Our environmental management approach is to constantly evaluate and ensure climate-resilience of our existing portfolio and factor climate-related risks and opportunities in new acquisitions.
Our assets are primarily occupied by the Department for Work and Pensions (“DWP”), the UK's largest public service department responsible for welfare, pensions and child maintenance for over 23 million claimants. It is noteworthy that the UK Government has set a national target of achieving net zero greenhouse gas ("GHG") emissions by 2050 in line with the Paris Agreement. Our environmental strategy is aligned with the UK's national climate agenda. We are also supportive of the Singapore Green Plan 2030, a national plan to advance Singapore's national agenda on sustainable development.
We believe a low carbon and climate-ready portfolio is central to maintaining the REIT's competitive edge in the marketplace as the demand for green commercial spaces grows to meet the Paris Agreement's goal of limiting global warming to well below 2 degree Celsius ("°C") and preferably 1.5°C by 2030 and reach net zero carbon emissions by 2050. We also believe that climate resilience will play an increasingly critical role in asset valuation and the costs of capital and insurance. Our aspiration is to have a net zero carbon emission portfolio by 2050.
Our entire portfolio is let out on a full repairing and insuring (“FRI”) basis, meaning we do not have operational or management control of our buildings in terms of day-to-day management or utilities' consumption. Therefore, our environmental strategy is three-pronged: mitigate climate-related physical risks and transition risks to our portfolio, upgrade assets to leverage on the growing demand for low carbon commercial space, and engage with our primary occupier to monitor the environmental performance of our buildings.
Our climate-related governance, strategy, risk management as well as metrics and targets are based on the Task Force on Climate-related Financial Disclosures (“TCFD”) Recommendations. Read more about our TCFD Report in pages 90 to 94 in our inaugural Sustainability Report 2021.
*EPC refers to Energy Performance Certificate. You may refer to page 91 of the Sustainability Report 2021 for more information.
The Manager is committed to attracting, developing and retaining talented professionals to create value for the REIT and its stakeholders. It is vital for us to nurture an inclusive and supportive workplace where our people can perform to their best. Our workplace policies promote active engagement, open communication, mutual trust, teamwork as well as personal and professional development.
The Manager remains committed to upholding the highest governance and ethical conduct standards.