Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental compliance
• Resource efficiency
• Energy efficiency, renewable energy and climate change mitigation
• Waste management
• Design of green buildings and neighborhoods
• Climate change adaptation and mitigation
• Occupational health and safety
• Pandemic impacts: health, work arrangements
• Talent development and engagement
• Public and workforce mobility
• Work from Home
• Good governance structure
• Government policy and regulatory compliance
• Transparency with disclosures
• Compliance with emerging regulations

Environmental Achievements

• 32% of electricity used was from renewables (from 26% in 2021)
• 11.5% of treated effluent reused
• 100% conversion to LED lights
• 100% completion of installation of variable frequency drives
• zero cases of environmental violations
• Two existing buildings approved for EDGE certification

Social Achievements

• 37.5% increase in seconded female executive, managerial and supervisory roles

Governance Achievements

• Continuous enhancement of FILRT’s website to provide our shareholders and stakeholders with ease of reference to our corporate governance policies
• Conduct of annual corporate governance seminar attended to by its directors and senior management officers

Climate Goals & Targets

Environmental Challenges

• Growth or contraction in the real estate sector due to prevailing macroeconomic trends brought on by global issues such as geopolitical tensions, resource and climate risks, technological breakthroughs and demographic shifts.
• Potential changes in regulatory provisions that may impair leasing operations, and threaten the accreditation with specific agencies
• Post-pandemic global leasing trends show increased vacancies and untimely expiration or early termination of leases due to the shift towards flexible working arrangements.
• Rise in the proliferation of ESG-themed or ‘green’ leases.
• Potential loss of PEZA accreditation due to non-compliance with conditions by the tenants, particularly on the work-from-home dispute that arose in 2022.
• Post-pandemic increase in cost of living such as energy, and logistics issues in the supply chain aggravated by geopolitical developments in 2022.
• Historical highs in inflation rate may affect the net operating income.

Mitigation Strategies

• Engagement with national agencies during the public consultations on policies or regulations under development
• Corporate governance provisions and related party transactions policy
• Application of arms-length principle in all dealings
• Compliance with BIR transfer pricing guidelines
• Leasing policies on screening tenant applicants
• Securing appropriate mix of tenants
• Security deposits and advance rent
• Reconfiguration of tenant spaces where required
• Flexibility on catering to tenant needs
• Acquisition of assets beyond office building, such as malls and land for lease
• Exploration of ‘green lease’ provisions with tenants that have their own sustainability targets
• Compliance with conditions in accreditations and permits
• Timely renewal of permits and filing of mandatory reports
• Optimize operating costs
• Relationship management with regulators and tenants

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• centralized supply chain management

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SEC ESG Guidelines

Certifications: LEED Gold, EDGE

Third-party Assurance: SyCip Gorres Velayo & Co

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed