Towards Net Zero   Responsible Operation
Working Towards a Common Goal: Transition to Net-Zero

ESR is a supporter of the United Nations-supported Principles of Responsible Investing, and a signatory to the World Green Building Council’s Net Zero Carbon Buildings Commitment, committing to achieving net-zero carbon across its business by 2030. The Manager, as a subsidiary of ARA, strives to drive decarbonisation throughout the operations of Fortune REIT. In 2022, the Manager commenced work on plans to adopt a science-based target to achieve net-zero and will disclose further action plans in future reports.

As part of our on-going decarbonisation and climate change efforts, a smart building management system has been installed at major Fortune Malls. The cloud-based automated building solution allows the centralised collection and monitoring of building data, serving to optimise energy efficiency and regulate air quality.

In recognition of our sustainability efforts, 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. In 2022, Fortune Metropolis has attained Platinum rating for the BEAM Plus Comprehensive Scheme, the highest accolade in BEAM Plus. The comprehensive scheme measures the combined performance of a building across multiple aspects, including property management, waste, water use, energy use, indoor air quality, etc. Additionally, seven Fortune Malls have upgraded their BEAM Plus certifications for Management aspect of the Selective Scheme to Excellent.

100% of Hong Kong Portfolio has attained green building certifications

Green Building Certification Mall(s)
BEAM Plus Comprehensive Scheme Platinum rating Fortune Metropolis
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
BEAM Plus Good certifications for Management
aspect of the Selective Scheme
Belvedere Square
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

In addition to green building certifications, Fortune REIT has been actively improving our malls through the replacement of chillers with more efficient models and the installation of solar panels.

Working with our Tenants — Green Lease

From the preparatory work done to set science-based targets, Fortune REIT has identified that its downstream leased assets account for a majority of its Scope 3 GHG emissions, which is consistent with landlords in the real estate industry. Armed with this knowledge, and leveraging off our solid relationships we have with our tenants, Fortune REIT has undertaken proactive steps to reduce its Scope 3 GHG emissions by promoting green practices and best practices in sustainability. The Manager has incorporated green lease clauses in its standard tenancy agreements to promote green practices.

At inception, tenants are provided with a copy of the Fitting-out Guide which sets out Fortune REIT’s minimum expectations in relation to the design and use of materials. The sustainability journey with our tenants continues over the term of their lease, with tenants offered sustainability training, provided with tailor-made solutions to reduce their environmental footprint through eco-tips and the eco-taskforce, and waste disposal and recycling facilities to dispose of waste in a sustainable manner.

Working with our Banking Partners — Sustainable Finance

To reinforce the Manager’s on-going commitment to sustainable development and the advancement of its ESG goals, Fortune REIT has secured four sustainability-linked loans. The sustainability-linked loans represent approximately 45% of the total loans of Fortune REIT. Under the terms of the sustainability-linked loans, the interest margin of the loan facility will be indexed against Fortune REIT’s ESG performance, taking into account the electricity consumption, greenhouse gas emissions and overall waste reduction of its properties. Fortune REIT will be entitled to annual interest rate savings if the pre-set ESG benchmarks are satisfied, subject to external verification by an independent assessor.

Moreover, Fortune REIT has entered into a sustainability-linked interest rate swap, which upon the satisfaction of pre-determined targets concerning community engagement, enabled Fortune REIT to receive a sponsorship, giving rise to Farm@Fortune.

Case Studies

Fortune REIT joins Science Based Targets initiative (SBTi) View More
Working Towards a Common Goal: Transition to Net-Zero View More
Building Management and Building Optimization System View More
Cultivating a Greener Tomorrow - Farm@Fortune View More
Compliance Training View More
Innovation at +WOO View More
Fight Against COVID-19 with our Stakeholders View More
Tackling Waste View More
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