+WOO Phase 2, one of our flagship malls in Tin Shui Wai, has been awarded a gold rating for BEAM PLUS Interiors certification for renovation; the first mall in Hong Kong to attain this certification. The BEAM PLUS Interiors assessment is comprised for seven key performance aspects: materials, management, green building attributes, energy use, indoor environmental quality, innovation and water use.

In an effort to mitigate the impact of climate change, Fortune REIT has proactively responded by committing to the Science Based Targets initiative (SBTi) – an international coalition of non-profit organizations and businesses promoting best practices for emission reduction in line with the Paris Agreement, which aims to limit global warming to 1.5 degree.

ESR is a signatory to the United Nations-supported Principles for Responsible Investment (“UN PRI”), which underscores the importance and emphasis on responsible investing and sustainable financing. To ensure material ESG factors are considered in the investment decision making process, ESR has in place the Responsible Investment policy and an ESG Checklist, both aligned to the six principles of the UN PRI. The policy and checklist set minimum standards on responsible investment and relevant training has been made available to all employees of ESR, to guide employees with the six principles of responsible investment, aimed at building internal capabilities and embedding responsible investment practices throughout ESR’s business.

With the increasing frequency of extreme weather events, we have conducted a comprehensive analysis of our properties in Hong Kong to assess their resilience to climate change. This evaluation focused on identifying the most vulnerable assets by reviewing historical performance during severe weather conditions, particularly flooding and typhoon-related damage.

Fortune REIT has been proactively engaging with our tenants to mitigate their environmental impact as part of our comprehensive sustainability strategy. This initiative encompasses a range of measures designed to enhance energy efficiency, reduce waste, and promote sustainable practices within our properties. For example, Fortune REIT has implemented advanced smart building management systems in major malls, optimizing energy usage and improving air quality. These systems facilitate centralized data collection and monitoring, enabling both Fortune REIT and our tenants to manage energy consumption more effectively.

As part of Fortune REIT’s on-going efforts to raise the public’s awareness of decarbonisation and to generate long-term value for its stakeholders, Farm@Fortune was unveiled in the fourth quarter of 2021 on the rooftop of Fortune City One. In partnership with Rooftop Republic, the urban farm creates a new and vibrant place for the community to gather and to enjoy urban nature, fresh produce, and spend time with their friends and family, whilst providing Fortune REIT with a platform to promote organic farming, food waste reduction and community engagement.

The Building Management and Building Optimization System has been rolled out at major Fortune Malls, including Ma On Shan Plaza, Fortune City One, Metro Town, Fortune Metropolis, Laguna Plaza and +WOO, covering 85% of the total gross floor area of Fortune Malls. The system reflects Fortune REIT’s drive for innovation and digitization and improves operational efficiency as well as delivers energy and cost saving.

Fortune Malls has rolled out a suite of recycling initiatives. Smart Recycling Bins, provided by the Environmental Protection Department, were installed across the malls in March 2025 and have since collected 5.40 tonnes of metal, 15.79 tonnes of plastic, 22.84 tonnes of paper, and 1.23 tonnes of glass. These efforts are further supported by Reverse Vending Machines funded by the Recycling Fund, along with in‑mall recycling bins, which together have collected an additional 4.76 tonnes of metal, 10.07 tonnes of plastic, 420.69 tonnes of paper, and 13.36 tonnes of glass. In total, these initiatives recovered 443.53 tonnes of paper, 25.86 tonnes of plastic, 14.59 tonnes of glass, and 10.16 tonnes of metal during the Reporting Year, resulting in the avoidance of approximately 436 tonnes of greenhouse gas emissions.

Food waste pretreatment systems were installed in +WOO and Laguna Plaza during the Reporting Year as part of an innovative solution designed to tackle food waste while generating renewable energy.

In today’s competitive retail environment, marketing and customer loyalty are essential for sustaining business resilience and growth. Effective marketing enhances brand visibility, attracts new customers, and drives sales, especially amid evolving consumer preferences and intense market competition. It also offers valuable insights into customer behaviour, enabling businesses to tailor their offerings and remain relevant. Such loyalty programs help strengthen customer relationships and create a stable foundation for long-term success.

Many traditional escalators, installed decades ago, consume substantial amounts of electricity and are prone to breakdowns—causing inconvenience to both shoppers and residents.

To streamline carpark operation and improve customer experience, a new license plate recognition technology-based access control system and a mobile application for payments was introduced at Ma On Shan Plaza and Metro Town during the Reporting Year. The new system can recognize the registered vehicles based on their license plate and allows both monthly and hourly parking payments to be settled electronically via the Fortune Malls App, providing our customers with a seamless experience.

In a bid to create a more inclusive and welcoming environment, several Fortune Malls have recently introduced a range of pet-friendly practices. Pet strollers are now available for rent at major Fortune Malls. These initiatives are designed to cater to the growing number of pet owners in the city, ensuring that both pets and their owners can enjoy a comfortable and enjoyable shopping experience. The move towards pet-friendly malls not only caters to the needs of pet owners but also fosters a sense of community and inclusivity, enhancing the overall shopping experience.

The Manager strives to develop, promote and maintain high standards of corporate governance as stipulated in the Code of Conduct and Business Ethics, which is applicable to all employees of the Manager. As part of a wider training initiative driven by ESR, a compliance training program was once again rolled out to educate and refresh our employees’ knowledge on the relevant laws, regulations and internal controls that apply to their day-to-day job responsibilities. During 2025, compliance training program required employees to complete training on six compliance topics including: Ethical Workplace Conduct, Data Protection and Privacy: Personal Data, Anti-Money Laundering: Beneficial Owner, Avoiding Conflicts of Interest and Anti-Bribery and Corruption: Refresher. During 2024, the compliance training program required employees to complete training on six compliance topics including: Individual Accountability, Preventing Financial Crime, Whistleblowing, Fraud, Operational Risk Management Essentials and Insider Trading/Global Trade Control Sanctions. During 2023, employees completed the following training modules: Business Gifts and Entertainment, Data Privacy, Sanctions, Conflicts of Interest and Fraud Prevention. In 2022, employees were required to complete training on the topics of Code of Conduct, Anti-Bribery and Anti-Corruption, ESG Investing, Anti-Money Laundering and Market Conduct. New employees who joined the Manager during the Reporting Year were also required to complete six induction courses. The robust training program is designed with the purpose of reducing organisational risks and boosting our stakeholders’ confidence in our business and operations and was mandatory for all employees.

With the threat of COVID-19 still prevalent, Fortune REIT’s priority remains to provide a healthy and safe environment for shoppers, tenants, employees, Property Manager, as well as the communities it serves. The Manager works closely with the stakeholders of Fortune REIT to provide comfortable and safe spaces. Per the Asset Level Safety Policy, the Manager, acting through the Property Manager, has also engaged independent consultants to carry out periodic safety inspections as well as monitoring and inspections related to the environmental quality and safety of its buildings.