What’s inside Independent Assurance Statement ...... i Corporate Overview About the report...... 01 From the CEO’s desk...... 02 About Embassy Office Parks REIT...... 04 Our competitive strengths and business strategy...... 14 Risks related to our business and industry...... 20 Performance in FY2020...... 22 Environment Environmental consciousness...... 30 Emissions management...... 35 Water management...... 38 Waste management...... 40 Compliance...... 42 Social Safety of our people...... 46 Workplace & diversity...... 49 The Energize and Q Life programme...... 50 Talent management...... 51 The community around us...... 54 Governance Governance at Embassy Office Parks REIT...... 64 Stakeholder engagement...... 68 Materiality matters...... 70 Awards & certifications...... 72 Memberships & associations...... 73
GRI Index ...... 74 Independent Assurance Statement
INDEPENDENT ASSURANCE
OPINION STATEMENT
Statement No: SRA-IND-735617-1
EOP REIT Sustainability Report 2019-20
The British Standards Institution is independent to Embassy Office Park - Real Estate Investment Trust (EOP-REIT) and has no financial interest in the operation of EOP REIT other than for the assessment and assurance of this report.
This independent assurance opinion statement has been prepared for EOP REIT only for the purposes of assuring its statements relating to its Environmental, Social and Governance report, more particularly described in the Scope, below. It was not prepared for any other purpose. The British Standards Institution will not, in providing this independent assurance opinion statement, accept or assume responsibility (legal or otherwise) or accept liability for or in connection with any other purpose for which it may be used, or to any person by whom the independent assurance opinion statement may be read. This statement is intended to be used by stakeholders & management of EOP REIT. Owing to the prevailing extraordinary situation due to the outbreak of the COVID-19 pandemic, the stage 1 assurance was completed using immersive techniques. A remote assurance was conducted over Microsoft Teams video-conferencing tool, where the assessor and the assessee client connected through the computer systems and internet.
This independent assurance opinion statement is prepared on the basis of review by the British Standards Institution of information presented to it by EOP REIT. The review does not extend beyond such information and is solely based on it. In performing such review, the British Standards Institution has assumed that all such information is complete and accurate.
Any queries that may arise by virtue of this independent assurance opinion statement or matters relating to it should be addressed to EOP REIT only.
Scope The scope of engagement agreed upon with EOP REIT includes the following: 1. The assurance covers the Environmental, Social & Governance Report 2019-2020 of EOP REIT prepared “In accordance” with GRI Standards – Core option, and focuses on systems and activities of EOP REIT covering the eleven commercial office parks located in India during the period from 1st April 2019 to 31st March 2020.
2. The AA1000 Assurance Standard, AA1000AS (2008 with 2018 Addendum), Type 1 engagement evaluates the nature and extent of EOP REIT’s adherence to all three AA1000 AccountAbility
i Independent Assurance Statement
rincip es Inc si it ateria it Responsi eness and I pact he speci ied s staina i it per or ance in or ation data disc osed in the report has een e a ated
Opinion Statement r wor was carried o t a tea o s staina i it report ass rors in accordance with the ss rance standard with ddend and GRI tandards e p anned and per or ed this part o o r wor to o tain the necessar in or ation and e p anations we considered to pro ide s icient e idence that R I ’s description o their se dec aration o co p iance with the GRI tandards were air stated
e conc de that the R I ’s G Report re iew pro ides a air iew o the R I ’s R pro ra es and per or ances d rin e e ie e that the econo ic socia and en iron ent per or ance disc os res are air represented he s staina i it per or ance disc os res disc osed in the report de onstrate R I ’s e orts reco ni ed its sta eho ders
Methodology r wor was desi ned to ather e idence on which to ase o r conc sion e ndertoo the o owin acti ities top e e re iew o iss es raised e terna parties that co d e re e ant to R I ’s po icies to pro ide a chec on the appropriateness o state ents ade in the report isc ssion with senior e ec ti es on R I ’s approach to sta eho der en a e ent e had no direct contact with e terna sta eho ders Inter iew with sta in o ed in s staina i it ana e ent report preparation and pro ision o report in or ation were carried o t Re iew o e or ani ationa de e op ents Re iew o s pportin e idence or c ai s ade in the reports An assessment of the company’s reporting and management processes concerning this reportin a ainst the princip es o Inc si it ateria it Responsi eness and I pact as descri ed in the cco nt i it rincip es tandard with ddend
Conclusions detai ed re iew a ainst the cco nt i it rincip es o Inc si it ateria it Responsi eness and I pact and the GRI tandards is set o t e ow
Inclusivity his report has re ected a act that R I is see in the en a e ent o its sta eho ders thro h ario s channe s ein the irst ear o reportin R I has i ited its en a e ent pri ari to its interna sta eho ders whi e a so considerin the eed ac s recei ed ro its e terna sta eho ders o er the ast ew ears he co pan has p ans to inc de its e terna sta eho ders in the en a e ent process ore or a in the ne t ear o reportin co prehensi e s r e tho h has een done within the siness inc ded in the report which has ro ht in a wide ran e o ateria aspects to e inc ded or reportin
his report oc ses on the acti ities nderta en co ercia o ice par s o ass ice ar inc din their corporate o ice at an a ore India his report co ers the air reportin and disc os res or econo ic socia and en iron enta in or ation ass ice ar is a so
ii
p anning and imp ementing a more ro st feed ac process in f t re n o r professiona opinion the report covers the Embassy Office Park’s inclusivity issues that demonstrates participation of sta eho ders in de e oping and achie ing an acco nta e and strategic response to s staina i ity
Materiality p ishes s staina i ity information that ena es its sta eho ders to ma e informed dgments a o t the company s management and performance he materia topics identified are nergy mission ater management aste management conomic performance omp iance mp oyment raining and ed cation and oca omm nities he ade acy of c rrent y identified materia topics for f t re is eing re assessed y o carry o t f rther modifications in the materia ity assessment of the sta eho der feed ac perception and e pectations processes are eing re ie ed and re ised In our professional opinion the report covers the EOP REIT’s material issues by using EOP REIT materia ity matri and o ndary mapping ho e er the f t re report sho d e f rther enhanced y pro iding more information regarding engagement of sta eho ders in materia ity determination
Responsiveness has imp emented the practice to respond to the e pectations and perceptions of its sta eho ders his year eing the first year the responses ha e een imited and the e pectations ha e een thro gh their e isting feed ac mechanisms to e terna and interna sta eho ders A structured approach is being developed to collect the stakeholder’s input which reflects the intent of the rgani ation n o r professiona opinion nothing has come to o r attention to s ggest that the responses re ated to identified materia topics are not ade ate y represented in the eport o e er the process co d a so inc de a forma mechanism for recording co ating and addressing the feed ac recei ed from the sta eho ders
Impact has a so demonstrated that ade ate systems are in p ace to monitor meas re and e acco nta e for their actions that affect the economy the en ironment society sta eho ders and the organi ation itse f
GRI-reporting m assy ffice ar pro ided s ith their se f dec aration of comp iance tandard and the classification to align with “In accordance” ore
ased on o r erification re ie e are a e to confirm that socia responsi i ity and s staina e de e opment disc os res in a categories n ironmenta ocia and conomic are reported with reference to “In accordance” with the GRI Standard – ore option
n o r professiona opinion the se f dec aration co ers ’s socia responsi i ity and s staina i ity iss es n the asis of the erification nderta en nothing has come to o r attention to s ggest that the eport does not proper y descri e the fo o ing s staina i ity disc os res as stip ated in the tandards
iii Independent Assurance Statement
• GRI Energy • GRI ater • GRI Emissions • GRI Effluents and aste • GRI Environmental ompliance – • GRI Employment – GRI Training Education – • GRI ocal ommunities –
Competency and Independence The assurance team was composed of ead auditors e perienced in industrial sector and trained in a range of sustainability environmental and social standards including GRI G and GRI Standard ISO ISO ISO and ISO etc SI is a leading global standards and assessment body founded in The assurance is carried out in line with the SI air Trading ode of Practice
Assurance Level The type moderate level of assurance provided is in accordance with ssurance standard S with ddendum in our review as defined by the scope and methodology described in this statement
Responsibility It is the responsibility of EOP REIT’s senior management to ensure the information presented in the Sustainability Report is accurate Our responsibility is to provide an independent assurance opinion statement to stakeholders giving our professional opinion based on the scope and methodology described
or and on behalf of SI
------ umaraswamy handrashekara ead Sustainability SI Group India ew elhi India
September
iv About the report
We are pleased to publish our first Report Boundary Reporting cycle Sustainability Report. Sustainable This report covers our office park We intend to carry out the growth and development have portfolio of operations in India. reporting annually every financial been a part of Embassy Office The general standard disclosures year going forward. Parks’ inclusive growth agenda cover data and information for the for the year, and this report identified Material Topics of our reflects our commitment towards External Assurance eleven facilities spread across the accountability and transparency The data and information cities of Bangalore, Mumbai, Pune to the stakeholders. Through this disclosed in this Sustainability and Noida. report we have tried to showcase Report and its conformance has our sustainability performance, been assured by British Standard Bangalore key achievements, and strategies Institution (BSI), an independent to recognise and deal with Embassy Manyata third-party assurance provider. the positive and negative BSI opinion statement is attached Embassy GolfLinks environmental, social, and as Annexure 01. economic impacts of our business Embassy One activities. EOP is publishing the first annual Pune Sustainability Report as a way We at Embassy Office Parks of sharing information on our Embassy Qubix (EOP), believe that broader and sustainability related activities inclusive stakeholder engagement Embassy Quadron with stakeholders. We aim to provides valuable inputs for align our business activities Embassy Techzone identification of topics of material with the sustainability goals and importance. Our materiality conserve the environment. Report Mumbai assessment has provided the materiality aspects are selected context and helped us prioritise Embassy 247 based on potential impact on our strategies and action plans business activities. Since this is FIFC in the areas of the economy, our first reporting the materiality environment and society. In this Express Towers aspects where done through Report, we have disclosed on internal stakeholder sessions all the material topics, identified Noida and we endeavour to include all as high and very high in the stakeholders in the upcoming Embassy Oxygen materiality matrix, in line with the reports. Material on our business GRI standard. While developing Embassy Galaxy activities is evaluated with the content of the report, we have NOTE: The financial parameters disclosed reference to previously recognised aligned our sustainability report in the report also includes consolidated parameters. We have taken best as per the disclosure requirements financials from Hilton at Embassy GolfLinks, efforts to report parameters in Four Seasons Hotel and Embassy Energy of GRI standards by applying the Private Limited which is a part of the most accurate manner. Wherever reporting principles of materiality, Embassy REIT portfolio but outside the there are gaps or options for stakeholder inclusiveness, reporting boundary. improvement, are clearly stated sustainability context and out in the relevant sections. completeness. EOP shall be Reporting Framework endeavouring to come out with The report is in accordance such reports every year. with ‘Core’ option of the Global Reporting Initiative (GRI) Reporting Period Standards. The report is based on This report covers our the various principles specified by For any suggestions and feedback: sustainability performance for the GRI for defining report content period April 2019 to March 2020. and report quality. Please refer to Rajan M G our GRI index for our disclosures Head of Operations - India against each of the indicators. [email protected]
1 Embassy Office Parks REIT / Total business ecosystem
From the CEO’s desk
Today, companies, organisations and “society have a global responsibility to grow without compromising resources for future generations. The consequences of consuming finite resources at the current rate means we have no alternative but to change to a greener and more sustainable business model for society. The challenge therefore facing the corporate world is how to balance the growing demand for increased productivity and bottom lines; with its associated energy and environmental implications and yet make the industry greener and more sustainable.”
Michael Holland Chief Executive Officer
2 Environmental, Social & Governance Report, FY2020
Dear Readers,
It is with great pleasure that I they are well on the way towards Relationship Capital, we formally announce the launch improvements. While efforts continuously work with the local of our maiden ESG Report. We geared towards protecting and regional stakeholders to have been practicing sustainable environment, conserving natural achieve our medium- and long- business in most of what we do, resources and contributing to term objectives. With a firm and this report aims to reinforce society will be the central theme belief in ‘Green is Profitable’ the same. Foremost, I congratulate of our sustainability efforts, we philosophy our approach to the entire team involved in this aim to imbibe the culture of business has been inclusive and initiative for their dedicated sustainability in other areas as well nurturing towards the people approach, sense of urgency including – health & safety, supply and the community that we and systematic execution. I am chain, human capital - ultimately operate in and strive to create sure a lot of coordination and increasing the scope to the entire value for them. As an obligation background work amongst various value chain of our organisation. to our social responsibility, we functions and teams must have One of the milestones in constantly engage and foster happened before this report this journey is to establish a relationships with the communities reached its current shape. This sustainability practice office within trying to understand their has set the foundation for the the organisation to consolidate needs and requirements and beginning of a concerted system all the related initiatives under formulating best fit solutions for to further sustainability. one umbrella to ensure continued them. Water and energy being focus, drive and delivery. As a two major challenges that the Today, companies, organisations part of our reporting mechanism, locals face, are among the major and society have a global this report will help us measure areas of focus. We work closely responsibility to grow without performance, track progress and with the communities on water compromising resources for future help improve on key parameters conservation and clean energy. generations. The consequences for different functions. Hence, Skilling people for livelihood of consuming finite resources at it’s important that we dedicate is another pillar of our CSR the current rate means we have sufficient thoughts in selecting programme. no alternative but to change to the right parameters within a a greener and more sustainable robust system. All these efforts Lastly, we acknowledge that the business model for society. The should also help us develop more path of sustainable development challenge therefore facing the efficient and effective processes requires commitment, goodwill corporate world is how to balance towards operational excellence in and passion for which we are the growing demand for increased all areas of our operations. relying on everyone’s help to productivity and bottom lines; create and sustain value for with its associated energy and We have embraced Safety, Health, the company as well as all our environmental implications and Environment and excellence in all stakeholders. I am deeply grateful yet make the industry greener and the operations of the company to everyone associated with EOP more sustainable. and now, we are looking at a more for their continued commitment to global perception of transforming our business. At Embassy office Parks, we this company towards providing have conscientiously made sustainable solutions to the world. Warm Regards efforts within our facilities to The company’s commitment move towards a greener and a to sustainability becomes safer world. Now, we are one achievable only when it gets of the few companies in the embedded in all our operations Michael Holland private tech parks space in the and through collaborative Chief Executive Officer Country to report our responsible work. And, for a company with Embassy Office Parks practices. Today organisations a focused workforce like ours, Management Services Private Limited are expected to publicly strengthening our processes to demonstrate their commitment to provide sustainable solutions is corporate sustainability through undoubtedly the right thing to do. reporting that gives assurance to stakeholders that the information In an endeavour to maintain is transparent, credible and that and enhance our Social and
3 Embassy Office Parks REIT / Total business ecosystem
About Embassy Office Parks REIT
Over the last two decades, India has emerged as a leading services hub for global corporations due to its large talent pool and cost advantage for high value services. This along with expansion of domestic companies, has resulted in robust demand for commercial office space and strong growth across India’s major office markets.
