ESG VISION 2030
Environmental, social and governance (“ESG”) is a societal imperative as well as one of the greatest commercial opportunities for OUE REIT. According to the National Climate Change Secretariat, nearly 40% of all carbon emissions come from the building and construction sectors. Without intervention, this will further accelerate climate change and could have significant financial implications on our assets in Singapore and Shanghai. At the same time, tenants are setting more aggressive ESG targets. To remain competitive in the market and capitalise on the “flight-to-green” trend, we must also ensure that our assets align with the tenants’ ESG goals. As one of the largest diversified REITs listed on the Singapore Stock Exchange, OUE REIT is dedicated to advancing sustainability while delivering stable distribution and providing sustainable long-term growth to our investors. Since we began reporting on our performance in 2017, we have made significant progress to achieve both. To commemorate our 10th Anniversary this year, and with the support of our Sponsor, OUE Limited, OUE REIT is pleased to share our recalibrated ESG targets. By enhancing the sustainability performance in our operations, we also ensure our efforts benefit both the environment and stakeholders. The path to decarbonisation is not easy, but we invite you all to join us on this journey. Together, we can create a brighter, greener future for generations to come. Strengthening our ESG Commitment Chief Executive Officer and Executive Director Han Khim Siew
OUE REIT is committed to embedding sustainability into our operations and working towards building a sustainable future for all our stakeholders. We are guided by our sustainability framework which defines three key areas of focus: Environmental Stewardship, Strengthening Social Fabric, Building Trust Reducing environmental impact of our buildings Stewarding the Environment Creating social environments that generate positive changes for our stakeholders, including our employees, tenants, suppliers and the community Strengthening Social Fabric Maintaining a strong culture of ethics and compliance Building Trust
2023 KEY HIGHLIGHTS c.70% of OUE REIT's total borrowings are sustainabilitylinked loans c.96% of OUE REIT's portfolio are green certified Rating obtained in the Global Real Estate Sustainability Benchmark ("GRESB") assessment 3-Star WEPs (1) As of 31 December 2023 (2) Based on asset valuations as at 31 December 2023 and OUE REIT's proportionate interest in the respective properties signatory since 22 June 2023
10 YEAR & BEYOND - Actively pursue opportunities in renewable energy use 90% green financing by FY 2030 Reduce water intensity by 25% for commercial assets (2) Reduce 40% absolute GHG emissions by FY 2030 (1) OUR RECALIBRATED ESG TARGETS Reduce non-hazardous waste at commercial properties by 15%(2) Increase recyling rate to c.13% by FY 2030 (2) 1) Compared to base year FY 2023 2) Compared to base year FY 2017 Stewarding the Environment
10 YEAR & BEYOND - OUR RECALIBRATED ESG TARGETS Strengthening Social Fabric 25% of women represented on the Board of Directors 40% of employees in senior management are women Achieve average 30 training hours per employee Include specific ESG-related trainings Achieve > 70% employee engagement score Achieve > 85% of employees' participation in the annual engagement survey Organise at least 2 community service events
10 YEAR & BEYOND - OUR RECALIBRATED ESG TARGETS Maintain zero incidents of corruption No incidents of noncompliance with laws and/or regulations No cyber incidents or data breaches Achieve at least 80% tenant satisfaction rate in relation to commercial properties Receive zero complaints of discrimination observed in our business Building Trust
Learn more: www.ouereit.com
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