SUSTAINING VALUE CREATION A member of Frasers Property Group 2024 ESG Repo r t
3 INTRODUCTION Board Statement 2024 ESG Performance 5 ABOUT THIS REPORT Report Scope Reporting Standards, Frameworks and Recommendations External Assurance Feedback 6 OUR APPROACH TO ESG ESG Framework and Goals ESG Governance Membership Associations Stakeholder Engagement Materiality Approach 11 ACTING PROGRESSIVELY Risk-based Management Responsible Investment Resilient Properties 16 CONSUMING RESPONSIBLY Energy and Carbon Water Waste 20 FOCUSING ON PEOPLE Diversity, Equity and Inclusion Skills and Leadership Health and Well-being Community Connectedness 26 INDEPENDENT ASSURANCE STATEMENT 29 TASKFORCE FOR CLIMATE-RELATED DISCLOSURES APPENDIX 31 GRI CONTENT INDEX A glossary of the abbreviations used in this report ARCC : Audit, Risk and Compliance Committee BCA : Building and Construction Authority BIU : BREEAM In-Use Board : Board of Directors BREEAM : Building Research Establishment Environmental Assessment Method CASBEE : Comprehensive Assessment System for Built Environment Efficiency CVaR : Climate Value at Risk DEI : Diversity, Equity and Inclusion ESG : Environmental, Social and Governance FH : Frasers Hospitality FHT : Frasers Hospitality Trust FY : Financial Year ended 30 September 2024 GFA : Gross Floor Area GHG : Greenhouse Gas GJ : Gigajoule GRI : Global Reporting Initiative GWh : Gigawatt hours GWP : Global Warming Potential HACCP : Hazard Analysis and Critical Control Points HFCs : Hydrofluorocarbons IFRS : International Financial Reporting Standards ISSB : International Sustainability Standards Board kL : Kilolitre MAS : Monetary Authority of Singapore MW : Megawatt NABERS : National Australian Built Environment Rating System ODP : Ozone Depletion Potential OHS : Occupational Health and Safety REIT : Real Estate Investment Trust REITAS : REIT Association of Singapore SGX-ST : Singapore Exchange Securities Trading Limited SIAS : Security Investors Association SRC : Sustainability and Risk Committee S-REIT : Singapore REIT SSC : Sustainability Steering Committee TAFEP : Tripartite Alliance for Fair and Progressive Employment Practices TCFD : Task Force on Climate-related Financial Disclosures tCO2e : Tonnes of CO2 equivalent The Group : Frasers Property and its subsidiaries The Sponsor : Frasers Property Limited The UK : United Kingdom YoY : Year-on-year GLOSSARY CONTENTS 2 Frasers Hospitality Trust
INTRODUCTION BOARD STATEMENT Dear Stakeholders, Recent years have seen growing stakeholder expectations for the hospitality industry to prioritise decarbonisation and incorporate responsible environmental, social and governance (“ESG”) practices within their business. With the rise of sustainable tourism among travellers and with regulators prioritising ESG aspects within national tourism policies, the Board of Directors (the “Board”) of FHT continues to oversee the advancement of sustainability commitments while strengthening the resilience of FHT’s high-quality asset portfolio. In the past year, FHT has achieved several milestones that reflect its ongoing dedication to progress under the ESG pillars. In FY2024, all FHT properties in the UK have attained their BREEAM (Building Research Establishment Environmental Assessment Method) In-Use (“BIU”) certifications. In Australia, all three FHT properties have attained the Green Star Performance Certification. While in Malaysia, The Westin Kuala Lumpur has completed its GreenRE assessment and is awaiting its certification. Overall, 93% of FHT properties by gross floor area have attained or are pursuing green building certifications. Achieving and retaining these certifications is a reflection of FHT’s portfolio adopting sustainable design, reducing the environmental impact and aligning to the Frasers Property Group-wide Purpose of ‘Inspiring experiences, creating places for good’. In line with its Sponsor Frasers Property’s goal of achieving net-zero carbon emissions by 2050, FHT has developed a dedicated Sustainability Dashboard in FY2024 to track and analyse environment-related consumption data more effectively. FHT will also begin an assessment to identify and assess the extent of exposure of its asset portfolio to climate-related physical and transitional risks, by utilising the Sponsor’s in-house Climate Value at Risk (“CVaR”) platform. As a testament to its continued ESG efforts, FHT maintained its 4-Star Rating in the Standing Investments category of the GRESB 2024 Real Estate Assessment, placing first in the ‘Asia Pacific Hotel - Listed’ peer category. This assessment, using GRESB, remains an important benchmark for FHT’s ESG performance relative to its peers and drives sustainability integration across the Business. The Board of Directors will continue to fulfil our duties in providing strategic direction on sustainability, and determining, monitoring and managing our material ESG issues. We also oversee that the necessary standards and management processes are in place to reach our ESG objectives and goals. We invite you to read FHT’s tenth ESG Report 2024, that provides an overview of our sustainability performance throughout the year and is aligned with international frameworks including the GRI Universal Standards. This report continues to align climate-related disclosures with the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations and will be preparing to report in alignment to the International Sustainability Standards Board’s (“ISSB”) International Financial Reporting Standards (“IFRS”) Sustainability Disclosure Standards in alignment with applicable SGX listing rules in the near future. We look forward to working together with FHT and our stakeholders on this sustainability journey. Board of Directors Frasers Hospitality Asset Management Pte. Ltd. REIT Manager of Frasers Hospitality Real Estate Frasers Hospitality Trust Management Pte. Ltd. Trustee-Manager of Frasers Hospitality Business Trust ESG Report 2024 3
2024 ESG PERFORMANCE INTRODUCTION ACTING PROGRESSIVELY • FHT achieved a score and rating of 85 and 4-star respectively in the 2024 GRESB Real Estate Assessment • InterContinental Singapore retained the Building and Construction Authority (“BCA”) Green Mark GoldPLUS certification • All properties in the UK attained BREEAM In-Use certifications • All three properties in Australia attained Green Star Performance Certification and scored 3.5 stars for Water ratings and 3 stars for Energy ratings in the National Australian Built Environment Rating System (“NABERS”) assessment CONSUMING RESPONSIBLY • Dedicated Sustainability Dashboard developed in FY2024 to track and analyse FHT’s environment-related consumption data consumption • Roadmap developed with plan for properties to conduct energy audits • All UK properties’ electricity is powered by 100% renewable energy FOCUSING ON PEOPLE • Implemented a Frasers Hospitality (“FH”)-wide Community Framework • In FY2024, all properties managed by FH, a strategic business unit of the Sponsor, achieved a positive guest review score of 65.8% and a performance score of 84.3% • The REIT Manager’s employees completed approximately 21.2 hours of learning on average 4 Frasers Hospitality Trust