Embassy Office Parks REIT Limited (Embassy REIT) is India’s first and only listed Real Estate Investment Trust (REIT). Embassy Office parks REIT, listed on the Indian stock exchanges on April 1, 2019, is the largest REIT in Asia by area. The REIT comprises 26.2 million square feet (msf) of completed and operational commercial properties across India. With about 7.1 msf of on- campus development pipeline, our total portfolio spans 33.3 msf across seven Grade A office parks and four city centre office buildings in India’s best performing office markets of Bengaluru, Mumbai, Pune and the National Capital Region (NCR). Our properties are home to over 160 blue chip corporates across 78 buildings with strategic amenities, including two completed hotels Embassy One, Bengaluru (with 477 keys) and two under construction (with 619 keys), and a 100 MW(AC) solar park.
Embassy Office Parks REIT aims to maximise the total return for Unitholders by targeting growth in distributions and in NAV per Unit. The operating and investment strategies we intend to execute to achieve this goal include: 1. Capitalising on 2. Disciplined 3. Proactive asset 4. Good Corporate our portfolio’s acquisition strategy management to drive Governance embedded organic with strong balance value through: y 50% of Directors growth and new sheet including: y Proactive Property are independent development y Right of First Offer Management opportunities by: y Strong safeguard (‘ROFO’) Assets y Leasing Strategy related to leverage, y Leasing-up vacant to drive growth with focus on related party space and increase tenant retention transactions and geographical y Continue to deliver unitholders interest diversification ‘on-campus’ development
4 Environmental, Social & Governance Report, FY2020
Quick Facts
Largest REIT Simple Experienced Renowned Strong in Asia by business management sponsors corporate area model with team governance strong embedded growth
We run a commercial office portfolio that serves as essential corporate infrastructure to global occupiers, including many Fortune 500 corporations.
33.3msf 160+ 92.8% Portfolio Blue-chip Occupiers Occupancy
(1) 11 1,096 100MW Commercial Offices Hotel Keys Solar Park
30% 42% 7 Mark-to-Market Upside Gross Rents from Fortune 500 Occupiers Years Weighted average lease expiry (WALE)
` 21,449 `18,821 15% Net Debt to Total enterprise million million value (TEV) Revenue from Operations in Distribution in FY2020 FY2020
Notes: City wise split by % of GAV per March 2020 valuation by independent valuer. Valuation exercise undertaken semi-annually. (1) Includes completed, under construction and proposed future development.
5 Embassy Office Parks REIT / Total business ecosystem
About Embassy Office Parks REIT
Market value by geography
Mumbai Noida 15% 9%
Pune Bengaluru 14% 62%
Note: The above information also includes Hilton at Embassy Golfinks, Four Season and Embassy Energy which are part of the Embassy REIT portfolio but not in the reporting boundary
Embassy Office Parks REIT is a real estate investment trust registered under Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 bearing registration number IN/REIT/17-18/0001.
Investment objectives Our primary investment objective is to own, operate and invest in rent or income generating office real estate and related assets in India in accordance with the REIT Regulations. We aim to invest in high-quality assets with the objective of maximising NAV growth and paying distributions to unitholders.
Some key investment regulations applicable to us: 80% 90% 49% Invest at least 80% of the value Minimum NDCF pay-out to Upper limit on leverage ratio of our assets in rent or income unitholders of the REIT generating properties.
6 Environmental, Social & Governance Report, FY2020
Seven Infrastructure-like Office Parks (31 msf)
Embassy Manyata Embassy Quadron Embassy GolfLinks Business Park Pune (1.9 msf) Bengaluru (2.7 msf) Bengaluru (14.8 msf)
Embassy TechZone Embassy Oxygen Embassy Galaxy Pune (5.5 msf) Noida (3.3 msf) Noida (1.4 msf)
Embassy Qubix Pune (1.5 msf)
7 Embassy Office Parks REIT / Total business ecosystem
About Embassy Office Parks REIT
Four Prime City-center Offices (2.3 msf)
Express Towers First International Finance Centre (FIFC) Mumbai (0.5 msf) Mumbai (0.4 msf)
Embassy 247 Embassy One Mumbai (1.2 msf) Bengaluru (0.3 msf) Our Portfolio: Commercial Office-focused Predominantly an office REIT with commercial office segment contributing over 90% of Portfolio Value and NOI. Hospitality segment contributed only c.0.6% of NOI in FY2020. c.26.2 msf completed best-in-class Grade A Office properties (c.92.8% occupied, 7.0 years WALE).
Contribution by Gross Asset Value (%) Contribution by Net Operating Income (%)
5 3 0.6 8
Others Others L331,683 L18,170 Hospitality Hospitality million(1) million(2) Gross Asset Net Operating Value Commercial Income Commercial 92 Office 91 Office
Notes: (1) GAV per March 2020 valuation by independent valuer. Valuation exercise undertaken semi-annually. For further details refer notes on slide 52 (2) NOI for FY2020 excludes revenue of GLSP given Embassy REIT owns 50% economic interest in GLSP
Note: The above info also includes Hilton at Embassy GolfLinks, Four Season and Embassy Energy which are part of the Embassy REIT portfolio but not in the reporting boundary
8 Environmental, Social & Governance Report, FY2020
Management Agreement and the the Embassy Office Parks REIT The Embassy REIT Regulations in the interests shall only be in accordance with Office Parks REIT of Unitholders. the REIT Regulations, including in such holding companies, special structure The registered address of purpose vehicles or real estate EOPMSPL is 1st Floor, Embassy properties (whether completed Embassy Office Parks Point, 150 Infantry Road, or otherwise), securities in India Management Services Private Bangalore and the principal or transferable development Limited (EOPMSPL) has been place of business is Royal Oaks, rights as permitted under the appointed as the Manager to the Embassy GolfLinks Business REIT Regulations. The principal Embassy Office Parks REIT. The Park, Off Intermediate Ring Road, investment objective of the Manager is held by the Embassy Bangalore 560 071. Embassy Office Parks REIT is Sponsor and certain entities to own, operate and invest in forming part of the Blackstone The Portfolio Assets are held rent or income generating office Sponsor Group. Axis Trustee through the Asset SPVs; and real estate and related assets Services Limited has been the Portfolio Investment is held in India in accordance with the appointed as the Trustee to the through the Holdco, in accordance REIT Regulations. The Trustee Embassy Office Parks REIT. with the REIT Regulations. The shall ensure that the Capital following chart illustrates the Contribution (as defined in the The Manager is a private limited relationship between the Embassy Trust Deed) and other REIT Assets Company incorporated in India Office Parks REIT, the Trustee, (as defined in the Trust Deed) shall under the Companies Act, 1956 the Manager and the Unitholders be utilised solely for the purposes on January 31, 2014 at Bengaluru, (which include the Sponsors). of making investments as stated Karnataka. EOPMSPL is held by above and for incurring the REIT Embassy Sponsor and certain The investment objective of Expenses (as defined in the Trust entities forming part of the the Embassy Office Parks REIT Deed), in accordance with the Blackstone Sponsor Group with is to make investments as a REIT Regulations. the shareholding of 51% and 49%, real estate investment trust respectively. The Manager’s role as permissible in terms of the is to manage Embassy REIT and REIT Regulations (“Investment its assets in accordance with Objectives”). The investment of the Trust Deed, the Investment
Embassy Manyata Business Park, Bengaluru 9 Embassy Office Parks REIT / Total business ecosystem
About Embassy Office Parks REIT
Embassy REIT structure
Blackstone Embassy Public Sponsor Sponsor Unitholders
Acts on behalf Management of Unitholders Services Trustee Embassy Manager (Axis Trustee) REIT (EOPMSPL)
Property SPV
Indian Express 100% Express Towers Newspapers (Mumbai) Private Limited 100% Embassy Office Parks Private Limited Embassy Quadron, (Embassy Techzone) Quadron Business Park Embassy One and Private Limited 100% Four Seasons
Property SPV
Qubix Business Park Embassy Qubix Private Limited 100% 64% Manyata Promoters Embassy Manyata 36% Private Limited
Earnest Towers FIFC Private Limited 100% 20% Embassy Energy Embassy Energy 80% Private Limited
Vikhroli Corporate Park Embassy 247 Private Limited 100% Golflinks Software Park Embassy Golflinks 50% Private Limited
Galaxy Square Embassy Galaxy Private Limited 100%
Oxygen Business Park Embassy Oxygen Private Limited 100%
*Balance 50% stake owned by JV partner
10 Environmental, Social & Governance Report, FY2020
Unitholding pattern of Embassy REIT
Particulars Units (million) % Sponsor & Sponsor Group Blackstone 426.76 55.30 Embassy 115.48 14.97 Total Sponsors 542.25 70.27 Institutions Foreign Portfolio Investors 126.32 16.37 Body Corporates 5.09 0.66 Mutual Funds 2.16 0.28 Insurance Companies 1.83 0.24 NBFCs 1.29 0.17 Alternative Investment Funds 0.60 0.08 Trusts 0.25 0.03 Clearing Members 0.08 0.01 Sub-total Institutions 137.61 17.83 Non-Institutions Individuals 90.77 11.76 NRIs- Non Repatriable 0.68 0.09 Hindu Undivided Family 0.19 0.03 Non-resident Indians (NRIs) 0.16 0.02 Sub-total Non-Institutions 91.80 11.90 Total Units Outstanding 771.67 100%
Note: As of March 31, 2020.
