Sasseur Real Estate Investment Trust (Sasseur REIT)
Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Governance
- Environment
- Social
Environmental Achievements
- Reduced energy intensity by 16.4% from 2019 to 105.8 kWh/m2
- Reduced water intensity by 17.2% from 2019 to 0.64 m3/m2
Social Achievements
- Launched a 3-Tier Leadership Development Programme
- Maintained 100% employee performance and career development reviews
- Increased average training hours per employee to 4.10 hours
- Various community development initiatives in Bishan, Chongqing, Kunming, and Hefei
Governance Achievements
- Zero instances of bribery, corruption, and fraud reported
- Zero cases of fines and non-monetary sanctions for non-compliance
- Strengthened Annual Report disclosures, improving ranking in the Singapore Governance and Transparency Index
Climate Goals & Targets
Environmental Challenges
- COVID-19 pandemic impacting retail sector and operations
Mitigation Strategies
- Implemented Business Continuity Plans (BCPs)
- Prioritized health and safety measures for employees and customers
- Developed business recovery plans and long-term strategies
- Adapted to new normal of doing business, including online sales and flexible working arrangements
Supply Chain Management
Responsible Procurement
- Compliance with local government and legal requirements for contractors and service providers
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI Standards: Core option
Awards & Recognition
- 2019 Outlets Leader Summit: Innovative Marketing Award (Chongqing Outlets)
- 2020 Most Influential Commercial Project Award (Chongqing Outlets)
- 2020 Trusted Consumer Brand Award (Bishan Outlets)
- 2019 Influential Commercial Project Award (Kunming Outlets)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Governance
- Environment
- Social
Environmental Achievements
- Implemented energy-saving measures across four outlets, including temperature control adjustments, optimized cooling tower operations, and the use of frequency converters on water pumps. However, total energy consumption increased by 18.28% compared to 2020 due to asset enhancement initiatives and the rebound from COVID-19 related closures in 2020.
- Implemented water-saving measures across four outlets, including daily monitoring, valve checks, and the use of river water for landscape irrigation in Kunming. However, total water withdrawal increased by 110.2% compared to 2020 due to asset enhancement initiatives and the rebound from COVID-19 related closures in 2020.
Social Achievements
- Achieved 60% new employee hire rate.
- Conducted performance reviews for all employees.
- Launched a breast cancer donation campaign.
- Participated in the SGX Bull Charge Virtual Charity Run.
Governance Achievements
- Zero instances of bribery, corruption, and fraud reported.
- Zero cases of fines and non-monetary sanctions for non-compliance.
- Strengthened cyber security capabilities.
Climate Goals & Targets
- Achieve carbon neutrality by 2050
Environmental Challenges
- COVID-19 pandemic affecting the recovery of the retail real estate sector.
- Increased energy and water consumption due to asset enhancement initiatives and rebound from COVID-19 closures.
Mitigation Strategies
- Collaborated with stakeholders, reinvented ways of working, ensured safety of everyone.
- Worked closely with brand partners and local authorities to drive sales and support economic recovery.
- Implemented energy and water conservation measures.
Supply Chain Management
Responsible Procurement
- Compliance with local government and legal requirements for contractors and service providers.
Climate-Related Risks & Opportunities
Physical Risks
- Tropical cyclones, flooding, sea level rise
Transition Risks
- Market risk (increased cost of lower carbon materials), reputational risk, policy & legal risks (stricter carbon legislations, changes in laws and regulations)
Opportunities
- Investment in flood prevention infrastructure, investments to future-proof buildings, effective communication of sustainability commitments, investments in new buildings and retrofitting existing buildings
Reporting Standards
Frameworks Used: GRI Standards: Core option
Awards & Recognition
- Runner-up in Singapore Corporate Governance Award (REITs & Business Trusts)
- Corporate Excellence and Resilience Award
- Best Governed and Transparent Company (Gold)
- Best Corporate Communications & Investor Relations (Gold)
- Certificate for Excellence in Investor Relations
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
- Environmental Footprint
- Tenant Management
- Health and Safety
- Talent Retention and Training
- Regulatory Compliance
Environmental Achievements
- 26.15% reduction in Scope 1 and 2 emissions from FY2021
- Installation of 27 EV chargers at Sasseur (Hefei) Outlets
- Approximately 23,841 sqm of green landscapes across Outlets promoting carbon sequestration
Social Achievements
- Zero incidents of fatalities, high-consequence injuries, recordable injuries and recordable work-related ill health cases for both REIT Manager and Entrusted Manager
- Continued fair employment practices at REIT Manager and Entrusted Manager
- Completion of the “Sasseur Encyclopedia” e-learning system by Entrusted Manager
- Implementation of a new performance review framework by Entrusted Manager
Governance Achievements
- Establishment of a Board-level Sustainability Committee in July 2022
- Zero socioeconomic and environmental non-compliance incidents
- Zero instances of bribery, corruption, and fraud
- Zero instances of counterfeit reports
- Zero substantiated complaints received concerning breaches of customer privacy and zero incidents of identified leaks, thefts, or losses of customer data
Climate Goals & Targets
- Not disclosed
