Board Statement
Mapletree Commercial Trust’s sixth Sustainability Report (“SR”) is for the period from 1 April 2021 to 31 March 2022, and it encapsulates our policies, practices, targets of all sustainability matters and their respective performance .
We are starting to see sustainability take the centre stage for major corporations worldwide. Sustainability forms the core of businesses, is key to strategic business decisions and supports the working philosophy behind business operations. Likewise, at MCT, the Manager firmly believes that businesses have an important role to play in accelerating sustainable development and addressing the challenges of climate change. We strive to conduct our business in a socially responsible manner, care for the environment and communities we live, work and play in, while keeping impacts to a minimum. Every stakeholder matters – employees, tenants, customers, investors – we keep their feedback in mind and strive to meet their expectations. We commit ourselves to delivering long-term value to our stakeholders as we progress further with them on this sustainability journey.
In the long shadows of COVID-19, we continue to reaffirm our commitment to sustainability and are happy to make progress in our ESG efforts. An environmental risk assessment was commenced by the Board in FY21/22. Results of the risk findings were subsequently integrated within our current Enterprise Risk Management framework, which is in line with the Guidelines on Environmental Risk Management for Asset Managers issued by the MAS. This is expected to help us better identify and manage climate-related risks and opportunities. Following this, we adopted the recommendations of the TCFD and have made our inaugural disclosure within this Report. More details can be found within the Energy and Climate Change section.
Our approach towards sustainability is aligned with that of the Sponsor's, and is anchored by our shared belief to incorporate the “triple bottom line” in running our business: financial, social and environmental. During the year, we reassessed our material sustainability matters and conducted a stakeholder engagement survey to better understand their needs and concerns. The survey results revealed the top sustainability matters, which were subsequently presented to the Management for further deliberation. Thereafter, we redefined our material sustainability matters and added four new material sustainability matters (to the existing eight matters) to reflect our areas of focus and the growing scope of sustainability concerns from our stakeholders. Targets for the forthcoming financial year have also been set for all material sustainability matters.
The Board maintains overall responsibility on our sustainability strategy and achievement of long-term performance. The 12 material sustainability matters were presented to the Board for their approval. The Board is closely supported by the Sponsor’s Sustainability Steering Committee (“SSC”) and MCT’s management in overseeing the sustainability direction and management of MCT.
At MCT, we adopt an iterative approach towards the review of our ESG strategies to continuously identify areas for improvement. Since 2020, we have been benchmarked as “A” for GRESB Public Disclosure. This year, we were conferred a GRESB Three Star rating for our inaugural participation in the GRESB Real Estate Assessment, a global ESG performance benchmark for real estate companies and funds. ESG issues have become increasingly important for investors. This assessment enables us to measure our performance against global peers and fine-tune our sustainability practices for the long term.
We are pleased to share some of our sustainability developments:
• All our five properties maintained their respective BCA Green Mark certifications, with three of them being certified Platinum, the highest accolade in recognition of a building’s environmental impact and performance, with the remaining two being certified Green Mark GoldPLUS;
• Generated more than 1.7 million kilowatt-hour (“kWh”) of solar energy in FY21/22 – an increase of more than 4% from FY20/21;
• Introduced more sustainability solutions, including installing Electric Vehicle (“EV”) charging points at VivoCity and MBC, as well as smart water meters and sensors across various assets for better monitoring of water consumption;
• All properties have obtained ISO 14001 Environmental Management System and ISO 45001 Occupational Health and Safety Management System certifications;
• Established the Green Finance Framework to demonstrate our intent to enter into Green Finance Transactions to fund initiatives that would contribute positively to sustainability; and
• Rolled out a groupwide Board Diversity Policy with a target set to achieve at least 25% and 30% of female representation on the Board by 2025 and 2030 respectively.
As we close the year, we look forward to the resumption of normalcy for business and social activities in Singapore. We will remain vigilant in monitoring the situation and will continue to work with the relevant agencies to safeguard the health and safety of our employees, customers and the community.
Sustainability remains at the heart of our business, and there is still much to be done to build a better tomorrow. As we continue our sustainability journey, we would like to again invite our stakeholders to join us in doing well by doing good.
BOARD OF DIRECTORS
To access MCT’s full Sustainability Report, please click here.
Green Financing
MPACT is constantly exploring ways to diversify our financial sources and enhance financial flexibility by seizing trends in sustainable financing. As part of our commitment to further integrate ESG goals into our financial approach, we have established the Green Finance Framework (the “Framework”), prepared in line with the Green Bond Principles (2021) and the Green Loan Principles (2021).
The setting up of the Framework demonstrates our intent to enter into Green Finance Transactions (“GFTs”) such as green loans and green bonds to fund projects that will deliver environmental and social benefits. The Framework outlines the criteria and guidelines for MPACT and its subsidiaries to allocate and manage the proceeds raised from the GFTs. We believe this will help us secure funding from like-minded capital providers who share our belief in making a positive impact to the environment and the society.
• Green Financing Framework
• Assurance Report dated 2 September 2022 (Green Finance Framework and Green Bond Pre-Issuance Assurance)