Reference: Unitholding pattern for Quarter ended March 31, 2020 submitted to National Stock Exchange (Link: https://s2.q4cdn. com/482484005/files/doc_downloads/2020/04/09/Unitholding-Pattern-for-the-Quarter-ended-March-31-2020.pdf)
Embassy GolfLinks, Bengaluru
11 Embassy Office Parks REIT / Total business ecosystem
About Embassy Office Parks REIT
Major changes during the Upcoming projects y Added to this is our 1 msf of M3 reporting period y In the month of January 2020, – Block A project at Embassy we have received Occupancy Manyata where construction y India’s first Real Estate Certificates for our two office is already underway thus Investment Trust (REIT), towers at Embassy Manyata adding up to a healthy 2.6 msf Embassy Office Park REIT, was (0.8 msf) and in the month of of on campus development listed on April 1, 2019. March 2020, we have received targeted to be delivered mid y Received an invitation to Occupancy Certificate for of 2023. These developments offer (‘Right of First Offer, Office Tower-2 at Embassy are expected to cater to both ROFO Notice’) from Embassy Oxygen (0.6 msf), three our existing tenant base of 165 Property Developments Private and two quarters ahead of corporations and also help to Limited (‘Embassy Sponsor’), schedule respectively. Both attract new tenants, further certain subsidiaries of the these buildings have seen good broadening our tenant base and Embassy Sponsor and other preleasing traction with the strengthening our competitive shareholders for the potential new office tower at Embassy advantage through the sale of c.6.2 msf of completed Oxygen 43% pre-leased to largescale complete business office premises and c.2.5 msf MetLife (with additional Hard ecosystem philosophy. of under-construction area option space) and the towers at y Embassy Office Parks REIT is in Embassy TechVillage. The Embassy Manyata close to 75% also undertaking infrastructure Manager will evaluate the preleased at rates which have and upgrade projects across opportunity including, pursuant set new benchmark for that parks including the master to the terms of the ROFO property. The space at Embassy plan development and a Deed, applicable laws and any Oxygen has already been flyover construction at approvals and consents as may handed over to the client for Embassy Manyata, enhanced be required carrying out fitout works, which infrastructure for ingress & are currently in progress. (Ref: https://s2.q4cdn.com/482484005/ egress through a dedicated files/doc_downloads/2019/11/Receipt-of- ROFO-Notice-from-Embassy-Sponsor.pdf) y Buoyed by the record leasing flyover, foot over bridge and achieved in the commercial amenities with quality F&B y Board of Directors of Embassy sector across India and the offerings. Office Parks Management healthy preleasing traction Services Private Limited (the for FY2020 and FY2021 we “Manager” to Embassy REIT) have launched construction of has approved an arrangement two new towers at Embassy with Embassy Property Tech Zone asset located in Developments Private Limited Pune aggregating 0.9 msf (“Embassy Sponsor”), for the as well as 0.7 msf of new acquisition of c.0.6 million tower at Embassy Oxygen. square feet (“msf”) leasable It is worthwhile to note here area in M3 Block B in Bengaluru, that we have leased close to within the overall Embassy 700K of space in our Embassy Manyata campus, at a 9.25% TechZone asset in Pune over initial yield on development the last 3 quarters. Currently, completion in 4Q FY2023 substructure works, and (Ref: https://s2.q4cdn.com/482484005/ pre-construction works are files/doc_downloads/2019/12/Press- underway, and the construction Release-Proposed-Acquisition.pdf) is expected to be completed in 25 months and 38 months respectively.
12 Environmental, Social & Governance Report, FY2020
First International Finance Centre (FIFC), Mumbai 13 Embassy Office Parks REIT / Total business ecosystem
Our competitive strengths and business strategy
We believe our position as a leading owner and developer of high-quality office properties is founded on the following competitive strengths.
Located in India, a leading services hub for global corporates India is the sixth largest and the fastest growing major economy in the world and has become a leading services hub for global corporates over the last 20 years. Multinational companies are attracted to a beneficial cost structure that is over 85% lower than in Tier II cities in United States, a large English speaking talent pool (0.9 million engineers and 0.9 million commerce graduates graduated from Indian colleges in 2017) and affordable and high quality office infrastructure at some of the lowest rents globally.
As the owner of one of India’s largest Grade A office portfolios, Embassy Office Parks REIT is in a prime position to continue to capitalise on this incredible growth story and the sustained demand from services sector tenants (72.2% of our tenant base) for Grade A office space.
Express Towers, Mumbai Best-in-class office properties with high quality infrastructure at attractive capital values We own seven best-in-class office and amenities such as food courts, parks and four prime city-center We believe the quality and scale day care centres and gymnasiums. office buildings totalling 33 msf of our Portfolio makes us the This enables us to provide our of Leasable Area, making us the landlord of choice within our tenants and their estimated largest REIT amongst comparable Portfolio submarkets for both 200,000+ employees with a safe, Asian office REITs. Our properties domestic and multinational efficient, and sustainable working are among the largest and highest corporations, resulting in our environment. Some of our office quality assets in their submarkets properties commanding a rental parks also include hotels which and are infrastructure-like. We premium to other properties provide an additional amenity for provide a complete business within our submarkets on average. our occupiers and their visitors as ecosystem with campus-style well as drive incremental revenue infrastructure, world-class facilities due to captive demand.
