.
• All Singapore retail and commercial properties have ISO 14001 and ISO 50001 certifications.
• PARQ (Thailand) achieved LEED Gold BD+C: Core and Shell certification.
• Burwood Brickworks (Australia) awarded Living Building Challenge® Petal Certification.

Social Achievements

• Launched Greensheet, Australia’s first open-source database of sustainable building materials.
• Implemented Group Responsible Sourcing Policy across all business units.
• Inclusive Spaces program brought together young students and seniors to co-create better spaces.
• Frasers Hospitality recognized over 200 Kindness Heroes.
• Farnborough Business Park (UK) received a 3-star Fitwel rating (first commercial site globally).

Governance Achievements

• Expanded Board’s oversight of sustainability strategy by redefining the remit of the Board Risk Management and Sustainability Committee.
• Formed a Purpose & Culture Steering Committee.
• Implemented a Group Responsible Sourcing Policy and a Group Corporate Functions Procurement Procedure.
• Secured nine new green and sustainability-linked loans and two new sustainability bonds.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change impacts (extreme weather events)
• Managing climate risks across a large global portfolio
• Reducing embodied carbon emissions
• Waste management in a growing portfolio

Mitigation Strategies

• Developed net-zero carbon roadmaps for various portfolios.
• Completed climate risk assessments for commercial, retail, and development projects in Singapore and UK business parks.
• Implemented Group Responsible Sourcing Policy.
• Launched Greensheet to improve material sourcing.
• Implemented various waste reduction and recycling initiatives.

Supply Chain Management

Supplier Audits: Sustainability assessment surveys conducted, 91% completion rate for high-risk suppliers in Australia.

Responsible Procurement

• Group Responsible Sourcing Policy
• Sustainability assessment surveys
• Corrective Action Plans

Climate-Related Risks & Opportunities

Physical Risks

• Increase in frequency and intensity of fires, floods, storms, and hail
• Rising sea levels, atmospheric temperature, and droughts

Transition Risks

• Implementation of carbon pricing mechanisms
• Mandates for minimum energy efficiency
• Shifts in customer preferences
• Brand alignment
• Legacy impacts
• Shift towards climate-related investing

Opportunities

• Improved resilience and energy efficiency of portfolio
• Offering of sustainable and climate-resilient spaces
• Retailing of renewable energy
• Partnerships to develop net-zero solutions

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, GRI G4 Construction and Real Estate Sector Disclosures, TCFD framework

Certifications: ISO 14001, ISO 50001, ISO 45001, GreenDNA, LEED, BREEAM, Green Star, BCA Green Mark, EDGE, WELL, Fitwel, NABERS

Third-party Assurance: Ere-S Pte Ltd (limited assurance)

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Sustainability goals and framework aligned to these SDGs.

Sustainable Products & Innovation

• Greensheet
• Net-zero energy demand homes at Ed.Square
• Carbon-neutral warehouse at The Horsley Park Estate

Awards & Recognition

• GRESB 2021 rankings (five global and regional sector leadership positions)
• Living Building Challenge® Petal Certification (Burwood Brickworks)
• LEED Gold certification (PARQ)
• Fitwel 3-star rating (Farnborough Business Park)
• GreenDNA certification (five Singapore commercial buildings)
• Various other awards for specific projects

Environmental Metrics

ESG Focus Areas

• Risk-based Management
• Responsible Investment
• Energy and Carbon
• Water
• Resilient Properties
• Waste
• Innovation
• Materials and Supply Chain
• Biodiversity
• Diversity, Equity and Inclusion
• Skills and Leadership
• Health and Well-being
• Community Connectedness

Environmental Achievements

• Reduced Scope 2 GHG intensity by 19.6% against a FY19 baseline
• Generated more than 16 GWh of solar energy
• Procured over 64 GWh of green energy
• 45% of owned and asset-managed properties and 90% of new development projects by gross floor area green-certified or pursuing certification
• Collected 5,639 tonnes of waste for recycling (14.2% recycling rate)
• 91% of owned and managed hospitality assets phased out single-use plastic