REPORT SCOPE GRI 2-2, 2-3, 2-4, 2-5 This ESG Report covers the progress made in FY2024 around our material ESG issues. The Report was published on 23 December 2024, aligned with our financial reporting cycle, which covers information and disclosures for the financial year from 1 October 2023 to 30 September 2024. The Report describes the sustainability activities and performance of our 13 properties located across the UK, Malaysia, Singapore, Japan and Australia. Detailed information on our organisation and properties is located in the Overview section of this Report. The data disclosed extends to assets we own or manage, over which we have operational control. Restatements of data and further notes to the performance data included in this Report can be found on pages 17, 18 and 36. REPORTING STANDARDS, FRAMEWORKS AND RECOMMENDATIONS To ensure disclosures within this Report are aligned with best practices and meet stakeholder needs, this Report has been prepared according to the following sustainability standards and frameworks: • Global Reporting Initiative (“GRI”) Universal Standards 2021 • SGX-ST Listing Manual (Rules 711A and 711B) • TCFD Framework, in preparation to report against the ISSB IFRS Sustainability Disclosure Standards in alignment with applicable SGX listing rules in upcoming years • Monetary Authority of Singapore (“MAS”) Guidelines on Environmental Risk Management for Asset Managers FHT has applied the Reporting Principles from the GRI Standards. For a full list of disclosures reported, please refer to the GRI Content Index on pages 31 to 36. EXTERNAL ASSURANCE To verify the reliability of the data and management approach disclosed in our ESG Report, an independent limited assurance was conducted by Verco Advisory Services Limited. The Independent Assurance Statement can be found on pages 26 to 28. FEEDBACK We welcome your feedback in our efforts to continuously improve our sustainability practices and performance. For feedback or queries, please reach out to: Mr Joey Ho Senior Manager, Investor Relations Frasers Hospitality Trust Email: ir@frasershospitality.com ABOUT THIS REPORT ESG Report 2024 5
OUR APPROACH TO ESG ESG FRAMEWORK AND GOALS At FHT, we are cognisant of our ESG commitments and duty to operate in a responsible manner. We strive to safeguard the environmental and social well-being of the communities we operate in, while creating long-term shared value for our stakeholders. Our ESG strategy is broadly aligned to our Sponsor’s ESG Framework and ESG Goals, taking into account focus areas and targets material to FHT’s business. FHT’s ESG Framework guides our approach towards driving ESG efforts and progress, and focuses on three pillars – Acting Progressively, Consuming Responsibly and Focusing on People. ACTING PROGRESSIVELY CONSUMING RESPONSIBLY FOCUSING ON PEOPLE Pillars Focus Areas • Risk-based Management Comprehensive assessment to address environmental, health and safety risks • Responsible Investment Incorporating social, environment and governance criteria in the evaluation process • Resilient Properties Strengthening the resilience and climate adaptive capacity • Innovation Fostering an innovation culture that creates value and strengthens our competitive edge • Energy and Carbon Increasing substantially energy efficiency and renewable energy used • Water Increasing substantially water efficiency and the recycling and safe reuse of water discharged • Waste Reducing substantially waste generation through prevention, reduction, recycling and reuse • Materials and Supply Chain Achieving the sustainable management and efficient use of materials along the supply chain • Biodiversity Enhancing the environment and ecosystem through our developments • Diversity, Equity and Inclusion Empowering and promoting the social inclusion of all, irrespective of age, gender, disability, race, ethnicity, origin, religion or economic or other status • Skills and Leadership Developing skills and leadership programmes that support productive activities, creativity and innovation to deliver highvalue products and services • Health and Well-being Ensuring healthy and balanced work and community environments • Community Connectedness Considering social value principles for communities 6 Frasers Hospitality Trust
FHT has established ESG targets which correspond to ESG focus areas identified as material and in alignment with our Sponsor. These targets have considered short-, medium- and long-term horizons consistent with those used for strategic planning and financial planning where applicable, and can be found on pages 11, 16 and 20 of this Report. We will continue to review our goals and targets to ensure they remain relevant to our operating and strategic context. ESG GOVERNANCE GRI 2-9, 2-12, 2-13, 2-14 FHT has put in place an ESG governance structure that enables us to align our ESG goals with our overall business strategy and integrate sustainability considerations into our long-term plans and operations. At FHT, the Board is responsible for leading our ESG strategy with a focus on value creation, value protection and sustainability. The Board has set up committees to improve business efficiency across various topics. The FH-FHT Sustainability Steering Committee (“SSC”), led by senior management, is focused on regular environmental risk oversight. There is also a dedicated Sustainability Task Force, comprising department heads from Asset Management, Finance, Investment and Investor Relations, to drive the sustainability strategy. The Task Force is responsible for developing FHT’s sustainability framework and targets, along with formulating specific strategies, staff engagement plans and resource allocation to execute these actions. The Task Force reports to the SSC every two to three months for approval and consults with and updates the Board on a quarterly basis. The Task Force also meets with the Group Sustainability team once every quarter to align on the