ESG

Our Approach to ESG

Reflecting ESG factors throughout the asset life cycle, from developing logistics centers to operating them

ESR Kendall Square is committed to integrating Environmental, Social, and Governance (“ESG”) considerations across the logistics real estate cycle. Through our commitment to responsible and sustainable real estate investment, development, and management, we seek to deliver long-term values to all our stakeholders – investors, employees, customers, service providers/sub-contractors, and the communities in which we operate.

Sustainable Portfolio

We are focusing our capabilities on developing
and operating eco-friendly assets to create a
sustainable future and environment.

Human Centric

Based on trust, we hope to coexist and prosper
with tenants, local communities, employees,
and all other stakeholders.

Corporate Governance

We are boosting corporate and shareholder
value based on transparent governance and
responsible management.

ESG Targets & Achievements

Since 2017, ESR Kendall Square has participated in the Global Real Estate
Sustainability Benchmark (GRESB), recognizing the importance of ESG early on. Our ESG commitment is demonstrated by the outstanding ESG performance every year, and in the 2023 GRESB Developer Assessment, ESR Kendall Square once again achieved the highest rating of 5-stars and received Regional Sector Leader in the “Asia, Industrial” category.

ESR Kendall Square has been at the forefront of sustainable management, actively incorporating ESG principles throughout the development and operation of logistics centers – from site selection to design and construction – to pursue sustainable business practices. To minimize the potential environmental impact of logistics centers, we have achieved LEED certifications. Additionally, we have obtained WELL Standard and WELL Health Safety Rating to ensure safe working environments for tenants. With our focus on minimizing sustainability
risks and enhancing long-term value, we will continue to achieve more LEED Gold certifications for future logistics centers.

Bucheon Logistics Park

Obtained WELL GOLD and LEED GOLD certifications, both firsts in the Asia-Pacific region

Environmental

ESR Kendall Square pursues sustainable management by actively integrating ESG factors in the entire asset life cycle – from development, including the
site selection, design, and construction of the logistics centers to operation. To minimize the potential environmental impact of logistics centers during
development and operation, we perform ESG Due Diligence, climate change physical risk assessments, and/or achieve green building certifications.

People & Culture

ESR Kendall Square aims to coexist with all stakeholders, including employees, the community, and tenants.

Participated in the social contribution program ‘Happiness Box’ packaging

ESR KendallSquare participated in the “Happiness Box” packaging program, a social contribution program initiated by SK Group to address the issue of malnourished children. Together with the “Happiness Alliance,” a social contribution coalition, the company carefully selected nutritious snacks and various products to pack in the “Happiness Boxes.” Through the Happiness Alliance, ESR KendallSquare delivered these boxes to 600 underprivileged children nationwide who were at risk of malnutrition. The company plans to continue sharing warmth with marginalized neighbors in the future.

Conducted plogging at Yeouido Park

As part of its ESG efforts, ESR KendallSquare conducted a “plogging” activity in the Yeouido Park area, which involved light jogging and trash collection. This combined activity aims to protect the environment and promote health. Many employees of ESR KendallSquare participated in this activity. In the future, the company plans to continue various ESG activities to promote environmental management practices that prioritize the well-being of the planet and its ecosystems.

Kendall Square Forest to Combat Climate Change

ESR Kendall Square signed an agreement with SK Forest to create a carbon offset forest and engage in forest management activities. On April 18, 2024, 1,000 larch trees were planted to create ‘ESR Kendall Square Forest,’ covering 5,000㎡ in the mountains of Gwangdeok-myeon, Cheonan. We will continue to participate in forest management activities to meet carbon neutrality.

Plogging at Yeouido Park

As part of our ESG activities, we carried out plogging activity in Yeouido Park in October 2023. Plogging involves combining light jogging with trash collection activities, with a focus on protecting the environment and promoting health.

Many employees participated in this activity to safeguard the environment and enhance our collective well-being. Moving forward, we are committed to continuing various ESG activities as part of our environment management efforts.

Happiness Box Program for Malnourished Children

ESR Kendall Square participated in the “Happiness Box” packaging program, a social contribution program initiated by SK Group to tackle the issue of malnourished children, for two consecutive years. In collaboration with the “Happiness Alliance,” a coalition for social contribution, we packed nutritious snacks and various products into “Happiness Boxes” and delivered them to 600 children nationwide who were at risk of malnutrition. We will continue to bring warmth and support to marginalized neighbors in the future.

Governance

ESR Kendall Square established environmental and anti-corruption policies and guidelines to demonstrate our commitment to ESG management. In addition, we strengthen our ESG management programs and policies by continuously developing new ESG strategies and plans.