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
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