Group’s approach. The monitoring of property-level sustainability performance and indicators is entrusted to the Asset Management team and the General Managers of its hotels and serviced residences. FHT works closely with our Sponsor to provide strategic oversight of ESG policies to ensure that our sustainability efforts are aligned with the overarching Group ESG goals. This alignment extends to our shared sustainability agenda, guided by the Group Sustainability and Risk Committee (“SRC”). The SRC is supported by the Frasers Property Group Sustainability team, which also provides support to FHT on the execution of our ESG strategies to ensure alignment between Group and business unit ESG activities. MEMBERSHIP ASSOCIATIONS GRI 2-28 Achieving net-zero carbon emissions by 2050 requires a united effort across the industry. FHT is dedicated to sharing our knowledge and experience with industry bodies to advance shared sustainability goals. We play an active role as a member of the REIT Association of Singapore (“REITAS”). REITAS serves as the representative advocate for the Singapore REIT (“S-REIT”) sector. This involvement allows us to engage in policy consultations and contribute to discussions that shape the industry. FHT, via our Sponsor, is a member of the REITAS’ Sustainability Taskforce, who advocates for the integration of sustainability into business strategies, responsible ownership and collaboration within the S-REIT industry to promote a resilient and responsible real estate sector. Furthermore, we engage in industry events organised by REITAS and participate in relevant surveys conducted by regulators to gather valuable feedback from S-REITs. Through our Sponsor, we also align with industry, country-specific and international platforms to advance on standards and good industry practices including: • GRESB Real Estate Assessment • Science Based Targets initiative • United Nations Global Compact • United Nations Women’s Empowerment Principles • Tripartite Alliance for Fair and Progressive Employment Practices (“TAFEP”) • Net Zero Carbon Buildings Commitment of the World Green Building Council ESG Report 2024 7
OUR APPROACH TO ESG ACTING PROGRESSIVELY CONSUMING RESPONSIBLY FOCUSING ON PEOPLE Group Sustainability Framework Pillars Corresponding United Nations Sustainable Development Goals Material Topics Economic Performance Anti-corruption Energy and Greenhouse Gas (GHG) Emissions Management Water Management Waste Management Customer Experience Talent Recruitment and Retention Employee Well-being and Empowerment STAKEHOLDER ENGAGEMENT GRI 2-29 Engaging our stakeholders and addressing their concerns forms an important element of our approach to sustainability. We value stakeholder views and work to integrate their feedback within our practices. Stakeholders are identified and prioritised based on the impact that our operations have on them, their knowledge of the sector and FHT, and their importance to the success of our business. We engage our stakeholders throughout the year via a variety of communication channels, to better understand stakeholder needs while seeking collaborative ways to achieve shared objectives. MATERIALITY APPROACH GRI 3-1, 3-2 FHT regularly monitors our operating landscape for any changes or developments that may impact our business, stakeholders and our material ESG 8 Frasers Hospitality Trust
Corresponding Group Focus Areas Rationale Material Factor Boundaries FHT/ REIT Manager Suppliers/ Contractors Properties Risk-based Management, Responsible Investment, Resilient Properties Our strategic objective is to manage and expand our portfolio, within our risk capacity and appetite, to deliver long-term growth in distribution and net asset value to our Stapled Securityholders. Risk-based Management The foundation of our reputation lies in ethical and fair dealings. We maintain high standards of governance and accountability to earn the trust and confidence of our stakeholders. Energy & Carbon Considering that energy consumption is one of the largest environmental impacts that our operations generate, we continue to actively monitor and manage energy consumption at our properties. Water Water is a limited natural resource. It is essential for us to manage our consumption to reduce unnecessary usage. Waste As the operations of our properties generate various types of waste, proper waste management is key in preventing adverse impact on the local environment and public health. Community Connectedness Customer experience is a vital aspect in determining the success of our business. It is our utmost priority to meet and exceed the expectations of our customers and guests. Skills & Leadership It is important that the REIT Manager has the capacity to manage and expand FHT’s portfolio to create value for our stakeholders. We seek to attract, develop and retain the right people who are the cornerstone of our success. Diversity, Equity & Inclusion (DEI) Employees are at the heart of hospitality operations. It is vital to ensure our hotel and serviced residence operators value staff well-being by providing a conducive and safe working environment. In turn, a motivated workforce can better deliver positive, memorable experiences to our customers and guests. topics. In FY2022, Frasers Property led a group-wide review of material topics to determine if any new topics have emerged, or whether there has been a shift in the importance and impact of existing topics. The review process comprised a global market review of relevant key sustainability trends as well as surveys and interviews with internal and external stakeholders. The findings affirmed that FHT’s material topics remain relevant and aligned to stakeholder expectations. In FY2024, our Sponsor conducted a double materiality assessment to articulate the impact of our business on the economy, people and the environment as well as factors that have financial impacts on our business. The double materiality assessment was conducted in alignment with the European Sustainability Reporting Standards (ESRS), GRI and Sustainability Accounting Standards Board (SASB), and will enable FHT to better address our impacts, risks and opportunities. The enhanced topics identified in the double materiality ESG Report 2024 9
