Sustainability Overview
Board Statement
Dear Stakeholders,
As we assess the current landscape of sustainability, it is evident that expectations for businesses are intensifying, particularly regarding climate action. Recent regulatory advancements are raising the bar for corporate sustainability disclosures, necessitating alignment with the International Sustainability Standards Board (ISSB) framework. At AIMS APAC REIT, we acknowledge the urgency of these expectations and are committed to integrating sustainable practices into our operations. We remain firmly committed to our unitholders, tenants, business partners, financiers and the communities we serve as we pursue diverse market opportunities and continue to build a resilient portfolio.
The Board of AIMS APAC REIT plays an active role in overseeing the identification and management of ESG issues material to our business. In FY2025, we are proud to report a 25% reduction in carbon emissions from our FY2020 baseline. This significant achievement reflects our commitment to the long-term goals established by the Science Based Targets Initiative (SBTi), aiming for a 42% reduction by FY2030, in alignment with the Paris Agreement’s objective to limit global warming to 1.5°C above pre-industrial levels. Our carbon baselining exercise has enabled us to identify critical initiatives that will further reduce our environmental footprint, with a particular focus on enhancing energy efficiency and implementing innovative strategies.
Over the past year, we have made significant strides in operationalizing our environmental goals. We completed Phase 1 rooftop solar panel installation and now commenced Phase 2 of our rooftop solar panel installation across three properties, which upon completion, will bring our total solar capacity to 14.7 MWp across nine assets – positioning us as one of the largest adopters of solar PV systems among Singapore REITs. The rollout of a smart metering system across 15 properties has been substantially completed, enabling real-time monitoring of energy consumption and facilitating collaboration with tenants to reduce their carbon footprints.
We also advanced several other energy efficiency projects. Electric vehicle (EV) fast-charging stations were installed across four properties, implemented an LED smart lighting system at 20 Gul Way, our largest property by net lettable area, and installed a new energy-efficient chiller at 135 Joo Seng Road. To strengthen water efficiency, we completed the installation of water-efficient fittings at 27 Penjuru Lane and 15 Tai Seng Drive and obtained Water Efficient (basic) Building award for 56 Serangoon North Ave 4.
These investments not only reduce our environmental footprint but also deliver financial and operational value generating incremental revenue from solar energy, lowering utility costs, and enhancing access to sustainable financing. To complement these efforts, AA REIT obtained a new unsecured Sustainability-Linked Loan (“SLL”) of up to S$400 million and A$150 million. Besides providing headroom for AEIs and potential growth opportunities, the SLL is also structured to offer sustainability margin adjustments tied to AA REIT’s performance in achieving pre-determined sustainability targets that are aligned to AA REIT’s sustainability strategy. The successful achievement of these targets will enable AA REIT to benefit from further margin reduction which will lower our borrowing costs. Over the years, not only have we improved our overall GRESB real estate assessment score but also earned us the Platinum Award for Best Overall ESG at the 9th Annual REITs & Real Estate Investment Summit Asia Pacific 2024.
On the social front, we continue to foster a safe, inclusive and supportive workplace. Our community engagement initiatives in FY2025 included volunteer activities at Krsna Free Meals and the Waterways Watch Society, reinforcing our ongoing commitment to social responsibility and environmental stewardship.
In terms of diversity, we maintain a strong mix of employees and have surpassed our target for training hours, further enhancing our employees’ training and development.
Now in its 9th edition, our Sustainability Report, outlines the progress, achievements, and ongoing efforts in our ESG journey. We thank all stakeholders for their support and look forward to providing further updates in the coming years.
The Board of Directors
AIMS APAC REIT
Management Limited
To access the full Sustainability Report, please refer to the following:
