Sustainability Report


Board Statement

Dear stakeholders,
In the wake of the COVID-19 pandemic coupled with the deteriorating climate crisis, we reaffirm our commitment to pursue excellence, with a focus on our material environmental, social and governance ("ESG") topics that will positively impact the environment and the people we serve.

Under the Board's oversight, the REIT Manager team regularly reviews, monitors and manages sustainability risks and opportunities alongside enhancing our business practice sustainability performance and disclosure transparency. The Board has re-assessed the materiality of ESG issues, with one new ESG topic - "Emissions" added to the list of material topics in FY2021 to declare our commitment to act swiftly against the climate crisis.

For several years, we have been ramping up and communicating our performance through regular engagements and transparent disclosures. With our proactive efforts to build long-standing relationships with stakeholders, we are proud to announce that the REIT had been recognised with a Platinum award for 'Best Corporate Communications and Investor Relations' and a Silver award for 'Best Governed and Transparent Company' categories at The Global Good Governance Awards 2021.

The REIT recognises the potential widespread financial impacts of climate change to its business and operations. We have the responsibility to shoulder the burden that must now be borne. To prepare for the implementation of the new Guidelines on Environmental Risk Management (Asset Managers) issued by the Monetary Authority of Singapore (the "MAS"), the REIT has commenced a physical and transition risk screening exercise, started the identification of material business and financial impacts, and conducted a training session related to climate risk assessment to ensure a general understanding of climate risks across the REIT. The Board has committed to endorse the Task-Force on Climate-related Financial Disclosures (the "TCFD") recommendations and plans to disclose relevant information in its subsequent Sustainability Report.

Without letting our guard down against the unprecedented challenges, we firmly hold on to our sustainability direction to pursue our goal of sustainability excellence. On behalf of the Board and the REIT Manager team, we would like to express our gratitude to stakeholders for supporting us along our sustainability journey. Our sustainability achievements and progress in FY2021 are proudly presented in this report. We believe that by doing the right thing, we are able to secure a sustainable future for all.

Reporting Principle

The report content follows the four reporting principles as guidance in the GRI Standards:

  • Stakeholder Inclusiveness - Stakeholders' interest and expectations received in stakeholder engagement contributing to the development of the report.

  • Sustainability Context - Our business operations and performance were presented in the context of ESG landscape requirements at the local, regional and global level.

  • Materiality - The material ESG topics prioritised in this report were relevant and significant to our business and influence on our stakeholders' decisions.

  • Completeness - This report encompassed the material ESG topics and respective boundaries, within the reporting period.

Sustainability Governance

At the REIT, our commitment to sustainability is envisaged to enhance sustainable growth and create shared value for all our stakeholders. As part of our sustainability efforts, we incorporated relevant ESG practices and risk management procedures into our business, enabling us to mitigate sustainability-related risk in our operations, and capitalise on opportunities.

Recognising sustainability issues as a business imperative, our Board is entrusted with overall responsibility for the oversight of sustainability performance of the REIT. The Board is also responsible for prioritising sustainability in the REIT's strategic business direction and risk management. As part of the overall strategy to ensure that the best interests of the REIT are served, the Manager takes an inclusive approach to embed the key ESG principles in the REIT's business strategies and operations. To ensure proper accountability within the Manager, the Board discusses with the management ("Management") on ESG issues and material topics during regular Board meetings and Board Committee meetings.

Apart from sustainability matters that specifically require the Board's approval, the Board delegates authority to individual committees and Management to supervise sustainability matters. With robust Board oversight, the Chief Executive Officer ("CEO") and Sustainability Officer are collectively charged with managing the sustainability outlook of the REIT to deliver on its sustainability commitment.

Under its corporate governance structure, the REIT Manager has the Audit and Risk Committee (the "ARC") and the Nominating & Remuneration Committee (the "NRC") (collectively, the "Board Committees") in place to facilitate proper discharge of the Board's duty and functions.

In response to the changing economic and regulatory landscape, the Manager has a well maintained Enterprise Risk Management ("ERM") Framework and a Business Continuity Plan ("BCP") to build resilience, control and mitigate the risks of material ESG factors in the REIT's business and operational activities. This is supplemented by an internal audit function that is outsourced to an independent external service provider to provide an added level of assurance.

Strengthening board diversity can make the REIT more agile and resilient. The NRC upholds the Board Diversity Policy to foster an inclusive and diverse culture that encourages perspectives and experiences that will ultimately strengthen decision-making. The policy endorses the principle that the Board should embrace a suitable balance and diversification of experience, skills, knowledge, gender, age, perspectives, qualifications, and other attributes including considering potential conflicts of interest in the relevant areas among the Directors. The NRC assesses the Board and Board Committee's performance annually based on a performance assessment checklist, and reviews the Board composition and succession planning with consideration on all aspects of diversity.

In considering and balancing the needs and interests of material stakeholders, the Manager's Investor Relations ("IR") function is tasked with building and managing the REIT's relationships with material stakeholder groups. With our close communication and engagement with the REIT's stakeholders, their feedback on the sustainability topics relevant to the REIT's business and operations are collected and taken into account in our strategic formulation. Please refer to IR section of this annual report for more details about the various engagement activities organised by IR.

Management regularly reviews sustainability risks and opportunities alongside enhancing our business practice sustainability performance and disclosure transparency. In recognition of our efforts, the REIT received two prestigious awards at The Global Good Governance Awards 2021 - a Platinum award for the 'Best Corporate Communications and Investor Relations' and a Silver award for the 'Best Governed and Transparent Company' categories.

The Board is confident that the Directors act in good faith and exercise due diligence and care in the discharge of their duties. Please refer to Corporate Governance section of this annual report for more details about corporate governance practices at the REIT.

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