The ESG performance of Link Real Estate Investment Trust (Link, stock code: 823) is on par with global best practice, according to a S&P Global Ratings (S&P) report on Link’s ESG evaluation. Link has achieved an ESG Evaluation score of 72, with particularly strong showing in the governance area.
The evaluation is the first publicly released ESG evaluation report in the Asia Pacific region by S&P, part of S&P Global whose other business divisions also created the Dow Jones Sustainability Indices.
Link’s ESG Evaluation score of 72 reflects Link’s robust governance structure, adequate preparedness for future disruptions, and overall good management of environmental and social risks. On S&P’s scale, 100 indicates the lowest risk and 0 the highest. Link’s score is on par with global best practice in the real estate sector.
“We believe Link’s board of directors demonstrates expertise and independence in line with international best practices, as well as good awareness of strategic and emerging risks, which will likely support Link's strategic objectives, including geographic expansion and portfolio diversification,” said Jensen Hui, S&P’s primary contact for the evaluation.
“This ESG evaluation by S&P underlines our commitment to transparency and accountability,” Link’s Chairman Nicholas Allen said. “Robust external monitoring of our ESG performance will help us identify areas where we could improve our existing operations and help us develop appropriate sustainable practices in enhancing our ESG performance, which is more important than ever in today’s fast-changing operating environment.”
Drawing on the insights from the S&P evaluation, Link is pursuing a broad range of programmes to further enhance its ESG performance. These include developing a net zero strategy, updating its corporate reporting and risk management to take into account climate-related financial disclosures, and fine-tuning stakeholder engagement approach.
As a constituent stock of major sustainability-related indices, including the FTSE4Good Index Series, the Dow Jones Sustainability Asia Pacific Index, and Global Real Estate Sustainability Benchmark, Link goes through vigorous assessments by the compilers of these international benchmarks annually and will continue to do so.
S&P’s full report and related news release are available at the following hyperlinks:
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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 our medium-term target Vision 2025. For details, please visit https://www.linkreit.com/.