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
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