Frasers Hospitality Trust : Sustainability Report 2021

74

Sustainability

Contents

74 Board Statement

1. The Year at A Glance
2. Leveraging our Sustainability Core
3. Managing Sustainability

82 Acting Progressively

85 Consuming Responsibly

88 Focusing on People

1. About This Report
2. GRI Content Index

Glossary

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

Abbreviations used in Sustainability Report

ESG	: Environmental, Social and Governance
GHG	: Greenhouse Gas
GRESB	: Global Real Estate Sustainability
	Benchmark
GRI	: Global Reporting Initiative
MAS	: Monetary Authority of Singapore
NABERS	: National Australian Built Environment
	Rating System
NGOs	: Non-governmental Organisations
SDG	: Sustainable Development Goal
SSC	: Sustainability Steering Committee
TAFEP	: Tripartite Alliance for Fair and
	Progressive Employment Practices
TCFD	: Task Force on Climate-Related Financial
	Disclosures
UN	: United Nations

BOARD STATEMENT

This past year heralded major shifts to our business and industry as the ongoing pandemic necessitated that we adapt to new ways of living. Our primary focus at FHT continued to be to ensure the safety and well-being of our employees, guests and stakeholders. Yet, as the hospitality industry begins to slowly rebound and evolve to be more resilient than before, we are confident that there will be a strong demand for responsible travel and tourism in years to come. This shared belief drove us to strategically leverage our resources this year and zero in on addressing the environmental and social impact on FHT's portfolio.

In FY2021, we put in place several initiatives to reduce waste production, as well as energy and water usage, in our properties. We continued to harness digitalisation and innovation, both to reduce negative environmental impact on our operations as well as to enhance our guests' experiences and meet evolving needs. Furthermore, we recognise that sustainability impact extends beyond our operations and can have repercussions on our supply chain. We have begun

Contents	Overview	Year In Review	Leadership	Portfolio	Reports	Financial	75
Section

to engage with our key suppliers on our Responsible Sourcing Policy and will work in partnership with them for the next few years to address environmental and social risks in their own operations. In implementing these key initiatives, we continued to be guided by Frasers Property's sustainability framework and goals, including our common goal of achieving net zero carbon emissions across our value chain by 2050.

We made measurable progress against these goals by executing the action plans that we had developed in previous years, and by leveraging our strong sustainability core.

Our sustainability strategy is executed by the Sustainability Task Force comprising the management team of the REIT Manager. Supported by the Sustainability Task Force, our Board of Directors determines, monitors and manages the environmental, social and governance (ESG) issues material to FHT, provides strategic directions on sustainability, as well as oversees the standards, management processes and strategies needed to achieve sustainability targets for the business.

We invite you to read about our latest progress and achievements in FHT's 7th Sustainability Report. Thank you for supporting us along this journey, and we look forward to working with you to deliver good progress on the sustainability front.

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

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Sustainability

THE YEAR AT A GLANCE

Complied with all relevant laws, rules and regulations

Reported zero confirmed incidents of bribery and corruption

Implemented FHT Responsible Sourcing Policy

Embarked on a gap analysis exercise to assess our alignment

ACTING PROGRESSIVELY

with the Monetary Authority of Singapore (MAS) Guidelines on Environmental Risk Management

	Fraser Suites Glasgow, Fraser Suites Edinburgh, Fraser Suites
	Queens Gate London and Park International London have been
	powered by 100% renewable electricity since 1 January 2021
	Attained an average National Australian Built Environment Rating
	System (NABERS) Energy rating of 3.5 Stars (Average to Good) for
	all Australian properties for the first time
	Attained an average NABERS Water rating of 4 Stars (Good) for all
	Australian properties for the first time
CONSUMING	All Frasers Hospitality-managed properties within FHT's portfolio
RESPONSIBLY	eliminated single-use plastics across focus themes of food &
	beverage, laundry and bathroom amenities

	Deployed patented, chemical-free cleaning system in most
	Frasers Hospitality-managed properties
	Provided regular health and safety training to FHT properties' staff
	to raise awareness
	Reported zero work-related fatalities across our properties and at
	the REIT Manager level
	Achieved a positive guest review score of 83 out of 100 and a
	performance score of 86 out of 100 across all FHT properties
FOCUSING ON	managed by Frasers Hospitality
All FHT employees were invited to participate in an inaugural
PEOPLE	Group-wide Culture Survey
	All FHT employees received sustainability training
	Each employee underwent an average of 49 hours of training

Contents

Overview

Year In Review

Leadership

Portfolio

Reports

Financial

77

Section

LEVERAGING OUR SUSTAINABILITY CORE

This year, the Sixth Assessment Report of the United Nations Intergovernmental Panel on Climate Change sounded a clarion call on climate change, cautioning that global temperatures will increase to a disastrous extent unless the world significantly reduces its greenhouse gas emissions within the next decade. The ongoing pandemic has also surfaced existing inequalities amongst and within societies around the globe. Against this backdrop, there has never been a stronger demand for businesses to integrate ESG factors into their policies and operations. As a global hotel and serviced residence trust, we recognise that we play a vital role in delivering positive sustainability outcomes to our stakeholders.

