Mapletree Pan Asia Commercial Trust : Sustainability Highlights

Mapletree Pan Asia Commercial Trust

SUSTAINABILITY HIGHLIGHTS

BOARD STATEMENT

Dear Stakeholders,

We are pleased to present MPACT's Sustainability Report ("SR") for FY23/24. In this report, we detail our environmental, social and governance ("ESG") journey and achievements in FY23/24. Our ESG approach is anchored in four key pillars: safeguarding against the impact of climate change, enhancing social value in our workplace and community, upholding high ethical standards and building a resilient business. Each of these pillars plays a crucial role in our strategy, underscoring our commitment in creating sustainable value for all our stakeholders.

Safeguarding Against the Impact of Climate Change

Our primary ESG focus has been to address the significant impact of the real estate sector, which contributes approximately 40% to global CO2 emissions.1 Driven by the ambition to reach "Net Zero by 2050" - a goal aligned with the Paris Agreement and Singapore's net zero goals, we have integrated decarbonisation efforts into our day-to-day-operations.

As a start, we have been conducting a detailed net zero study and are developing a decarbonisation roadmap. On climate risk assessment, we have completed the onboarding of a third-party climate risk analysis tool and conducted a climate scenario analysis on our portfolio assets to highlight the potential impacts of climate change on our businesses and align with the Task Force on Climate-related Financial Disclosures approach.

We accelerated the greening of MPACT's entire portfolio. Initiatives this year include expanding our solar energy

capacity, directly reducing emissions and fortifying climate resilience. We also undertook a phased implementation of an environmental data management system with the wider Mapletree Group, starting from the Singapore properties. When completed,

the system will help to better identify areas of improvement and measures for further emissions reduction. We have also extended our carbon accounting to include Scope 3 emissions to obtain a more complete perspective of our carbon footprint. These efforts have earned us a fourth consecutive "A" rating in the 2023 GRESB Assessment and a "Five Star" GRESB rating in FY23/24, up from "Three Star" last year.

Enhancing Social Value in Our Workplace and Community

We believe in the importance of community and stakeholder engagement. This year, we conducted an online seminar for tenants to promote efficient resources such as energy

and water as well as waste management. We also organised tenant engagement events focused on water conservation in Gateway Plaza and Sandhill Plaza, and participated in global events such as Earth Day, Earth Hour and World Water Day.

Our people matter to us. In FY23/24, we conducted a staff engagement survey of all employees to share their thoughts and feedback about working at MPACT. The survey results were aggregated to help us identify areas for improvement and guide appropriate follow-up actions. The survey saw a 99% response rate with 77% of the surveyed employees reported being engaged, an improvement from the 71% achieved during the previous survey carried out three years ago.

Upholding High

Ethical Standards

The Board oversees the management and monitoring of material sustainability matters for MPACT and ensures that they are integrated into our business strategy. In FY23/24, the Board reviewed the existing 12 material sustainability matters and confirmed their continued relevance to MPACT's operations and stakeholders.

Our sustainability practices are guided by the Mapletree Group and specifically led by the Mapletree Group's Sustainability Steering Committee and management teams. As a responsible REIT manager, our sustainability approach, policies and practices emphasise responsible stewardship. We believe that sustainability is not just ethical, but integral in enhancing MPACT's competitive edge, talent attraction and retention, and corporate integrity. We also ensure that accountability is cascaded across the organisation by continuing to link ESG-related performance metrics to the remuneration of our employees.

Building a Resilient Business

We remain committed to delivering long-term value to our stakeholders. We do so by maintaining high asset quality through ongoing asset management efforts, underpinned by our proactive capital management strategy. Our focus on incorporating green financing into our management strategies is a reflection of our dedication to building a resilient and sustainable portfolio.

With the support of our stakeholders, we will continue to make strides in creating a more sustainable future, marked by mutual collaboration and shared success.

Board of Directors

1 Source: Architecture 2030, a non-profit,non-partisan and independent organisation established in response to the ongoing climate emergency. Please refer to https://www.architecture2030.org/why-the-built-environmentfor more information.

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Overview

Performance

Sustainability

Governance

Financials

SUSTAINABILITY HIGHLIGHTS

FY23/24 KEY SUSTAINABILITY HIGHLIGHTS

Achieved a	Successfully maintained	Morningstar Sustainalytics
Five-Star rating	our GRESB Public
ESG Risk Rating
	Disclosure
in the 2023 GRESB Real Estate Assessment	13.1
"A" rating
	for the fourth consecutive	Low Risk
	year since 2020	Low	High

Progressing Towards Net Zero by 2050

Achieved

100%

green certification

across our portfolio

12.2% and 11.5%

Like-for-like1 energy and water intensity reduction from the FY19/20 baseline2

Generated 4,111 MWh of

solar energy, equivalent to powering

Mapletree

Anson for

one year3

Reduced over

2,872

tonnes of CO2e,

comparable to removing approximately 684 gasoline- powered passenger vehicles for a year4

Green financing	13%
takes up about
36%	of our portfolio
(by lettable area)
of MPACT's group	has implemented
borrowings
green leases

Planted

1,148 trees

as part of Mapletree Group's broader goal to plant at least 10,000 trees in FY23/24

Commitment Towards Social Responsibility and Strong Governance

59%

female

representation in MPACT's management5

Sevencorporate

social responsibility ("CSR") events participated by

employees

Approximately

S$608,000

of venue and publicity sponsorships provided

53 average training hours

per employee in FY23/24

Zero Zero Completed

incidents of	material incidents	review of SR practices
non-compliance	of non-compliance	by internal audit
with anti-corruption	with relevant laws
laws and regulations	and regulations

1. Properties covered in the like-for-like reporting excluded properties acquired or divested after the baseline year FY19/20. Accordingly, MBC II (acquired by MCT in FY19/20), Omori and MBP (both acquired by MNACT in FY19/20) are excluded. In addition, to provide a more reflective comparison of MPACT's performance, the period of Festival Walk mall closure from 13 November 2019 to 15 January 2020 ("Festival Walk Closure Period") was excluded for FY19/20 as well as the corresponding period in FY23/24.
2. FY19/20 has been selected as the baseline for FY23/24 targets as the performance in FY22/23, FY21/22 and FY20/21 was not fully representative nor comparable to a normal operating year given COVID-19 disruptions.
3. Relates to landlord's electricity consumption.
4. The calculation is from United States Environmental Protection Agency: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator#results.
5. Refers to employees of the Manager who hold positions of Vice President and above.

Annual Report 2023/24

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