OUR APPROACH TO ESG Key Stakeholders Key Topics of Concern Mode and Frequency of Engagement Customers and Guests • Customer satisfaction • Quality of facilities and services • Health and safety Throughout the year: • Bilateral communications • Guest satisfaction surveys • Events Investment Community and Stapled Securityholders • Financial and portfolio performance • Business strategy and outlook • Acquisitions and divestments • Asset enhancement initiatives • Capital and risk management • Corporate governance • Quarterly business updates, financial results briefings and earnings calls • Annual General Meeting Throughout the year: • Investor conferences and non-deal roadshows • Bilateral communications via emails, calls, company visits and site visits • Corporate website Hotel and Serviced Residence Operators • Asset management and enhancement initiatives • Business opportunities • Property maintenance programmes • ESG practices • Monthly ESG performance data collection and review Throughout the year: • Regular site meetings • Discussions via calls and emails Employees • Employee development and retention • Employee satisfaction • Occupational health and safety • Impact on the environment • Employee well-being • Organisation updates Annual • Performance appraisals • Employee culture or pulse survey • Group-wide Health and Safety Month and Environment Month Throughout the year: • Training, including courses and orientation programme for new staff • Team bonding activities as well as sports, volunteering and other events • Internal communications via emails, intranet, newsletters and townhall meetings Suppliers and Business Partners • Appropriate cost and budgeting • Adherence to terms and conditions of purchasing policies • Responsible sourcing practices As and when requested: • Quotations, proposals and tenders • Regular meetings • Discussions via calls and email Local Community • Social and community initiatives • Business impact on the environment and society Throughout the year: • Community engagement activities Media • Financial and operational performance • FHT’s latest developments, including acquisitions, equity fund raising, and divestments Throughout the year: • Media releases Regulators and Non-governmental Organisations • Regulatory compliance • Regulatory and industry updates and trends • Corporate governance Throughout the year: • Briefings, discussions and consultations • Participation in relevant industry associations • Participation in relevant industry surveys which seek to gather feedback from market participants assessment will be incorporated in our ESG Reports from FY2025. In the interim, we have maintained our material focus areas for FY2024, which were assessed through stakeholder engagement surveys and industry analysis, taking into consideration business impact, emerging trends and alignment with our Sponsor’s ESG priorities. The following table reflects the material topics that we have identified in our FY2022 review and where we have caused or contributed to significant impacts for each of our material topics. 10 Frasers Hospitality Trust
We strive to act progressively in everything we do by embracing flexibility, integrating ESG into our risk management mechanisms and challenging the way we operate. Built on the foundation of a strong governance system with robust policies in place, we look for ways to achieve long-term sustainable value through responsible investments and resilient properties that can withstand the impacts posed by various ESG risks, including climate change. We benchmark our properties against relevant green building certification schemes to uphold responsible business practices across our business operations. Furthermore, we believe in fostering a culture of innovation to strengthen our competitive edge and add value to our guests’ experience. ACTING PROGRESSIVELY Our Progress Focus Area Our Goals Our Progress in FY2024 Risk-Based Management • To establish holistic overarching internal policies to govern and guide the senior management on the focus areas. • ESG related risks are factored in our Risk Register in alignment with our Sponsor. Responsible Investment • To have 85% of owned and assetmanaged properties by gross floor area be either green-certified or pursuing green certification by 2030. • 93% of FHT properties by gross floor area have attained or are pursuing green building certifications. • All three of our properties in Australia have received the Green Star Performance Certification and scored an average 3.5-Star for Water rating (between Average and Good) and 3-Star for Energy rating (Average) for their NABERS assessment. • InterContinental Singapore holds the BCA Green Mark GoldPLUS certification. • The Westin Kuala Lumpur is in the process of attaining the GreenRE Certificate, while ANA Crowne Plaze Kobe is pursuing the CASBEE certification. • Achieved 4-Star rating and a score of 85 at the 2024 GRESB Real Estate Assessment, ranking first in the ‘Asia Pacific Hotel - Listed’ category. Resilient Properties • To carry out climate risk assessment and implement asset-level adaptation and mitigation plans in alignment with the TCFD framework by 2024. • Our Sponsor deployed a Group-wide CVaR platform and decarbonisation tool. • FHT utilises this tool to assess the climate risks to our asset portfolio. RISK-BASED MANAGEMENT Our Approach GRI 3-3 Risk management within FHT is overseen by our Board to ensure risk management systems, processes and internal controls are well maintained and compliant with local regulatory requirements. The REIT Manager’s established audit process, our Board’s Audit, Risk and Compliance Committee (“ARCC”) oversight and our Code of Business Conduct, guided by the Sponsor’s internal audit function, supports us by providing an independent evaluation of the adequacy of our existing ACTING PROGRESSIVELY ESG Report 2024 11
ACTING PROGRESSIVELY processes and controls. The REIT Manager is also responsible for identifying, reviewing and monitoring key risks, such as investment, environmental and climate change, fraud, foreign currency, interest rate, tax, credit, liquidity, operational, regulatory and compliance, information technology and human capital risks. The identified risks are mapped to our risk register, along with the potential business consequences and monitored quarterly. To demonstrate our commitment to enhancing corporate governance, we continue to remain as a signatory of the annual Corporate Governance Statement of Support initiated by the Security Investors Association (“SIAS”) since our listing on the Singapore Exchange (“SGX”). Our Actions and Progress GRI 2-23, 2-24, 2-25, 2-26, 2-27, 205-1, 205-2, 205-3, 206-1 At FHT, we are committed to maintaining fair and ethical business practices coupled with our zero tolerance against corruption and fraud. This helps to instil trust and confidence in our