Social Achievements

• More than 6,000 employee volunteer hours and approximately $1.5 million contributed across around 150 community investment initiatives
• 38% and 52% females in senior management and global workforce respectively
• Almost all employees trained on sustainability
• Ranked one of Equileap’s top three most gender-equitable companies listed in Singapore
• Named one of Singapore’s Best Employers in 2022

Governance Achievements

• Over $9 billion secured in green and sustainability-linked loans and bonds, representing 50% of our net borrowings
• Runner-up at SIAS Investors’ Choice Awards 2022: Most Transparent Company Award in the real estate category
• All business units and REITs performed a gap analysis and identified initiatives for closer alignment to TCFD recommendations

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (physical and transitional)
• Supply chain disruptions
• Modern slavery risks

Mitigation Strategies

• Climate risk assessments and adaptation/mitigation plans
• Group Responsible Sourcing Policy
• Modern Slavery Statements and Supplier Assessments
• Climate Adaptation Plans across all development activities in Australia

Supply Chain Management

Supplier Audits: 69 suppliers completed Modern Slavery Supplier Assessment in Australia; all suppliers engaged since FY21 will be required to resubmit the assessment annually.

Responsible Procurement

• Group Responsible Sourcing Policy
• Sustainability-related data disclosure for suppliers in Singapore
• Minimum sustainability standards for construction materials in Vietnam

Climate-Related Risks & Opportunities

Physical Risks

• Fires, floods, storms, hail, rising sea levels, higher average temperatures, droughts

Transition Risks

• Carbon pricing, mandates for minimum energy efficiency, shifts in customer preferences, reputational risks

Opportunities

• Improved resilience and energy efficiency of portfolio, supply of carbon-neutral energy to customers, increase in green and sustainable financing, offering of sustainable and climate-resilient spaces

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, International Integrated Reporting Framework, TCFD

Certifications: ISO 14001, ISO 45001, ISO 50001, BCA Green Mark, Green Star, BREEAM, LEED, WELL, NABERS

Third-party Assurance: Ere-S Pte Ltd

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 13
• SDG 17

Contributions to various SDGs through initiatives across all three pillars of the Sustainability Framework.

Sustainable Products & Innovation

• Passive House Plus residential property, green building certifications, recycled materials in construction

Awards & Recognition

• SIAS Investors’ Choice Awards (runner-up for Most Transparent Company), GRESB Sector Leader Awards, PropertyGuru Vietnam Property Awards, Thailand Digital Excellence Awards, BCA Awards, Marketing Interactive Magazine’s regional Loyalty & Engagement Awards, Property Council of Australia’s Innovation & Excellence Awards, UDIA NSW Leadership Awards, Victorian Premier’s Sustainability Award, Architecture and Design National Sustainability Awards, The Urban Developer’s Excellence in Sustainability, Thai Metropolitan Electricity Authority (MEA) Energy Awards, Asia Corporate Excellence & Sustainability Awards, Singapore Red Cross United for Humanity Award, Champions of Good 2022, EG Employer Award 2022, HR Asia Best Companies to Work for in Asia 2022, DRIVENxDESIGN New York Design Awards

Environmental Metrics

ESG Focus Areas

• Energy and Carbon
• Water
• Waste
• Materials and Supply Chain
• Biodiversity
• Diversity, Equity and Inclusion
• Skills and Leadership
• Health and Well-being
• Community Connectedness
• Risk-based Management
• Responsible Investment
• Resilient Properties
• Innovation

Environmental Achievements

• Generated more than 18 GWh of renewable energy on-site in FY23, up 16% from the previous FY.
• Recycled over 6,000 tonnes of waste.
• Group’s total Scope 1 and Scope 2 location-based carbon emissions saw a 29% decrease as compared to the base year of FY19.
• Successfully recycled 3,007 tonnes of steel and reused 2,443 tonnes of dismantled concrete for construction at One Bangkok, resulting in approximately 7,700 tCO₂e reduction in embodied carbon emissions.
• 88% of new development projects and 51% of owned and asset-managed properties by gross floor area are green-certified or pursuing certification.

