###### Our ESG Governance and Management
###### Sustainability Framework and Structure
Board of Directors
Sustainability Steering Committee (CEO and management of the REIT Manager)
Employee Relations Task Community Affairs Task Environmental, Health & Group Group Safety, Supply Chain Management Task Group (Group-level Human (Investments & Investor Resources) Relations) (Asset Management)
Sustainability Working Group
(representatives from key business divisions of the REIT Manager and the Property Manager)
Board Statement
The Board attaches great importance to ESG matters and climate-related risks and opportunities. The Board provides strategic guidance on the REIT's overall ESG matters, including climate-related and diversity, equity and inclusion related issues, as well as the identification and management of ESG and climate-related risks and opportunities on an annual basis.
ESG matters are evaluated and prioritised through an annual materiality assessment. The result of the assessment is incorporated into the REIT's strategies and programmes. Please refer to the Materiality Assessment section of this Report for details.
Incorporating the management vision into ESG strategies, the Board is also responsible for approving ESG-related targets. To monitor the progress of achieving these targets, ESG factors have been included in the annual performance targets of relevant personnel with both financial and non-financial consequences.
###### Sustainability Steering Committee
A Sustainability Steering Committee was established to assist the Board with setting long-term targets and annual priorities in our ESG roadmap in order to better incorporate ESG factors into business decisions. The Committee consists of senior executives from different departments and three dedicated taskforces that oversee employee relations, community affairs, environmental impact, health and safety issues, and supply chain. These taskforces review and update our policies, monitor our ESG performance, and design plans to maintain our continuous improvement on ESG aspects.
###### Sustainability Working Group
To ensure our ESG visions are integrated into our business operations, the key business divisions of the REIT Manager and the Property Manager collaborated to form a Sustainability Working Group in 2020. Sub-groups were formed from time to time to focus on different aspects, such as green and recycling, urban farm, wellness and digitalisation. Up to 2022, over 80% of Prosperity REIT's employees have achieved a professional ESG-related qualification, such as BEAM Professional, Certified Environmental, Social and Governance Analyst® (CESGA) and Certified ESG Planner® (CEP), and are well equipped to contribute in different sub-groups.
The Working Group regularly reports to and seeks guidance from the Sustainability Steering Committee on a quarterly basis. It executes and monitors ESG initiatives and updates the Sustainability Steering Committee on ESG performance. It also leads sustainability reporting and facilitates the consolidation of data and information for disclosure purpose. In addition, the Working Group is also committed to developing our internal capacity on ESG related risks and opportunities. It supports and organises ESG-related events and works closely with different stakeholders to drive sustainable development in the society.