LAYING FOUNDATIONS FOR THE NEXT PHASE OF GROWTH
The extent of the COVID-19 pandemic, compounded by socio-economic and climate change concerns, has made the recent year a challenging one and we stand with you as we navigate these unprecedented times. At BHG Retail REIT, sustainability has always been of paramount importance to the Board and top management ("Management"). The pandemic and its far-reaching consequences reinforced our sense of belief and purpose in the sustainability agenda and we recognised our role in making a positive impact on the environment and the communities we serve.
Management regularly reviews, monitors and manages sustainability risks and opportunities alongside enhancing our business practice sustainability performance and disclosure transparency. In FY 2020, the Board considered sustainability issues in its strategic formulation by re-assessing the ESG factors material to the company. Under the Board's oversight, the Audit and Risk Committee ("ARC") managed the risks of material ESG factors on the REIT's operations vis-Ã -vis the local regulatory landscape. We are committed to maintaining high standards of corporate governance, accountability and transparency along our sustainability journey.
Our well-maintained Enterprise Risk Management ("ERM") Framework and Business Continuity Plan ("BCP") are endeavours that have allowed us to build resilience and respond well to the changing economic and regulatory landscape brought about by the COVID-19 pandemic. The Manager implemented internal guidelines regarding workplace and customer health and safety, in line with nation-wide regulations on safe distancing measures.
We continue to focus on adapting to evolving business needs with excellence. We strive to maintain meaningful relationships with all our stakeholders, seeking opportunities to remain connected with tenants, investors, and local communities. Adapting to the COVID-19 'new normal', our initiatives have expanded from face-to-face communication to virtual platform interactions.
Despite the challenges, we remain forward-looking and steadfast in our commitment to embracing the sustainability agenda in our business strategy and operations. We aim to improve our sustainability practices, prioritising environmental conservation, social inclusion and honest governance. This year's Sustainability Report lays out our performance, initiatives and accomplishments in executing our sustainability agenda in light of the pandemic.
Report Content and Material Topics
The content of this Report was defined by the four reporting principles established by the GRI Standards:
- Stakeholder Inclusiveness - This Report's content and context were determined by engaging with our stakeholders and conducting internal discussions within Management. This enabled us to consider the expectations and interests of all our stakeholders.
- Sustainability Context - Our business operations and performance were presented in the context of ESG landscape requirements at the local, regional and global level.
- Materiality - The material issues disclosed in this Report were identified by determining the topics with most significant impacts n our business, and which can influence stakeholders' decisions.
- Completeness - This Report covers various aspects of the material topics, such as implications, initiatives and availability and boundaries of datapoints, within the reporting period.
We commit ourselves to relevant ESG practices and risk management procedures to mitigate sustainability-related risk in our operations. We believe these practices drive sustainable growth and create long-term value for all our stakeholders.
Under the Board's oversight, the Chief Executive Officer and Sustainability Officer work collaboratively to manage sustainability matters within the REIT. BHG Retail REIT's overall risk strategy and risk governance is established and regulated by the Board, with support from the ARC. The organisation's ERM framework effectively identifies and manages risks in the Manager's governance and operations. An outsourced Internal Audit function is engaged to evaluate the effectiveness and reliability of the framework.
Each portfolio property has recovery plans and
initiatives to ensure that premises are maintained
adequately, and that equipments remain in good
condition. These recovery plans are designed to
mitigate potential risks resulting from unexpected
occurrences or incidences that may disrupt
business operations, such as natural disasters,
fire hazards or equipment failures.
Compliance with all applicable laws and regulations
is taken seriously by the REIT Manager; an internal
set of policies are in place and enforced to prevent
any incidences of non-compliance. Compliance
training sessions and briefings, supplemented
with explicit communication materials, are
conducted for all employees.
Our sustainable governance is reflected in our
management of sustainability-related risks within
our supply chain. Through active collaboration
with stakeholders in our supply chain, we hold
ourselves accountable to industry best practices
and strive to create a positive impact for the benefit
of all parties.
All vendors, suppliers and third-party service
providers of BHG Retail REIT are expected to
comply with our rules of business conduct. These
parties are also subject to due diligence checks
and risk assessments as part of our effort to remain
in compliance with the Monetary Authority of
Singapore ("MAS") guidelines. In FY 2020, there
were no significant changes to our supply chain,
including supply chain structure, nature and
location of operations, location of suppliers, or
share capital structure.
To access the full Sustainability Report, please click here.