14 Environmental, Social & Governance Report, FY2020
Highly occupied by a diversified, high quality, ‘sticky’ multinational tenant base
Top 10 Occupiers
Top 10 Occupiers Sector % of Rentals IBM Technology 12% Cognizant Technology 9% NTT Data Technology 4% ANSR Research & Analytics 3% Cemer Healthcare 3% PwC Research & Analytics 2% Google India Technology 2% NOKIA Telecom 2% JP Morgan Financial Services 2% L&T Infotech Technology 2% Total 42% c.42% of Gross Rentals Originate from Top 10 Occupiers
Industry Diversification(1)
50% 5% Technology Telecom
12% 6% Financial Healthcare Services
10% 10% 7% Research, Consulting & Analytics Others Retail
Notes: (1) Represents industry diversification percentages based on Embassy REIT’s share of gross rentals
15 Embassy Office Parks REIT / Total business ecosystem
Our competitive strengths and business strategy
Embassy GolfLinks, Bengaluru
We have 160+ tenants comprising led to robust tenant engagement, due to a scarcity of available land a mix of blue-chip multinational which helps us to anticipate tenant for development in in-fill locations and Indian corporates, such requirements. Another key focus and land aggregation complexities as [JP Morgan, DBS, Swiss Re, area has been to target occupiers making it challenging to replicate Google, IBM, L&T Technology with higher value add operations the scale of our Portfolio. Services and Nokia. Our tenants and services. We believe these Furthermore, the strategic in-fill are truly international with tenants prioritise a high-quality location of our assets in some approximately 80.9% of Gross work environment, which our submarkets and the scale of our Rentals contracted with leading assets offer. business give us a significant multinational corporations and competitive advantage. approximately 43.4% of Gross Strategically located in Rentals from Fortune 500 Highly experienced companies. 49.4% of our Gross top-performing markets Rentals are derived from tenants with high barriers to management team drives in fast-growing technology sector, entry value through proactive with the remainder well-diversified Our Portfolio is strategically asset management across various industries including located in India’s four key Led by Michael Holland CEO financial services, healthcare office markets of Bengaluru, of the Manager, and Vikaash and telecommunications. In Pune, Mumbai and Noida. Our Khdloya the Deputy CEO / Chief addition, we have a diverse tenant markets are also amongst the Operating Officer of the Manager base, with our top 10 tenants top-performing in India and , our senior management team contributing only approximately account for 72.5% of total Grade comprises eight people and has an 42% of our Gross Rentals. A office stock and 76.9% of total average experience of 20 years in absorption over the last five years operating, developing, leasing and Dedicated customer relationship and three months. We believe that managing commercial real estate management programmes have there are high barriers to entry in India.
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The Manager and the Asset Blackstone group, a leading global Technology companies are the SPVs together have over sixty investment business investing fastest growing businesses in the employees. This team has capital on behalf of pension world. India has abundant talent demonstrated active asset funds, large institutions, and for technology assignments and management expertise across individuals, with a Total Assets the cost is also favourable relative the Portfolio with a proven Under Management (“AUM”) of to the rest of the world. That track-record in delivering strong $538.0 billion. Blackstone Real trend continues to drive growth operating results. Our property Estate operates as one globally in demand for high quality office management practices are driven integrated business having product in the major metros of by a set of standard operating investments in North America, India. procedures and international best Europe, Asia and Latin America. practices to ensure a consistent Blackstone’s real estate group Rentals in Indian commercial and superior tenant experience. has extensive experience building markets are significantly lower leading companies and taking than those in global hubs; We intend to continue our proven them public. capital values are also lower. As leasing strategy to maintain high a result, Indian is an attractive occupancy levels with a diversified At the start of FY2020, India commercial real estate market tenant mix at premium rents. Our witnessed the launch of its first as it enjoys significant potential pan-India presence and strong Real Estate Investment Trust for appreciation in both rentals local teams have helped us drive (REIT). Embassy Office Parks and consequent underlying asset platform-level leasing synergies REIT was listed on the Stock value. and establish deep relationships Exchanges, thereby delivering with tenants and brokers – this to domestic and international Corporate occupiers are looking enables us to negotiate premium investors the opportunity to for comprehensive setups they leasing deals and to attract and participate in the growth of require to efficiently execute retain occupiers. commercial real estate in India. their business plans. Therefore, With a 33 million square feet (msf) office parks need to offer more The Embassy Office Parks REIT is portfolio, Embassy Office Parks than just offering amenities to externally managed in accordance REIT is Asia’s largest office REIT in enhance their product offering. with the Indian REIT Regulations. terms of area. Embassy Office Parks REIT We have focused on keeping our focuses on providing a ‘total management fees in line with our Major Indian cities continue business ecosystem’ philosophy costs to align with unitholders’ to record the highest office – whether by way of investing in interests, so our fee structure is absorption among global business ancillary amenities such as hotels amongst the lowest amongst key hubs. Office absorption since 2012 and conferencing facilities, or by comparable Asian REITs. has been steadily increasing and undertaking select infrastructure given Embassy Office Parks REIT’s and upgrade projects. This Renowned Sponsors with presence in major gateway cities leads to the REIT sustaining a in India – Bengaluru, Mumbai, competitive advantage and allows global expertise and local Noida and Pune; there has been us to deliver long term value to knowledge consistent absorption of office our stakeholders. Our Co-Sponsors – Embassy spaces across the portfolio. Property Development private Embassy Office Parks REIT has limited (EPDPL) Sponsor and International companies delivered cumulative distributions Blackstone Sponsor – combine a based in India continue to for FY2020 of ` 18,821 million deep knowledge of local markets hire highly educated, highly which is ` 24.39 per unit at a with global expertise and best skilled, technologically oriented distribution pay-out ratio of practices in investment and asset employees at a reasonable cost 99.8%. management. EPDPL is a leading and this continues to drive the Indian real estate company, demand for Indian office. Embassy which has completed over 45 Office Parks REIT derives 80% of msf of office and residential its revenues from a diverse group development. Blackstone Sponsor of global companies comprising is a part of Blackstone, one of many prominent Fortune 500 the world’s leading investment, corporations and we continue to real estate and alternative asset strengthen its portfolio by actively management firms. diversifying tenant base.
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Our competitive strengths and business strategy
EOP strategy Maximise distribution and NAV per unit through organic growth and new acquisitions
Leasing On-campus Acquisitions Capital y Grow NOI by Development y Capitalise on Management leasing existing fragmented y Deliver c.7.1 y Build leverage vacancy office market msf on-campus selectively and undertake y Manage lease development value accretive y Use strong balance expiries & capture y Proactive pre- acquisitions sheet to drive mark-to-market leasing to de-risk accretive growth upside y Pan-India new development through disciplined acquisition y Experienced on- acquisitions y Select potential from 3rd ground teams & infrastructure parties y Quarterly hands-on approach ancillary projects distribution with to leasing y c.43 msf of ROFO (hotels, flyovers minimum 90% opportunity from y Best-in-class etc.) to increase of NDCF to be Embassy Sponsor occupier entry barriers distributed engagement y Provide ‘total y Low expenses and business fees enhancing ecosystem’ Unitholders’ value
Proactive asset management to drive value with strong corporate governance
Embassy Office Parks REIT aims to maximise the total return for Unitholders by targeting growth in distributions and in NAV per Unit. The operating and investment strategies we intend to execute to achieve this goal include:
Capitalising on Disciplined Proactive asset Good Corporate our Portfolio’s acquisition strategy management to Governance embedded organic with strong balance drive value through: y 50% of Directors growth and sheet including: y Proactive Property are independent new development y Right of First Offer Management opportunities by: y Strong safeguard (‘ROFO’) Assets y Leasing Strategy related to y Leasing-up vacant to drive growth with focus on leverage, related space and increase tenant retention party transactions geographical y Continue to deliver and unitholders diversification ‘on-campus’ interest development
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Strategic focus Active asset management First-mover acquisition We have identified both organic We continuously focus on advantage and inorganic avenues to grow our enhancing our competitive We intend to undertake business in four strategic focus advantage as part of our ‘total acquisitions that enhance the areas. Our aim is to maximise business ecosystem’ philosophy. value of our portfolio. We believe distributions and Net Asset Value We invest in ancillary amenities that owning the best assets in (NAV) per unit. We also engage and select infrastructure and India’s top submarkets will allow in proactive asset management upgrade projects. Our scale us to generate strong cash flow to drive long‑term value for allows us to leverage our asset and deliver strong, long-term our stakeholders. Our strategy management and operational returns. We believe we are well includes: skillsets to enhance our assets. positioned to undertake both This allows us to attract the core and value-add acquisition Powerhouse leasing best companies, to our parks, opportunities given our pan- Our experienced leasing team command premium rentals, India presence, knowledge of maintains an occupier-centric and deliver that value to our local markets, best-in-class asset approach to leasing and Unitholders. management capabilities and focuses on building long-term deep occupier relationships. relationships with occupiers. Deliver on development Dedicated customer relationship On-campus development Prudent capital management management programmes presents an important de-risked Our low leverage enables us to have led to robust occupier growth lever for us. The REIT pursue accretive development and engagement, which helps us has approximately 7.1 msf of gives us ample headroom to raise anticipate occupier requirements. development within our parks, debt to pursue inorganic growth Our client-centric approach has and we are able to activate through acquisitions. Additionally, led to strong occupier retention development according to the we have access to sufficient and enabled them to expand their needs of the market. We have a liquidity, maintain a lean cost operations within our premises. well-defined preleasing strategy structure and are well positioned We typically target occupiers to de risk development. We also to withstand volatile leasing and with higher value-add operations undertake regular infrastructure financing markets. and services. We believe these upgrades and implement ancillary occupiers prioritise the quality projects to widen our competitive work environment, that our moat around our infrastructure- assets offer. like assets.
