Sustainability

The Company recognizes that innovation and technological advancements can affect sustainability and alter customer preferences and behaviors. Failing to embrace new technologies and innovation could exacerbate environmental and social impacts of the Company’s business activities or hinder its mitigations for these impacts. Therefore, the Company is committed to integrating innovative solutions into its business strategies to align with its sustainability goals and respond to evolving needs and the behaviors of customers. The Company also nurtures a culture of innovation among employees and business partners.

The Company is aware that poor management of materials and supply chains can negatively affect resource consumption and increase the ecological footprint of its products and services. The Company is also aware that suppliers have undoubtedly been integral to the growth and success of businesses. In this regard, the Company is focusing on a safe production process and the procurement of materials that comply with quality standards while being environmentally and socially friendly. This reflects the Company’s commitment to responsible supply chain management throughout the procurement process and supplier engagement.

Communities and customers, as key stakeholders, play a crucial role in shaping business conduct and encouraging greater responsibility towards society and the environment. Furthermore, they provide valuable and honest feedback, which is invaluable for enhancing products, services, and sustainability initiatives, ultimately leading to better outcomes and more substantial contributions to sustainable development. With this awareness, the Company places great importance on the needs, feedback, opinions, and expectations of its communities, customers, and tenants by committing to fostering strong relationships through community development and customer-related initiatives.

The Company recognizes that developing buildings to be capable of withstanding extreme weather events and environmental changes is crucial. Therefore, the Company is committed to developing resilient properties by adapting to climate change and implementing strategies to manage climate-related risks. Moreover, the Company is focused on identifying opportunities arising from climate change to support its goal of becoming a more resilient and sustainable organization.

The Company realizes that biodiversity is crucial for supporting ecosystem resilience, habitat stability and resource availability, which are fundamental to sustainability. Thus, the Company is committed to reducing its environmental impact, particularly on ecosystems and biodiversity, by establishing internal requirements to mitigate risks and impacts on biodiversity. Meanwhile, it is also dedicated to implementing programs that create long-term positive impacts on biodiversity to ensure that all projects coexist harmoniously with the environment, ecosystem, and surrounding communities.

The Company realizes that as people encounter emerging problems and unforeseen events that heighten the risk of new or recurring health problems, the significance of health and well-being remains a critical concern. Given that business activities in the real estate sector, including construction activity and property management, present various occupational health and safety challenges – ranging from minor injuries to illnesses and fatalities – the Company places a strong emphasis on safeguarding the health and safety of employees and contractors.

The Company is aware that robust risk management is essential for minimizing the potential adverse impacts of its activities across the value chain and enhancing the Company’s ability to handle unforeseen changes and challenges. The Company is therefore committed to prioritizing risk management and opportunity management. The clarity and transparency of our policies and procedures are crucial in preventing potential organizational risks. This ensures strict adherence to good corporate governance principles, as well as compliance with relevant laws and regulations.

The Company recognizes that business activities related to energy and fuel consumption, driven by ongoing industrialization and urbanization, may further contribute to climate change. Therefore, the Company is committed to ensuring the efficient energy consumption throughout its business activities across the value chain. The Company has developed a comprehensive plan to minimize greenhouse gas emissions from all business units in order to drive its goal of becoming a net-zero carbon organization by 2050. To support this goal, the Company has also set a near-term target of a 42% reduction in greenhouse gas emissions by 2030, using 2021 as the baseline. This target has been validated by the Science Based Targets Initiative (SBTi) on 12 September 2024.

The Company recognizes that it must conduct its business activities with respect for human rights, as these rights are essential to all human beings and to sustainable development, including the Sustainable Development Goals (SDGs). Therefore, the Company is committed to respecting the human rights of all stakeholders, mitigating human rights risks, preventing human rights violations and providing remedies for those affected.

Given the risks and impacts that environmental and social issues impose on businesses, the surrounding environment, communities, and stakeholders, there is an imperative need for a new investment strategy to guide business operations and decision-making processes. The development of buildings with reduced environmental and social impacts could present an opportunity for new investors and tenants interested in green buildings, and those who wish to reduce their emissions through a more energy efficient office building. As a leading company in responsible business practices, the Company is committed to integrating responsible investments and sustainability factors into its decision-making strategies for developing high-quality, safe, environmentally friendly, and socially responsible properties that are resilient to climate change and responsive to customer demands.

The Company realizes that real estate companies, with activities ranging from construction to building and property management, are contributors to waste generation, which can cause pollution and negatively affect surrounding environments and communities. Due to this, the Company pays particular attention to waste management across its value chain and recognizes that resources used in its business activities contribute to waste generation.

The Company recognizes that failing to enhance capacity development programs may leave employees across its business activities unable to keep pace with market trends and evolving customer needs, potentially leading to discomfort and anxiety at work. By recognizing these, the Company places great emphasis on human resource management and compliance with regulatory requirements to mitigate potential risks related to employee development and legal violations.

The Company is well aware that water is a crucial resource and integral to the business operations of all sectors, including the real estate sector. However, their business activities across the value chain pose a risk of creating adverse impacts on water resources through excessive water consumption, which may result in public water scarcity or conflicts with surrounding communities. The Company is hence committed to water stewardship by prioritizing water conservation initiatives and improving the efficiency of water consumption across all business activities throughout the value chain. Also, the Company always emphasizes the efficient water usage across the value chain to generate long-term positive impacts for the environment and its stakeholders, especially the surrounding communities.