stakeholders and unlocks new opportunities. Our business practices and the way in which we operate are guided by a number of policies, which are reviewed periodically and updated to ensure that they remain relevant and aligned with our corporate purpose and operations. These include, but are not limited to FHT’s Whistleblowing Policy, Board Diversity Policy (available in our Corporate Governance Report) available on our corporate website, and the Group ESG Policy, Privacy Policy and Responsible Sourcing Policy available on our Sponsor’s corporate website. Anti-Bribery, Anti-Corruption and Anti-Competition Our policies and procedures, namely the Anti-Bribery Policy, the Competition Act Compliance Manual and the Policy for Prevention of Money Laundering and Countering the Financing of Terrorism detail our commitment to the highest standards of ethical business conduct and towards good faith business activities and regulatory compliance. In FY2024, there was no confirmed incident of corruption and bribery with our operations. We strongly believe that communication and training is a necessity in building internal awareness to combat corruption. In the reporting period, 69% of all REIT Manager employees received training on anticorruption including 77% of those based in Singapore. Whistle-Blowing and Raising Concerns Whistle-blowing is an important component of the corporate governance system of a company, and is intended to detect, prevent and address wrongdoing and improper conduct. Through the WhistleBlowing Policy, we uphold an open and transparent corporate culture which promotes accountability, while encouraging employees and any other persons who are not employees to report in good faith and in confidence, concerns about possible improprieties, particularly on the following issues: • Financial fraud or professional misconduct, including concerns about accounting, internal controls or auditing matters • Improper conduct, dishonest, fraudulent or unethical behaviour • Any criminal or regulatory offense, breach, irregularity or non-compliance with laws, regulations or FHT’s policies, procedures and/or internal controls • Violence at the workplace, or any workplace hazard/ violations which may threaten health and safety • Corruption or bribery • Conflicts of interest without proper disclosure • Any deliberate attempt to cover up and/or conceal misconduct; and any other improprieties or matters that may adversely affect unitholders or shareholders’ interests in, and assets of, FHT and its reputation A report can be submitted through various channels, including by mail, electronic mail or by calling a hotline. Reports made in good faith are investigated and reported back to the Sponsor’s Head of Group Internal Audit, on the investigation, findings and actions taken. In FY2024, we did not receive any cases via our whistle-blowing channels. We will continue to foster close collaboration with our stakeholders to ensure that we mitigate any wrongdoing and improper conduct in our value chain. Supply Chain Management Effective supply chain management is crucial for optimising operational efficiency while minimising risks across the supply chain. At FHT, we seek to forge close partnerships with our suppliers and service providers that share our sustainability vision. As detailed in our Responsible Sourcing Policy, we believe in raising the sustainability ideals across our value chain in partnership with our stakeholders to create a more resilient and sustainable business. The policy outlines our commitment to responsible sourcing, and what we expect of our suppliers in the areas of environmental management, human rights and labour management, health, safety and well-being and business ethics and integrity. 12 Frasers Hospitality Trust
In FY2024, we started preparing to onboard our key property managers and REIT Manager corporate office suppliers to a tailored Group-wide e-learning programme, designed to enhance our suppliers’ understanding of sustainability and our expectations around responsible sourcing. Data Privacy At FHT, we have implemented our Personal Data Protection Policy which sets out how we protect our information assets and ensure maximum data confidentiality and security. It also sets out the responsibilities all employees must undertake towards safeguarding our information assets. In the event of a breach, FHT’s Personal Data Breach Incident Management Policy details clear procedures for employees to effectively manage and mitigate potential negative impacts. In FY2024, there was no recorded incident concerning information security breach. Aligning with MAS Guidelines on Environmental Risk Management for Asset Managers Asset managers have been tasked to implement MAS guidelines across six key areas of environmental risk management. We have put in place processes and practices to align with these requirements and will continue to strive for further alignment. Key Area Status as of FY2024 Governance and strategy The Board and senior management to oversee integration of environmental risk considerations into asset managers’ strategies, business plans and product offerings. The ARCC assists the Board in carrying out its responsibility in determining ESG factors that are material to our business, monitoring and managing ESG factors and overseeing standards, management processes and strategies to achieve sustainability practices. The FH-FHT Sustainability Steering Committee, led by the Senior Management, has been designated to oversee and review environmental risk. Research and portfolio construction Asset managers to evaluate the potential impact of environmental risk on the return potential of our investments. We consider operational indicators (such as GHG emissions, energy, waste and water) that may affect tenant demand as well as operational efficiencies and costs. Please refer to the Energy and Carbon section of this Report for further details. Portfolio risk management Asset managers to put in place appropriate processes and systems to assess, manage and monitor the impact of any risk. We have put in place processes to assess, manage and monitor environmental risk. Please refer to the Risk-Based Management section of this Report for further information. Scenario analysis Asset managers to develop capabilities in assessing environmental risk impact on their portfolios and their alignment with climate goals set under a range of scenario pathways. In FY2024, our Sponsor has deployed an in-house Climate Value at Risk (CVaR) platform and decarbonisation tool, which aggregates asset- and