We are committed to building an environmentally responsible and resilient portfolio. Our goals are to mitigate the impacts of climate change, reduce greenhouse gas (“GHG”) emissions, enhance energy efficiency, promote water conservation, and effectively manage waste. Our approach to environmental management involves continuous evaluation and enhancement of our portfolio’s climate resilience, while also incorporating climate-related risks and opportunities into our new acquisition decisions.
We recognise that a low-carbon, climate-ready portfolio is crucial for maintaining Elite REIT’s competitive edge. This is increasingly important as the demand for green commercial spaces rises, in line with the Paris Agreement’s objectives to limit global warming well below 2 degrees Celsius (“°C”), aiming for 1.5°C by 2030, and to reach net zero carbon emissions by 2050. We believe that climate resilience will increasingly influence asset valuation, capital costs, and insurance. We aspire to achieve a net zero carbon emission portfolio by 2050.
As all our assets are in the UK, we strive to align our environmental strategy with the UK’s goal to achieve net zero GHG emissions by 2050. Over 90% of our portfolio is leased to the DWP, the UK’s largest public service department, making our environmental commitments closely aligned with the UK’s national climate agenda. At the same time, as Elite REIT is listed in Singapore, we support the Singapore Green Plan 2030, a national roadmap to advance sustainable development.
We have adopted a three-pronged environmental strategy that involves mitigating climate-related physical and transition risks in our portfolio, upgrading assets to meet the growing demand for low-carbon commercial spaces, and engaging with our primary occupier to monitor our buildings’ environmental performance.
Given that most of our portfolio is leased out on a full repairing and insuring (“FRI”) basis, we lack direct operational and management control over the day-to-day energy, water, and waste management of our buildings. Therefore, it is crucial for us to actively engage with our tenants and/or occupiers to achieve our environmental objectives. The environmental data in this report comprising energy consumption, GHG emissions, water use and waste has been provided by our tenant and/or occupiers.
Tenant Engagement
We regularly engage with our primary occupier and tenants regarding environmental performance issues, such as the energy efficiency credentials of the properties. We also proactively interact with our primary occupier and tenants by holding regular dialogues, maintaining a physical presence for our operations in the UK, and harnessing the strengths of technology and big data. This allows us to analyse occupier utilisation comprehensively and to gain a deeper understanding of our primary occupiers’ needs.
Several in-person meetings with the primary occupier and potential tenants were arranged during the year to discuss their key priorities and to identify opportunities.
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We are committed to nurturing an inclusive and supportive workplace where our people can perform to the best of their abilities. This also feeds into our aim of attracting, developing and retaining talented professionals, which is vital for creating value for Elite REIT and its stakeholders. As such, our workplace policies promote active engagement, open communication, mutual trust, respect and teamwork, as well as personal and professional development.
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The Manager remains committed to upholding the highest governance and ethical conduct standards.
