ESR-REIT Annual Report 2024 141 Guiding Sustainable Tenant Behaviours Through Green Lease Clauses In FY2024, we worked with a tenant within 30 Marsiling Industrial Estate Road 8 amidst our successful renewal of our Green Mark certification to Platinum. The engagement was effective in steering tenants away from short-term, cost-driven decisions and foster a shift towards lower-impact operational choices. To enhance engagement with tenants on green initiatives, we incorporated energy efficiency criteria in our lease agreements according to relevant standards1. Alongside these provisions, we also provided a detailed green fit-out guide outlining best practices for energy efficiency. Through constructive discussions and data analysis, we communicated the long-term benefits of adopting energyefficient solutions. A more energy-efficient water-cooled chiller system was proposed to and agreed by the tenant for installation. This not only reduces ongoing energy costs but also enhances the tenant’s operational flexibility in response to future regulatory and market demands. with industry standards. We will integrate these targets into our strategic planning processes with our property management and asset management teams overseeing implementation across the portfolio. Progress on these targets will be monitored through quarterly reviews. The expanded deployment of solar energy and energy efficiency initiatives, as outlined in our Decarbonisation Roadmaps, will be instrumental in supporting this transition. In FY2024, we have established new absolute emissions reduction targets for our Singapore MTBs. These targets provide measurable benchmarks to guide our energy efficiency and emissions reduction initiatives. We are committed to achieve a 15.0% reduction in absolute Scope 1 and 2 emissions by FY2027 and a 25.0% cumulative reduction by FY2030 from a FY2023 baseline. The targets were determined through analysis of our current emissions profile, technological feasibility and alignment 1 Such as BCA Green Mark 2021 Technical Guideline, Singapore Standard SS530: Code of practice for energy efficiency for building services and equipment. Energy efficient water-cooled chiller system to be installed by tenant We have attained seven new Green Mark Certifications for our Singapore assets in FY2024. The achievement of Green Mark Super Low Energy (“SLE”) and Positive Energy (“PE”) Certifications illustrates our commitment to ensure our properties remain best-in-class in terms of energy efficiency, using renewable energy and smart energy management. Following the acquisition of 20 Tuas South Avenue 14, we have now achieved Green Building Certification for 28.0% of our Singapore portfolio (by GFA). To streamline the data collection processes and enhance audit trail, we have developed a Sustainability Data and Information Governance Policy and also started assessing ESG technology platforms in FY2024. The policy aims to align the expectations and data management procedures for ESG data owners. We actively engaged with internal stakeholders and partners regarding the registration and use of Renewable Energy Certificates (“RECs”), recognising their potential to drive business opportunities and reduce carbon emissions. With the implementation of our Renewable Energy Certificates Management Policy, we aim to establish a structured framework and methodology for the effective management of our RECs in the future. Meeting green building standards Strengthening internal controls and policies Tapping on renewable energy
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