Ascendas REIT - Annual Report 2021

Corporate Governance The Board of Directors (Board) sets the tone from the top and is responsible for the Manager’s corporate governance standards and policies, underscoring their importance to the Ascendas Reit Group. This corporate governance report (Report) sets out the corporate governance practices for the financial year (FY) 2021 with reference to the Code of Corporate Governance 2018 (Code). Throughout FY2021, the Manager has complied with the principles of corporate governance laid down by the Code and also, substantially, with the provisions underlying the principles of the Code. Where there are deviations from the provisions of the Code, appropriate explanations are provided in this Report. This Report also sets out additional policies and practices adopted by the Manager which are not provided in the Code. Ascendas Reit has received accolades from the investment community for excellence in corporate governance and corporate governance-related efforts. In FY2021, Ascendas Reit was ranked third in the REITs and Business Trusts category on the Singapore Governance and Transparency Index (SGTI). Ascendas Reit also received the Special Edition Corporate Excellence and Resilience Award (for market capitalisation of S$1 billion or more category) at the Singapore Corporate Awards 2021. At the Securities Investors Association (Singapore) (SIAS) Investors’ Choice Awards 2021, it was awarded Runner-up for the Singapore Corporate Governance Award in the REITs and Business Trusts category. As testament to our commitment to environment, social and corporate governance, Ascendas Reit scored ‘A’ for public disclosure for GRESB 1 2021. Ascendas Reit has been included by SGX in the Fast Track Programme list. The scheme recognises listed companies with good governance standards and compliance practices, and accords prioritised clearance for selected corporate-action submissions. BOARD MATTERS Principle 1: The Board’s Conduct of Affairs Board’s Duties and Responsibilities The Board oversees the strategic direction, performance and affairs of the Manager, in furtherance of the Manager’s primary responsibility to foster the success of Ascendas Reit so as to deliver sustainable value over the long term to Unitholders. It provides overall guidance to the management team (Management), led by the Chief Executive Officer (CEO). The Board works with Management to achieve Ascendas Reit’s objectives and long-term success and Management is accountable to the Board for its performance. Management is responsible for the execution of the strategy for Ascendas Reit and the day-to-day operations of Ascendas Reit’s business. The Board establishes goals for Management and monitors the achievement of these goals. It ensures that proper and effective controls are in place to assess and manage business risks and compliance with requirements under the Listing Manual, the Property Funds Appendix, as well as any other applicable guidelines prescribed by the SGX- ST, MAS or other relevant authorities, and applicable laws. It also sets the disclosure and transparency standards for Ascendas Reit and ensures that obligations to Unitholders and other stakeholders are understood and met. 1 GRESB is an industry-led organisation that provides actionable and transparent environmental, social and governance (ESG) data to financial markets. Ascendas Reit 112