Sustainability Reports

Ascendas Real Estate Investment Trust (Ascendas Reit or the Trust) is Singapore's first and largest listed business space and industrial Real Estate Investment Trust (REIT), and has presence in Singapore, Australia, the United Kingdom (UK) / Europe and the United States of America (USA). As at 31 December 2021, Ascendas Reit had a customer base of around 1,570 local and international companies across a wide range of industries.

Between 2013 and 2017, Ascendas Reit published five sustainability reports. In 2018, it improved its report by incorporating elements of the Integrated Reporting (IR) Framework of the International Integrated Reporting Council and renamed its report as 'Integrated Sustainability Report'. This is Ascendas Reit's fifth Integrated Sustainability Report. The report provides updates on its Environmental, Social, and Governance (ESG) performance.

INTERNATIONAL STANDARDS AND GUIDELINES

This report has been prepared in accordance with the Singapore Exchange Securities Trading Limited's (SGX-ST) Listing Manual Rules 711A and 711B, Global Reporting Initiative (GRI) Standards: Core option, and GRI's Construction & Real Estate Sector Supplement (CRESS). The GRI Standards have been selected as it is an internationally recognised reporting framework that covers a comprehensive range of sustainability disclosures that is relevant to Ascendas Reit's business. This report has also incorporated elements of the Integrated Reporting (IR) Framework of the International Integrated Reporting Council, and Sustainable Development Goals (SDGs) of the United Nations. This year, Ascendas Reit has begun taking steps to integrate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in its reporting.

REPORTING SCOPE AND PERIOD

Ascendas Reit, a CapitaLand Investment (CLI)-sponsored REIT, is managed by wholly owned subsidiaries of CapitaLand Investment Limited (the Sponsor), which include Ascendas Funds Management (S) Limited (the Manager) and Asset & Property Managers who are responsible for the Trust and oversee its daily property operations. The Sponsor is a leading global real estate investment manager with a strong Asia foothold and is the listed investment management business arm of the CapitaLand Group (CapitaLand).

Ascendas Reit does not have employees. References to employees in this report refer to employees of the Manager.

This report covers Ascendas Reit's portfolio for the financial period from 1 January 2021 to 31 December 2021, unless otherwise indicated. As at 31 December 2021, Ascendas Reit's portfolio comprises 220 properties (96 in Singapore, 34 in Australia, 49 in the UK / Europe and 41 in USA).

Taking guidance from the operational control approach¹ as defined by the Greenhouse Gas (GHG) Protocol Corporate Standard, environmental performance of 94 properties under operational control have been covered in this report. As at 31 December 2021, about 43% of Ascendas Reit's portfolio was directly under the operational control of the Asset & Property Managers, in terms of Gross Floor Area (GFA).

The multi-segmented portfolio comprised 68% and 32% of multi-tenant and single-tenant properties by asset value respectively. Please refer to pages 62 to 107 of the Annual Report 2021 for the full list of Ascendas Reit's properties.

The Manager has not sought external independent assurance on this report specifically but its Sponsor seeks external assurance on its report, which includes Ascendas Reit's data.

The Manager welcomes all feedback as it enables continual improvement in the sustainability policies, processes, performance and reporting. Please direct your questions and feedback to a-reit@capitaland.com.

1. Ascendas Reit's Manager and its Asset & Property Managers did not have operational control of 126 properties in its portfolio as at 31 December 2021 (this includes three properties (25 Ubi Road 4, 27 Ubi Road 4 and iQuest@IBP) which are under development); hence emissions associated with fuel combustion and purchased electricity are Scope 3. Five properties were divested within 2021, of which two were under the Manager and Asset & Property Manager's operational control up to the point of divestment.

BOARD STATEMENT

At Ascendas Reit, sustainability is at the core of everything we do. We are committed to growing in a responsible manner, delivering long term economic value, and contributing to the environmental and social well-being of our communities. The environmental, social and governance (ESG) factors that are material to our business have been identified and reflected in the CapitaLand 2030 Sustainability Master Plan (2030 SMP), which was launched in 2020, and will be reviewed every two years.

The CapitaLand 2030 Sustainability Master Plan guides our efforts to build a resilient and resource efficient real estate portfolio, which enables thriving and future-adaptive communities, and accelerates sustainability innovation and collaboration. Ambitious ESG targets have been set, which include carbon emissions reduction targets validated by the Science Based Targets initiative (SBTi).

The Board of the Manager of Ascendas Reit (the Board) is responsible for overseeing Ascendas Reit's sustainability efforts, determining the material ESG factors and taking them into consideration in determining Ascendas Reit's strategic direction and priorities. The Board also oversees the management and monitoring of the material ESG factors and approves the executive compensation framework based on the principle of linking pay to performance. The Manager's business plans are translated to both quantitative and qualitative performance targets, including sustainable corporate practices.

Ascendas Reit's sustainability performance is ranked by globally recognised indices, including Solactive CarbonCare Asia Pacific Green REIT Index, the iEdge SG ESG Leaders and iEdge ESG Transparency Indexes. As an industry leader, Ascendas Reit will continue to raise our ambitions in adopting meaningful ESG practices and enhancing sustainability in the industrial real estate sector.

BOARD MESSAGE

Creating Sustainable Value

The COVID-19 pandemic has posed unprecedented challenges to businesses and communities worldwide over the past two years. The introduction of COVID-19 vaccines has helped many nations in their fight against the disease and we have started to see economies recover and borders reopen to international travel.

Ascendas Reit's business remained resilient despite the challenges of the pandemic. We concentrate on the acquisition of good quality and accretive properties while managing capital prudently to create value for all Unitholders. We maintain a welldiversified portfolio in developed markets across different geographic locations and asset classes. Our portfolio of over 1,570 customers across more than 20 industries also reduces customer concentration risk and exposure to any one industry.

Sustainability is central to Ascendas Reit's business strategy. With the introduction of the 2030 SMP, a series of long-term targets have been established across the areas of energy and water usage, carbon emissions, and waste generation. To align with CapitaLand's objective, Ascendas Reit introduced a new long-term target this year - to achieve a minimum green rating for all its existing (owned and managed) properties worldwide by 2030. Green certifications for new acquisitions and developments² would also have to meet the minimum green rating of Green Mark Gold^PLUS in Singapore, while overseas properties would need to obtain certification by a green rating system administered by a national government ministry/agency or a Green Building Council recognised by the World Green Building Council (WGBC)³.

