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.

In 2023, Fortune REIT was the first REIT in Hong Kong to commit to the SBTi by setting emissions reduction targets grounded in climate science to support the Paris Agreement to strive to achieve the global goal of limiting global warming to 1.5°C above preindustrial levels. For more information about our science-based targets, please visit:
https://www.fortunereit.com/en/sustainability/sbti.php

Scope 1 and 2 Emissions

In July 2023, Fortune REIT committed to reduce Scope 1 and Scope 2 GHG emissions by 46% by 2030 from a 2019 baseline year.

As part of our on-going decarbonisation and climate change efforts, Fortune REIT has identified several levers as the focus of its decarbonisation journey, including energy reduction and efficiency, smart building management, electrification, renewable energy generation and renewable energy procurement. Among the levers identified, energy reduction and efficiency, as well as smart building management remain the highest priority for Fortune REIT.

In recent years, Fortune REIT has been steady progress in implementing these levers in reducing its emissions. For example, smart building management systems have been installed at major Fortune Malls, representing approximately 85% of the portfolio’s gross floor area. These cloud-based automated building solutions integrated with IoT technology, big data analysis, artificial intelligence (AI), and cloud computing, allow the centralised collection and monitoring of building data, serving to optimize energy efficiency and regulate air quality. As an automated system, it also allows for the accurate data collection for Fortune REIT and its tenants. For more information about the Building Management and Building Optimization System, please visit:
https://www.fortunereit.com/en/sustainability/building_mgmt_optim_system.php

Fortune REIT has also upgraded its malls by replacing chillers with more energy-efficient models and installing solar panels. Approximately 1,500 solar panels have been deployed at Fortune City One, Laguna Plaza, Fortune Metropolis and +WOO. These installations are expected avoid GHG emissions by 154 tonnes annually under the Feed-in Tariff Scheme.

In 2025, Fortune REIT recorded a 39% reduction in Scope 1 and 2 emissions against 2019 baseline, which was mainly attributable to the decrease in electricity consumption arising from the effectiveness of the energy efficiency measures implemented and a decrease in the emission factor from the Hong Kong power grid.

Scope 3 Emissions — Downstream Leased Assets

As part of its SBT commitment, Fortune REIT continues to measure and reduce its Scope 3 GHG emissions. Through preparatory work undertaken during the SBT‑setting process, Fortune REIT has identified that its downstream leased assets represent the largest contributor to its Scope 3 emissions – an observation consistent with industry peers of Landlords in the real estate sector. In 2025, Fortune REIT expanded its Scope 3 coverage to include additional material categories that are relevant to its business operations – namely Category 1 (Purchased Goods and Services), Category 2 (Capital Goods) and Category 5 (Waste Generated in Operations) in alignment with the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011). This broader scope provides a more comprehensive view of emissions across the value chain. The total Scope 3 GHG emissions for the Reporting Year amounted to 45,476.1 tCO2 e, reflecting the methodological expansion and improved data granularity.

At lease commencement, tenants receive a copy of the Fitting-out Guide, which outlines Fortune REIT’s minimum expectations for renovation design and material use. Throughout the lease term, the Property Manager maintains close contact with tenants, offering tailored sustainability solutions via eco-tips and the eco-taskforce. Adequate waste disposal and recycling facilities are also provided to support responsible resource management. Fortune REIT has also extended its ESG training programme to tenants, with a focus on waste reduction, recycling, and GHG emissions. These efforts are designed to help tenants integrate sustainability into their day-to-day operations.

To further strengthen tenant relationships, Fortune REIT invited all tenants to participate in the annual tenant satisfaction survey to collect opinions on various topics including Fortune REIT’s environmental performance, communication, condition of communal facilities, and health and safety. Fortune REIT achieved a tenant satisfaction score of 7.9 out of 10 in 2025. In response to survey findings, Fortune REIT has stepped up its social media presence on LinkedIn, Facebook and will continue to connect with its tenants via publications/notifications; a testament to Fortune REIT’s commitment to addressing its tenants’ feedback.

Building Resilience against Climate Change — Green Building Certifications

Fortune REIT has obtained green building certifications across all 16 Fortune Malls in Hong Kong certified by Building Environmental Assessment Method Plus (“BEAM Plus”) in terms of management. Notably, Fortune Metropolis and Ma On Shan Plaza have attained Platinum rating under the BEAM Plus Comprehensive Scheme—the highest accolade in BEAM Plus—reflecting excellence across multiple performance areas including property management, waste, water use, energy use, indoor air quality, etc.

Moreover, +WOO is the first mall in Hong Kong to attain BEAM PLUS Interiors certification for renovation – Gold rating. This milestone highlights Fortune REIT’s leadership in integrating sustainability into both building operations and interior enhancements.

100% of Hong Kong Portfolio has attained green building certifications

Green Building Certification	Mall(s)
BEAM Plus Comprehensive Scheme Platinum rating	Fortune Metropolis Ma On Shan Plaza
BEAM PLUS Interiors certification for renovation – Gold rating	+WOO
BEAM Plus Excellent certifications for Management aspect of the Selective Scheme	Fortune City One Ma On Shan Plaza Fortune Metropolis Metro Town Jubilee Square Laguna Plaza Caribbean Square +WOO Belvedere Square Smartland Hampton Loft Waldorf Avenue Tsing Yi Avenue Centre de Laguna Lido Avenue Rhine Avenue
BEAM Plus Excellent certifications for Energy Use aspect of the Selective Scheme	Ma On Shan Plaza
Outstanding grade in Energy Use and was awarded with the "Highest Advancement" in Energy Saving in 2021 (Selective Scheme)	Ma On Shan Plaza
BEAM Plus Excellent certifications for Water Use aspect of the Selective Scheme	Fortune Metropolis

Working with our Banking Partners — Sustainable Finance

Reinforcing the Manager’s on-going commitment to sustainable development and the advancement of its ESG goals, Fortune REIT has secured a total of seven sustainability-linked loans to date. Fortune REIT entered into its first sustainability-linked loan in 2020, and sustainability-linked loans comprise of approximately 77% of Fortune REIT’s total loans. Under the terms of the sustainability-linked loans, Fortune REIT will be entitled to annual interest rate savings upon meeting predefined ESG benchmarks, which are externally verified by an independent assessor. To date, Fortune REIT has successfully met all predetermined sustainability-linked performance targets associated with its sustainability-linked loans and has received corresponding interest rates reductions.

Moreover, Fortune REIT has entered into a sustainability-linked interest rate swap in 2021. Upon fulfilling specific community engagement targets, Fortune REIT received sponsorship support, which led to the launch of Farm@Fortune—a meaningful initiative that underscores its commitment to social responsibility.