Sustainability Overview
Board Statement
Dear Stakeholders,
In recent years, there has been a significant transformation in the expectations placed on businesses, particularly regarding climate action and sustainability. The global momentum towards sustainability underscores the necessity for businesses to adapt and commit to sustainable practices. At AA REIT, we fully embrace our responsibilities to our investors, customers, business partners, and the communities in which we operate. Our dedication to sustainability is steadfast as we strive to meet these expectations, while casting a wide net to capture diverse market opportunities and build a more resilient portfolio.
As the Board of AA REIT, we oversee the identification and management of ESG issues material to our business. In FY2024, we reviewed our material topics, set new targets and reaffirmed our sustainability commitments. These identified material topics remain vital in impacting our business operations and informing stakeholder decisions.
To advance our ESG objectives, we established a comprehensive framework to steer our sustainability initiatives. This framework integrates ESG considerations into our business strategy and investment decisions. We also developed a five-year roadmap in FY2023 with specific initiatives aimed at achieving our strategic ESG targets, which are both measurable and ambitious.
In FY2024, we achieved a 17% carbon reduction from the FY2020 baseline, aligning with our long-term Science based target initiatives (“SBTi”) goal of a 42% reduction by FY2030 and the Paris Agreement’s objective to limit global warming to 1.5°C above preindustrial levels. Our carbon baselining exercise identified initiatives to reduce our footprint, such as optimising energy efficiency in our buildings and reducing emissions through innovative strategies. We have begun installing energy-efficient fittings and equipment at 20 Gul Way and 135 Joo Seng, which is expected to be completed by FY2025. Additionally, we completed one of the largest rooftop solar installations by a Singapore-listed REIT, with a capacity of 10.8 MWp, generating an estimated 14,500 MWh of electricity annually. In collaboration with GoNetZero, we have entered the Renewable Energy Certificates (“REC”) market, reinforcing our sustainability commitment. These milestones, including installing Electric Vehicle (“EV”) fast chargers at four properties, promote renewable energy generation and sustainable transportation. This supports our green transformation and empowers other organisations to contribute to global sustainability.
Over the year, we installed waterefficient fittings certified under the Public Utilities Board’s Water Efficiency Labelling Scheme for toilets and completed toilet upgrades with these water-efficient fittings at 15 Tai Seng, 56 Serangoon North and 11 Changi South. Additionally, we collected comprehensive recycling and general waste data from our multi-tenanted properties and installed recycling bins across all of these properties, supporting our commitment to effective waste management and recycling initiatives.
On the social front, we are dedicated to fostering an inclusive and supportive culture. Celebrating our commitment to fostering a supportive workplace for female employees, we are able to report that women formed 50% of our new hires and constituted 57% of our entire workforce this year. In leadership standings, women represented 40% within senior management and held 25% of seats within our Board of Directors. This means we are ahead of our target in achieving at least 20% female representation on our Board by the year 2026. Additionally, we continued several health and wellness initiatives to enhance employee well-being and uphold the highest standards of safety and fairness.
We exceeded our target of achieving at least 15 hours of training per employee per year, with each employee receiving an average of 25.2 hours of training. Our community involvement included partnerships with organisations such as Club Rainbow, with a 66% participation from staff in the community engagement activities. We remain committed to supporting local charities to help improve the lives of vulnerable members of our community.
We also reported zero material incidents of non-compliance with anti-corruption laws and regulatory and environmental requirements, demonstrating our adherence to governance standards and regulatory obligations.
This, our 8th Sustainability Report, outlines our progress, achievements, and efforts on the ESG front. We thank all contributors to our sustainability journey and we look forward to providing all of you with favourable updates on our progress in our roadmap in the coming years.
The Board of Directors
AIMS APAC REIT Management Limited
To access the full Sustainability Report, please refer to the following:
