Sustainability

In fourth year of operations, Cromwell European REIT (“CEREIT”) continued to invest considerable efforts and resources to integrate ESG standards into various aspects of CEREIT’s operations, from portfolio construction to asset management, stakeholder engagement and corporate governance.

This progress gave the Manager and the Board confidence to commit to the aspirational Net Zero operational carbon emissions by 2040 target early this year, endorsed by the newly-formed Board Sustainability Committee.

The Manager also formed a separate sustainability committee at management level, to which the Board Sustainability Committee has delegated the identifying, setting and delivering the objectives and targets associated with all material ESG topics. All KMP of the Manager are also evaluated on specific, measurable and compensation-linked KPIs that are tied to CEREIT’s ESG targets.

On 28 May 2022, CEREIT released its sustainability report for the financial year ended 31 December 2021 (“FY 2021”).

Key highlights include:

  • Named Winner of the Singapore Corporate Governance award (REITs and Business Trusts category)
  • Retained top 10 positions in the Governance Index for Trusts and Singapore Governance and Transparency Index rankings for the second consecutive year
  • Formalised CEREIT’s first green financing framework and executed Singapore’s first sustainability-linked cross-currency swap with OCBC Bank
  • Retained “A” grade with 76 points for GRESB’s Public Disclosure Assessment
  • Achieved a two-notch improvement in CEREIT’s MSCI ESG score and two-point risk reduction for Sustainalytics
  • Reported the strongest net promoter score to date of +9.9, well above the benchmark industry index score of -4.8, and a commendable 82% tenant-customer satisfaction rate in its annual tenant-customer survey

On 13 July 2021, CEREIT released its second EPRA sBPR FY 2021 Submission. For this submission, the Manager has reported for all of EPRA’s 28 sBPR performance measures, up from last year’s submission for only 23 out of the 28 indicators, covering amongst others energy consumption, GHG emissions, water consumption, waste generation, environmentally certified buildings, corporate governance and social aspects.