Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod incididunt ut labore et dolore magna aliqua. Ut enim ad minim.governance and transparency

Corporate governance

Frasers Centrepoint Asset Management (Commercial) Ltd. (the “Manager”), as manager of Frasers Commercial Trust (“FCOT”), is committed to high standards of corporate governance in the business and operations of the Manager, FCOT and their respective subsidiaries so as to protect the interest of, and enhance the value of Unitholders’ investments in, FCOT.

FCOT is a real estate investment trust (“REIT”) listed on the Main Board of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) and the Manager is a wholly-owned subsidiary of Frasers Centrepoint Limited (“FCL”).

The Manager’s commitment to high standards of corporate governance is spearheaded by a highly-qualified Board of Directors of the Manager (the “Board”), and supported by experienced and a qualified Management team (the “Management”).

The Manager has general powers of management over the assets of FCOT. The Manager’s key responsibility is to manage FCOT’s assets and liabilities for the benefit of Unitholders with a focus to deliver a stable and sustainable distribution to Unitholders and where appropriate, enhance the values of existing properties and increase the property portfolio over time.

The other functions and responsibilities of the Manager include preparing annual asset plans and undertaking regular individual asset performance analysis and market research analysis, managing finance functions relating to FCOT (which includes capital management, treasury, co-ordination and preparation of consolidated budgets) and supervising property managers who perform the day-today property management functions for FCOT’s properties, namely (i) China Square Central, 55 Market Street and Alexandra Technopark in Singapore and (ii) Central Park, Caroline Chisholm Centre and 357 Collins Street in Australia.

The Manager holds a Capital Markets Services Licence (“CMS Licence”) issued by the Monetary Authority of Singapore (“MAS”) to carry out REIT management activities as required under the licensing regime for REIT managers that came into effect on 1 August 2008.

The Manager ensures that the business of FCOT is carried on and conducted in a proper and efficient manner adhering to the principles and guidelines of the Code of Corporate Governance 2012 (the “CG Code”) and other applicable laws and regulations, including the listing rules of SGX-ST, the Code on Collective Investment Schemes (the “Code on CIS”) and the Securities and Futures Act (the “SFA ”).

This corporate governance report (“CG Report”) provides an insight on the Manager’s corporate governance framework and practices in compliance with the principles and guidelines of the CG Code. As FCOT is a listed REIT, not all principles of the CG Code may be applicable to FCOT and the Manager. Any deviations from the CG Code are explained.

Whistle blowing policy Corporate governance report - for the year ended


We are pleased to present our second Sustainability Report, demonstrating our on-going commitment towards continuous stakeholder engagement and greater transparency. One of our missions is to be a fair and responsible landlord adopting best practices in governance, social responsibility and sustainability. Our vision, mission and strategies guide our approach in creating and delivering value to our stakeholders.

As we continue to develop and improve further in our sustainability journey, we have taken progressive steps in improving our sustainability performance. We take a long-term approach towards sustainability, and as we continue to build on our sustainability efforts over the years, we trust that these will create long-term value for the Trust and the stakeholders. We are encouraged that our inaugural sustainability report in FY2015 was shortlisted as the finalist for Asia’s Best First Time Sustainability Report at the Asia Sustainability Reporting Awards 2016. While the reporting and environmental performance of our properties have improved and garnered recognition over the years, we will continue to strive to do better.

We strive to use our influence as landlord to incorporate sustainability into the management of our properties. In addition, we were amongst the Singapore REITs first movers to produce a sustainability report last year that is in accordance with the international guideline of sustainability reporting, the Global Reporting Initiative (GRI).

The results of our approach to sustainability are evident. In FY2016, FCOT recorded the seventh consecutive year of growth in DPU and distributable income since the completion of the recapitalisation exercise in 2009. We are pleased to report that the majority of our sustainability performance data showed an improvement in performance year-on-year, including reductions in energy use, greenhouse gas emissions, water and waste intensities and a repeat of last year’s zero loss time injuries and zero incidents of safety-related non-compliance for the properties. We hope to continue to build on this performance.

When the Sustainable Development Goals (SDGs) came into effect on 1 January 2016, we assessed our performance against the relevant goals to explore opportunities for further improvements.

In FY2016, we began the ISO 14001:2015 and ISO 50001:2011 accreditation process for the Singapore properties. These accreditations are in addition to the existing Occupational Health and Safety Management System (OHSAS) 18001 and SS506 Part 1: 2009 certifications obtained for all our properties in Singapore. In line with the FCL group’s efforts on seeking continuous improvements in sustainability performance, in FY2016, three dedicated subcommittees were set up under the Sustainability Steering Committee, namely the Environment, Health and Safety and Innovation sub-committees.

Our report is prepared in accordance with GRI G4 Core requirements guidelines and we measure our performance in the 10 material aspects through a number of performance indicators. We hope that the sustainability report provides a good sense of our progress and achievements and our plans for the future.

Frasers Commercial Trust sustainability report 2016 Frasers Commercial Trust sustainability report 2015

Risk management process

Enterprise-wide risk management (ERM) is an integral part of business activities of FCOT. The objective of enterprise-wide risk management is to identify key risks and put in place controls, and to allocate appropriate resources to proactively manage the identified risks. The Board of Directors is responsible for determining the overall risk strategy and ensuring that the Manager implements sound risk management and internal control practices. The Board of Directors is supported by the Audit, Risk and Compliance Committee (ARC Committee). The Manager maintains a risk management system to proactively manage risks to support the achievement of FCOT’s business objectives.

Enterprise-wide risk reporting is facilitated through a web-based Corporate Risk Scorecard system which enables the reporting of risks and risk status on a common platform in a consistent and cohesive manner. The ERM framework covers key areas such as investment, financial management and operating activities. Risks are reported and monitored using a Risk Scorecard which captures risks, assessment of likelihood and impact mitigating measures, timeline for action items and risk ratings. Where applicable, Key Risk Indicators (KRIs) are established to monitor risks. The Risk Scorecard and KRIs are presented in the form of a Key Risk Dashboard and reviewed by the Management and ARC Committee on a regular basis.

Download enterprise wide management policy

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