Commitment towards reducing environmental footprint

Building upon the success of the solar installations at six properties in Singapore, additional solar panels were installed at 37A Tampines Street 92, Singapore, in March 2021. This added a further 0.24 GWh of annual solar energy capacity to the existing 11.2 GWh. Ascendas Reit will commence the second phase of solar panel installations in Singapore in 2022.

Ascendas Reit continues to hold the largest number of Building and Construction Authority (BCA) Green Mark building certifications among S-REITs. Our global portfolio includes 49 green-certified properties. Of note, Ascendas Reit completed the development of Grab's Headquarters in Singapore in July 2021, and the property achieved a BCA Green Mark Gold^PLUS certification.

2. Refers to Ascendas Reit's owned and managed properties. If this is not achievable immediately, capital expenditure will be set aside to enhance the properties to attain green certificates in the future.
3. Includes certifications for new building construction, core & shell, design and as-built etc.

Aside from minimising emissions from its properties, Ascendas Reit also encourages our community to reduce their carbon footprint. In 2021, 36 additional EV charging points were installed in Singapore, bringing the total to 76 charging points across 16 properties. Across our global portfolio, there were 227 EV charging points as at 31 December 2021 (31 December 2020: 138).

On the sustainable finance front, we continue to leverage on our Green Finance Framework to improve financial flexibility and resilience. In 2021, Ascendas Reit secured an additional S$811.4 million in green USD and AUD bank loans and entered into an inaugural S$203.0 million (US$150.0 million) green interest rate swap. As at 31 December 2021, Ascendas Reit has approximately S$1.2 billion (~20% of its total borrowings) worth of green financing instruments comprising green bond, green perpetual securities and green loans.

Customer engagement and community involvement

Ascendas Reit strives to foster a sense of community among employees, customers as well as the wider community. Digital outreach events organised by CapitaLand continues to be the main channel of customer engagement. An example is Tabao Thursday Series which features a series of online webinars and workshops covering a wide range of topics on health, wellness, interest groups and festivities. Campaigns were also held via your Workspace Community (yWC) which serves as platform to enable, promote and communicate with customers to build a more vibrant, tight-knit CapitaLand community.

Customers and their staff are provided with opportunities to volunteer alongside the Manager in signature events such as the #GivingAsOne campaign which aims to uplift lives of vulnerable groups through virtual workshops, as well as #LoveOurSeniors which involves packing and delivery of care packs, meals and bread to seniors. The Manager's employees also participated in Temasek Foundation's nationwide mask distribution initiative while the Manager made available Aperia Mall to be one of the venues for mask collection.

Upholding best practices in corporate governance

Good corporate governance is the cornerstone of every business. At Ascendas Reit, we seek to adopt best practices so as to maintain effective leadership, structure and overall culture within the organisation. In October 2021, the Board established a Nominating and Remuneration Committee and also constituted a fully independent Audit and Risk committee.

We were heartened to receive the Special Edition Corporate Excellence and Resilience Award (in the category of companies with market capitalisation of S$1 billion or more) at the Singapore Corporate Awards 2021. Ascendas Reit was also runner-up for the Singapore Corporate Governance Award at the Securities Investors Association (Singapore) (SIAS) Investors' Choice Awards 2021 under the REITs and Business Trusts Category.

For two consecutive years, GRESB rated Ascendas Reit an A and ranked us 1^st amongst Singapore industrial REIT peers for Public Disclosure. This year, Ascendas Reit also moved up five spots from 8^th position to be ranked 3^rd on the Singapore Governance and Transparency Index 2021 (REITs and Business Trust Category). Our commitment towards transparency, disclosure and communications is reflected by our leading positions in these listings.

NAVIGATING COVID-19 WITH STAKEHOLDERS

Ascendas Reit is committed to upholding social responsibility and managing social risks and opportunities among its key stakeholder groups. The safety and well-being of its stakeholders is a key priority. Hence, immediate response and support were taken to address emerging issues through a series of precautionary measures that are summarised in the table below:

MANAGING SUSTAINABILITY AS A GROUP

In 2020, CapitaLand unveiled its 2030 Sustainability Master Plan (2030 SMP) to elevate its commitment towards global sustainability in the built environment. The 2030 SMP comprises three key pillars - Build portfolio resilience and resource efficiency, Enable thriving and future-adaptive communities, and Accelerate sustainability innovation and collaboration. CapitaLand drives sustainability efforts in the ESG pillars, enabling it to create a larger positive impact for the environment and society.

As a CLI-sponsored REIT, Ascendas Reit aligns its sustainability objectives and strategies with the Sponsor. It is committed to improving the economic and social well-being of its stakeholders through management of human capital, asset, portfolio operations and project development. Ascendas Reit also considers innovation as a key driver towards ensuring commercial viability without compromising the environment for future generations. The Manager works closely with the Asset & Property Managers in carrying out these strategies and relevant activities across its portfolio where possible.

CapitaLand has identified five pathways to achieve its sustainability objectives. Ascendas Reit is aligned with these objectives and will continually adapt its strategies as technologies evolve and new scientific data become available:

1. Integrate sustainability in CapitaLand's real estate life cycle
From the earliest stage of investment process, to design, procurement, construction, operations and redevelopment or divestment, sustainability targets will be embedded in policies, processes, best practices, and key performance indicators of its business operations.

2. Strengthen innovation and collaboration to drive sustainability
CapitaLand will continue to source globally for new ideas and technologies to meet its sustainability ambitions and work with like-minded partners to create shared values.

3. Leverage sustainability trends and data analytics
This allows CapitaLand to track critical performance and progress in water usage, waste management, energy consumption, carbon emission, and health and safety. These measurements along with social indicators are key to driving performance improvement across its operating properties and development projects.

4. Monitor and report progress to ensure transparency
As CapitaLand tracks its sustainability progress, it will continue to validate its sustainability performance by external assurance and align its Global Sustainability Report to international standards.

5. Increase engagement and communication with key stakeholders
It is key to build awareness among its employees, investors, customers and communities, and collectively affect transformational change to achieve CapitaLand's 2030 SMP targets.

Push Boundaries of Change

To push the boundaries of change, CapitaLand will transit to a low-carbon business that is aligned with climate science. In November 2020, it had its carbon emissions reduction targets approved by the SBTi for a 'well-below 2°C' scenario. The targets are in line with the goals of the Paris Agreement to keep global temperature rise well below 2°C in this century. CapitaLand is also developing a new metric, Return on Sustainability, in addition to the regular financial return to measure its ESG impact.

CapitaLand launched the inaugural CapitaLand Sustainability X Challenge (CSXC), the first sustainability focused innovation challenge by a Singapore headquartered real estate company that sources globally for emerging sustainability technologies and solutions in the built environment. The CSXC covers seven challenge statements that reflects the key themes and goals in CapitaLand's 2030 SMP.

