Frasers Hospitality Trust : Sustainability Report 2022

SUSTAINABILITY

CONTENTS

1. Board Statement
2. The Year at A Glance
3. Embedding Sustainability within our Core
4. Managing Sustainability

82 Acting Progressively

1. Consuming Responsibly

1. Focusing on People

1. About This Report
2. GRI Content Index

GLOSSARY

For ease of reading, this glossary provides definitions of abbreviations that are frequently used throughout this report.

Abbreviations used in report

BOARD STATEMENT

This year's World Tourism Day focused on the theme of "Rethinking Tourism", calling for the hospitality sector to reassess and reinvent how the industry can deliver positive change for people while addressing climate change. The United Nations Secretary-General António Guterres also urged deeper investment in sustainable tourism to build resilience and protect our planet. As many countries ease into recovery following the impacts of the COVID-19 pandemic, the world is heralding a new era of responsible tourism that can change the world for good and enable countries and businesses to emerge stronger than ever.

With our agile workforce and the right sustainability foundations, FHT stands ready to contribute to this transformation. We strive to deliver tangible progress in environmental, social and governance aspects, guided by the three pillars of our Sponsor's Sustainability Framework of Acting Progressively, Consuming Responsibly and Focusing on People.

In the financial year ended 30 September 2022

(FY2022), we embarked on a gap analysis exercise to assess our alignment with the Monetary Authority of Singapore (MAS) Guidelines on Environmental Risk Management. We maintained our active pursuit of green building certifications

across properties, in line with our Sponsor's Group goal of green-certifying 80% of our owned and managed assets. We also intensified our energy and decarbonisation efforts, including being part of Frasers Hospitality's commitment to World Wildlife Fund (WWF) Singapore's Plastic ACTion (PACT) initiative to move towards a circular economy. These support our Group's goal to be a net-zero carbon corporation by 2050, and aligns with the Singapore Hotel Sustainability Roadmap launched in 2022 by the Singapore Hotel Association and Singapore Tourism Board in 2022 to enable the industry to integrate sustainability as a core value within the hotel ecosystem. The holistic well-being of our guests, employees and local communities remains our top priority, and we devote significant resources to training, engagement and community connectedness initiatives that enable a safe and healthy lifestyle.

Our efforts have borne fruit - demonstrated by FHT's improved performance in the 2022 GRESB Real Estate Assessment, which we adopt to benchmark our sustainability performance against credible international standards. We recorded a significant improvement in our score and were ranked third in the 'Asia Pacific Hotel - Listed' category, testament to efforts across all environmental, social and governance (ESG) aspects within the assessment, particularly in expanding data monitoring and reporting disclosures data monitoring.

We build on this momentum in implementing positive changes in our operations and investment decisions.

With the support of the FHT Sustainability Task Force and our Sponsor, FHT Board of Directors (Board) continues to carry out its responsibilities in determining, monitoring and managing our material ESG issues, providing strategic directions on sustainability as well as overseeing the standards, management processes and strategies needed to achieve sustainability targets for the business.

We invite you to read more about our progress in FHT's eighth Sustainability Report. Thank you for your trust and support in our journey so far. We look forward to working as one to harness the power of sustainable tourism to accelerate shared sustainability outcomes.

Board of Directors

Frasers Hospitality Asset Management Pte. Ltd.

REIT Manager of Frasers Hospitality Real Estate

Investment Trust

Frasers Hospitality Trust Management Pte. Ltd. Trustee-Manager of Frasers Hospitality Business Trust

ACTING

PROGRESSIVELY

CONSUMING

RESPONSIBLY

• Significant improvement at the 2022 GRESB Real Estate Assessment with third place ranking in 'Asia Pacific Hotel - Listed' category with 3-Star rating, up from the 8th place and 1-Star rating in the previous year.
• Expanded the Board's oversight on the sustainability strategy by redefining the remit of the Audit, Risk and Compliance Committee (ARCC).
• Restructured Report for better alignment to Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.
• On track to complete in FY2023 the climate risk and climate 'value at-risk' assessment of our portfolio and establish roadmap for achieving net-zero carbon by 2050.
• Our Australian properties have an average 4.3-Star (between Good and Excellent) Water rating and an average 3.5-Star (between Average and Good) Energy rating as part of the National Australian Built Environment Rating System (NABERS) assessment.
• InterContinental Singapore holds the Building and Construction Authority (BCA) Green Mark GoldPLUS certification.
• Fraser Suites Glasgow, Fraser Suites Edinburgh, Fraser Suites Canary Wharf London, Fraser Suites Queens Gate London and Park International London are supplied with 100% renewable electricity.
• Fraser Suites Singapore joined non-governmental organisation WWF-Singapore's PACT initiative and committed to implementing circular economy initiatives.
• Reduced energy intensity per occupied room night by 7.4% from FY2021.

FOCUSING ON PEOPLE

• 60% and 53% female representation, respectively, in REIT Manager's senior management and employee base.
• Employees of the REIT Manager each received an average of 53 learning hours.
• Employees at FHT properties received regular health and safety training as part of our operational prioritisation.
• Achieved a positive guest review score of 76 out of 100 and a performance score of 81 out of 100 across all FHT properties managed by Frasers Hospitality.

As a global hospitality REIT, FHT is committed to integrating sustainability considerations within our business operations to create long-term shared value for our stakeholders.

Our sustainability strategy builds on the foundation and sustainability core that we have established over the past years. We closely align to our Sponsor's Sustainability Framework across three pillars - Acting Progressively, Consuming Responsibly and Focusing on People. We adopt ESG-related focus areas under these key pillars that are most relevant and best suited for our hospitality business and operations.

We have set out key targets and started developing action plans to chart our sustainability journey, which contribute to the long-term goals established by the Group:

• To finance a majority of its new sustainable asset portfolios with green and sustainable financing by 2024
• To be a net-zero carbon corporation by 2050 
• To be climate resilient and establish adaptation and mitigation plans by 2024 
• To green-certify 80% of its owned and asset- managed properties by 2024