At Prosperity REIT, we believe that corporate responsibility is as equally important as maximizing financial returns for our shareholders. Therefore, we have established a three-layer ESG governance structure to ensure effective sustainability governance and management of Prosperity REIT.

To reach our financial goals, we recognise the significance of mitigating business risks through robust risk management practices. Our Enterprise Risk Management (“ERM”) system is aligned with ESR’s ERM framework. This framework encompasses elements such as risk governance, risk infrastructure, and oversight of risk ownership, providing clear structures of responsibility and accountability to support risk management efforts.

Regular Risk Management Reporting and Controls at Prosperity REIT

The Audit Committee and the Board receive reports twice a year that present REIT-level risk profile. These reports provide insights on the risk assessment, explain the quantitative and qualitative factors that influence inherent risk levels, and examine the effectiveness of existing controls in mitigating residual risks.

Asset level risk assessment controls have been maintained and key ESG risks have been identified on a property level, with topics including but not limited to:

We are committed to identifying and addressing environmental and social risks in our supply chain.

We comply with the Prevention of Bribery Ordinance (Cap. 201) and maintain an absolute zero-tolerance stance on all forms of misconduct including corruption, fraud, bribery, money-laundering and anti-competition, as well as any non-compliance of sustainability laws and regulations. During the Reporting Year, there was no allegation of any forms of misconduct. Compliance framework consisting of coherent policies, checklists and trainings are in place to keep track of regulatory requirement mechanisms and manage compliance risks.