CapitaLand aims to be a leader in sustainable finance and targets to secure S$6 billion through sustainable finance by 2030. Proceeds and interest rate savings from its efforts in sustainable finance can also be used to drive more sustainability initiatives and innovations within the CapitaLand.

As a testament to its sustainability commitment, Ascendas Reit has continued to increase its exposure to green-certified assets with the acquisition of the remaining 75% interest in Galaxis in Singapore and 1-5 Thomas Holt Drive in Australia, as well as the development of the Grab Headquarters in Singapore.

The solar installation at 37A Tampines Street 92 was completed in FY2021, increasing the renewable energy capacity of Ascendas Reit's combined solar farm. Further solar installations are being planned for. In addition, the common area facilities of four properties in Singapore and four co-location data centres in the UK / Europe are fully powered by renewable energy. This is part of Ascendas Reit's efforts to increase its usage of renewable energy and contribute towards a low carbon economy.

With regards to sustainable finance, Ascendas Reit has approximately S$1.2 billion worth of green financing instruments comprising green bond, green loans and green perpetual securities as of 31 December 2021.

Measured against global benchmarks

CapitaLand was one of the first companies in Singapore to voluntarily publish an annual Global Sustainability Report (GSR) and externally assure the entire report. Benchmarking against an international standard and framework that is externally validated helps CapitaLand to overcome the challenges in sustainability reporting that may arise from its portfolio of diverse asset types and geographical presence globally.

CapitaLand is also a signatory to the United Nations (UN) Global Compact and its Global Sustainability Report serves its Communication on Progress, which will be made available at www.unglobalcompact.org when published.

For its efforts, CLI is listed in the Global 100 Most Sustainable Corporations Index, Dow Jones Sustainability World Index and Asia-Pacific Index, Global Real Estate Sustainability Benchmark (Global Sector Leader, Diversified- Listed), FTSE4Good Index Series, MSCI Global Sustainability Indexes and The Sustainability Yearbook. CLI Global Sustainability Report 2021 will be published by 31 May 2022.

It will continue to be prepared in accordance with the Global Reporting Initiative Standards: Core option. CapitaLand will continue to apply the Guiding Principles of the International Integrated Reporting Framework and ISO 26000:2010 Guidance on Social Responsibility, and reference the UN Sustainable Development Goals (UN SDGs), and the Sustainability Accounting Standards Board (SASB). CapitaLand also plans to enhance its climate-related disclosure and implementation in line with the Taskforce for Climate-related Financial Disclosure (TCFD). It will continue to be externally assured to AA1000 Assurance Standard. The GSR will cover CapitaLand's global portfolio and staff, including its listed real estate investment trusts (REITs) and business trusts - CapitaLand Integrated Commercial Trust, Ascendas Real Estate Investment Trust, Ascott Residence Trust, CapitaLand China Trust, Ascendas India Trust and CapitaLand Malaysia Trust.

Ascendas Reit strives to emulate CapitaLand's achievements and leadership position in sustainability and will continue to pursue opportunities where it can make a positive and meaningful impact. Ascendas Reit is a constituent of several sustainability indices including the MSCI EAFE Choice ESG Screened Index, the Solactive ISS ESG Screened Paris Aligned Global Markets Index NTR, and the iEdge SG ESG Leaders Index. In FY2021, for the second year in a row, Ascendas Reit scored an 'A' for public disclosure in the GRESB survey, a global real estate sustainability benchmark.

STRATEGIC SUSTAINABILITY MANAGEMENT STRUCTURE

CapitaLand's sustainability management comes under the purview of its Sustainability Council.

The Sustainability Council comprises selected CLI Board's independent directors and members of the CapitaLand's senior management. It is supported by the CLI Sustainability Office and various work teams to drive continued progress and improvement in sustainability. The work teams comprise representatives from CapitaLand business units and corporate functions.

Each business unit has its own Environmental, Health and Safety (EHS) Committee to drive initiatives in countries where CapitaLand operates, with support from various departments. The CEO of the Manager is accountable for Ascendas Reit's EHS performance. The Board of the Manager is updated regularly on Ascendas Reit's sustainability matters.

Within the Manager, there is also a sustainability committee which comprises senior management team members led by the CEO to oversee sustainability directly at the Business Unit level. The Manager works closely with the Asset & Property Managers in carrying out strategies and relevant activities, abiding by CapitaLand's sustainability framework and policies.

Ascendas Reit is guided by CLI's materiality assessment process, which considers issues identified and assessed from the various engagement with stakeholders through a myriad of programmes and channels made available. The Risk and Control Self-Assessment exercise is a critical component through which the manager identifies, assesses and documents material risks and corresponding internal controls. These material risks include fraud and corruption, environmental (e.g. climate change), health and safety, and human capital risks which are ESG-relevant.

Guided by the 2030 SMP, CapitaLand elevated its commitment to global sustainability in the built environment. It has identified and reviewed material issues that were most relevant and significant to CapitaLand and its stakeholders. With the restructuring of CapitaLand into CLI and CapitaLand Development (CLD), the ESG material issues were prioritised based on the likelihood and potential impact of issues affecting business continuity of CLI. For external stakeholders, priority is given to issues important to the society and applicable to CLI.

The Manager has reviewed and adopted CLI's mapping of the material ESG issues under the 2030 SMP Sustainability pillars as shown below as they were deemed to be relevant to Ascendas Reit's business and operating context. For more information on stakeholder engagement, please refer to the Environmental and Manufactured Capital, Human Capital, and Social and Relationship Capital chapters of this report.

PRIORITISATION OF ESG MATERIAL ISSUES

Ascendas Reit remains committed to creating long-term and sustainable value for its stakeholders. It continues to leverage on the Six Capitals, aligned with that of CapitaLand's - Environmental, Manufactured, Human, Social and Relationship, Organisational and Financial. ESG material issues are grouped into these Six Capitals and mapped against eight UN SDGs that are most aligned with the CapitaLand Sustainability Master Plan 2030 targets, and where it can achieve the greatest positive impact.

ASCENDAS REIT'S VALUE-CREATING BUSINESS MODEL

Financial Capital

Ascendas Reit draws on its available pool of funds to invest in properties, carry out asset enhancements and redevelop properties to optimise value for its Unitholders. In FY2021, it delivered a Distribution Per Unit (DPU) of 15.258 Singapore cents, 3.9% higher (15.438 cents before Performance Fee, 5.1% higher), than in FY2020.

