190 STRATEGICALLY ADVANCING SUSTAINABILITY REPORT Findings and Conclusions Verification Opinion On the basis of the methodology described and the verification work performed, nothing has come to our attention that causes us to believe that the specified performance information included in the scope of assurance is not fairly stated and has not been prepared, in all material respects, in accordance with the reporting criteria. We believe that the organisation has chosen an appropriate level of assurance for this stage in their reporting. Quality and Reliability of Specified Performance Information During the assurance engagement, some examples of good practice and opportunities for improvement in underlying processes were identified and reported to the organisation, with the aim of enabling a process of continual improvement in collecting and reporting KPI data. Good Practice • Notwithstanding that it is ESR-REIT’s first year undertaking external assurance, the organisation demonstrates strong inter-departmental teamwork across the asset management, finance and property management teams to ensure timely closure of audit findings. • The organisation exhibits strong willingness and agility to improve reporting procedures. Notably, ESR-REIT proactively developed a basis of preparation in consultation with consultants, enhancing transparency of reported data. • SGS noted that the organisation had conducted pre-assurance on the reported data prior to the external audit. The organisation is encouraged to continue implementing such review measures as a good practice. For example, the organisation may consider implementing a formal internal audit annually for future reporting years. Opportunities for Improvement • The organisation could consider leveraging technology to automate data collection and reporting, especially concerning energy and water consumption recovered from tenants. SGS noted that, as of March 2025, ESRREIT is in the process of adopting such technology. • As the organisation’s portfolio contains assets with different submetering setups, it may consider conducting a sensitivity analysis on alternative approaches to the current quantification method. For example, while tenants’ usage of electricity and water use attributed to chilled water is currently estimated, the organisation may consider using billing data to ascertain usage by tenants, where possible, to optimise accuracy and ease of data collection. • Organisation may consider elaborating on criteria for including or excluding assets that may not be operating under normal conditions during the reporting year within the scope of the KPI. Signed: Priyanka Mehta Sustainability & ESG Manager SGS International Certification Services Singapore Pte Ltd 13 March 2025 Verified by: Valerie Koh Adrian Lamano WWW.SGS.COM
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