Link Real Estate Investment Trust : Sustainability Compendium

Sustainability Compendium 2021/2022

Link Real Estate Investment Trust

Stock code: 823

G R O W I N G

Beyond

About Link

Link Real Estate Investment Trust is one of the world's largest real estate investment trusts in terms of market capitalisation. With a diversified portfolio, we aim to deliver sustainable growth and create long-term value for our Unitholders and all our stakeholders.

About this Report

We produce this standalone Sustainability Compendium in order to provide more details on our Sustainability Strategy, as well as approach and performance in each of our Sustainability Focus Areas under Environment (E), Social (S) and Governance (G) categories. This report does not form a part of, but intends to complement our Integrated Annual Report.

Materiality

This report has been structured according to Link's Vision 2025 and

Value Creation Process. The Board believes that Vision 2025 represents the strategy and opportunities that will drive value creation for our stakeholders.

Complete 2021/2022

Reports and Presentations

Strategic Report

Our Strategic Report, compiled according to the International Integrated Reporting Council's International Framework, presents a comprehensive, but concise, overview of how we create value for different stakeholders and the progress we have made on Vision 2025.

Governance, Disclosures and Financial Statements

This report contains our detailed governance, disclosures and financial statements. The governance and disclosures sections are prepared in accordance with the REIT Code, applicable provisions of the Listing Rules, and other relevant laws and regulations, while the consolidated financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards, the requirements of the Trust Deed and the relevant disclosure requirements of the REIT Code and audited by PricewaterhouseCoopers.

Valuation Report

This report summarises the market value of Link's individual properties as valued by Colliers International (Hong Kong) Limited.

ESG Compliance

• Environmental, Social and Governance Reporting Guide

(ESG Reporting Guide) of The Stock Exchange of Hong Kong Limited

• Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) - Core Options

• United Nations Global Compact

• Task Force on Climate-related Financial Disclosures (TCFD)

• International Sustainability Standards Board (ISSB) Exposure Draft IFRS S2 Climate-related Disclosures

Sustainability Compendium

The Sustainability Compendium, which does not form part of, but which
is intended to complement our Integrated Annual Report, provides more
details on our Sustainability Strategy, as well as approach and
performance in each of our Sustainability Focus Areas.	The Cabot	Link Square
	London	Shanghai

Queen Victoria Building		The Quayside
Sydney		Hong Kong

Contents

Overview

2 Introduction

2 2021/2022 Sustainability Snapshot

Sustainability Strategy

1. Sustainability Strategy and Sustainability Focus Areas
2. Key Sustainability Targets

6 Business as Mutual

Sustainability Governance

1. Sustainability Governance Structure

1. Materiality and Risk Assessment

1. Stakeholder Engagement

1. Policies
2. Best Practices
3. Sustainable Finance

1. Responsible Investment

Environment

25 Greenhouse Gas Emissions

1. Climate Resilience and Adaptation

1. Green Buildings

1. Indoor Air Quality
2. Energy Efficiency

1. Waste Management

1. Water Management

1. Biodiversity

Social

1. Talent Management

1. Tenant Engagement
2. Supply Chain

1. Community

1. Occupational Health, Safety and Well-being

1. Diversity and Inclusion
2. Innovation

Performance and Reporting

1. Awards and Recognitions

1. Signatories and Initiatives

1. ESG Performance Data Tables

1. HKQAA Assurance Statement
2. ISSB Climate Exposure Draft Content Index

Appendix

87 Sustainable and Green Bond Report 2021/2022

Overview

Overview

Introduction

This Sustainability Compendium, which does not form a part of, but which is intended to complement our Integrated Annual Report, provides more details on our Sustainability Strategy, as well as approach and performance in each of our Sustainability Focus Areas under Environment (E), Social (S) and Governance (G) categories. This report covers 124 properties owned by Link across Hong Kong, 5 properties across Mainland China, 1 property in Australia and 1 property in the United Kingdom. Unless otherwise stated, the reported ESG key performance indicators cover all properties where we have operational control that we have owned and operated for at least 1.5 years(1).

This report, in conjunction with our Integrated Annual Report comprising Strategic Report and Governance and Disclosures and Financial Statements, is prepared in accordance with sustainability reporting global best practices and complies with the Core Option of Global Reporting Initiatives Sustainability Reporting Standards (GRI Standards), the International Integrated Reporting Framework, the Environmental, Social and Governance Reporting Guide set out in Listing Rules Appendix 27 of The Stock Exchange of Hong Kong Limited. We support the global efforts to provide transparent and comparable reporting on climate-related issues. Our climate disclosures follow the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB) Exposure Draft IFRS S2 Climate-related Disclosures (ISSB Climate Exposure Draft). This report is prepared in English and Chinese, to the extent that there are any discrepancies, the English version shall prevail.