developmentlevel data and climate exposures up to geographic, portfolio, asset class and Group levels. This would enable FHT to understand the potential impacts of physical and transition climate risk under future climate scenarios and incorporate this data into investment, financial and strategic planning. Stewardship Asset managers to engage investee companies to improve risk profile and support their efforts to transition towards more sustainable policies and practices. We have progressively implemented asset enhancement initiatives with measures to improve energy and water efficiency and waste management. Disclosures Clear and meaningful disclosures, referencing well-regarded international reporting frameworks. We have disclosed our environmental risk management processes and its potential impacts through this Report. We continue to report climate disclosures aligned with TCFD recommendations and will prepare to report against ISSB IFRS Sustainability Disclosure Standards in coming years. ESG Report 2024 13
RESPONSIBLE INVESTMENT Our Approach GRI 3-3 Investing responsibly enables FHT to enhance our competitive advantage and generate long-term value for our business and our stakeholders. We endeavour to integrate ESG considerations into our investment strategies and decisions, and we benchmark our performance against the GRESB Real Estate Assessment, as well as recognised green building certifications such as BIU, Green Star Performance and BCA Green Mark. As of FY2024, 93% of our portfolio1 by gross floor area have attained or are pursuing green building certifications, including all our UK properties which have received BIU certificates. We are also committed to regular assessments of all our properties to ensure that we continuously adapt to the diverse needs of our customers and guests. Our Actions and Progress Advancing Green Practices in our Portfolio In Australia, we use NABERS to assess the environmental performance of all our properties, such as energy efficiency and water usage. In FY2024, we received an average of 3.5 stars for Water and 3 stars for Energy in NABERS ratings, demonstrating our commitment to sustainable operations. These properties have also been certified under the Green Star Performance scheme by the Green Building Council of Australia in FY2024. In Singapore, our property, InterContinental Singapore, continues to retain its Green Mark GoldPLUS certification under the BCA Green Mark programme. In the UK, we continue to obtain the Green Tourism certification, a recognition of our commitment to integrate sustainability into our operations by caring for the local communities and fostering eco-friendly practices. In FY2024, all six UK properties have additionally received the BIU Certification. Benchmarking our Performance with the GRESB Real Estate Assessment FHT has participated annually in the GRESB Real Estate Assessment since 2019, improving year on year. As a globally recognised industry benchmark, participating in the assessment helps us to affirm our ESG performance and encourage continuous improvement. We report a strong performance in the 2024 GRESB Real Estate Assessment, achieving a score of 85 and attaining and maintaining a 4-star rating. We aim to continue building on this momentum, learning from our experiences and the wider industry as ESG standards evolve in the near and long term. RESILIENT PROPERTIES Our Approach GRI 3-3 FHT is committed to addressing climate-related risks by forging close partnerships with its customers, guests and suppliers across our value chain, in addition to communities that have the potential to be impacted by its operations. Through this approach, we believe that we can forge a more sustainable future and safeguard FHT from the direct financial impacts these risks may have on our assets. As an investor in and manager of real estate, enhancing the resilience of our assets and operations against these impending climate-related threats is of the utmost priority. To this end, we proactively integrate these risks into FHT’s financial risk management processes, harnessing climate risk data to identify, understand and manage FHT’s portfolio’s exposure to climate-related hazards. Through this effort, we believe we can effectively measure and manage our climate risks and opportunities, safeguarding and delivering long-term value for our stakeholders. We have established a series of climate objectives that closely align with our Sponsor’s overarching sustainability goals, including a commitment to achieving net-zero carbon emissions by 2050. 1 Includes all properties in FHT’s portfolio ACTING PROGRESSIVELY 14 Frasers Hospitality Trust
In parallel with these goals, FHT has aligned its climaterelated disclosures based on TCFD recommendations, available in TCFD Alignment table on pages 29 and 30. As the TCFD Framework is now incorporated into ISSB’s IFRS S2 Sustainability Disclosure Standards, we continue to disclose key progress in FY2024 against the areas of Governance, Strategy, Risk Management and Metrics and Targets. In upcoming years, we will transition to disclosing with reference to IFRS Sustainability Disclosure Standards in alignment with applicable SGX Listing Rules. Our Actions and Progress We continue to make progress and mitigate key physical and transition risks and prioritised strategies to achieve net-zero carbon by 2050. In FY2024, our Sponsor deployed an in-house CVaR platform and decarbonisation tool, which aggregates asset- and development-level data and climate exposures up to geographic, portfolio, asset class and Group levels. This enables FHT to understand the potential impacts of physical and transition climate risk to our asset portfolio under future climate scenarios and incorporate this data into investment, financial and strategic planning. Fraser Suites Singapore ESG Report 2024 15
