Our approach to environmental issues is to constantly evaluate and ensure the climate-resilience of our existing portfolio and factor climate-related risks and opportunities into new acquisition decisions.
We believe a low-carbon portfolio is central to maintaining the REIT’s competitive edge in the marketplace. The demand for green commercial space grows in line with the Paris Agreement’s goal of limiting global warming to well below 2 degrees Celsius (“°C”) and preferably 1.5°C by 2030 and reach net zero carbon emissions by 2050.
The UK has also set its aspirations to achieve net zero greenhouse gas (“GHG”) emissions by 2050. As over 90% of our portfolio is leased to the DWP, the UK’s largest public service department responsible for welfare, pensions and child maintenance for over 20 million claimants, our environmental strategy is therefore aligned with the UK’s national climate agenda. As the REIT is listed in Singapore, we are also supportive of the Singapore Green Plan 2030, a national plan to advance Singapore’s national agenda on sustainable development.
We believe that climate resilience will play an increasingly critical role in asset valuation, the cost of capital and insurance. Hence, our aspiration is to have a net zero carbon emission portfolio by 2050.
Since most of our entire portfolio is let out on full repairing and insuring (“FRI”) basis, we do not have operational or management control of our buildings in terms of day-to-day management and consumption of energy and water or waste management. We, therefore, operate a three-pronged environmental strategy and management approach: mitigate climate-related physical risks and transition risks in our portfolio, upgrade assets to leverage the growing demand for low-carbon commercial spaces, and engage with our primary occupier to monitor the environmental performance of our buildings.
Our climate-related governance, strategy, risk management and metrics and targets are reported based on the TCFD Recommendations.
*EPC refers to Energy Performance Certificate. You may refer to page 93 of the Sustainability Report 2022 for more information.
We are committed to nurturing an inclusive and supportive workplace where our people can perform to the best of their abilities. This also feeds into our aim of attracting, developing and retaining talented professionals, which is vital for creating value for the REIT and its stakeholders. As such, our workplace policies promote active engagement, open communication, mutual trust, respect and teamwork, as well as personal and professional development.
The Manager remains committed to upholding the highest governance and ethical conduct standards.