- Enhance climate scenario analysis to include quantification of the financial impacts
- Develop ESG and climate management framework
- Establish policies and procedures for managing climate-related risks
- Develop climate strategy to address the climate-related risks and opportunities assessed
- Identify relevant metrics to measure and monitor performance associated with the management of climate-related risks and opportunities
- Set targets for the climate strategy and measure progress against the committed targets
- Integrate climate-related risks into enterprise risk management process
- Incorporate climate-related performance metrics into the Board and senior management’s remuneration structure
- Develop specific guidance and policies for investing in high-risk segments
- Co-develop climate transition plans with tenants
- Reduce total energy consumption or energy intensity by 1% from FY2022
- Reduce water intensity by 1% from FY2022
- Assess emission hotspots to determine expansion of Scope 3 organisational boundary
Environmental Challenges
- COVID-19 related volatilities in China and macroeconomic challenges
- Increase in water withdrawal and water intensity due to water leakages at three Outlets
- Target to reduce energy consumption and energy intensity by 1% in FY2022 not met due to increase in tenanted areas at Sasseur (Hefei) Outlets
- Annual employee turnover rate increased to 28.6% at REIT Manager in FY2022
- Entrusted Manager did not meet target of providing three or more legal risk prevention trainings due to COVID-19 lockdowns
Mitigation Strategies
- Utilising online platforms to boost online sales and digital presence amidst sporadic lockdowns
- Repairing water leakages at three Outlets
- Implementing energy saving initiatives resulting in an overall decrease in energy consumption and intensity by 0.07%
- Conducting exit interviews to understand reasons for resignation and using feedback for improvement
- Providing one risk management training to key personnel at Entrusted Manager
Supply Chain Management
Responsible Procurement
- Use of environmentally friendly building materials for tenant fit-out and refurbishment
Climate-Related Risks & Opportunities
Physical Risks
- Riverine flooding
- Forest fires
- Extreme heat
- Soil subsidence due to drought
Transition Risks
- Carbon pricing
- Shifting market demand
Opportunities
- Renewable energy (solar and wind)
Reporting Standards
Frameworks Used: SGX-ST Mainboard Listing Rules 711A and 711B, Practice Note 7.6 Sustainability Reporting Guide, Global Reporting Initiative Universal Standards (GRI Standards) (updated 2021), TCFD, MAS’ EnRM Guidelines
Third-party Assurance: Internal review by Sasseur REIT’s internal auditors; no external assurance
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Change
- Environmental Footprint
- Tenant Management
- Health and Safety
- Talent Retention and Training
- Regulatory Compliance
Environmental Achievements
- 5.0% reduction in Scope 1 and 2 emissions from FY2022
- 10.9% reduction in energy consumption at landlord-controlled areas from FY2022
- 13.9% reduction in water consumption at landlord-controlled areas from FY2022
- Expansion of Scope 3 emission categories
Social Achievements
- Annual employee turnover rate decreased to 23.1% in FY2023 (FY2022: 28.6%)
- Average training hours per employee increased to 32.30 hours in FY2023 (FY2022: 25.25 hours)
- Zero incidents of fatalities, high-consequence injuries, recordable injuries and recordable work-related ill health cases
Governance Achievements
- Establishment of an environmental risk management framework (EnRM Framework)
- Zero incidents of non-compliance with relevant laws and regulations resulting in fines or non-monetary sanctions
- Zero incidents of corruption
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Reduce energy intensity for landlord-controlled areas by 1% from FY2023
- Reduce water intensity for landlord-controlled areas by 1% from FY2023
- Continue assessing emission hotspots to determine expansion of Scope 3 organisational boundary
Environmental Challenges
- Increased energy consumption and energy intensity by 4.5% compared to FY2022 (though landlord-controlled areas saw a decrease)
- Increased tenant emissions in Scope 3 (though like-for-like comparison shows a smaller increase due to increased tenant activities after COVID-19 restrictions)
- Potential physical risks from floods, heatwaves, forest fires, and soil subsidence due to drought
- Potential transition risks from carbon pricing, shifting market demand towards green buildings
Mitigation Strategies
- Implementing energy conservation efforts at landlord-controlled areas
- Expanding Scope 3 data coverage gradually
- Actively exploring the possibility of deploying solar power
- Regularly conducting ESG dialogue sessions with tenants to advocate energy and water saving initiatives
- Conducting scenario analysis to assess potential impacts of physical and transition risks
- Implementing various measures to mitigate climate-related risks and tap into associated opportunities
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Riverine flooding
- Forest fire
- Extreme heat
- Soil subsidence due to drought
Transition Risks
- Carbon pricing
- Shifting market demand towards green buildings
Opportunities
- Reduced operating costs due to decreased solar and wind electricity prices
Reporting Standards
Frameworks Used: SGX-ST Mainboard Listing Rules 711A and 711B, Practice Note 7.6 Sustainability Reporting Guide, Global Reporting Initiative Universal Standards (GRI Standards) (updated 2021)
Certifications: Null
Third-party Assurance: Internal review by Sasseur REIT’s internal auditors; no external assurance
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Energy Saving Role Model Award (Sasseur (Chongqing Bishan) Outlet)