For a more details on Ascendas Reit’s financial performance and management of financial capital, please refer to pages 33 to 57 of the Annual Report 2021.

4. BREEAM, which stands for Building Research Environmental Assessment Method, is a widely used sustainability assessment method for buildings in areas of sustainable construction, operation, and design. BREEAM scores are categorised across six ratings: Unclassified; Pass; Good; Very Good; Excellent and Outstanding.
5. BD+C: Building Design & Construction

Details of Green Financing Instruments and Use of Proceeds

Sustainability Highlights of Green Building Portfolio

• 9 properties were added to the Green Project Register in FY2021 with a total valuation of S$2.08 billion. These properties were:
  • -  Galaxis, Singapore
  • -  1 Thomas Holt Drive, Sydney, Australia
  • -  197-201 Coward Street, Sydney, Australia
  • -  254 Wellington Road, Melbourne, Australia
  • -  108 Wickham Street, Brisbane, Australia
  • -  Unit 2, Wellesbourne Distribution Park, UK
  • -  Unit 4, Wellesbourne Distribution Park, UK
  • -  505 Brannan Street, San Francisco, USA
  • -  510 Townsend Street, San Francisco, USA
• To encourage the use of electric vehicles, Ascendas Reit has installed additional 16 EV charging points in Singapore, across the following buildings in the Green Project Register:
  • -  Galaxis
  • -  The Alpha
  • -  Techview
  • -  Aperia
• 21 additional EV charging points were installed in 254 Wellington Road, Melbourne, Australia

ENVIRONMENTAL AND MANUFACTURED CAPITAL

Ascendas Reit is aligned with CapitaLand's commitment to minimise the environmental impact and contribute towards achieving the desired positive outcomes that will benefit its stakeholders and future generations.

The Manager strives to incorporate environment sustainability throughout all stages of any AEI, developments and redevelopments. Environmental-friendly features are implemented where appropriate across the properties to improve overall energy efficiency. Monitoring environmental impact is integral to its business operations, as the efficient use and management of environmental resources such as energy, water and waste contributes to the operational efficiency and long-term sustainability of Ascendas Reit.

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

CLI had started to align its climate related disclosures with TCFD recommendations in the four key areas of governance, strategy, risk management and metric and targets since FY2017 and further declared its support for TCFD and its recommendations in FY2019.

Ascendas Reit has started taking steps to integrate the recommendations of the TCFD and will continue enhancing its implementation of TCFD recommendations and reporting.

7. The CLEAN Future Act was introduced in House in March 2021. It sets a national climate target of net-zero GHG emissions by 2050 and creates requirements and incentives to reduce greenhouse gases through provisions impacting various sectors of the economy such as power, buildings, automotive, ports, manufacturing, oil and gas extraction, waste management and recycling.

MANAGING ASCENDAS REIT'S ENVIRONMENTAL FOOTPRINT

CapitaLand's EMS is a key tool in managing its environmental footprint across its entire portfolio. In Singapore, the Property Manager's EMS is expected to be fully integrated with CapitaLand's EMS by the end of FY2022, to form CapitaLand's EHSMS that is certified to the requirements of ISO 14001 and ISO 45001. Across the portfolio, the Property Managers have also adopted Singapore standards such as bizSAFE Partner, bizSAFE Star and other management systems such as SafeWork Australia National Standards and Model Codes of Practices in Australia. More information on safety-related management systems and practices are discussed under the Human Capital chapter.

Risk Management of Environmental Aspects and Impact

The EMS provides a systematic approach to manage Ascendas Reit's environmental impact and to continuously improve its environmental performance. A key element of the EMS is to identify and manage significant environmental aspects of its business operations that can potentially have a negative impact on the environment. The significance of each environmental aspect and its impact is assessed based on factors such as the likelihood of the occurrence, severity of the impact and control measures implemented.

Ascendas Reit strives to minimise negative impacts such as resource depletion, carbon emissions and waste generation. This is done by setting environmental targets that are linked to the remuneration for employee and the top management and implementing various measures to achieve them. The targets include green building certifications, carbon emissions reduction, renewable energy usage, and green financing.

CapitaLand Sustainable Building Guidelines

In accordance to CapitaLand's Sustainable Building Guidelines (SBG), Ascendas Reit has incorporated environmental considerations throughout all stages of its properties' life cycles. The SBG emphasises four main goals (reducing carbon footprint and energy consumption, enhancing water management, minimising waste generation, and promoting biodiversity) and offers a structured process where respective persons-in-charge are accountable. The SBG is regularly reviewed to ensure continuous improvement.

A key component of the SBG is the mandatory EHSIA which will be carried out before any acquisition or development. The EHSIA focuses on identifying any environmental threats or opportunities related to the project site and its surroundings, covering areas such as floods, biodiversity, air quality, noise, connectivity, heritage, and resources. During the feasibility study and due diligence stage, significant findings of the EHSIA and their cost implications (if any) are incorporated in the investment paper submitted for approval. There are no properties in Ascendas Reit's portfolio located within protected areas and no material biodiversity risk has been identified to date.

Wherever possible, Ascendas Reit strives to preserve the biodiversity of its sites and their surrounding areas. This is done by addressing any distinctive ecological features of the site, taking into consideration nature reserves on or near the site, protecting plant and animal species on the site and removing invasive plant species on or near the site. External consultants will be engaged to provide advice where appropriate.

Biodiversity initiatives are being implemented across Ascendas Reit's properties located in the UK and the USA. In Raleigh (USA), for instance, landscapers monitor and address the presence of invasive species. Landscaping work in Portland and San Diego (USA) primarily focuses on providing drought-resistant hardy plantings that are either naturally occurring or ecologically compatible. A biodiversity project will commence in Wellesbourne Distribution Park (UK) in March 2022; the results of the project will be disclosed in future reports.

Training and Awareness Programmes

To facilitate effective implementation of EHSMS, the Asset & Property Manager team is required to attend training and awareness programmes. In FY2021, the Property Manager team and contractors in Singapore achieved a 94% participation rate on EHS-related training. It is also mandatory for all new employees from the Asset & Property Manager team to go through the EHS policy and EHSMS.

Ascendas Reit’s efforts in addressing environmental issues extends to its stakeholders and the wider community. To drive greater awareness on sustainability, the Manager and Asset & Property Managers engage with customers, service providers and the authorities as partners to foster a strong culture of sustainability. CapitaLand organised its annual Earth Hour Campaign on 27 March 2021 which saw an 85% participation rate across the Singapore properties. At 1-5 Thomas Holt Drive, Australia, a Building Management Sustainability Committee has been established comprising key members from the third-party Property Manager and representatives from eight tenants within the property. This committee meets on a quarterly basis to discuss on the current sustainability initiatives.