Social Achievements

• Over 6,800 employee volunteer hours and nearly $2 million contributed via around 200 community investment activities.
• Launch of Inclusion Champions Programme in Singapore, an industry-first initiative to create inclusive spaces in the community.
• Employer of Choice for Gender Equality citation from Workplace Gender Equality Agency (WGEA) in Australia for fifth consecutive year.
• Strong uplift in overall scores in the GRESB 2023 assessment

Governance Achievements

• Enhanced the risk management framework to provide for an integrated approach towards sustainability, risk management, and strategy planning.
• Completed our first Group-wide Climate Value at Risk (CVaR) analysis.

Climate Goals & Targets

Environmental Challenges

• Evolving nature of green certification entails continuous adaptation and balancing between sustainability objectives and business constraints.
• Challenges persist in managing waste sent to unknown destinations.
• Diverse water meter types and their locations within our properties make rapid implementation challenging and require specialized solutions.
• Further progress to be made in procuring low-carbon materials.

Mitigation Strategies

• Refreshed goal to have 100% by GFA of new development projects and 85% of our owned and asset-managed properties either certified or pursuing green certification by 2030.
• Actively engaging green certification programmes across our markets on upcoming changes to certification requirements, and exploring accredited green certification schemes that are both rigorous and compatible with our market needs.
• Working closely with Smartvatten to address issues related to smart water meter installation.
• Prioritise procurement decisions focused on low-carbon alternatives.
• Conduct life cycle assessments of industrial and logistics new developments to better understand and evaluate our environmental impact.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Group Responsible Sourcing Policy (covering environmental management, human rights and labor management, health, safety and well-being, business ethics and integrity)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Sea level rise
• Rising temperatures
• Storm/cyclone/typhoon
• Wildfire
• Water scarcity

Transition Risks

• Carbon pricing
• Accessing green finance
• Regulatory, legal, and/or disclosure requirements and reputational risk

Opportunities

• Improving the resilience of the business and its assets
• Increased access to sustainability-linked financing
• Improved tenant relationships

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, UNWEP, SBTi

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Ere-S Pte Ltd

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Recycled-waste concrete panels
• District cooling systems

Awards & Recognition

• Best Green Loan (The Asset Triple A Sustainable Capital Markets Awards 2022)
• GRESB Regional Sector Leader awards
• Employer of Choice for Gender Equality (WGEA, Australia)
• SmartScore Gold certification (Frasers Tower)
• WiredScore Platinum certifications
• Green Flag Award (Farnborough Business Park)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Waste Reduction
• Inclusion
• Community Engagement
• Green Certifications
• Diversity, Equity & Inclusion
• Employee Well-being
• Responsible Sourcing
• Climate Risk Assessment
• Biodiversity

Environmental Achievements

• Generated over 18.6 GWh of solar energy on properties.
• Recycled over 6,000 tonnes of waste.
• The YARDS achieved a 6 Star Green Star Communities rating.
• 88% of new development projects and 51% of owned and asset-managed properties are green-certified or pursuing certification.
• Installed over 32 MW of solar photovoltaic panels.

Social Achievements

• Launched Inclusion Champions Programme in Singapore.
• Employer of Choice for Gender Equality citation in Australia (5th consecutive year).
• Over 6,800 employee volunteer hours and nearly $2 million contributed via community investment activities.
• 38% and 54% females in senior management and global workforce respectively.

