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Environmental and Social Due Diligence Policy for Property Investment

 

 

Commitment

  • Prosperity REIT’s principal investment strategy is to invest in office, commercial and retail properties with no geographical restrictions, aiming to deliver stable and sustainable returns to unitholders by actively managing the portfolio and maintaining a high level of investment discipline and financial flexibility.

 

  • As both environmental and social sustainability are becoming increasingly crucial to the long run success of businesses, we take the considerations of sustainable development into the future property investment of Prosperity REIT and the oversight of our Property Manager’s operations. By establishing this Policy, we are committed to implementing effective due diligence process towards our prospective investment, so that we could minimize the environmental impacts and maximize the social-economic impacts of our business operations.

 

Approach

Before making any investment decision on property acquisition, we will perform an asset-level due diligence on the prospective property to be acquired. The evaluation and assessment will include the following aspects:

  • Building Safety and Maintenance
    • Examples include structural safety, integrity of external finishes, and the presence of any building defect(s)
  • Green Building Certification
  • Environmental and Social Compliance
  • Energy and Greenhouse Gases (GHG) emission management
  • Water management
  • Waste management
  • Climate Risks and Mitigation
    • Example includes building resilience to extreme weather events like typhoons and flooding
  • Indoor environmental quality
    • Examples include:
      • indoor air quality (IAQ), ventilation and thermal comfort
      • interior lighting quality, natural lighting and views
      • acoustic conditions
  • Health and well-being
    • Examples include:
      • inclusive building design
      • quality of movement network and circulation in building(s)
      • access to natural environment
      • presence of restorative spaces
  • Site Selection and Planning
    • Examples include:
      • consider the diversity of properties nearby so that people can enjoy different kinds of activities
      • consider walkability and access to mass transit and multimodal transportation hub
      • sites with pedestrian-friendly or bicycle-friendly streets (if applicable)
  • Biodiversity and habitat
    • Examples include
      • green walls, rooftop gardens, hydroponic organic farms and other vegetation to improve the biodiversity value of our surrounding properties
      • materials selection and usage in view of their impacts on ecosystem

 

Apart from performing due diligence for prospective property acquisition projects, Prosperity REIT also considers the aforementioned criteria in overseeing the Property Manager’s operations and planning for future renovation works of our existing property portfolio.

 

Implementation and Review

  • Each asset-level assessment of prospective properties will be led by Asset Management Team. Results of the due diligence process will be reviewed and discussed in the Sustainability Steering Committee.

 

  • This Policy will be reviewed by Sustainability Steering Committee from time to time and update the content as appropriate.
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