EXPANDING STRENGTHS ENHANCING RESILIENCE
ESR- REIT
SUSTAI NABI LI TY REPORT 2025
About Us
VISION
To be a leading Real Estate Investment Trust with a portfolio of quality industrial assets.
MISSION
To deliver stable returns, and long-term capital growth to our Unitholders
To develop a resilient and balanced portfolio through strategic investment of quality assets, proactive asset management of our properties, and prudent capital and risk management
To operate with credibility for the benefit of our Unitholders, tenants, employees, partners and other stakeholders within the communities in which we do business
ABOUT ESR-REIT
ESR-REIT is a leading New Economy and future-ready Asia-Pacific S-REIT. Listed on the Singapore Exchange Securities Trading Limited since 25 July 2006, ESR-REIT invests in quality income-producing industrial properties in key gateway markets.
As at 31 December 2025, ESR-REIT holds interests in a diversified portfolio of logistics properties, high-specifications industrial properties, business parks and general industrial properties with total assets of approximately S$5.9 billion. Its portfolio comprises
70 properties (excluding 48 Pandan Road held through a joint venture) located across the developed markets of Singapore (50 assets), Australia (18 assets) and Japan (2 assets), with a total gross floor area of approximately 2.4 million sqm, as well as investments in three property funds in Australia.
ESR-REIT has been assigned a 'BBB' rating with a 'Stable' outlook by Fitch Ratings, and is a constituent of the FTSE EPRA Nareit Global Real Estate Index, iEdge Singapore Next 50
Index, and iEdge Singapore Next 50 Liquidity Weighted Index. ESR-REIT is managed by ESR-REIT Management (S) Limited (the "Manager") and sponsored by ESR Group Limited ("ESR"). The Manager is owned by ESR (99.0%) and Shanghai Summit Pte. Ltd. (1.0%), respectively.
For further information on ESR-REIT, please visit https://www.esr-reit.com.sg.
Contents ESR-REIT SUSTAINABILITY REPORT 2025
ABOUT THIS REPORT
BOARD STATEMENT
PERFORMANCE REPORT
8 SUSTAINABILITY GOVERNANCE
8 Governance Structure
10 Stakeholder Engagement
12 Our Material Factors
15 ECONOMIC
15 Material topic: Investment Management - Quality Assets and Services
20 Material topic: Tenant Engagement and Satisfaction
22 ENVIRONMENTAL
22 Material topic: Energy and Carbon Footprint
26 Material topic: Climate Change Adaptation
30 Material topic: Water
32 Material topic: Waste
34 SOCIAL
34 Material topic: Employee Engagement and Satisfaction
35 Material topic: Diversity and Equal Opportunity
37 Material topic: Health and Safety
39 Material topic: Supply Chain Management
40 Material topic: Community
42 GOVERNANCE
42 Material topics: Governance, Enterprise Risk Management, and Regulatory Compliance
44 Material topics: Cybersecurity and Data Privacy
45 Appendix A: Methodology Summary
47 Appendix B: ESG Data Summary
52 Appendix C: GRI Content Index
60 Appendix D: SASB Content Index
62 Appendix E: Assurance Statement
About This Report
ESR-REIT SUSTAINABILITY REPORT 2025
OUR SUSTAINABILITY REPORT 2025
This Sustainability Report is a summary of ESR-REIT's Environment, Social and Governance ("ESG") management, targets and performance for the financial year ending 31 December 2025. As at 31 December 2025, our portfolio comprises 50 properties in Singapore, 18 properties in Australia and two properties in Japan. For the complete list of properties in the portfolio, please refer to pages 60 to 67 of the Annual Report.
In alignment with our Sponsor, ESR Group's ESG data scope and reporting boundary, the Environmental data disclosed in this report relates to the Multi-Tenanted Buildings ("MTBs") which the Manager has operational control over.
The Economic, Social and Governance data relates to the Manager's operations and employees. For a holistic
understanding of the REIT's performance and sustainability efforts, please refer to our Annual Report in conjunction with this Sustainability Report.
ESR-REIT's Board of Directors (the "Board") and Board Sustainability Committee ("BSC") have reviewed and approved the report. The report was prepared referencing the following standards, frameworks and regulations, where applicable:
In accordance with Global Reporting Initiative ("GRI") Universal Standards 2021
Climate-related provisions in International Financial Reporting Standards ("IFRS") S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, including Industry-based Guidance derived from the Sustainability Accounting Standards Board ("SASB") Standards for Real Estate
Singapore Exchange Securities Trading Limited's ("SGX-ST") Listing Rules 711A and 711B with Practice Note 7.6 and 27 Core Metrics
Monetary Authority of Singapore's ("MAS") Guidelines on Environmental Risk Management for Asset Managers
United Nations Sustainable Development Goals ("UN SDGs")
This report aligns with the GRI Universal Standard 2021 to enable global consistency and comparability. We are progressively aligning our sustainability report to IFRS
standards starting with climate-related disclosure referencing IFRS S2 requirements. This year, we analysed the current
and potential financial impacts of the climate-related risks quantified in the FY2024 report. For details on climate-related disclosures, please see pages 26 to 29 of this report.