The Building Management Sustainability Committee at 1-5 Thomas Holt Drive has rolled out a series of initiatives in FY2021 shown below.

Internal and External Audits

Ascendas Reit has in place an internal audit system to ensure the conformance and effective implementation of its EMS and Occupational Health & Safety (OHS) to ISO 14001 and ISO 45001 international standards respectively. Periodically, for Singapore properties, internal audits are conducted by CLI, while external audits are conducted by a third-party accredited certification body. All major non-conformities that were identified from the internal audit have been closed.

Green Building Rating and Benchmarks

Green building ratings and certifications help assure and demonstrate the quality of Ascendas Reit's portfolio. These ratings serve as an external validation that key environmental aspects have been considered in Ascendas Reit's development and operations. To date, Ascendas Reit has the largest number of BCA Green Mark Properties amongst Singapore REITs at 40 properties and its portfolio comprises 49 green certified properties in total⁸.

Ascendas Reit targets to achieve green building certifications for all its existing owned and managed properties by 2030 with each property achieving a minimum certification level by a green rating system administered by a national government ministry/ agency or a WGBC recognised Green Building Council. To date, 46.6% or 30.0% of Ascendas Reit's respective managed and total properties by GFA is green certified.

In Australia, 197-201 Coward Street and 108 Wickham Street have maintained their 5.0 Star and 5.5 Stars NABERS Energy Ratings⁹ respectively. On 13 January 2021, Ascendas Reit acquired a property, 1-5 Thomas Holt Drive, in Sydney, Australia which has attained the 5.5 Star (1 Thomas Holt Drive) and 4.5 Star (3 Thomas Holt Drive) NABERS Energy Rating respectively. 500 Green Road, a newly completed logistics property (practical completion achieved on 11 February 2022) located in Brisbane is expected to achieve a 5-Star Green Star Design & As Built rating and MQX4, a suburban office located in Sydney is targeted to achieve a 6 Star Green Star Design & As Built rating and 5.5 Stars NABERS Energy Rating when it is completed in 2022.

In light of the stricter regulations to raise the minimum energy efficiency standard in the UK, the Property Managers are taking steps to comply with the Energy Performance Certificate (EPC) rating requirements by 2030. Two buildings at Wellesbourne Distribution Park have attained BREEAM New Construction Excellent⁴ rating. Ascendas Reit's four co-location data centres in the UK and Europe presently hold ISO 50001 energy management accreditation.

In USA, properties in Portland and San Diego undergo an annual benchmark based on their ENERGY STAR Score¹⁰. In FY2021, five buildings across the portfolio have attained an Energy Star Rating, which means that they have attained a score of 75 or higher. In San Diego, 15445 Innovation Drive obtained a LEED Gold (Building Operations & Maintenance) certification.

8. This includes non-Ascendas Reit managed properties.
9. The NABERS (National Australian Built Environment Rating System) Energy Rating is a rating system which measures building performance against similar buildings. NABERS rating are measures on a scale of zero to six stars.
10. The ENERGY STAR score is used to assess and benchmark building's energy performance against similar buildings in the USA on a scale of 0-100. A score of 75 or higher would mean the building is ENERGY STAR certified.
11. Non-Ascendas Reit managed property.

12. Temporary Occupation Permit (TOP) on 7 January 2022.

13. O+M: Operations and Maintenance

Green Leases

Beyond providing environmentally sustainable properties and operating according to best practices, Ascendas Reit understands the important role that end-users of its buildings play. Therefore, the Manager seeks to collaborate with tenants to influence and support their sustainability goals. Ascendas Reit has started to implement green leases for its portfolio in Singapore. Green leases have been adopted by certain tenants in 51 (about 78.5%) of the properties under the Manager's operational control. Reviews are undertaken regularly to ascertain the suitability of green leases for the remaining buildings, with a long-term plan to implement it to more tenants across all buildings in the global portfolio.

ENVIRONMENTAL PERFORMANCE

The building sector has been identified as a major contributor to global energy use and carbon emissions. Ascendas Reit aims to reduce its environmental impact through monitoring of its carbon emissions, improving energy efficiency of its properties as well as deploying renewable energy and low-carbon intensive energy where possible.

With the successful transition to CapitaLand's cloudbased Environmental Tracking System (ETS), Ascendas Reit is now able to monitor energy and water consumption, carbon emissions and waste generation across Singapore properties via one main platform. The data would allow Property Managers to conduct analysis against set targets and past trends to better understand consumption patterns and identify potential areas to enhance efficiency of its properties.

While the COVID-19 situation remained uncertain during the year, higher occupancy rate and footfall have been observed as compared to FY2020. In Singapore, Australia and USA, borders are reopening for travellers, and tenants have begun to gradually return to offices as the countries eased their COVID-19 restrictions. Ascendas Reit will continue to monitor its usage closely and reassess its performance in following years for suitable comparison.

Energy

With the improvement of the COVID-19 situation coupled with the easing of restrictions, Ascendas Reit was able to implement several energy conservation initiatives across its portfolio during the year.

14. The data centre portfolio was only acquired in March 2021 and thus the data disclosed is from March to December 2021. Full year data will be included in subsequent reports.

Singapore¹⁵

The total energy consumption in the Singapore operations rose slightly from 86.29 million kWh in the comparative period a year ago to 89.31 million kWh¹⁶ in FY2021. This difference is mainly due to the inclusion of consumption data from Galaxis¹⁷ since the completion of the acquisition of the remaining 75% interest in the property on 30 June 2021.

However, energy intensity in the Singapore portfolio improved from 46.43 kWh/sq m to 46.11 kWh/sq m in FY2021. Total carbon emissions (Scope 1 and 2) reduced by 3.38% to 33.44 kilotonnes CO₂e while carbon emissions intensity decreased by 7.30% to 17.26 kg CO₂e/sq m respectively.

The introduction of Singapore's Phase 2 heightened alert measures in FY2021, as well as general safe-distancing measures, resulted in lowered footfall across all Ascendas Reit's properties compared to pre-COVID-19 periods. This led to a drop in energy use due to reduced level of activities within the properties. As such, FY2021 performance would not be representative nor comparable against a normal operating year. Moving forward, Ascendas Reit will re-assess its performance and introduce like-for-like comparisons when the situation has stabilised.

About 8.22% (7.34 million kWh) of Ascendas Reit's total electricity use in Singapore was from renewable energy sources, which helped to mitigate about 2,995 tonnes of carbon emissions in the year.

