Link Real Estate Investment Trust (Link, Hong Kong stock code: 823) has received a score of 73 out of 100 from the second S&P Global Ratings ESG Evaluation Report, an improvement compared to the inaugural rating of 72 received in January 2021. On S&P’s scale, higher numbers indicate stronger sustainability in their evaluations.
Link’s ESG Evaluation score and its adequate preparedness remain on par with global best practices in the real estate sector. They reflect Link’s robust governance structure, its strong capabilities to navigate future disruptions, and an overall good management of environmental and social risks. The evaluation is also a testament to Link’s effort in improving carbon intensity in its operations, while taking into account its continued expansion in Mainland China.
According to S&P, “Link has taken concrete steps to address its operations’ exposure to greenhouse gas emissions. In the year ended 31 March 2021, Link has reduced by 9% its Scope 2 emissions, which account for about three-quarters of its total emissions. Link's decarbonisation initiatives have included implementing efficient energy management systems and retrofitting properties with energy efficient lighting. The proportion of assets with green building certifications has doubled year-on-year, following investments in asset enhancement and acquisitions.”
The COVID-19 outbreak has highlighted the importance of ESG practices by companies. The occupancy rates among Link’s portfolio has remained stable amid the ongoing pandemic. At the same time, its community initiatives and spending as a proportion of revenue compare well with industry peers, according to S&P.
Link also scored particularly well in governance, which reflects its strong structure, oversight, good code and values. The composition of Link's board of directors demonstrate diversity, relevant skills and international experience, and high independence.
“The evaluation underscores Link’s commitment to enhancing our ESG standards. As we pursue our sustainability objectives as laid out in our Net Zero Strategy 2035, we will continue to raise the bar and implement various sustainability initiatives across our portfolio of properties, and work with our stakeholders to build a more vibrant future for the generations to come.”
S&P’s full report is available at the following hyperlink:
To learn more about Link's commitment to sustainability, please visit: https://www.linkreit.com/en/sustainability/
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Link Real Estate Investment Trust (Hong Kong stock code: 823), managed by Link Asset Management Limited, is a leading retail-focused REIT in the world. Listed in 2005 as the first REIT in Hong Kong, Link has been 100% held by public and institutional investors and is a Hang Seng Index constituent stock. From its home in Hong Kong, Link manages a diversified portfolio including retail facilities, car parks and offices spanning Hong Kong, Beijing, Guangzhou, Shanghai, Shenzhen, London and Sydney. Link seeks to extend its portfolio growth trajectory and grasp expansion opportunities in different markets in pursuit of its medium-term target Vision 2025. For details, please visit: https://www.linkreit.com/.