PricewaterhouseCoopers LLP, an independent external assurance provider, was engaged to provide limited assurance on selected key environmental data, including energy intensity, water intensity and solar capacity. The assurance covers the reporting period of 1 January 2025 to 31 December 2025
and was conducted in accordance with International Standard on Assurance Engagements - Assurance Engagements Other Than Audits or Reviews of Historical Financial Information ("ISAE 3000"). The Assurance Statement prepared by PricewaterhouseCoopers LLP can be found in Appendix E.
Restatement of information
Guided by our Renewable Energy Management Policy, all landlord renewable energy claims are required to retire the equivalent renewable energy certificates ("RECs"). This transition from simple solar energy attribution via Power Purchase Agreements to verified certificate retirement, eliminates the risk of double-counting and ensures our environmental impact is transparent, unique, and fully audited. In turn, we reviewed our FY2023 and FY2024 renewable energy consumption and emissions and have restated the following:
Landlord solar consumption: In FY2023, landlord solar consumption based on the number of retired renewable energy certificates is 2,618.0 MWh instead of 3,179.7 MWh.
Solar consumption in Japan: In FY2024, energy consumption in Japan attributed to solar consumption is 0 kWh instead of 51,158.7 kWh.
Scope 2 Market-based emissions and emission intensity: Based on the above-mentioned changes to solar consumption in FY2023 and FY2024, the corresponding market-based emissions and emission intensity for the two years have changed respectively.
Please refer to the respective sections for further information on the restatement.
Feedbacfi
We publish our progress annually and value your feedback on our reporting, approach and performance. Please share your thoughts and suggestions at enquiry@esr-reit.com.sg
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Board StatementDear Stakeholders,
FY2025 was a year where we achieved new milestones and meaningful progress in our ESG journey. Building on initiatives started in FY2023, we are proud to share our achievements which demonstrate continuity and our ongoing commitment to embed ESG objectives into our decisions and operations
to enhance our value proposition to investors and the communities we serve.
Acceleration of ESG agenda against global slowdown in sustainability momentum
The global economy remained cautious in FY2025 amid significant interest rate volatility and subdued growth affected by trade disruptions linked to shifting U.S. policies. On the sustainability front, there were headwinds as sustainability momentum slowed with U.S. retreating from certain international climate commitments. This led to many
organisations dialling back on their sustainability commitments made previously.
Against this global slowdown in ESG momentum, we however accelerated our ESG agenda, in line with other Singapore Real Estate Investment Trusts ("S-REITs"). We continued to
enhance our global portfolio by expanding our efforts to cover our overseas portfolios in Australia and Japan in FY2025. We continue to develop, refresh and execute decarbonisation plans for our portfolios and to improve sustainability-related disclosures to meet the evolving regulatory requirements.
Preparing for climate risfi financial reporting The BSC was established in FY2024 to strengthen governance and guide the management on sustainability and
climate-related risks. As a listed entity, there are requirements
to disclose climate-related information under the IFRS Sustainability Disclosure Standards, providing more granular transparency on governance oversight and the financial materiality of climate impact.
In FY2024, we modelled the impact of material physical and transition risks most relevant to our financial performance. This year, we undertook a systematic assessment of the actual
and potential financial effects of these risks over the short-, medium- and long-term. This assessment confirmed that no significant changes to our business strategy or financial planning are required for the current reporting period.
ESR-REIT SUSTAINABILITY REPORT 2025
Expanding our decarbonisation roadmap and targets
We developed our first decarbonisation roadmap for the Singapore portfolio in FY2024 and by the end of FY2024, 28.0% of our Singapore properties had obtained Green Building Certificates. Beyond Singapore, we expanded efforts for the monitoring and reporting to cover our overseas portfolios and developed decarbonisation roadmaps for Australia and Japan. By the end of FY2025, 60.9% of our global portfolio by gross floor area had achieved Green Building Certificates. Building
on this success, we are reviewing our targets to ensure consistency across all markets and to develop new ones as targets are progressively being achieved.
Recognising our sustainability performance ESR-REIT has performed well in FY2025. This is reflected in our improved score from the Global Real Estate Sustainability
Benchmark ("GRESB"). We achieved a score of 82 for the
Standing Investments Assessment and attained a 3-star rating, a marked improvement from the score of 73 and a 2-star rating in FY2024. This demonstrates the efforts of the team's performance and continued execution of the long-term ESG strategy for ESR-REIT.
We have started the journey of digitalising our reporting process through the installation of smart meters at our properties and will continue to leverage on technology to strengthen and streamline data collection and reporting efforts. Our sustainability efforts remain aligned with our mission to deliver stable and long-term value to our stakeholders and Unitholders.
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