At FHT, we are dedicated to responsible tourism and environmental leadership within our hotels and serviced residences. We incorporate sustainability into our everyday functions and across our supply chain. Year after year, we aim to optimise our resource use efficiency through adoption of renewable energy, waste reduction and energy and water conservation via environmental and social frameworks. Additionally, we strive to reduce our overall environmental impact by promoting sustainable practices amongst our staff, clients, guests and property operators. In FY2024, we developed and launched the Frasers Hospitality Sustainability Dashboard to track and analyse our environment-related consumption data more effectively. This dedicated platform analyses all our consumption data at the portfolio, cluster and property levels, enabling us to identify hotspots and develop targeted approaches to reduce our carbon footprint. Within our supply chain, we adhere to our Sponsor’s Responsible Sourcing Policy, which guides our approach for sourcing and procurement decisions. We are actively exploring pathways to align with our Sponsor’s refreshed Groupwide ESG goal of engaging 75% of all suppliers by spend on the Responsible Sourcing Policy by FY2025. We also recognise the dependence of operational resources on nature and the impact of our consumption on the biodiversity. Emphasis is placed on responsible consumption across operations to minimise dependencies and impacts. In line with this, we are committed to supporting our Sponsor’s biodiversity roadmap to develop a framework which guides the assessment and prioritisation of biodiversity risks and opportunities by FY2025. Our Progress Focus Area Our Goals Our Progress in FY2024 Energy & Carbon • To develop a net-zero carbon roadmap and establish carbon targets in line with a science-based approach to achieve net-zero carbon emissions by 2050. • FHT has started conducting energy audits in its properties as part of its roadmap. Water • To engage operators in water efficiency standards. • 34% of our properties by gross floor area have installed water efficiency fittings. • Water management practices for corporate office are aligned with and under our Sponsor within the Singapore office. Waste • To establish a waste recycling target and expand waste data coverage from current 10 properties to 14 properties. • Our waste data coverage has increased to 12 properties. • Waste management and recycling practices for corporate office are aligned with and under our Sponsor within the Singapore office. CONSUMING RESPONSIBLY CONSUMING RESPONSIBLY 16 Frasers Hospitality Trust
ENERGY AND CARBON Our Approach GRI 3-3, 302-5 The hospitality sector has a significant reliance on energy-intensive operations for heating, cooling, lighting and powering amenities resulting in GHG emissions. With increasing instances of global warming, we recognise the climate-related physical and transitional risks which can impact on our business and operations as detailed in the TCFD alignment section below. In response to these risks, we are aligned to our Sponsor’s goal of attaining net-zero emissions by 2050 and have refreshed our goals for FY2024 to align with our net-zero carbon roadmap. The FHT Roadmap was developed with a customised plan for every property, with the directive to conduct energy audits and implement at least one decarbonisation strategy. To date, Fraser Suites Sydney, Fraser Suites Edinburgh, Park International London, Intercontinental Singapore and The Westin Kuala Lumpur have completed energy audits while the process for five other properties has started and is slated to be completed in 2025. Our approach includes exploring innovation and technology to enhance energy efficiency across our properties, while actively monitoring consumption patterns to identify further opportunities for optimisation. Our Actions and Progress Energy GRI 302-2, 302-3 Energy consumption within our portfolio primarily comprises electricity and natural gas used at our leased assets. In FY2024, natural gas consumption totaled approximately 84,300 GJ, while grid electricity usage reached 42.8 GWh. Overall, energy consumption across our tenanted assets amounted to 238,000 GJ, primarily driven by higher business activity and greater operational demand2. Despite the rise in overall energy usage, energy intensity remained stable at about 0.26 GJ per occupied room night, highlighting our focus on maintaining energy efficiency. To assess our environmental performance and align with industry’s best practices, our properties undergo verification against established frameworks. For example, all properties in Australia are evaluated using the Green Star Performance, which assesses building efficiency across four areas: energy, water, waste and indoor environment. Our assets in the UK purchased over 3.5 GWh of green energy, which accounts for 8.2% of total electricity consumption. These initiatives reflect our commitment towards net zero by 2050 and we will continue to identify opportunities for improvement. Carbon Emissions GRI 305-3, 305-4, 305-5 We have developed a carbon inventory in accordance with the GHG Protocol Corporate Accounting and Reporting Standard as well as Corporate Value Chain (Scope 3) Accounting and Reporting Standard. As FHT does not have direct operational control over its assets, all energy-related emissions are classified as 2 Energy data for the reported periods are restated to factor in replacement of previous estimates with actual data. All consumption and intensity values are based on energy consumption at tenanted areas, as FHT does not have direct operational control over its assets. 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0 300 250 200 150 100 50 0 FY2022 FY2023 FY2024 Energy Consumption (GJ) Energy Intensity (GJ/occupied night) Energy Consumption (GJ) and Intensity (GJ per occupied night) 0.33 215K 226K 238K 0.26 0.28 ESG Report 2024 17
40 30 20 10 0 30 20 10 0 FY2022 FY2023 FY2024 Scope 3 Category 13 Emissions (tCO2e) Scope 3 Category 13 Emissions Intensity (kgCO2e/occupied night) FHT Scope 3 Category 13 Emissions (tCO2e) and Intensity (kgCO2e per occupied night) 33.0 32.9 39.0 CONSUMING RESPONSIBLY Our Actions and Progress GRI 303-1, 303-3 Performance in water consumption and recycling at our properties is validated through certification against established standards. All our properties in Australia are evaluated using the NABERS rating and have obtained an average of 3.5 stars, reflecting our commitment to sustainable water management practices. We engage with our operators at different properties to ensure the properties are aligned to the local or regional water efficiency standards. At our corporate office in Singapore, we have adopted sustainable water management practices which are aligned to our Sponsor’s practices. In FY2024, we observed an increase of 4.2% in total water consumption. From FY2023 to FY2024, water intensity remained stable at 0.98 kL per occupied night, despite a modest increase in total water usage from 855 kL to 891 kL due to increased number of occupied nights. 