MESSAGE TO STAKEHOLDERS Dear Stakeholders, The past year has seen an acceleration of global sustainability efforts, with climate action taking centre stage. We have observed increased regulatory pressure, growing investor focus on ESG performance, and heightened market demand and awareness of sustainable practices. These trends have reinforced our belief that sustainability is not just a responsibility, but a critical driver of long-term business success. Additionally, staying informed and adaptable to political and regulatory changes is essential for navigating the evolving landscape. PROGRESSING ON CLIMATE ACTION IN OPERATIONS We are proud to report significant progress in our environmental sustainability initiatives. This year, we have reduced our energy intensity and GHG emissions intensity by 27.4% and 36.3% respectively, compared to our baseline year of 2018. We also achieved a 92.2% green-certified portfolio by NLA compared to the prior year. It is our seventh year receiving 5 Star for our GRESB Real Estate Assessment, underscoring our continuous achievement in maintaining the highest standards in environmental, social, and governance practices. These achievements are the result of our continued investment in energy-efficient technologies and sustainable resource management to ensure sustainable long-term operational savings. FOCUSING ON PEOPLE AND COMMUNITIES Our employees are the backbone of our organisation, and their development and well-being remain a top priority. In 2024, we continued our efforts in organising initiatives that aimed to enhance employee engagement, professional growth and overall welfare and continued with initiatives that have received positive feedback. These include comprehensive quarterly town halls, employee engagement surveys, training programmes, mental health support services and awareness, and flexible work arrangements. We remain committed to fostering a diverse and inclusive workplace where every employee feels valued and empowered. Building strong relationships with our communities, tenants, and partners is essential to our sustainability journey. As part of our ongoing commitment to fostering community wellbeing, we have continued to engage stakeholders in several meaningful activities. These include volunteering at a local aquaponics farm to harvest and donate vegetables to lowincome families, and hosting a caricature activity to engage with the elderly. We have also strengthened our partnerships with tenants and suppliers to promote sustainable practices across our value chain. Together, we are creating a more resilient and sustainable future. REINFORCING ROBUST CORPORATE GOVERNANCE Strong corporate governance is the foundation of our sustainability efforts. We continue to integrate sustainability metrics into executive compensation and enhance our reporting transparency. These measures ensure that sustainability considerations are embedded in our decisionmaking processes at the highest levels. Our Board of Directors has been actively overseeing our sustainability strategy, and we have implemented rigorous reporting mechanisms to track our progress and identify areas for improvement. I am proud to share that we were ranked 11th out of 43 REITs and Business Trusts for Singapore Governance and Transparency Index (SGTI), an improvement from 16th in the previous year. LOOKING AHEAD TO ENHANCE DISCLOSURES Looking ahead to 2025, we recognise that the sustainability landscape will continue to evolve rapidly. In response, we aim to re-examine our strategy and targets to address these emerging sustainability challenges. We remain committed to collaborating with our stakeholders, including investors, tenants, employees, regulators, industry associations, business partners, and the local community to drive positive change. Whilst we acknowledge that there is still much work to be done, we are confident that our sustained focus on sustainability will create enduring value for all our stakeholders and contribute to a more resilient, equitable and sustainable world. John Casasante Chief Executive Officer and Chief Investment Officer (CEO & CIO) We have observed increased regulatory pressure, growing investor focus on ESG performance, and heightened market demand and awareness of sustainable practices. These trends have reinforced our belief that sustainability is not just a responsibility, but a critical driver of long-term business success. ANNUAL REPORT 2024 | 69
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