Task Force on Climate-Related Financial Disclosures ("TCFD")
We support the Task Force on Climate-related Financial Disclosures (“TCFD”) and the integration of the recommendations in SGX’s Sustainability Reporting Guide. Since FY2023, climate-related disclosures have become mandatory for the financial industry, including asset managers, due to its critical role in the transition to a low-carbon economy. In addition to the TCFD recommendations, the TCFD’s supplemental guidance and supporting materials were also referenced in our reporting efforts.
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’s sustainability governance structure consists of the
Board of Directors, the Audit and Risk Committee (“ARC”),
and the Management team The Board is ultimately responsible for PRIME’s sustainability strategy and provides guidance on the strategic direction of PRIME. Material topics are also validated by the Board. The ARC oversees climate risks and opportunities through the Enterprise Risk Management framework and reviews the Risk Register every quarter to identify climate-related risks. PRIME’s Management is primarily responsible for integrating sustainability considerations into business operations in line with the sustainability strategy by developing action plans and tracking outcomes of these plans. The central ESG team from LPC is engaged to coordinate and manage key ESG issues for the U.S. portfolio and provide expertise in execution and monitoring of sustainability action plans at the property level. Both teams refer to PRIME’s Sustainability Risk Framework – which is part of PRIME’s ERM framework – to manage and monitor sustainability risks and opportunities. The ARC receives updates on sustainability matters on a quarterly basis. |
| Strategy |
In 2023, PRIME completed a formal scenario analysis and
climate risk assessment to identify climate-related risks and
opportunities within the scope of our assets and operations
over the short-, medium-, and long-term. A qualitative scenario analysis was conducted with support from an external consultant to identify a range of physical and transition risks relevant to PRIME and our portfolio of properties. We are currently exploring conducting quantitative scenario analyses for prioritised climate-related risks to obtain more quantitative outcomes, which would help with strategic decisionmaking and financial planning. The outcomes of our scenario analysis and risk identification guide our decision-making processes relating to the building resiliency of our operational strategy and assets. We recognise the climate-related risks posed to our properties, and we are determined to ensure our buildings are designed and fitted to sufficiently withstand the effects of climate change and do not contribute further to negative impacts. This year, PRIME identified one new climate-related opportunity. More details on specific response plans to each of the physical and transition risks identified, as well as the climate-related opportunities, are contained in the Scenario Analysis Outcomes section on pages 119-122. |
| Risk Management |
Our Sustainability Risk Framework 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. Identified climate-related risks are added into a risk register, which is maintained by Management and reviewed by the ARC on a quarterly basis. Inputs and changes to the register are primarily 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. It may designate individuals to take ownership of different climate-related risks to ensure they are monitored and managed effectively. More details on our risk management process can be found in the Enterprise Risk Management section of our Annual Report 2024 on pages 48-51. |
| Metrics and Targets |
PRIME keeps stakeholders informed of our sustainability
performance by consistently tracking and disclosing key metrics.
These include energy consumption, water consumption, and
Scope 1 and 2 GHG emissions. With the onboarding of LPC as our consolidated property manager in 2022, we have seen improvements in the data monitoring and collection processes across our properties. Their expertise in ESG solutions and technology is complemented with Gridium, a platform PRIME uses for energy analytics. It comprehensively tracks our resource consumption data and more easily identifies activities to boost energy efficiency. This has also resulted in higher quality data for more accurate disclosures across all our operations. The improvement in data monitoring and quality allows us to conduct better strategic planning and target setting. This year, we set quantitative targets surrounding emissions and energy management – By 2030, we aim to see a 25% reduction in Energy Use Intensity, and a 25% reduction in Scope 1 and 2 GHG emissions across our portfolio. These targets are set with 2022 as a baseline year. |
For more information, please refer to page 117 to 122 of PRIME's 2024 Annual Report.