Climate change remains a critical issue for real estate companies as the sector is not only a major contributor to greenhouse gas emissions, but also highly exposed to both the short- and long-term physical, regulatory, and financial risks associated with a changing climate. The Company therefore views climate adaptation and greenhouse gas emission reduction as strategic imperatives, and focuses on taking proactive measures to safeguard long-term asset value and reduce risks for all stakeholders in the face of a changing climate.

Respect for human rights is a cornerstone of inclusive communities, sustainable development, and long-term business success. In today’s world, where the demand for equitable, cohesive, and resilient living environments continues to grow, the real estate industry experiences both challenges and opportunities. The Company recognizes that it is imperative to integrate human rights considerations throughout all business activities to ensure these rights are consistently respected and protected.

Trusted, transparent, and ethical business practices, underpinned by robust risk management, are essential for building resilience in the real estate industry. As such, corporate governance, ethics, cybersecurity, risk management, and regulatory compliance have become increasingly critical in the face of rapid regulatory changes and rising stakeholder expectations around business accountability. The Company recognizes that strengthening its internal processes and systems — particularly in the areas of governance, ethics, cybersecurity, risk management, and compliance — is utmost essential.

Biodiversity and water are fundamental to the resilience of ecosystems and the long-term viability of both human and economic activities. Healthy ecosystems play a crucial role in regulating the climate, ensuring resource availability, and supporting community well-being. It is hence essential to take decisive action to reduce ecological footprints, prevent biodiversity loss, and implement robust water efficiency strategies.

As societies face increasing physical, mental, and environmental challenges, the importance of promoting holistic well-being has become more critical than ever. In the real estate industry, where construction activities, asset design, and property management can affect human health and quality of life, the absence of effective health and safety measures can result in significant adverse outcomes. It is thus essential to emphasize a strong commitment to advancing stakeholder well-being – not only to ensure compliance with legal and regulatory requirements, but also to underpin the long-term success and positive impact of health and safety programs.

Effective supply chain engagement is critical for driving sustainability, enhancing resilience, and fostering long-term value across the real estate industry. The Company recognizes that poor supply chain management can present significant risks to the business, including project delays from unreliable suppliers, reputational damage from unethical labor practices, increased greenhouse gas emissions, and adverse impacts on the environment and local communities. Responsible supply chain management is therefore essential to help mitigate these risks.

Effective resource management is essential to developing resilient and sustainable properties. Given the potential for the Company’s construction and operational activities to contribute to high consumption of material use and energy, along with waste generation and inefficient resource use, prioritizing effective resource and waste management is essential for mitigating risk and supporting long-term sustainability.

In an era shaped by rapid technological advancement, growing socio-economic disparities, and evolving expectations from communities and customers alike, fostering inclusive growth, lifelong learning, an innovative mindset, and robust stakeholder engagement is more critical than ever. Thus, the Company recognizes that while its operations and decisions may carry certain risks, they also present valuable opportunities to create positive changes, foster shared value and deliver sustainable, long-term outcomes for all stakeholders.

Sustainable finance and investment are becoming increasingly integral to real estate companies as they respond to evolving market expectations, regulatory developments, and the urgent need to decarbonize the built environment. The Company recognizes the critical importance of integrating ESG principles into its investment decision-making. Also, prioritizing green building certifications and green financing mechanisms will be key to developing more sustainable assets, delivering long-term value for stakeholders, and mitigating climate-related and other risks of the Company.