3 Scope 3 emissions included in the calculations are limited to Category 13 - Downstream Leased Assets. Scope 3 Category 7 - Employee Commuting has been excluded as it is considered de minimis based on the materiality threshold and has a minimal impact compared to Category 13. Other Scope 3 categories will be reported separately in the ESG Databook. 4 GHG emissions are calculated using the location-based method. Scope 3 GHG data for the reported periods are restated to factor in the replacement of previous estimates with actual data and updates in historical emissions factors. Scope 3 Category 13 – Downstream leased assets, as per the GHG Protocol. This category emissions considers only electricity and natural gas consumed at our hotels3. Our carbon emissions for Scope 3, Category 13 increased from FY2023 mainly due to increase in the occupied room nights across the year. Our emissions intensity has remained similar to previous year intensity, despite an increase in total emissions. 1.2 0.6 0 1,000 500 0 FY2022 FY2023 FY2024 FHT Water Usage (kL) and Intensity (kL per occupied night) 0.98 0.98 1.13 Water Usage (kL) Water Intensity (kL/occupied night) In FY2024, our total Scope 3 carbon emissions and carbon intensity amounted to 29,800 tCO2e4 and 33.0 kgCO2e per occupied night respectively. WATER Our Approach GRI 3-3, 303-1 As part of our water management strategy, we regularly engage with our operators to drive effective water stewardship and aligning with local water conservation standards. While we continue to monitor our water usage and its impact on local resources, we ensure that all water withdrawal across our properties is sourced from municipal water supplies. Additionally, we are committed to responsibly discharging all wastewater through municipal facilities. 26.5K 27.3K 29.8K 737K 855K 891K 18 Frasers Hospitality Trust
3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 3,000 2,500 2,000 1,500 1,000 500 0 FY2022 FY2023 FY2024 Waste Generated (tonnes) Waste Intensity (kg/occupied night) FHT Waste Generated (tonnes) and Intensity (kg per occupied night) 21 18 15 12 9 6 3 0 500 400 300 200 100 0 FY2022 FY2023 FY2024 Waste Recycled (tonnes) Recycling Rate (%) FHT Waste Recycled (tonnes) and Recycling Rate (%) WASTE Our Approach GRI 3-3, 306-1, 306-3 The hospitality sector generates considerable amounts of waste, including plastic waste from guest amenities and organic waste from food services. To address this challenge, we identify opportunities to reduce waste generation and enhance recycling efforts before diverting materials to end-of-life waste streams. By practising effective waste management, we can minimise our environmental impact while also improving our operational efficiency, leading to significant cost savings. With improved waste data gaps and coverage across our portfolio, we are better positioned to work with our operators on targeted approaches to sharpen our tracking, reduce waste and increase recycling. Our Actions and Progress GRI 306-2, 306-3, 306-4, 306-5 Approximately 400 million tonnes of plastic waste is generated globally each year, contributing significantly to pollution on land and in our oceans due to improper disposal5. At FHT, we recognise that we can reduce unsustainable plastic consumption and disposal by eliminating the use of singleuse plastics. All FH-managed properties in our portfolio have successfully phased out single-use plastics across various operations, including food and beverage services, laundry and bathroom amenities. Additionally, Fraser Suites Singapore has collaborated with World Wildlife Fund Singapore to further its Plastic ACTion initiative, working towards transitioning to 100% reusable or at least 50% recyclable packaging design models by 2025. Fraser Suites Singapore will also support research projects and innovation efforts focused on improving plastics and recycling infrastructure. We collected waste data from 12 properties in our portfolio, ensuring all waste was handled by licensed collectors and directed to municipal waste streams. In FY2024, our total waste generation reached 2,760 tonnes, with a waste intensity of 3.06 kg per occupied room night, marking a 8.1% decrease in waste intensity. Additionally, of the total waste generated, 435 tonnes were successfully recycled, with the remainder sent to landfill or incineration. The total waste recycled in FY2024 is 7.1% higher than in FY2023, reflecting FHT’s commitment to enhancing its waste recycling efforts. 1,860 2,890 2,760 358 406 435 3.06 3.33 2.86 15.7 14.0 19.2 5 Visual Feature | Beat Plastic Pollution (unep.org) ESG Report 2024 19
The core of FHT’s sustainability approach is a people-centric strategy that drives satisfaction and value for our customers, guests, employees and local communities. We recognise that our employees are our most invaluable asset, essential for driving our operations and ESG efforts. Therefore, we prioritise fostering a diverse and inclusive workplace environment where employees feel safe and empowered to thrive. Our unwavering commitment to the safety and well-being of our workforce motivates us to continuously improve our practices. Our aim is to create meaningful long-term relationships that respect the communities we operate in and create lasting benefits. We continue to engage with communities to identify and support opportunities to contribute positively. Through these collaborative efforts, we aim to build a sustainable future for both our employees and the communities we serve. Our Progress Focus Area Our Goals Our Progress in FY2024 Diversity, Equity & Inclusion (“DEI”) • To embed DEI in our culture through employee engagement. • Conducted Phase 1 of DEI Training for employees of FH-managed properties and the corporate office. Skills & Leadership • To conduct one cluster and one corporate function training on sustainability. • To implement the Frasers Living Innovation Challenge to support growth and development. • Conducted two cluster- and two corporate-function training sessions on sustainability. • The Frasers Living Innovation Challenge was implemented, resulting in three project working teams to further innovation. Health & Well-being • To implement a Health & Well-being programme in alignment with Frasers Living. • A wellness app was developed in alignment with our Sponsor to address mental wellbeing of staff. Community Connectedness • To pilot one community place-making project targeted at owned properties and long stayers. • Properties managed by FH have aligned under a new Community Framework launched in March 2024 with target volunteer hours from each property. FOCUSING ON PEOPLE FOCUSING ON PEOPLE 20 Frasers Hospitality Trust
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