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Environmental Commitment

AA REIT aims to reduce our impact on the environment and conduct business in a responsible way. We work closely with different stakeholders, including tenants, occupants, industry bodies and service providers, to adopt low-carbon solutions and improve the sustainability of our properties.

OUR APPROACH

  • Track and reduce emissions and water consumption
  • Encourage recycling and minimise waste generation
  • Invest in energy efficient solutions to improve the performance of our assets
  • Incorporate ESG criteria in our investment and redevelopment review processes

SUSTAINABILITY GOVERNANCE STRUCTURE

FY2024 Targets FY2025 Achievements Targets
Energy and emissions
  • Invest in new and existing properties to improve the energy efficiency of our properties.
  • Integrate sustainable design features into our business operations.
  • Target to accurately measure and disclose our Scope 1 and 2 emissions in the medium-term with a view to include Scope 3 emissions in the future.
  • Installed EV fast-charging stations across four properties in Singapore: 1A International Business Park, 10 Changi South Lane, 29 Woodlands Industrial Park E1 and 8 & 10 Pandan Crescent.
  • Completed installation of LED smart lighting system at 20 Gul Way.
  • Completed installation of new energy efficient chiller at 135 Joo Seng Road.
  • Completed smart metering systems that will track real-time energy consumption data across 15 properties in Singapore.
  • Commence on Phase 2 rooftop solar panel system installation across three properties: 7 Clementi Loop, 7 Bulim Street and 1 Bukit Batok.
  • Achieved carbon reduction of 25% from 2020 baseline. On track for long term SBTi target of 42% reduction by FY2030.
  • Achieved solar capacity target of 11.82 MWp increase by end of FY2025.
  • Achieved 51% green new and renewal leases in FY2025.
Short-term Targets:
  • Increase solar capacity to 12.35 MWp by end FY2026.
  • 60% of new and renewal leases signed in FY2026 to be green.
Medium-term Targets:
  • Increase solar capacity to 13.13 MWp by end FY2027.
  • 70% of new and renewal leases signed in FY2027 to be green.
Long-term Targets:
  • SBTi commitment to 42% reduction in scope 2 emissions by FY2030, from a FY2020 base year.
  • >70% of new and renewal leases signed after FY2027 to be green.
Water and Effluents
  • Measure and evaluate the long-term sustainability of our water performance data and identify new water efficiency opportunities within our portfolio and new developments.
  • Completed toilet upgrade works with water efficient fittings at 27 Penjuru Lane and 15 Tai Seng Drive with water efficient fittings.
 Short-term Target:
  • To install water-efficient fittings in at least one property under the Water Efficiency Building Certification.
Medium-term Target:
  • To actively engage master tenants in single-user assets for collection of data.
Long-term Target:
  • Progressively install water-efficient fittings certified under the Water Efficiency Building Certification.
Waste
  • To collect accurate waste data for all properties with operational control by end of FY2024.
  • To put in place waste recycling facilities across properties with operational control.
  • Collected recycling and general waste data from multi-tenant properties.
  • Installed recycling bins in all our multi tenanted properties.
 Short-term Target:
  • To encourage waste separation and recycling in all multi-tenant properties.
Medium-term Target:
  • To actively engage master tenants in single-user assets for collection of waste data.

GREEN BUILDINGS

Buildings are responsible for about 34% of global carbon dioxide (CO2 ) emissions.2 As such, decarbonising the built environment is critical for meeting national and global climate targets. AA REIT is committed to reducing the environmental impact of our properties, investing into enhancing the energy efficiency of our buildings and obtaining green building certifications. As of 31 March 2025, we have green building certifications for two properties in our Singapore portfolio and NABERS star ratings for two properties in Australia:

  • 7 Bulim Street, Singapore: BCA Green Mark Gold Plus
  • 23 Tai Seng Drive: BCA Green Mark Platinum
  • Optus Centre, Australia: 5.5-stars NABERS energy rating and 4.5-stars NABERS water rating
  • Woolworths HQ, Australia: 4.5-stars NABERS energy rating

The Manager remains committed to assessing the feasibility of obtaining green building certifications during the design and planning phase of projects as well as during asset enhancement initiatives. We will also continue to assess certification and recertification opportunities for our existing properties where commercially feasible.

ENERGY AND EMISSIONS

As buildings account for 32% of global energy consumption, investing into energy efficient and low-carbon solutions are essential to making buildings and property portfolios more resilient for the future.1 Over the years, AA REIT has progressively improved the energy performance of our properties and reduced the portfolio’s overall carbon emissions through investments in innovative solutions. These efforts ensure our portfolio stays resilient and well-positioned to deliver long-term value in the face of climate change, evolving regulatory and market trends.


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