ESR-REIT Annual Report 2024 149 Recommended Disclosures Response Risk Management ESR-REIT’s processes and policies for identifying, assessing, and monitoring climate-related risks To disclose against the TCFD recommendations in FY2022, we conducted a qualitative assessment of climate-related risks that are most material to the business. The climate scenario analysis has enabled us to identify financial impacts stemming from transition risks, such as more stringent green requirements under the Singapore Green Building Masterplan and financial impacts from physical risks, such as extreme weather events and disasters. We incorporate environmental risk due diligence into our investment decisions and prioritise AEIs to improve environmental performance where feasible. Furthermore, we conduct periodic reviews to identify emerging environmental risks and shifts in the ESG landscape, including climate change. From a risk management perspective, such analysis seeks to ensure the identified climate-related risks and opportunities remain current, enabling us to focus our efforts more strategically. ESR-REIT’s processes for managing climaterelated opportunities For existing properties, we have prioritised high impact initiatives and planned them for the short to medium-term, in line with our energy and emission targets. We also conduct regular risk assessments to identify potential points of vulnerability. Please refer to the Material topic: Investment Management — Quality Assets and Services from pages 134 to 136 for more information on the opportunities in attaining Green Building Certifications and conducting AEIs. ESR-REIT’s processes for identifying, assessing, and monitoring climaterelated risks are integrated into the risk management process We have integrated environmental risks into our existing ERM Framework to identify, assess, monitor and manage climate-related risks and opportunities across our portfolio. In FY2024, we have quantified some of the key climate risks, allowing for a clearer understanding of their potential impact. Based on this analysis, we are currently developing and refining our mitigation and adaptation strategies to enhance operational resilience. These strategies will be detailed in FY2025 sustainability report.
RkJQdWJsaXNoZXIy NTM2MDQ5