Please find ESG Performance Data Tablesand Reporting Framework Indicesat the end of this report and in ourGovernance, Disclosures and Financial Statements.

GRI 102-46,102-50,102-54

2021/2022 Sustainability Snapshot

GRESB: Retained "Green Star" rating for 10th consecutive year

Named one of the Best Companies to Work for in Asia by HR Asia for the 2nd consecutive year

Included in Dow Jones	MSCI ESG Ratings: A
Sustainability Asia
Pacific Index since
2013

Climate Resilience and Net Zero 2035

In May 2022, we committed to align our climate goals with SBTi Net Zero Standard, increasing the robustness of our Net Zero 2035 Strategy. Recognising flood risk as a key physical risk to our portfolio, we conducted a coastal threat analysis for our Greater Bay Area portfolio to increase our preparedness

and better allocate flood resilience resources. We have aligned our climate disclosures to the recommendations of the TCFD and the ISSB.

New Sustainable Finance Framework

Our new Sustainable Finance Framework requires all our future sustainability- linked finance transactions to include KPIs under each of the Environment, Social and Governance areas. In March 2022, we executed a HK$12 billion sustainability-linked loan with ambitious KPIs on rolling out green leases, promoting upward social mobility through local employment and upgrading our Net Zero Strategy in pursuance of the SBTi Net Zero Standard. The transaction was supported by 16 Hong Kong and international banks and was the largest of its kind in the real estate sector and among REITs in Asia.

Strengthened Sustainability Strategy and Governance

We made significant strides this year to strengthen our sustainability strategy and governance including:

• adding ambitious new near-term corporate sustainability targets
• completing an updated integrated materiality and risk assessment
• developed or updated a number of sustainability related policies and procedures

Note:

(1) We report data for properties where we have operational control as we are directly responsible for their ESG strategy and performance.

2 Link Real Estate Investment Trust

Sustainability Strategy

Sustainability Strategy

Sustainability Strategy and Sustainability Focus Areas

Our vision is to be a world class real estate investor and manager serving and improving the lives of those around us. Using our Business as Mutual mindset, we actively engage with stakeholders across our value chain to continually identify and update ourselves on sustainability issues that are material and relevant to our business. This process helps us to formulate and prioritise our sustainability focus areas under Environmental (E), Social (S), Governance (G) and to integrate these into our business activities. By setting long term targets and working on improvements and initiatives under each of our sustainability focus areas, we strive to realise our vision and to make positive impact on society and the environment.

Environment

We have identified three focus areas, each covering several key topics.

Climate and Greenhouse

Gas Emissions:

We recognise and support the global goal to limit temperature rise and to prepare our portfolio in the face of physical and transitional risks.

• Greenhouse Gas Emissions
• Climate Resilience and Adaptation

Green Buildings:

Owning and operating buildings is our business, and it is through continuous improvement of the sustainability performance of our buildings as well as our management processes that we can reduce our environmental footprint and create positive impact.

• Green Buildings
• Indoor Air Quality

Resource Management:

Our buildings and operations consume natural resources. We are committed to improving resource management to support a sustainable planet.

• Energy Efficiency
• Waste Management
• Water Management
• Biodiversity

Social

We have identified two focus areas, each covering one to several key topics.

Stakeholder Engagement:

Understanding the needs and expectations of our stakeholders and engaging with them on our sustainability journey is key to maximising value creation.

• Talent Management
• Tenant Engagement
• Supply Chain
• Community
• Occupational Health, Safety and Well-being
• Diversity and Inclusion

Innovation:

We support innovation within the business and externally by piloting emerging technologies and supporting start-ups. We also support innovation in thought by being open-minded to new ways of doing business.

Governance

We have identified one focus area, covering four key topics.

Accountability and Transparency:

• Corporate and Sustainability Governance
• Sustainable Finance
• Responsible Investment
• Reporting

We discuss our approach and progress on each of the key topics in detail in this report. Where relevant, key topics are mapped to our six capitals: Financial, Portfolio, Talent, Natural, Social & Relationship and Innovation. For further discussion on the six capitals, please refer to our Strategic Report.

Sustainability Compendium 2021/2022

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