Ascendas India Trust : Sustainability Report FY 2021

ABOUT THE REPORT

Ascendas India Trust (a-iTrust) is pleased to present its sixth annual Sustainability Report. This report reflects a-iTrust’s dedication to sustainable and responsible growth, and provides an update on its goals, initiative, and progress on material Environmental, Social and Governance (ESG) matters.

International Standards and Guidelines

This report has been prepared in accordance with the SGX-ST Listing Manual Rule 711(B), 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 are relevant to a-iTrust. This report has also incorporated elements of the Integrated Reporting (IR) Framework of the International Integrated Reporting Council, and references the United Nations Sustainable Development Goals (SDGs).

Reporting Scope and Period

This report covers a-iTrust’s sustainability performance for the period from 1 January to 31 December 2021 (FY 2021), with relevant prior data for the comparable period from 1 January to 31 December 2020, where relevant. The scope of this report covers a-iTrust’s portfolio1, comprising the seven IT parks listed in Figure 1 below.

Figure 1: Portfolio in Reporting Scope for FY 2021

Feedback

Feedback from a-iTrust’s stakeholders is welcome as it enables continual improvement in the Trust’s policies, processes and performance. Please send your comments and suggestions to [email protected].

a-iTrust Board Statement

At a-iTrust, sustainability is a vital element of our strategic planning and implementation roadmap. 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 material Environmental, Social and Governance (ESG) factors have been identified and encapsulated in the CapitaLand 2030 Sustainability Master Plan, which was launched in 2020, and will be reviewed by the Board of Directors together with management every two years.

The CapitaLand 2030 Sustainability Master Plan steers our efforts on a common course to maximise impact through building a resilient and resource-efficient real estate portfolio, enabling thriving and future- adaptive communities, and accelerating sustainability innovation and collaboration. Ambitious ESG targets have been set which include carbon emissions reduction targets validated by the Science Based Targets initiative.

The Board is responsible for overseeing a-iTrust’s sustainability efforts and takes ESG factors into consideration in determining its strategic direction and priorities. The Board also approves the executive compensation framework based on the principle of linking pay to performance. a-iTrust’s business plans are translated to both quantitative and qualitative performance targets, including sustainable corporate practices, and are cascaded throughout the organisation.

SUSTAINABILITY COMMITMENT

In 2020, CapitaLand unveiled its 2030 Sustainability Master Plan to elevate the CapitaLand Group’s commitment to global sustainability in the built environment, given its presence in more than 230 cities and over 30 countries. The Master Plan focuses on three key pillars to drive CapitaLand’s sustainability efforts, enabling CapitaLand Group to create a larger positive impact for the environment and society.

As a CapitaLand Investment sponsored business trust, a-iTrust aligns its sustainability objectives and strategies with CapitaLand Group. 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. a-iTrust will steer towards the pathways set by CapitaLand and keep adapting its strategies as technologies evolve and new scientific data become available. CapitaLand has identified five pathways to achieve its sustainability objectives:

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

• 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.

• Leverage sustainability trends and data analytics This allows CapitaLand to track critical performance and progress in water usage, waste management, energy consumption, carbon emissions and health and safety. These measurements are key to driving performance improvement across its properties.
• Monitor and report progress to ensure transparency
  As CapitaLand tracks its sustainability progress, it will look to validate its performance by external assurance and align its Sustainability Report to international standards.
• Increase engagement and communication with key stakeholders
  CapitaLand will increase engagement to build awareness among its employees, investors, customers and communities, and collectively effect transformational change to achieve its 2030 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 emissions reduction targets aligned with the Science Based Targets initiative (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 the Group’s ESG impact.

CapitaLand has launched the inaugural CapitaLand Sustainability X Challenge (CSXC), a sustainability focused innovation challenge, that sources for emerging sustainability technologies in the built environment globally. The CSXC covers seven challenge statements which reflect the key themes and goals in CapitaLand’s 2030 Sustainability Master Plan.

CapitaLand aims to be a leader in sustainable finance and intends to secure S$6 billion through sustainable finance by 2030. Proceeds and interest rate savings from CapitaLand’s efforts in sustainable finance can also be used to drive more sustainability initiatives and innovations within the company. a-iTrust secured sustainability-linked loans totalling S$250 million in 2021.

Measured against Global Benchmarks

CapitaLand was one of the first companies in Singapore to voluntarily publish an annual Global Sustainability Report and externally assure the entire report. Benchmarking against an international standard and framework that is externally validated helps 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 as its Communication on Progress, which will be made available at www.unglobalcompact.org when published.

For its efforts, CapitaLand 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. CapitaLand Investment Global Sustainability Report 2021 will be published by 31 May 2022. CapitaLand Investment Limited (CLI) is ranked the top real estate company globally and top Singapore company on the 2022 Carbon Clean 200 (Clean200).

CapitaLand Investment Global Sustainability Report 2021 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). It 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 report will cover the CapitaLand Investment Group’s global portfolio and employees, including the 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, unless otherwise indicated.

SUSTAINABILITY DURING COVID-19 PANDEMIC

In 2021, India was significantly affected by the COVID-19 pandemic. In particular, India suffered a second wave of COVID-19 cases, which peaked in May-June 2021, resulting in various lockdown measures during that period, based on guidance by local governments.

a-iTrust has had to continue adjusting its sustainability approach to accommodate the evolving situation on the ground. Every response taken by a-iTrust

Employee Care

The Managers continued to implement precautionary measures to take care of the safety and total well-being of its staff. Enhanced cleaning measures were implemented in the work areas. Where possible, staff had the flexibility to work from home with the support of telecommuting technologies. To ensure the total well-being of its staff, the Managers have been engaging them through CapitaLand online platforms including pulse surveys, virtual townhalls and online activities such as online learning, competitions etc. Resources such as financial assistance channels, other employee assistance programmes and healthcare hotlines were also circulated via emails.

With the availability of COVID-19 vaccines, the Property Managers worked closely with government/ health authorities to organise vaccination drives across a-iTrust’s properties such as in Bangalore, Chennai, Hyderabad and Pune since mid-April 2021. All employees and their families were invited to participate in these vaccination drives. Further, free COVID-19RT-PCR testing camps were also conducted to curb the spread of the COVID-19 virus within the Property Manager’s workforce. All eligible Property Manager’s staff are fully vaccinated.

considers the well-being of all its stakeholders. Under the Board’s guidance and the active involvement of the Trustee-Manager and Property Manager (the Managers), effective action was taken across a-iTrust’s properties to safeguard the health, safety, and wellness of its tenants and suppliers. The Trust worked closely with its stakeholders to ensure that the impacts of the pandemic are minimised. The following section summarises the Trust’s response in navigating the pandemic in 2021 with its stakeholders.