Embassy Manyata Business Park, Bengaluru
19 Embassy Office Parks REIT / Total business ecosystem
Risks related to our business and industry
Our business is dependent on the Indian economy and financial stability in Indian markets, and any slowdown in the Indian economy or in Indian financial markets could have a material adverse effect on our business.
Embassy Qubix, Pune
The Manager and we are y Development timelines and y changes in India’s tax, trade, registered in India, and our costs fiscal or monetary policies Portfolio is located in India. As a y Competition from other y political instability, terrorism result, we are highly dependent developers in India or military conflict in India, on the prevailing economic including increased tensions conditions in India and our results y any increase in interest rates or on the Indian borders, or in of operations are significantly inflation in India countries in the region or affected by factors influencing y any exchange rate fluctuations. globally, including in India’s the Indian economy. Factors that various neighbouring countries may adversely affect the Indian y any scarcity of credit or other economy, and hence our results of financing in India y the occurrence of natural or operations, may include: man-made disasters, epidemics y prevailing income, consumption and pandemics, including the and savings conditions among y Commercial real estate market current COVID-19 pandemic consumers and corporations in y Performance of the industry India y prevailing regional or global sectors of our tenants economic conditions y volatility in, and actual or y Trend of rental rates and perceived trends in trading y balance of trade movements, escalations activity on, India’s principle including export demand and stock exchanges movements in key imports, including oil and oil products
20 Environmental, Social & Governance Report, FY2020
y other significant regulatory or in line with the requirement of events such as extreme economic developments in or Section 134(3) and Section 177(4) weather, civil or political unrest, affecting India or its real estate of the Companies Act, 2013. violence and terrorism, serious sector The Organisation has adopted and organised crime, fraud, a strategy for managing and employee dishonesty, cybercrime, Any slowdown or perceived treating risks by following the pandemics, fire and day-to-day slowdown in the Indian economy, below steps: Risk Identification, accidents, incidents, health crises or in specific sectors of the Indian Risk Assessment, Risk Analysis of guests and petty crime which economy, could have a material and Risk Treatment. impact the guest or employee adverse effect on our business, experience, could cause loss of financial condition and results of The organisation has a life, sickness or injury and result in operations and the price of the methodology in place for compensation claims, fines from Units. continuously identifying and regulatory bodies, litigation and measuring the unknowns; impact our reputation. Serious Furthermore, the Indian economy developing mitigation options; incidents or a combination of and Indian financial market selecting, planning, and events could escalate into a are influenced by economic implementing appropriate crisis which, if managed poorly, and market conditions in other risk mitigations; and tracking could further expose us and our countries, particularly in emerging the implementation to ensure assets to significant reputational market Asian countries. Financial successful risk reduction. It has damage. Any accidents or any turmoil in Asia, Europe, the United put in place a system which deals criminal activity at our properties States and elsewhere in the with risk management planning; may result in personal injury or world in past years has affected early identification and analyses loss of life, substantial damage the Indian economy. Although of risks; early implementation of to or destruction of property economic conditions are different corrective actions; continuous and equipment resulting in the in each country, investors’ monitoring and reassessment; and suspension of operations. We may reactions to developments in communication, documentation, also rely upon contract labour one country can have a material and coordination. in relation to the development adverse effect on the securities work undertaken at our under- of entities in other countries, The Management of REIT is construction properties. Our Asset including India. A loss in investor bestowed with the responsibility SPVs, our Investment Entity or confidence in the financial systems of the development of risk our Manager may (as principal of other emerging markets may mitigation plans and the employers) become liable to cause increased volatility in Indian implementation of risk reduction persons working at our premises financial markets and, indirectly, strategies including the in case of any accidental death in the Indian economy in general. promotion and training of the risk or grievous injury. Any of the Any global financial instability management process to staff. foregoing could subject us to could also have a negative impact Every staff member is responsible litigation, which may increase on the Indian economy. Financial for effective management of risk our expenses in the event we are disruptions may occur and could including the identification of found liable and could adversely harm our results of operations and potential risks. affect our reputation and cause financial condition. a loss of consumer confidence in our business. The organisation like every other Risks associated with organisation has risk factors safety, security and crisis associated to its structure, management organisation, operation, business We are committed to ensure the and industry. In order to address safety and security of our tenants, and mitigate the said risks, the hotel guests, employees and organisation has put in place a assets against natural and man- comprehensive risk management made threats. These include, but policy which is adhered to in letter are not limited to, exceptional and spirit. The policy is framed
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Performance in FY2020
The Company has reported a strong all-round performance during the year under review.
Embassy Manyata Business Park, Bengaluru
Business highlights for FY2020 Strong business performance and distribution mainly driven by robust leasing, mark-to-market rental reversions and early delivery of on-campus development projects.
Operating Levers Performance Returns Leasing • New lease-up of c.2.4 msf to 25+ occupiers K18,821 million • Re-leased c.1.1 msf at c.53% re-leasing spread Total Distribution • Renewed c.0.6 msf at c.19% renewal spread On-Campus Development • Delivered c.1.4 msf; 2-3 quarters ahead of schedule, c.62%(1) already committed • Launched c.2.6 msf on-campus office development, to drive next phase of growth K24.39 Asset Management • Achieved c.12-15% contractual escalations on Distribution Per Unit (DPU) c.5.5 msf, 50+ occupiers • Executed D1.7 billion infra & upgrade projects • Raised D22 billion debt, refinancedD 30 billion Acquisitions • Acquired c.0.6 msf leasable area upon completion in June 2023 at c.9.25% yield 25% • Located within overall Embassy Manyata campus, Total Return(2) Bengaluru
Notes: (1) Excludes c.45k sf growth options at Embassy Oxygen. Factoring the growth options, area committed would be c.65%. These options are exercisable till March 2021 (2) Computed as % of unit price appreciation upto March 31, 2020 and FY2020 distribution yield upon listing price of D300/ unit. Past performance is not indicative of future results
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Financial highlights for FY2020 Revenue from Operations and NOI for FY2020 up c.14% and c.15% respectively YoY. NOI and EBITDA margins stood at c.85% and c.82% respectively due to scale efficiencies and cost optimisation efforts.