Governance Achievements

• Strong uplift in overall scores in the GRESB 2023 assessment.
• Arranged 12 green and sustainability-linked loans amounting to approximately $3.5 billion.
• Achieved full sustainability-linked funding for the Australian business.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic risks (global and domestic economies, financial and property markets, geopolitical tensions, inflation, interest rate hikes).
• Geopolitical risks (US-China tensions, Russia-Ukraine war, Gaza conflict).
• Market and competition risks (competition from other real estate owners and operators, land acquisition challenges).
• Financial risks (foreign exchange risk, interest rate risk, liquidity risk).
• Investment and divestment risks (lower prospective returns on some properties, macroeconomic impact on capital recycling).
• Regulatory risks (changes in laws and regulations, increasing regulatory burden).
• Construction and development risks (cost overruns, supply chain issues, labor and material shortages).
• Human capital risks (loss of key personnel, inability to attract and retain talent).
• Fraud and corruption risks.
• Information technology and cybersecurity risks.
• Health and safety risks.
• Climate change and sustainability risks (extreme weather events, natural catastrophes, carbon pricing, regulatory mandates).
• Business disruption risks (natural catastrophes, pandemics, man-made disruptions).
• Brand and reputation risks.

Mitigation Strategies

• Diversified portfolio across asset classes and geographies.
• Prudent capital and liquidity management.
• Response measures to mitigate risks and seize opportunities.
• Prudent approach in selecting investment locations.
• Monitoring markets closely, engaging with local authorities.
• Strong local development and asset management teams.
• Annual review of real estate market outlook.
• Natural currency hedges, interest rate derivatives, mix of fixed and floating rate debt.
• Rigorous investment process with comprehensive due diligence.
• Incorporating carbon pricing and climate risk assessment in investment evaluation.
• Resources and processes to monitor changes in laws and regulations.
• Rigorous processes in tenders, contract management, procurement.
• Active management of product and lease pricing.
• Group Responsible Sourcing Policy.
• Global people strategy for attracting, engaging, developing, and retaining employees.
• Leadership succession and talent development strategy.
• Upskilling and developing workforce.
• Policies and guidelines (Code of Business Conduct, Anti-Bribery Policy, Group Responsible Sourcing Policy, Whistle-blowing Policy).
• Cybersecurity solutions, incident management procedures, disaster recovery plans.
• Robust occupational health and safety management systems (ISO 45001, ISO 14001, bizSAFE STAR).
• Environmental Health & Safety Committees in hospitality assets.
• Climate Value at Risk analysis, net-zero carbon activities, scenario analysis.
• Group Sustainability Framework, Group ESG goals, sustainability governance structure.
• Annual ESG reports (GRI 2021, TCFD, SGX rules), external assurance.

Supply Chain Management

Responsible Procurement

• Group Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfires
• Water scarcity

Transition Risks

• Escalating operational costs due to carbon pricing
• Compliance with evolving legal and regulatory mandates surrounding energy mix

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI 2021 Universal Standards, TCFD, SGX Listing Manual Rules 711A and 711B

Certifications: Green Mark, Green Star, LEED, BREEAM, WiredScore, SmartScore, BizSAFE STAR, ISO 45001, ISO 14001, ISO 50001

Third-party Assurance: External assurance for ESG Report 2023

Sustainable Products & Innovation

• Premium Estates design for industrial facilities
• Biophilic design and greenery in residential projects
• Smart City and sustainable infrastructure in One Bangkok

Awards & Recognition

• Numerous awards listed in Awards & Accolades section (pages 44-47)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Nature
• Responsible Resource Management
• Diversity, Equity and Inclusion
• Skills and Leadership
• Health and Well-being
• Community Connectedness
• Governance
• Risk Management
• Responsible Investment
• Supply Chain Sustainability

Environmental Achievements

• ~24% decrease in Scopes 1 and 2 location-based emissions against FY19 base year
• >46MW of solar capacity installed portfolio-wide
• >54% of owned and asset-managed properties by gross floor area are green-certified or pursuing green certification

Social Achievements

• Launched ESG capacity-building programme for Board and senior managers
• Over 10,100 employee volunteer hours and >$2 million contributed via ~300 community investment activities
• Developed Social Value Strategy and framework

Governance Achievements

• Finetuned Group Enterprise Risk Management Framework with integrated approach towards risk management, sustainability and strategy
• 20 sustainable financing transactions raised totalling ~$6.2 billion
• Established the Sustainability and Risk Committee (SRC) to drive an integrated approach towards strategy, sustainability and risk management

