Frasers Commercial Trust (“FCOT”) is a real estate investment trust (“REIT”) listed on the Main Board of the Singapore Exchange Securities Trading Limited (the “SGX-ST”). FCOT is managed by Frasers Commercial Asset Management Ltd. (the “Manager”), a wholly-owned subsidiary of Frasers Property Limited (“FPL” or the “Sponsor”).

In line with the listing rules of the SGX-ST (the “Listing Rules”) and its obligations under the Guidelines to All Holders of a Capital Markets Services Licence for Real Estate Investment Trust Management (Guideline No: SFA04–G07) issued by the Monetary Authority of Singapore (“MAS”), the Manager complies with the principles of the Code of Corporate Governance 2018 (the “CG Code”). Even though the CG Code applies to annual reports covering financial years commencing from 1 January 2019, the Manager has elected to adopt and comply with Rule 710 of the listing manual of the SGX-ST (the “SGX-ST Listing Manual”) to describe its corporate governance practices with specific reference to the principles and the provisions of the CG Code (and not the Code of Corporate Governance 2012).

The practices and activities of the Board of Directors (the “Board”) and the management of the Manager (the “Management”) adhere closely to the provisions under the CG Code.

To the extent the practices may vary from any provision of the CG Code, the Manager will explain the reason for the variation and how the practices nevertheless are consistent with the intent of the relevant principle of the CG Code. The Manager is also guided by the voluntary Practice Guidance which was issued to complement the CG Code and which sets out best practices for issuers; as this will build investor and stakeholder confidence in FCOT and the Manager. A summary of compliance with the express disclosure requirements in the principles and provisions of the CG Code is set out on pages 135 to 136 of FY2019 Annual Report.

We strive to create a sustainable and responsible business by adopting business practices that are beneficial to our stakeholders and will positively impact the environment and community around us.

For the first time, in 2019, we participated in the GRESB Real Estate Assessment, which is a global ESG performance benchmark for listed and unlisted real estate companies and funds. We are pleased that FCOT achieved a rating of 4 stars out of the maximum 5 stars in the assessment and scored 82 points out of the maximum 100 points, outperforming the global average score of 72 points. In addition, FCOT was ranked 3^rd among its peer group in Asia Pacific¹. FCOT also scored an ‘A’ for GRESB Public Disclosure, which measures material sustainability disclosures by listed real estate companies and REITs. These results and accolades attest to our ongoing commitment to integrate sustainability consciousness in the business and operations of FCOT.

The Properties have various green certifications and accolades², and we continued to make progress in our sustainability performance in FY2019. Average greenhouse gas emissions intensity improved by 11.0% year-on-year compared to FY2018. Employees of the Manager went through 929.1 hours of training in FY2019, which translated to an average of 46.5 hours per employee and exceeded the target of 40.0 hours per employee. During the financial year we also conducted a survey with internal and external stakeholders including employees, tenants and the investment community, to garner their views on ESG factors which are material to our business, operations and stakeholders.

The Board considers sustainability as an important part of FCOT’s longterm business strategies, and this includes, among other things, the management of the relevant ESG aspects in relation to FCOT and the Properties. Our approach is aligned with that of our sponsor, Frasers Property, where sustainability is anchored on the unifying idea of ‘Experience Matters’ which focuses on the ‘experience’ of customers and employees of the Frasers Property Group. Demonstrating our commitment towards sustainability, we have set targets to be achieved over the next 12 months for 10 material ESG factors.

FCOT’s sustainability efforts are supported by the Fraser Property’s Sustainability Steering Committee (SSC) and the Sustainability Working Committee (SWC). The SSC oversees the initiatives and strategies that drive sustainability and the SWC monitors sustainability performance, implements sustainability plans and maintains communications with various stakeholders.

FCOT is a constituent of two indices relating to sustainability, namely the iEdge Singapore ESG Leader and iEdge Singapore ESG Transparency indices³. Sustainability will continue to be one of the key pillars in achieving our business aspirations and to deliver long-term growth to our Unitholders. We strive to achieve sustainable growth while managing our impacts on the environment and the communities that we operate in.

Board of Directors
Frasers Commercial Asset Management Ltd.
(as manager of Frasers Commercial Trust)

1. Peer group as defined by GRESB.
2. See page 88 of FY2019 Annual Report for details.
3. Source: SGX sustainability indices as at 30 September 2019.