Energy and Carbon Emissions

In keeping with Singapore’s commitment and as part of the Paris Agreement to reduce carbon emission intensity by 36% from 2005 levels by 2030, ESR-REIT aspires to be one of the Greenest Industrial REITs in Asia. The Manager commits to achieving 5% savings y-o-y in energy use per unit GFA – Energy Utilisation Index (“EUI”) over the next 5 years period from 2016 to 2020. Specific actions taken to achieve this are: conversions to LED lights, modernisation of lifts, installation of motion sensors, and usage of in-house solar energy harvested as an alternate source of energy. By the end of 2016, eight properties were already equipped with solar energy harvesting facilities, many of which were commissioned during FY2015. Usage of solar energy has tripled in comparison to FY2015, resulting in cost savings of $750,000 (double the cost savings in FY2015) and reduction of carbon emissions by 927,237 kgCO2 e emissions. Going forward, the Manager will continue to explore installation of solar panels on more of CIT’s buildings and engage in AEIs with efficient and sustainable materials.

Water Stewardship

Access to clean fresh water is becoming increasingly important in today’s world. Singapore’s government places great importance on the efficient use of water, as reflected in one of the key goals as part of the latest budget cycle and in the Singapore’s sustainability blueprint targets for year 2030. In line with the national efforts towards water conservation, the Manager has embarked on water efficiency initiatives and targets to achieve Water Efficient Building (“WEB”) certifications for all upgraded toilet facilities in its properties by the end of 2017. As at 2016, the toilet facilities of 10 or 40% of ESR-REIT’s Multi-Tenanted Buildings (MTB) properties have been upgraded. Eight of these MTBs have been already awarded with WEB, and two more are still in the process of obtaining the certification. As a result of these efforts, total municipal water consumption was 55,079 m3, registering an approximate decrease of 28% as compared to FY2015’s levels. The Manager will continue to embark on water reduction and conservation plans especially in light of the latest Singapore budget announcement on the substantial increase in water tariffs.

Waste Management

Playing its part to achieve the national recycling target of 70% by 2030, the Manager believes in the importance of reinforcing the values of recycling, reusing and reducing waste to all its stakeholders, including employees, tenants and visitors to ESR-REIT’s buildings.

At the Manager’s own office, employees practice responsible habits such as recycling whenever possible, segregating plastics from general waste, disposing of electrical and IT-related hardware through the building’s e-waste collection bins and printing less by printing with single ink and doublesided pagination default setting.

At ESR-REIT’s buildings, a total of 4.4 tonnes of waste were recycled in 2016 since the roll-out of the recycling program to the tenants. In the same year, there were also no incidents of non-compliance with waste disposal laws and regulations.