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ESG Framework and Goals
At FHT, we are cognisant of our ESG commitments and duty to operate in a responsible manner. We strive to safeguard the environmental and social well-being of the communities we operate in, while creating long-term shared value for our stakeholders.
Our ESG strategy is broadly aligned to our Sponsor’s ESG Framework and ESG Goals, taking into account focus areas and targets material to FHT’s business. FHT’s ESG Framework guides our approach towards driving ESG efforts and progress, and focuses on three pillars – Acting Progressively, Consuming Responsibly and Focusing on People.
The Year At A Glance
Board Statement
Recent years have seen growing stakeholder expectations for the hospitality industry to prioritise decarbonisation and incorporate responsible environmental, social and governance ("ESG") practices within their business. With the rise of sustainable tourism among travellers and with regulators prioritising ESG aspects within national tourism policies, the Board of Directors (the "Board") of FHT continues to oversee the advancement of sustainability commitments while strengthening the resilience of FHT's high-quality asset portfolio.
In the past year, FHT has achieved several milestones that reflect its ongoing dedication to progress under the ESG pillars. In FY2024, all FHT properties in the UK have attained their BREEAM (Building Research Establishment Environmental Assessment Method) In-Use ("BIU") certifications. In Australia, all three FHT properties have attained the Green Star Performance Certification. While in Malaysia, The Westin Kuala Lumpur has completed its GreenRE assessment and is awaiting its certification. Overall, 93% of FHT properties by gross floor area have attained or are pursuing green building certifications. Achieving and retaining these certifications is a reflection of FHT's portfolio adopting sustainable design, reducing the environmental impact and aligning to the Frasers Property Group-wide Purpose of 'Inspiring experiences, creating places for good'.
In line with its Sponsor Frasers Property's goal of achieving net-zero carbon emissions by 2050, FHT has developed a dedicated Sustainability Dashboard in FY2024 to track and analyse environment-related consumption data more effectively. FHT will also begin an assessment to identify and assess the extent of exposure of its asset portfolio to climate-related physical and transitional risks, by utilising the Sponsor's in-house Climate Value at Risk ("CVaR") platform.
As a testament to its continued ESG efforts, FHT maintained its 4-Star Rating in the Standing Investments category of the GRESB 2024 Real Estate Assessment, placing first in the 'Asia Pacific Hotel - Listed' peer category. This assessment, using GRESB, remains an important benchmark for FHT's ESG performance relative to its peers and drives sustainability integration across the Business.
The Board of Directors will continue to fulfil our duties in providing strategic direction on sustainability, and determining, monitoring and managing our material ESG issues. We also oversee that the necessary standards and management processes are in place to reach our ESG objectives and goals. We invite you to read FHT's tenth ESG Report 2024, that provides an overview of our sustainability performance throughout the year and is aligned with international frameworks including the GRI Universal Standards. This report continues to align climate-related disclosures with the Task Force on Climate-related Financial Disclosures ("TCFD") recommendations and will be preparing to report in alignment to the International Sustainability Standards Board's ("ISSB") International Financial Reporting Standards ("IFRS") Sustainability Disclosure Standards in alignment with applicable SGX listing rules in the near future.
We look forward to working together with FHT and our stakeholders on this sustainability journey.
Board of Directors
Frasers Hospitality Asset Management Pte. Ltd.
REIT Manager of Frasers Hospitality Real Estate
Frasers Hospitality Trust Management Pte. Ltd.
Trustee-Manager of Frasers Hospitality Business Trust
Acting Progressively
We strive to act progressively in everything we do by embracing flexibility, integrating ESG into our risk management mechanisms and challenging the way we operate. Built on the foundation of a strong governance system with robust policies in place, we look for ways to achieve long-term sustainable value through responsible investments and resilient properties that can withstand the impacts posed by various ESG risks, including climate change. We benchmark our properties against relevant green building certification schemes to uphold responsible business practices across our business operations. Furthermore, we believe in fostering a culture of innovation to strengthen our competitive edge and add value to our guests’ experience.
Consuming Responsibly
At FHT, we are dedicated to responsible tourism and environmental leadership within our hotels and serviced residences. We incorporate sustainability into our everyday functions and across our supply chain. Year after year, we aim to optimise our resource use efficiency through adoption of renewable energy, waste reduction and energy and water conservation via environmental and social frameworks. Additionally, we strive to reduce our overall environmental impact by promoting sustainable practices amongst our staff, clients, guests and property operators.
In FY2024, we developed and launched the Frasers Hospitality Sustainability Dashboard to track and analyse our environment-related consumption data more effectively. This dedicated platform analyses all our consumption data at the portfolio, cluster and property levels, enabling us to identify hotspots and develop targeted approaches to reduce our carbon footprint.
Within our supply chain, we adhere to our Sponsor’s Responsible Sourcing Policy, which guides our approach for sourcing and procurement decisions. We are actively exploring pathways to align with our Sponsor’s refreshed Groupwide ESG goal of engaging 75% of all suppliers by spend on the Responsible Sourcing Policy by FY2025. We also recognise the dependence of operational resources on nature and the impact of our consumption on the biodiversity. Emphasis is placed on responsible consumption across operations to minimise dependencies and impacts. In line with this, we are committed to supporting our Sponsor’s biodiversity roadmap to develop a framework which guides the assessment and prioritisation of biodiversity risks and opportunities by FY2025.
Focusing On People
The core of FHT’s sustainability approach is a people-centric strategy that drives satisfaction and value for our customers, guests, employees and local communities. We recognise that our employees are our most invaluable asset, essential for driving our operations and ESG efforts. Therefore, we prioritise fostering a diverse and inclusive workplace environment where employees feel safe and empowered to thrive. Our unwavering commitment to the safety and well-being of our workforce motivates us to continuously improve our practices.
Our aim is to create meaningful long-term relationships that respect the communities we operate in and create lasting benefits. We continue to engage with communities to identify and support opportunities to contribute positively. Through these collaborative efforts, we aim to build a sustainable future for both our employees and the communities we serve.
FHT's Sustainability Reports
You can download FHT's Sustainability Reports from the links below:
