Environmental Commitment

As a responsible corporate citizen, we strive to reduce our impact on the environment. We do so through the continual reduction of our buildings’ environmental impact, working closely with our customers, developing and obtaining the necessary credentials for sustainable buildings, and the generation of renewable energy.

Our Progress

FY2023 Targets	FY2024 Achievements	Targets
Energy and emissions
Invest in our new projects and existing properties to improve their energy efficiency in more sophisticated ways where possible Explore integrating sustainable design features into our business operations Target to accurately measure and disclose our Scope 1 and 2 emissions in the mediumterm with a view to include Scope 3 emissions once we have the capabilities in place	Commenced works at 20 Gul and 135 Joo Seng and expected to be completed in FY2025. Achieved carbon reduction of 17% from 2020 baseline. On track for long term SBTi target of 42% reduction by FY2030.	SHORT-TERM TARGET: Increase solar capacity to 11.22MWp by end FY2025. 50% of new and renewal leases signed in FY2025 to be green. MEDIUM-TERM TARGETS: Increase solar capacity to 13.13MWp by end FY2027 70% of new and renewal leases signed in FY2027 to be green. LONG-TERM TARGET: SBTi commitment to 42% reduction in scope 2 emissions by FY2030, from a FY2020 base year.
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 at 11 Changi South and 56 Serangoon North with water efficient fittings.	SHORT-TERM TARGET: To install water-efficient fittings in two properties. MEDIUM-TERM TARGET: Progressively install water-efficient fitting certified under the PUB’s Water Efficiency Labelling Scheme for toilets.
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-tenanted properties. Installed recycling bins in all of our multi-tenanted properties.	SHORT-TERM TARGET: To encourage waste separation and recycling in all multi-tenanted properties. MEDIUM-TERM TARGET: To actively engage master tenants in single-user assets for collection of waste data.

Green Buildings

We recognise the role green buildings play in mitigating long-term negative environmental impact as well as the importance of green building certification standards in the real estate market. As of 31 March 2024, we have four buildings with green building certifications in our portfolio. These are the green building certifications within AA REIT’s portfolio:

7 Bulim Street, Singapore: BCA Green Mark Gold Plus
1A International Business Park, Singapore: BCA Green Mark Gold
Optus Centre, Australia: 5-stars NABERS energy rating and 5-stars NABERS water rating
Woolworths HQ, Australia: 4.5-stars NABERS energy rating

In FY2024 we have commenced a gap analysis for Green Mark recertification for 3 Tuas Ave 2 and Northtech and will pursue certification pending the results of the gap analysis.

Going forward, the Manager will assess the feasibility of obtaining new green building certifications during the design and planning phase of new development projects, as well as during asset enhancement initiatives, where economically feasible. We will also review our existing properties regularly for certification or recertification opportunities.

Energy and emissions

AA REIT pledges to actively address climate change by striving to limit global warming to 1.5°C. We adopt a two-pronged approach – improving building energy performance and reducing our carbon emissions through innovation and advancing best practices.