FY2020 FY2019 Particulars (million) (million) Variance % Remarks Revenue from Operations D21,449 D18,771 +14% • Contracted lease escalations on c.8.8 msf • Lease-up of c.2.3 msf vacancy across Embassy Manyata, FIFC, Embassy 247, Embassy TechZone & others Net operating income (NOI) D18,170 D15,741 +15% • Increase in Revenue from Operations Margins (%) 85% 84% • Decrease in expenses due to cost saving initiatives at Embassy Manyata • c.100 bps NOI margin improvement vs. FY2019 EBITDA D17,647 D15,137 +17% • Increase in NOI • One-off items(1) in previous year FY2019 – Adjusted for these one-off items, EBITDA margin for FY2019 was c.79% vs. c.82% in FY2020 • c.100 bps EBITDA margin improvement vs. FY2019 Distribution D18,821 - - • Cumulative distribution of D18,821 million Payout ratio 99.8% - or D24.39 per unit for FY2020 – Represents payout ratio of c.99.8% of NDCF at REIT level
Notes: Above results exclude Revenue, NOI and EBITDA from Embassy GolfLinks since Embassy REIT owns 50% economic interest in GLSP. Embassy GolfLinks revenue is I3,911 million and NOI is I3,585 million for FY2020 Figures for FY2020 are basis audited condensed consolidated financials. Figures for FY2019 are basis audited combined financials and may not be comparable. For further details refer notes on slide 52 (1) One-off items relate to FY2019 (pre-listing period) and comprise of certain interest income on inter-corporate deposits offset by loss on settlement of financial instruments through issue of equity
Reference: Embassy Office Parks REIT The Board of Directors of Embassy While the COVID-19 pandemic Annual Report FY2020 (Link: https://www. Office Parks Management Services has resulted in an uncertain embassyofficeparks.com/AnnualReport- FY20/pdf/Embassy-AR2020.pdf) Private Limited (‘EOPMSPL’), near-term outlook for many Consolidated financial parameters: Page 206 Manager to Embassy REIT, has businesses worldwide, we are of Annual Report declared a cumulative distribution uniquely positioned to weather The major share of the Revenue I18,821 million or I24.39 per unit this pandemic-induced storm with and net operating income come for FY2020. our best-in-class office portfolio from the 11 commercial office and strong balance sheet. While parks Michael Holland, Chief Executive demand is likely to moderate Officer, said, “We are very considerably through 2020, we pleased with our strong business believe that in this environment, Revenue & NOI from the 11 office parks performance in FY2020. Since Grade-A supply will reduce Embassy REIT listed in April 2019, considerably over the medium Revenue I18,710 million we have delivered a total return term, consolidation in the office Net Operating I16,628 million of c.25%. Our fourth quarter market will continue and high- Income (NOI) income and distribution pay-out quality institutional landlords, once again illustrate the stability such as Embassy REIT, will gain (Source: https://s2.q4cdn.com/482484005/ and resilience of Embassy REIT market share.” files/doc_financials/2020/q4/4Q-FY2020- delivering cash flows that are Supplementary-Databook.pdf, page 13) backed by the covenants of our 160+ largely multinational occupier base.
23 Embassy Office Parks REIT / Total business ecosystem
Performance in FY2020
Financial highlights for the Business highlights for the 1 fiscal year fiscal year Net debt capitalisation y Revenue from Operations for y Achieved overall occupancy of (` in million) FY2020 cumulatively grew c.92.8% on c.26.2 msf operating year-on-year by c.14% office portfolio, with same- store occupancy of c.94.5% y Net Operating Income for 75% considering March 2019 as base As of Equity FY2020 cumulatively grew March year Net debt `231,500 year-on-year by c.15% `79,111 2019 (Pre-Listing) y Full year lease-up of c.2.4 msf 25% y Distribution for FY2020 full being the highest absorption in year cumulative distribution previous 5 years totals I18,821 million or I24.39 per unit y Re-leased c.1.1 msf during the Net asset value year at c.53% releasing spread, y Strong balance sheet with renewed an additional c.600k ample liquidity and low Particulars (` mn) 31-Mar-20 sf at c.19% renewal spread, leverage of c.15% Net Debt Gross Asset Value 329,746 illustrating the embedded to TEV as of March 31, 2020, (GAV)3,4 growth in our portfolio existing cash and undrawn Add: Other Assets 71,608 committed facilities totals I13.5 y Delivered c.1.4 msf new office Less: Other Liabilities (54,793) billion and only c.1.3% of total buildings within existing debt matures in the next two campuses during the year, Less: Gross Debt (57,461) years c.62% of these new completions Net Asset Value (NAV) (57,461) already committed Number of Units 771,665,343 NAV per Unit (`) 374.64
Reference: Valuation report by independent valuator - Page 300 Annual Report FY2020 (https://www.embassyofficeparks.com/ AnnualReport-FY20/pdf/Embassy-AR2020. pdf)
NOTE: The financial parameters disclosed in the report also includes consolidated financials from Hilton at Embassy GolfLinks, Four Seasons Hotel and Embassy Energy Private Limited which is a part of the Embassy REIT portfolio but outside the reporting boundary
COVID-19 update y Activated our business continuity plan on March 4, 2020, and our centralised taskforce focused on ensuring safe workspaces, on-premises health screenings, and business continuity for occupiers y Our properties remained open to support core business functions of our occupiers throughout the national lockdown within the parameters laid out by the government Embassy Manyata Business Park, Bengaluru
24 Environmental, Social & Governance Report, FY2020
y Halted all construction activity healthcare professionals who for the quarter and financial year and hotel operations to comply continue to work tirelessly ended March 31, 2020, (ii) an with government directives during this challenging period. earnings presentation covering during the lockdown. We will Our immediate focus remains 4Q FY2020 and full year FY2020 resume these activities once the ensuring the health and safety results, and (iii) supplemental government eases lockdown of all our stakeholders as they operating and financial data restrictions return to work in our parks.” book that is in line with leading reporting practices across global y Vikaash Khdloya, Deputy CEO Investor materials and REITs. All these materials are and COO, said, “Our fourth quarterly investor call details available in the Investor Relations quarter operating performance Embassy REIT has released a section of the REIT’s website at was resilient, led by business package of information on the https://ir.embassyofficeparks. continuity support for our fourth quarter and annual results com/investors/investor-overview/ occupiers and employee and performance, that includes default.aspx wellness support. We would (i) audited condensed standalone like to thank all our employees, and audited condensed the civic authorities, and consolidated financial statements
Way forward: Resilient business – navigating covid-19 impact Our high-quality properties, diverse creditworthy occupiers and disciplined balance sheet will help in navigating near-term COVID-19 challenges.
Strong occupier portfolio • Landlord of choice with a high-quality difficult-to-replicate office portfolio in gateway cities providing total business ecosystem • Diversified & high credit quality occupier base c.78% MNCs, c.42% Fortune 500 companies • c.92% value in rent yielding office assets, hotels contributed only c.0.6% to NOI in FY2020 • Stable cash flows expected due to long-term lease structure (WALE of 7.0 years) and contracted rental escalations, with only c.5.5% of leases due for expiry in FY2021 Robust financial position • Ample liquidity with D9,514 million existing cash and D3,997 million undrawn committed facilities • c.15% Net Debt to TEV with only c.1.3% debt maturities until 1Q FY2023 • ICRA AAA (Stable) and CRISIL AAA / Stable credit ratings(2), reaffirmed as of May 2020 • Additional D114 billion debt headroom provides significant flexibility to access capital, if needed Proactive asset management • Proactive management of leases with focus on occupier retention and rent collections, only 6%(1) occupiers from directly impacted sectors • Hands-on institutional approach ensuring occupier business continuity, employee wellness & safety • Leverage from industry-level consolidation & Grade A supply shrinkage in next 2-3 years • Disciplined approach in reducing costs and discretionary capital expenditure Our high-quality portfolio is resilient and well positioned for the medium-term
Note: (1) Occupiers related to co-working, hospitality, aviation & retail sectors (2) Credit ratings by ICRA and CRISIL for Embassy REIT as Issuer and for D36.5 billion Listed Bond respectively
25 Embassy Office Parks REIT / Total business ecosystem
Performance in FY2020
Our Strategy remains unchanged We continue to focus on maintaining high occupancy levels and maximising NOI, growing our existing campuses and prudently managing our capital.
