130 STRATEGICALLY ADVANCING SUSTAINABILITY REPORT Responsibilities Within the Governance Structure The Board has the highest level of oversight in shaping our sustainability strategy and guides the consideration of sustainability in business decisions. They are responsible for overseeing the identification and prioritisation of material ESG topics, with the most recent review conducted post-merger between ESR-REIT and ARA LOGOS Logistics Trust. The Board is also responsible for building strong relationships with key stakeholders and ensuring their interests are factored into our decision-making. All Directors have completed the required sustainability training as mandated by SGXST. To support the Board in providing oversight and governance of ESR-REIT’s sustainability strategy, ESG performance and compliance, we have established the BSC in FY2024, chaired by a non-executive member of the Board. The BSC members are appointed by the Board and are assessed to have knowledge of both the business activities and of sustainability issues. The members are: • Mr. George Agethen, Non-Executive Director and Chairperson of the BSC • Dr. Julie Lo, Independent Non-Executive Director • Mr. Chan Mun Wei, an external sustainability consultant who is an independent party and subject matter expert The BSC reviews and recommends improvements to the Management’s proposed sustainability governance, strategy, targets, policies, and performance to set realistic goals while keeping aligned to evolving global standards. To integrate these into business operations, the BSC ensures business decisions consider these sustainability objectives and oversees implementation of the sustainability strategy. The BSC convenes semi-annually or more frequently on a need’s basis, to review sustainability performance and discuss strategic priorities for reporting to the Board. To ensure effective implementation of our sustainability efforts, we established a SWC chaired by our CEO. The SWC oversees our sustainability initiatives, ensuring they align with our strategic goals and meet stakeholder expectations. The committee reviews our business activities, identifies ESG risks and opportunities, assesses outcomes of the ESG impacts and ensures that appropriate measures are in place to manage and mitigate these risks. The committee works closely with internal teams to update and implement our enterprise risk assessment and understand the financial impact of identified risks. The SWC reports on ESG management and impact mitigation to the BSC quarterly, through the Operational Report, Risk Appetite Statements and Key Risk and Control Matrix throughout the year. In preparation of the annual sustainability report, the SWC is responsible for managing the reporting process and review, including stakeholder engagement, materiality review and target setting. The BSC and the wider Board then reviews and approves the report for publication. ESR-REIT’s sustainability reporting process is subject to internal review. Identified processes relating to sustainability reporting have been incorporated into the internal audit plan, which covers key aspects of this Sustainability Report. The internal review takes place over one audit cycle, which may span one or a few years in accordance with risk-based planning, as approved by the Audit, Risk Management and Compliance Committee (“ARCC”). The internal review has been conducted in accordance with the International Standards for the Professional Practice of Internal Auditing issued by The Institute of Internal Auditors.
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