15. 2020 data published in ISR2020 was based on estimates whereas 2020 data in this report has been revised to reflect the actual consumption.
16. This includes 5.90 million kWh of district cooling. District cooling has been an energy source for seven of Ascendas Reit’s Business and Science Park properties since FY2019, but was not previously included in the energy consumption. From FY2021 onwards, energy consumption and carbon emissions due to district cooling will be represented in the year-on-year energy and emissions graphs, as well as considered in the calculation of the intensities.
17. Data from Galaxis is from July to December 2021 after the acquisition of the remaining 75% interest.

Australia¹⁵

Energy consumption (which includes electricity, diesel and gas usage) in the Australian operations rose from 9.09 million kWh in FY2020 to 11.14 million kWh in FY2021. This is attributable to the addition of 1-5 Thomas Holt Drive (acquired in January 2021) and data availability at 254 Wellington Road in FY2021. In FY2021, there was an improvement in energy intensity 204.08 kWh/sq m to 114.35 kWh/ sq m, contributed by the acquisition of more energy efficient properties. 1 and 3 Thomas Holt Drive have attained a 5.5 Star and 4.5 Star NABERS Energy Rating respectively while 254 Wellington Road has a 5-Star Green Star Design & As-Built rating.

Total carbon emissions (Scope 1 and 2) increased from 7,121 tonnes in the comparative period a year ago to 8,252 tonnes CO₂e in FY2021. However, carbon emissions intensity reduced from 159.92 kg CO₂e/sq m to 84.69 kg CO₂e/sq m in FY2021.

United Kingdom / Europe

A portfolio of 11 data centres in the UK / Europe were newly acquired in March 2021, of which four properties (three in UK and one in Amsterdam) are under Ascendas Reit's operational control.

All the energy consumed was from renewable sources. A total of 1.46¹⁸ million kWh was used in FY2021, with an energy intensity of 47.80 kWh/sq m. Total carbon emissions (Scope 1 and 2) were at 158 tonnes CO₂e and a corresponding carbon emission intensity at 5.17 kg CO₂e/sq m. A total of 185 tonnes CO₂e were avoided in FY2021 as 100% of the premises is powered by renewable energy.

United States¹⁵

The number of properties across the portfolio in USA which were under operational control remained fairly stable across FY2020 and FY2021. However, energy consumption (which includes diesel and natural gas) was 25.46 million kWh in FY2021, a 5.13% decrease from FY2020. Energy intensity was recorded at 116.83 kWh/sq m, a 1.33% improvement from 118.41 kWh/ sq m in FY2020. The drop in energy consumption is mainly attributed to the lower footfall resulting in lower usage of EV charging stations in San Diego, installation of LED lights and optimisation of building operations across the portfolio which resulted in energy savings. Total carbon emissions (Scope 1 and 2) were at 7,688 tonnes CO₂e and the corresponding carbon emission intensity was 35.28 kg CO₂e/sq m, a 4.07% drop from the prior year.

18. 100% renewable energy used for daily operations (with the exception of Croydon where natural gas is used to heat up common areas) and non-renewable energy (natural gas and diesel) is used for maintenance purposes and to power emergency back-up generators only. The fuel used has been incorporated into energy, GHG emissions and its respective intensities for completeness.

Water

Most of Ascendas Reit's properties are located in water-stressed areas where growing pressures of climate change continue to pose greater threats to society. As such, Ascendas Reit adopts a strategic approach to water management and quality so as to enhance the efficiency, resilience and long-term value of its portfolio. The Manager is committed to reducing total water consumption, reusing and recycling water where possible as well as preventing water pollution. Over the years, numerous water-saving initiatives have been introduced to reduce overall water intensity with an aim to achieve cost savings as well.

All of Ascendas Reit's properties' water consumption is derived from municipal supplies and majority of its water usage goes to cooling towers, toilets, washing activities and landscaping. All wastewater is responsibly disposed of via municipal facilities.

The Asset & Property Managers conduct regular checks of water features and monitor water usage closely so that any fluctuations or anomalies can be identified and acted upon promptly. Across the portfolio in Australia and USA, the third-party facilities managers continue to actively engage with customers to raise awareness about water conservation and encourage implementation of water saving initiatives within their premises.

The table below summarises some of the initiatives implemented within Ascendas Reit's properties to ensure efficient operations and minimise water wastage.

Singapore

A slight increase in water consumption in Singapore operations was recorded from 923 thousand m³ in FY2020 to 929 thousand m³ in FY2021. However, the water intensity has decreased from 0.51 m³/sq m to 0.48 m³/sq m mainly due to the larger GFA considered during the year with the completion of the acquisition of the remaining 75% interest in Galaxis on 30 June 2021.

Australia

Water consumption was recorded from 51.1 thousand m³ in FY2020 to 65.51 thousand m³ in FY2021. This is largely due to the inclusion of newly acquired asset 1-5 Thomas Holt Drive and data availability at 254 Wellington Road with tenants returning to their offices during the start of the year. Water intensity was recorded at 0.67 m³/sq m as compared to 1.15 m3/sq m in FY2020. This is attributable to the larger GFA considered in the calculation of the intensity as compared to FY2020.

United Kingdom / Europe

Water consumption was recorded 6.38 thousand m³ and water intensity at 0.21 m³/sq m.

United States¹⁹

Water consumption was recorded at 156 thousand m3 which was 1.37% decrease from FY2020. This is due to lower occupancy as most staff were still working remotely. Additionally, the use of drought resistant plants at San Diego helped to reduce watering frequency and upgrades were made to increase efficiency of irrigation system at Portland. Water intensity was recorded at 0.71 m3/sq m, compared to 0.70 m3/ sq m in the previous year.

19. Water data for 15051 Ave of Science in San Diego is an estimate from previous years

Waste

Ascendas Reit aims to play its part by managing waste at its properties responsibly. As waste generated at its operational properties comes mostly from its customers, guests and the general public, Ascendas Reit engages its stakeholders through various means to reduce and recycle waste. Recycling bins are made available at its properties for its customers.

In Singapore, waste is sent to waste-to-energy incineration plants and to recycling facilities. In Australia, waste is disposed via three methods - recycling, composting and sent to landfills. Across the portfolio in the USA²⁰ - with the exception of San Francisco, which also has a broad composting program - most of the waste is sent to landfills as well as recycling facilities while yard waste collected is recycled and sent to farms. Similarly in UK / Europe, waste is sent to landfills and recyclables are sent to facilities to be recycled or processed for further uses. Tenants in Europe's data centres manage their e-waste through licensed third-party waste disposal companies.

