Task Force on Climate-Related Financial Disclosures ("TCFD")

We support the Task Force on Climate-related Financial Disclosures (“TCFD”) along with the inclusion of the TCFD Recommendations in SGX’s Sustainability Reporting Guide. Climate reporting has become mandatory from FY2023 for the financial industry – which includes asset management – as it has been identified to be a highly influential industry in the transition to a low-carbon economy.

The table below describes how we manage climate-related risks and opportunities with reference to the four key pillars recommended by TCFD:

TCFD Pillar PRIME's Approach
Governance PRIME has an established governance structure for climaterelated risks involving the Board, the Audit and Risk Committee (ARC) and Management team.

The Board guides and oversees Management’s performance in implementing sustainability strategy and managing material topics. The ARC assists the Board in oversight of ESG initiatives and strategy through reviewing sustainability targets, policies and action plans. The ARC oversees climate risks and opportunities through the Enterprise Risk Management framework and risk register which is reviewed quarterly at each ARC meeting.

PRIME’s management team is primarily responsible for integrating sustainability considerations into business operations in line with the sustainability strategy, by developing action plans and tracking outcomes. Management works closely with the LPC ESG team to manage key ESG issues and execute and monitor sustainability action plans at the property level. Both teams refer to PRIME’s Sustainability Risk Framework – which is part of PRIME’s Enterprise Risk Management framework – to manage and monitor sustainability risks – which include climate risks – and opportunities. ESG updates by Management and LPC on sustainability matters are provided to the Board at least twice a year at the Board meeting.
Strategy This year, PRIME has completed a formal scenario analysis and climate risk assessment, which aimed to identify climaterelated risks and opportunities within the scope of our assets and operations over the short, medium and long term. We used S&P Global’s Climanomics Climate Risk Assessment platform to assess climate risks across all of our properties, and supplemented this with a qualitative scenario analysis with support from an external consultant in order to identify a range of both physical and transition risks that would be relevant to PRIME and our portfolio of properties. Our primary objective is to have the results of scenario analysis and risk identification as key guiding factors in decision-making processes that concern building resiliency of our operational strategy and assets. We acknowledge the risks posed to our properties and are determined to ensure our buildings are designed and fitted to sufficiently withstand the effects of climate change and do not contribute further negative impacts. More details on specific response plans to each of the physical and transition risks identified are contained in the Scenario Analysis Outcomes section on pages 118 to 120.
Risk Management PRIME has a Sustainability Risk Framework in place, which is part of our Enterprise Risk Management framework. The Sustainability Risk Framework follows the process of risk identification, assessment, mitigation, monitoring and reporting for climate-related risks.

The risks identified are added into a risk register which is maintained by Management and reviewed by the ARC on a quarterly basis. The inputs to the register are mainly informed by climate risk assessments and discussions between Management, the LPC ESG team, asset managers and other stakeholders involved in PRIME’s day-to-day operations.

Management is always accountable to the Board for all climaterelated risks that the entity is exposed to and may appoint individuals to take ownership of different risks to ensure they are managed appropriately and with due care.

More details on our risk management process can be found in the Enterprise Risk Management section on pages 52 to 55.
Metrics and Targets PRIME consistently tracks and discloses key metrics such as energy consumption, water consumption and Scope 1 and 2 GHG emissions in our sustainability reports to keep stakeholders well informed of our sustainability performance.

We took a major step forward in monitoring capabilities of our sustainability performance with the successful onboarding of LPC as our consolidated property manager, bringing with them their expertise in ESG solutions and technology. As a result of recent enhancement initiatives such as the integration of Gridium into our systems for energy analytics, we are now able to comprehensively track data relating to our resource consumption and thereby readily identify activities that can boost energy efficiency. This has also resulted in higher quality data for more accurate disclosures across all of our operations.

We have also formulated several qualitative targets for specific material topics and are actively developing appropriate quantitative targets for disclosure in the next reporting period.

For more information, please refer to page 115 to 120 of PRIME's 2023 Annual Report.

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