LAYING FOUNDATIONS FOR THE NEXT PHASE OF GROWTH
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.
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
- 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.
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
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
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
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.
To access the full Sustainability Report, please click here.