In collaboration with National Environment Agency (NEA), the “Say Yes to Waste Less” campaign on waste management was held for a third run in FY2021. From 27 September to 7 November 2021, a total of 70 Ascendas Reit properties participated where posters encouraging food waste reduction and to use less disposables were displayed across e-directories and notice boards.

In FY2021, a total of 14,638 tonnes of non-hazardous waste was collected across Singapore²¹, UK / Europe and USA, of which 4% was recyclable waste comprising of paper, plastic metals and other materials.

In Singapore, Ascendas Reit works with a waste disposal term contractor who operate a Materials Recovery Facility. They manage the usual recyclable products such as paper, plastics and metal. Landscape waste from buildings are sent for recycling by the landscape maintenance contractors for reuse as mulch. These waste materials will be treated before being sold off to manufacturers as recycled input materials. Ascendas Reit continues to explore pilot projects of food waste digestors and paper recycling stations to showcase sustainability efforts of the Group. More details of these initiatives will be shared in subsequent reports.

20. Waste data from the USA is estimated based on the size and quantity of the waste bins and the frequency of pickup.
21. This excludes waste data from 18 Woodlands Loop, 35 Tampines Street 92, and Cintech II as they are managed by the customers.

Paper Consumption Management in CapitaLand's Corporate Office

Since 2020, all corporate offices under CapitaLand have embarked on the following activities to reduce paper waste: implementing e-signatures, setting of paperless targets for corporate functions, digitalisation of documents, and deploying recycling bins (including secured bins) at the corporate office to encourage staff to recycle used paper.

Separately, the Manager actively promotes environmentally friendly practices such as: returning used photocopier toner cartridges to the vendor for recycling and using FSC certified paper (i.e., from sustainably managed forests, recycled and controlled sources) in its corporate offices. There is no printing of Ascendas Reit's Integrated Sustainability Report, which is available on its website at https://ir.ascendas-reit.com/sustainability_reports.html.

22. Refers to Ascendas Reit's owned and managed properties.

ORGANISATIONAL CAPITAL

The Manager is committed to executing policies and processes at the highest level of corporate governance and transparency, which is vital to the management and operational protocols of Ascendas Reit. This is founded on the belief that good governance is critical for building trust and confidence with stakeholders, which ultimately determines the success of the business. Ascendas Reit understands that good governance begins with the Board of Directors. The current Board comprises 62.5% independent directors. The current Board has one female member (12.5%). Guided by CLI's Core Values, Ascendas Reit builds and maintains a robust organisational culture that guides employees in making the right business decisions.

Fraud, Bribery and Corruption (FBC) Risk Management Framework

In line with its core values, the Manager is committed to doing business with integrity. This is reflected in its longstanding zero tolerance stance against fraud, bribery and corruption. Consistent with this commitment, various policies and guidelines are in place to guide all employees of the Manager to maintain the highest standards of integrity in their work and business dealings.

A whistle-blowing policy and other procedures are in place to provide the employees of the Manager and external parties who have dealings with the Group, with a well-defined, accessible and trusted channels to report suspected fraud, corruption, dishonest practices or other improprieties in the workplace, and for the independent investigation of any reported incidents and appropriate follow up action. The objective of the whistle-blowing policy is to encourage the reporting of such so that employees or external parties making any reports in good faith will be able to do so with the confidence that they will be treated fairly and, to the extent possible, be protected from reprisal.

Substantiated cases are reported quarterly to the Audit & Risk Committee. Actions taken can include the termination of staff's contract, and/or reporting to the appropriate external authorities. In FY2021, there were zero substantiated cases. The Manager is pleased to have achieved its perpetual targets (set in the table below) this year.

More details on Ascendas Reit's practices can be found from pages 110 to 145 of the Corporate Governance Report in the Annual Report 2021.

Training

The Manager believes that strong risk culture, as well as people with the right attitude, values and knowledge, is critical for its long-term success. CapitaLand has several initiatives to ensure that all staff, including employees of the Manager, are well-informed about the core values and principles that shape the way the Group works and functions. New staff learn these core values and principles by attending the online New Staff Orientation and CapitaLand Immersion Programme (CIP). Existing staff learn about CapitaLand's mission and vision via e-learning where specific examples and applications of CapitaLand's core values in the workplace are shared. During the year, a new FBC e-learning was launched and rolled out to all staff, and 30 employees of the Manager (67%) participated in the training. More employees are expected to progressively complete the training in 2022.

Risk Management and Internal Controls

The Manager maintains an adequate and effective system of risk management and internal controls (including financial, operational, compliance and information technology (IT) controls) and adopts an Enterprise Risk Management (ERM) Framework which sets out the required environmental and organisational components for managing risks in an integrated and structured manner. The Board has overall responsibility for the governance of risk, including determining the risk strategy, risk appetite and risk limits, as well as the risk policies. The ARC assists the Board in carrying out the Board's responsibility of overseeing Ascendas Reit's risk management framework and policies for Ascendas Reit and ensuring that the Manager maintains a sound system of risk management and internal controls.

Annually, the Manager undertakes and performs a Risk and Control Self-Assessment (RCSA) exercise to identify, assess and document material risks which include ESG-relevant risks; along with their key controls and mitigating measures. Material risks and their associated controls are consolidated and reviewed by the Manager before they are presented to the ARC and the Board.

The Manager has implemented a Business Continuity Management (BCM) programme that puts in place the prevention, detection, response and, business recovery and resumption measures to minimise the impact of adverse business interruptions or unforeseen events on the Group's operations and also has in place a Business Continuity Plan (BCP). As part of the BCP, periodic desktop exercises and drills, simulating different scenarios, are carried out to stress-test the effectiveness of processes, procedures and escalation protocols. This holistic approach under the BCP serves to ensure organisational and staff preparedness and readiness to deal with adverse business disruptions such as acts of terrorism, cyberattacks, data breaches and epidemics. This approach aims to minimise financial loss to Ascendas Reit, allow the Manager to continue to function as the manager of Ascendas Reit and mitigate any negative effects that the disruptions could have on the Manager's reputation, operations and ability to remain in compliance with relevant laws and regulations.

