ESR Group Limited (“ESR” or the “Company”, together with its subsidiaries as the “Group”; SEHK Stock Code: 1821), APAC’s leading New Economy real asset manager, has achieved outstanding performance across global Environmental, Social, and Governance (ESG) benchmarks: GRESB, the global ESG benchmark for financial markets, as well as the Institutional Shareholder Services (“ISS”) QualityScores.

Strong results in GRESB with ESR’s data centre platform shining in its inaugural assessment

ESR continues to gain top recognition in GRESB, reflecting the Group’s commitment to optimal sustainability performance and advancing its ESG strategy across its integrated fund management and development platform.

Since 2014, ESR has actively participated in the GRESB assessment. In 2024, the Group has 49 participating entities (up from 45 in 2023), comprising the listed REITs and private funds with 66 submissions (up from 56 in 2023). The average GRESB score and rating are 84.24 out of 100 and 3.41 out of 5, respectively, which are above the target set in the Group’s ESG 2030 Roadmap. 

Key highlights include:

• 12 entities across the Group awarded the 5 Star rating – placing them among the top 20% of global GRESB-rated entities.
• ESR Kendall Square Asset No. 2 REIT Co., Ltd. (South Korea) recognised as the most prestigious Global Sector Leader (Global, Industrial) in the Standing Investments Benchmark.
• Redwood Japan Logistics Fund II LP (Japan) recognised as Regional Sector Leader (Asia, Industrial) in the Development Benchmark.
• RJLF 3 Co-Investment Platform (Japan) recognised as Regional Sector Leader (Asia, Industrial) in the Development Benchmark.
• ESR Data Centre Fund 1 scored 97 out of 100 points and earned a 5 Star rating in its inaugural assessment, with 2^nd position in the Technology/Science peer group ranking.

Jeffrey Shen, ESR Group Co-founder and Co-CEO, said, “Our outstanding performance in the GRESB 2024 assessment is a testament to our commitment to sustainability and our strategic vision for growth. By integrating ESG principles into every aspect of our operations, we are not only enhancing our value proposition for investors, but also contributing to a more sustainable future for the communities we serve.”

As a pinnacle to the data centre business segment, ESR Data Centre Fund 1 has demonstrated its strength with a robust ESG framework, which is integrated across its business operations and project execution with high sustainability standards. Key initiatives of ESR’s data centre platform include its established net zero target, with an interim goal of achieving 75% renewable energy, deployment of on-site renewable energy solutions, LEED Gold certification, and a comprehensive Environmental, Health, and Safety programme.

In the infrastructure benchmark assessment, ESR’s infrastructure platform obtained commendable results reflecting its continual efforts to increase solar power production, improve stakeholders’ engagement, and enhance policies and disclosures.

Stuart Gibson, ESR Group Co-founder and Co-CEO, added, “The GRESB 5 Star rating for our data centre platform in their first year of assessment is a remarkable accomplishment. It underscores our dedication to operational excellence and sustainability. As we continue to expand our footprint across the APAC region, we remain focused on providing best-in-class real assets and solutions for our stakeholders, leveraging state-of-the-art technologies to increase efficiency and reduce our carbon footprint.”

GRESB is a mission-driven and industry-led organisation which provides standardised and validated ESG data to financial markets. This year’s real estate assessment saw a record 2,223 listed and non-listed portfolios participate, generating a benchmark that covers USD 7 trillion of gross asset value across 80 markets. The GRESB 2024 Real Estate Benchmark includes new criteria and analytical methods.

Top rankings achieved in the ISS QualityScore as the Group continues to excel in its ESG journey

ESR has moved up to the 1^st decile ranking for the ISS Governance QualityScore (up from 8^th in 2023) and 1^st and 2^nd decile rankings for the ISS E&S QualityScore on social and environment components, respectively (up from 5^th in 2023). The latest ISS QualityScore rankings position ESR among the top percentile of over 600 companies listed in Singapore, Hong Kong, and China.

The Group has made significant progress in the ISS QualityScores by enhancing ESG oversight and policies, strengthening systems and processes, as well as improving sustainability performance and disclosures. On environmental management practices, key improvements were shown in strengthened policies and systems for risk management, energy and fuel efficiency, and water management. Key improvements on the social front include enhanced measures in workforce diversity and equality, occupational health and safety, and stakeholder management and oversight. For governance, additional disclosures covering management remuneration, risk, and information security, among others, led to improved scores.

Boon Kang, Tang, ESR Group Head, Governance & Sustainability said, “Our exceptional results for the ISS QualityScore reflects the strength of our comprehensive ESG strategy. We are committed to driving sustainable growth and creating long-term value for our stakeholders. Achieving top rankings amongst peers demonstrates our dedication to sustainable growth and creating long-term value. By prioritising environmental stewardship, social responsibility, and robust governance practices, we are setting new benchmarks in the real asset management sector.”

The ISS QualityScore is an independent platform which measures and identifies risks of concern through the analysis of companies’ disclosures. The ISS Governance QualityScore identifies corporate governance risk within a portfolio, while ISS E&S QualityScore seeks to identify environmental and social risk within portfolio companies.