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change impacts (river flooding, wildfires, extreme rainfall, sea level rise, heat stress, water scarcity, windstorms, cold spells, snowfall)
• Transition risks (carbon pricing, accessing finance, legal and regulatory obligations, reputational risk)
• Data limitations in waste and Scope 3 emissions reporting

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented climate risk assessments and adaptation plans
• Net-zero carbon emissions goal
• Green and sustainable financing
• Enhanced climate risk analytics through development of Climate Value at Risk Platform
• Developed a decarbonisation tool
• Conducted a preliminary nature scan
• Enhanced data collection processes

Supply Chain Management

Supplier Audits: 47% of suppliers (by spend) engaged on Responsible Sourcing Policy in FY24

Responsible Procurement

• Group Responsible Sourcing Policy
• Supplier e-learning programme
• ESG questionnaires for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• River flooding
• Wildfires
• Extreme rainfall
• Sea level rise
• Heat stress
• Water scarcity
• Windstorms
• Cold spells
• Snowfall

Transition Risks

• Carbon pricing
• Accessing finance
• Legal and regulatory obligations
• Reputational risk

Opportunities

• Improving business and asset resilience
• Increased access to sustainability-linked financing
• Improved tenant relationships

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD Framework, IFRS S2 Sustainability Disclosure Standards, UN Global Compact

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Verco Advisory Services Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Intelligent Building platform

Awards & Recognition

• SIAS Most Transparent Company (Real Estate) Award
• Financial Times & Statista Asia-Pacific Climate Leaders
• Champion of Good (NVPC, Singapore)
• Employer of Choice for Gender Equality (WGEA, Australia)
• AA level of the Stock Exchange Thailand (SET) ESG Ratings

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased renewable energy capacity in properties
• Reduced Scope 1 and 2 location-based emissions by ~24% against FY19 base year
• Partnership with SP Group for Singapore’s largest single solarisation project across retail properties (close to 4,500 sqm of solar panels installed across six retail malls and one commercial property)

Social Achievements

• Celebrated 100 years of building stronger, smarter, happier neighbourhoods in Australia (Midtown MacPark)
• Launched Singapore’s first-of-its-kind food waste valorisation programme across five malls
• Tripled the number of Inclusion Champions to 31 brands across 104 stores in Singapore

Governance Achievements

• Received recognition at the SIAS Investors’ Choice Awards in the Most Transparent Company (Real Estate) category
• Received recognition at IR Magazine Awards - Southeast Asia 2024 in the Best Annual Report (mid to large cap) and Best ESG Report (mid to large cap) categories
• Established a Group management-level Sustainability & Risk Committee (SRC)

Climate Goals & Targets

Environmental Challenges

• Macroeconomic uncertainties (inflationary pressures, higher interest rates, geopolitical tensions)
• High interest rates impacting capitalisation rates and property valuations (net fair value write-downs of $0.6 billion over the past two financial years)
• High construction costs affecting development margins in Australia

Mitigation Strategies

• Leveraging capital partnerships for development projects
• Active asset management to enhance value proposition
• Prudent capital management and capital recycling via REITs and third parties
• Disciplined approach to capital recycling through Group’s REITs
• Entering into capital partnerships to optimise capital and manage risk
• Redevelopment of existing assets to enhance value
• Developing innovative internal tools and frameworks (decarbonisation tool, Climate Value at Risk platform)
• Developing the Group’s Climate and Nature Transition Plan and a Social Value Strategy

Supply Chain Management

Supplier Audits: Engaged 47% suppliers (by spend) on Responsible Sourcing Policy

Responsible Procurement

• Group Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 2021 Universal Standards, ISSB IFRS S1 and S2, TCFD

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Externally assured for the fourth consecutive year

Awards & Recognition

• Financial Times-Statista Climate Leaders 2024
• SIAS Investors’ Choice Awards 2024
• Champion of Good by the Singapore National Volunteer & Philanthropy Centre
• Singapore’s Best Employers 2024 by The Straits Times