The Manager regularly assesses its operations, such as procurement of goods and services and engagement with managing agents for risks related to corruption in all the countries where it operates in. Increasing levels of business digitalisation also exposes the Group to information technology (IT)- related threats. The outsourced IT team from CLI executes its cyber security strategy which set out the requirements in the management of IT risks through ongoing review against existing/evolving threat landscapes and institutes measures to minimise vulnerability exposure and manage threat vectors. Appropriate measures taken include implementing data protection measures, updating CLI IT Security Policy and Data Protection Framework to ensure relevancy, raising employees' IT security awareness through ongoing mandatory training to counter human intervention in the information security chain, and conducting annual IT disaster recovery exercise to ensure timely recoverability of businesscritical IT systems.

In FY2021, there were no cases of material noncompliance with applicable laws and regulations in the countries where Ascendas Reit operates in, a performance that the Manager aims to upkeep. For further details on the risk management process, please refer to pages 146 to 153 of the Enterprise Risk Management Report in the Annual Report 2021.

Appendix A: Environmental Data Quantification Methodology

This section explains the calculation boundaries, methodologies and assumptions used in the computation of Ascendas Reit's energy, greenhouse gas (GHG) emissions, water and waste.

Reporting Scope and Period

Ascendas Reit adopts the Operational Control Approach, as outlined in the GHG Protocol Corporate Standard, is used to determine organisational boundaries. This attributes accountability for 100% of the GHG emissions from operations over which the organisation has control. There were 4 properties within the Australia portfolio and 25 properties within the United States portfolio under Ascendas Reit's operational control.

Data for energy and GHG emissions from the following reporting periods have been included in the Integrated Sustainability Report 2021:

• 2021: 1 January 2021 to 31 December 2021
• 2020: 1 January 2020 to 31 December 2020

For new properties that were acquired in FY2021, consumption data was only included from the completion of its acquisition during the year. This includes Galaxis, Singapore, from July 2021 and UK/Europe data centre portfolio from March 2021. Logistics properties in Kansas City, USA, are not part of the reporting scope as Ascendas Reit does not have operational control over the portfolio.

For two Singapore properties which were divested during the reporting period, consumption data has only been included for the period during which the Ascendas Reit had operational control over those buildings. These Singapore properties are 11 Changi North Way and 1 Science Park Drive.

Energy Consumption Within the Organisation

Energy consumption is consumed from purchased and renewable electricity, as well as diesel and natural gas in Singapore, Australia, UK/Europe and USA. The total energy consumption is expressed in million kilowatt hours (kWh).

Energy and Carbon Intensity

Energy consumption and carbon emissions is calculated for the common areas (chillers, corridors, perimeter lightings and centralised building facilities under Ascendas Reit's direct control). Intensity metrics are calculated relative to effective Gross Floor Area (GFA), expressed as kWh/sq m. Effective GFA is calculated considering total GFA and occupancy rate. Effective GFA has been selected as the metric for intensity ratios as a large proportion of energy consumed is attributed to shared services such as the building's chiller system.

GHG Emissions

Scope 1 emissions are calculated from the consumption of natural gas and diesel expressed in tonnes of CO₂e

Scope 2 emissions are calculated from the consumption of grid electricity in Singapore, Australia and USA expressed in tonnes of CO₂e. There are no scope 2 emissions in UK/Europe as the four properties are 100% powered by renewable electricity.

Emission Factors

Scope 1: Emission factors for direct energy consumption in Singapore were taken from the Intergovernmental Panel on Climate Change (IPCC) emission factor database (i.e. 74.1 tCO₂e/TJ for diesel and 56.1 tCO₂e/TJ for natural gas). Emission factors for Australia were published in the National Greenhouse Accounts Factors 2020 (51.4 kg CO₂e/GJ for natural gas). Emission factors for Australia were published in the National Greenhouse Accounts Factors 2021 (51.4 kg CO₂e/GJ for natural gas). 2021 Emission factors for the UK were published by the UK government's department of Business, Energy and Industrial Strategy, in January 2022. (2.02135 kg CO₂e/m3) for natural gas and 2.70553 kg CO2/litre for diesel). Emission factors in the USA for natural gas (116.65 lbCO₂e/BTU) for 2021 were published by the Energy Information Administration.

Scope 2: Emission factors for the calculation of electricity consumption were taken from the Singapore Energy Statistics 2021 published by the Energy Market Authority in Singapore (0.408 kg CO₂e/kWh), the National Greenhouse Accounts Factors 2021 for New South Wales (0.79 kg CO₂e/kWh), Victoria (0.96 kgCO₂e/kWh) and Queensland (0.80 kg CO₂e/kWh), the Emission Factors for calculation of electricity consumption in the UK is taken from the Greenhouse Gas Reporting: Conversion Factors 2021 published by the UK Government (0.212 kg CO₂e/kWh), the Emission Factors for calculation of electricity consumption in the Amsterdam is taken from Efficiency and CO2 emissions from electricity production in the Netherlands, update 2020, published by the Statistics Netherlands (0.49 kg CO₂e/kWh), the Emission Factors for Greenhouse Gas Inventories published by the USA Environmental Protection Agency (EPA) in March 2021 for Raleigh and San Diego (675.4 lb CO₂e/MWh) and Portland (715.2 lb CO₂e/MWh).

Water Consumption

Sources of water withdrawn by Ascendas Reit properties include municipal water utilities across Singapore, Australia, UK/Europe and USA. In Singapore, NEWater, which is high-grade reclaimed water from treated used water supplied by Singapore's national water agency is also used across selected properties. Any wastewater is also discharged responsibly through municipal water utilities across all countries.

Water Intensity

Water intensity ratio is calculated by the total volume of water consumed, relative to effective GFA, expressed as m³/sq m.

Waste Management

Only non-hazardous waste is disposed by Ascendas Reit. Third-party certified waste contractors are engaged across Singapore, Australia and USA. In Singapore, recyclables are sent to a recycling facility where Ascendas Reit has a term contract with. In Australia, waste is disposed via recycling, composting (for grease traps) and sent to landfills. In UK/Europe and USA, waste is disposed via recycling and sent to landfills.

Appendix B: : Environmental Data Breakdown by Region³²

32. Regarding GRI 303-3: Water withdrawal data coverage as a percentage of (a) total Manager controlled gross floor area and (b) floor area in regions with High or Extremely High Baseline Water Stress, by property. None of the regions Ascendas Reit operates in have been identified as High or Extremely high Baseline Water Stress currently. All water is provided through mains water supplies, none is directly withdrawn from water sources on site.
33. Coverage area refers to Effective GFA, which takes into consideration total GFA and occupancy rate.
34. Landlord area consumption is limited to Singapore only.

Appendix C: GRI Content Index

Appendix D: United Nations Global Compact

10 PRINCIPLES OF THE UN GLOBAL COMPACT

Appendix E: SGX List of Core ESG Metrics