Sustainability Report
EMBEDDING SUSTAINABILITY, CASCADING AMBITION
Board Statement
2022 was a year filled with both new challenges
and new opportunities. As international borders
continued to reopen post COVID-19, the world also
saw strengthened commitment to environmental
protection via the 27th Conference of the Parties
to the United Nations Framework Convention on
Climate Change (COP27). Key achievements of
the COP27 include maintaining a clear intention to
limit global warming to 1.5 oC and a new focus on
keeping businesses and institutions accountable
to their sustainability commitments. Here at BHG
Retail REIT, we echo the global ambition and are
committed to embed sustainability into our daily
decision-making and operations. We recognise
the strengthened disclosure guidelines reflected
in the updated Global Reporting Initiative ("GRI")
2021 Standards, and seek to improve our own
sustainability disclosures in alignment with the
updated guidelines.
Environment, Social and Governance ("ESG")
issues have always been a priority for the REIT
in its business and strategy, with our inaugural
sustainability report being published in 2018. Over
the years, the REIT has continued to regularly
monitor and review our sustainability performance
and efforts to ensure continuous improvements.
The board of directors of the REIT (the "Board",
and each a "Director") is proud to present its sixth
sustainability report for FY 2022 (as defined herein).
The Board has thoroughly reviewed sustainability
issues impacting our business, determined the
material ESG factors as well as monitored and
overseen the management of these ESG issues,
including climate change. In 2022, in line with the
updates in the GRI Standards 2021, we have also
integrated considerations on our impact to human
rights. The REIT, under the oversight of the Board,
has refreshed its list of materials ESG issues or
topics this year and are pleased to include the
addition of one new material topic-Anti-corruption.
We believe that ethical business practices and sound
corporate governance are vital for our long-term
sustainable growth.
The REIT is pleased to announce that in 2022, BHG
Retail REIT was conferred three platinum awards
at the Global CSR & ESG Awards 2022, specifically
in the 'Best Community Programme Award', 'Best
Corporate Communications and Investor Relations
Team', as well as the 'CSR & ESG Leadership
Award' categories. We are proud to have received
these prestigious awards as a testament and
recognition of our efforts in driving sustainability
and business responsibility. Looking forward, we
will remain committed towards the well-being of
the communities we operate in as well as overall
sustainable growth of our business. We seek to
continue cascading our climate and sustainability
ambitions and performance. On behalf of the Board
and the REIT Manager team, we would like to extend
our sincere gratitude to all our stakeholders for their
continuous support throughout BHG Retail REIT's
sustainability journey.
Reporting Principle
This report follows the reporting principles outlined
in the GRI 1: Foundation 2021 guidelines in order to
ensure quality and proper presentation of our ESG
information.
- Accuracy - Information reported is correct and sufficiently detailed
- Balance - We report our sustainability performance in an unbiased way to allow for a fair representation
- Clarity - This report will be publicly accessible and understandable to the general public
- Comparability - Information is reported consistent with past reports' approach
- Whenever possible, we report FY 2022 performance as compared to FY 2021 performance - Completeness - This report covers material ESG topics and respective boundaries within the stipulated reporting period
- Sustainability context - Our business operations and peformance is reported with reference to the larger ESG landscape at the local, regional and global level
- Timeliness - We publish our report annually in conjunction with the publication of our Annual Report
- Verifiability - We ensure that information reported is credible, and detail our decision-making processes when relevant
Sustainability Governance
Under the Board's oversight, the REIT Manager
team regularly reviews, monitors and manages
sustainability risks and opportunities alongside
enhancing our business practice sustainability
performance and disclosure transparency. The
Board is responsible for the overall direction and
management of embedding sustainability practices
into our business operations. Review and approval
by the Board is required before the publication
of our annual sustainability report. ESG issues
and material topics are regularly communicated
to the Board during Board meetings and Board
Committee meetings. To keep abreast with the latest sustainability issues and strengthen collective
knowledge on sustainable development, The Board
has also undergone a training provided by the
Singapore Institute of Directors and Institute of
Singapore Chartered Accountants on sustainability
matters in FY 2022. The "Environmental, Social and
Governance Essentials" training program covers
the board's role and director's responsibilities in
sustainability governance and seeks to provides a
foundation for board directors to drive sustainability
compliance and integrate ESG factors into their
business strategy.
Apart from sustainability matters that specifically
require the Board's approval, the Board delegates
authority to individual committees and Management
to supervise sustainability matters. Under the REIT's
corporate governance structure, the REIT Manager
is supported by the Audit and Risk Committee (the
"ARC") and the Nominating and Remuneration
Committee (the "NRC") (collectively, the "Board
Committees"), which facilitate proper discharge
of the Board's duty and functions. We also have in
place our Enterprise Risk Management ("ERM")
Framework and a Business Continuity Plan ("BCP")
that seeks to identify and mitigate the risks of
material ESG factors in the REIT's business and
operational activities. This is supplemented by an
internal audit function which conducts the internal
review of the sustainability reporting process which
builds on the REIT's existing governance structure,
and is buttressed by adequate and effective internal
controls and risk management systems. The internal
audit function is outsourced to an independent
service provider, bringing an added level of
assurance.
As part of our internal audit plan, the identified
processes relating to sustainability reporting
will be incorporated into the internal audit
plan, which will cover key aspects of the
sustainability report. Further, the expectations of
the Board, the management of BHG Retail REIT
("Management") and other stakeholders will be
considered as part of the prioritisation. The internal
review will be conducted in accordance with the
International Standards for Professional Practice of
Internal Auditing issued by the Institute of Internal
Auditors.
Please refer to the Corporate Governance section
of the annual report for more details on the overall
corporate governance structure and policies at the
REIT.
In order to ensure responsible business conduct
and sound corporate governance, we have set in place various policy commitments such as
our Board Diversity Policy, Code of Conduct
and Ethics, and our Business Ethics compliance
policies. Guided by this Code of Conduct and
Ethics, overseen by the Board and Management,
every stakeholder of the REIT conducting business
with us is expected to, among other things, adhere
to the highest standards of ethical conduct. Our
Whistleblowing Policy ensures that any employee
or external parties may, in confidence and without
fear or reprisal, safely raise any concerns about the
organisation's business conduct. Aligned with the
GRI 2021 Standards, human rights principles are
also embedded into our labour and employment
practices, and diversity and inclusion principles are
embedded in our employment practices.
To access the full Sustainability Report, please click here.
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