We will continue to do so by leveraging the foundation and sustainability core we have built over the past years. As part of Frasers Property, FHT's sustainability strategy is closely aligned with the Group's Sustainability Framework. The three pillars of our Sustainability Framework - Acting Progressively,

Consuming Responsibly and Focusing on People - continue to guide our approach and key priorities through to 2030. Branching off from the key pillars are 13 ESG-related focus areas which are adapted to suit our hospitality business and operations.

FHT's framework also encompasses specific goals and targets, including the five long-term goals which had been established by the Group in 2020:

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 our owned and asset- managed properties by 2024

To fund majority of our sustainable asset portfolios with green or sustainable financing by 2024

To train all our employees on sustainability by 2021

To support these goals, we have identified key goals and targets to drive our sustainability agenda across our portfolio. We have started developing action plans to achieve our goals and measure our performance against tangible targets.

PILLARS

ACTING			CONSUMING		FOCUSING ON
PROGRESSIVELY			RESPONSIBLY		PEOPLE
			FOCUS AREAS
Innovation		Materials & Supply Chain		Community Connectedness
Fostering an innovation culture		Achieving the sustainable		Considering social value
that creates value and strengthens		management and efficient use of		principles for communities
our competitive edge		materials along the supply chain
						Health & Well-being
Resilient Properties			Biodiversity		Ensuring healthy and balanced work
Strengthening the resilience and		Enhancing the environment and		and community environments
climate adaptive capacity		ecosystem through our developments
						Diversity, Equity & Inclusion
Risk-based Management			Energy & Carbon		Empowering and promoting the social
Comprehensive assessment		Increasing substantially energy		inclusion of all, irrespective of age,
to address environmental,		efficiency and renewable energy used		sex, disability, race, ethnicity, origin,
health and safety risks						religion or economic or other status
			Waste
Responsible Investment		Reducing substantially waste		Skills & Leadership
Incorporating social, environment		generation through prevention,		Developing skills and leadership
and governance criteria in		reduction, recycling and reuse		programmes that support
the evaluation process						productive activities, creativity
			Water		and innovation to deliver high-
		Increasing substantially water		value products and services
		efficiency and the recycling and
		safe reuse of water discharged

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Sustainability

MANAGING SUSTAINABILITY

Integrating sustainability into every part of our business and value chain requires an alignment of priorities at the highest levels of corporate strategy. To this end, sustainability remains a key priority in strategic planning at Board and management levels. Our Board of Directors continues to carry out its responsibilities in determining, monitoring and managing the ESG factors material to the Group, providing strategic directions and overseeing the standards, management processes and strategies needed to achieve our sustainability targets.

We work closely with our Sponsor on our sustainability strategies and are guided by the Group's sustainability agenda which is driven by the Sustainability Steering Committee (SSC). The SSC comprises top management from the Group and is responsible for reviewing and assessing the Group's sustainability goals and performance, and is supported by the Group Sustainability team, and the Project Management Office which are tasked to coordinate and implement sustainability strategies at the Group level. This year, given its focus on its Net Zero Carbon and Climate Risk

• Resilience plans, our Sponsor also established a dedicated Advisory Group made up of senior management representatives from various corporate functions and representatives from business units across the Group, to support the SSC.

FHT also has a dedicated Sustainability Task Force comprising the CEO and the department heads of Asset Management, Finance, Investment and Investor Relations. The Asset Management team and the General Managers of the hotels and serviced residences are responsible for tracking each property's sustainability performance against identified indicators.

STAKEHOLDER MANAGEMENT

Delivering value for our stakeholders starts with putting their diverse needs at the centre of our offerings. We are cognisant of the key stakeholder groups who are impacted by our business and activities, and we proactively engaged them during the year through multiple platforms, with the aim of building the trust essential to implementing our sustainability strategy. Their valuable feedback has helped us understand the sustainability issues that matter to them and in turn, this has guided us in our sustainability strategy and efforts.

INDUSTRY ALIGNMENT

Together with the Group, we support the following global sustainability movements:

A signatory to United Nations Global Compact

GRESB

Task Force on Climate-Related Financial Disclosures ( TCFD) Tripartite Alliance for Fair and Progressive Employment Practices

(TAFEP)

United Nations Women Empowerment Principles ( UNWEP)

Key Stakeholders

Customers and Guests

Investment Community and Stapled Securityholders

Hotel and Serviced Residence Operators

Employees

Suppliers and Business Partners

Local Community

Media

Regulators and Non-governmental Organisations