Period Leasing On-Campus Development Acquisitions Capital Management Pre • Capitalise on • Deliver ongoing campus • Actively seek • Build leverage COVID-19 record absorption development ahead of opportunistic selectively and market schedule acquisitions (3rd • Quarterly distribution momentum for • Bring forward new party, ROFO) with minimum 90% of Indian commercial development in line with • Undertake NDCF to be distributed office space anticipated demand value accretive • Actively manage acquisitions lease expiries to achieve MTM upside Now • Deepen dialogue, • Continue with ongoing c. 2.6 • Continue • Maintain prudent focus on occupier msf early stage development to evaluate leverage levels retention projects, monitor capex opportunities • Focus on cash • Proactive lease financing which are optimisation renewals and rent • Monitor market dynamics strategic and • Continue to pay collections prior to committing any accretive distribution • Deliver c.7.1 additional development • Monitor volatile msf contracted financing markets escalations, closely convert c.300k sf LOIs Continue to support critical business continuity of existing occupiers and increased wellness & safety needs
Supply Chain adhere to our Suppliers Code of avoid any time and cost overrun. Conduct which includes but not All the material procurement and The supply chain and procurement limited to requirements on human annual maintenance contracts process is a strategic function rights, ethics, business conduct are done through the best in which plays an influential role in and environmental stewardship. class domestic and international the organisation’s profitability. Transparency and accountability vendors and OEM vendors. Procurement involves the process are to be to be adhered-to in all of sourcing, vendor selection and procurement activities. At EOP, we also take consultancy evaluation, purchase of goods and audit services from the & services and negotiation of For the day to day operations top agencies in the sector contracts. Procurement is seen as of the park, we have outsourced for financial/tax audits, risk helping to streamline processes, property management/ common assessment, compliance audits, control material prices and costs, area maintenance agencies. We etc and identifying better sources have outsourced multiple vendors of supply. Supplier feedback across our parks for the soft We ensure to extend full support or concerns are recorded by services like housekeeping and to our vendors during the the procurement department landscaping, security services, execution of the works and timely and reviewed with concerned maintenance of equipment, IT payments. We also take regular departments for resolving. services, waste management, feedbacks from the vendors procurement of consumables, to understand the areas of We encourage our suppliers food court vendors etc. improvement as a client. to work towards continuous improvement and adopt All our upgradation projects are best practices. Our suppliers’ executed by our vendors after performance is reviewed by tendering process assessed EOP and is encouraged and based on quality, cost and past supported always to adopt better credentials. We ensure that the environment, health and safety projects are timely monitored to practices. We expect them to
26 Environmental, Social & Governance Report, FY2020
Express Towers, Mumbai 27 Embassy Manyata Business Park, Bengaluru Environmental, Social&Governance Report, FY2020
29 ENVIRONMENT Embassy Office Parks REIT / Total business ecosystem
Environmental Consciousness
According to the World Economic Forum (WEF) Report on Global Risks 2020, the evolving risk landscape indicates a wide range of environmental risks such as extreme weather events, natural disasters, man-made environmental disasters, water crises, failure of climate change mitigation and adaptation, etc. The challenges related to environment especially due to climate change are complex, long-term and inter-related, especially in terms of its impact on water and availability of other natural resources. Businesses have become increasingly aware of the critical role they play in enabling effective, timely, and appropriate climate change adaptation. The increasing stress on the natural resources has made businesses more conscious about the impact on environment due to their business activity.
30 Environmental, Social & Governance Report, FY2020
Our purpose is to create long- strive to meet best practice in Minimisation of pollution and term financial, physical and social non-regulated areas. contamination value. We do this by providing the We will manage our activities to right space for our customers and Energy and climate change minimise the risk of pollution and communities so that businesses In the Operations and contamination. and people can thrive. construction of properties, and in the procurement of products Environmental and energy Embassy Office Parks and services, we will aim to meet objectives, commitments and recognises the threats posed the current and predicted needs targets by global Climate Change and of our customers in a manner We will identify appropriate Society’s demands on the that takes appropriate regard environmental and energy natural environment. We also of energy efficiency, seeking objectives and associated understand the role we play in to minimise associated levels commitments and targets that will minimising the release of harmful of greenhouse gas emissions, help us achieve these objectives, greenhouse gases and protecting commensurate with our company providing the necessary resources the natural environment too. objectives and in line with targets required We will comply with all our set by the Indian Government. obligations under environmental Monitoring performance and energy legislation and will In our managed premises, we will We will monitor our performance, endeavour to avoid or minimise aim to reduce energy consumption using appropriate metrics and any harm caused to the natural to the lowest practical level key performance indicators, on a environment. We will strive commensurate with the regular basis to establish whether to meet best practice in non- operational needs of the company it is achieving its objectives, regulated areas, integrating and to satisfy the requirements commitments and targets. climate change, resource use and of our customers. Within the biodiversity considerations into overall built environment for Effective communication our activities, whilst working with which we are responsible, we will We are committed to our customers, communities and aim to minimise the impacts of communicating effectively both partners. extreme weather events upon our internally and externally on all properties and the surrounding environmental and energy issues, The Chief Executive Officer is communities. to contribute towards a culture of responsible for environmental environmental awareness within and energy management Enhancement and the company. within Embassy office park minimisation of harm to the and is advised by the Head of environment Continuous improvement Operations and EHS Manager. At We will minimise the potential We are committed to a an operational level, all Directors for the Embassy Office Parks continuous improvement in the and Heads of Department are REIT’s activities to cause harm performance and management responsible for compliance with to the natural environment, and of our Environmental and Energy the company’s principles on where possible, take advantage Management System (EEnMS), environment and energy and the of opportunities to enhance. working with our customers, achievement of the company’s This will be done by integrating communities and partners. objectives and targets. The Head biodiversity considerations into of EHS and Public Affairs co- our activities, identifying good ordinates the support activities working practices, and engaging Mission statement on that help the company to achieve with local communities, NGOs sustainable growth its objectives and report its and our partners in seeking to Sustainability management environmental activities. identify and take advantage at Embassy office parks is an of opportunities to enhance integral part of our business and biodiversity arising from our Specific aims goes beyond economic, legal development activities. Compliance with or regulatory motives. Embassy environmental and energy office parks understands the Environmental and energy legislation and best practice social and ecological impact of management system We are committed to complying our business and works towards We will implement and resource a with all relevant environmental being a responsible global formal environmental and energy and energy legislation in every organisation by implementing the management system across our aspect of our company and will triple bottom line as part of our activities.
31 Embassy Office Parks REIT / Total business ecosystem
Environmental Consciousness
company’s overall performance will help reduce the overall grid accountability to its stakeholders management practices. This energy usage. across the value chain. policy defines the framework for Sustainability at Embassy Office As a pilot project, a 450-kW plant Towards this commitment, the parks and provides a governing is being installed in Embassy Company shall: platform for Sustainability work Manyata in Bangalore of which 105 streams to create long lasting kW is currently operational. This y Deliver sustainable economic value for business, environment project is expected to generate performance while maintaining and society about 7,10,000 units of solar the highest corporate energy. The overall rooftop solar governance standards. Our focus on Environment potential for the entire portfolio is y Reduce its environmental Management includes: estimated at over 5,000 kW with footprint and Increase an annual generation capacity of efficiency through optimum y Resource optimisation of over 90,00,000 units. utilisation of resources and electricity, energy & water so as technology to reduce carbon emissions & Embassy REIT owns a 100 waste MW solar park which provides y Adhere to its core values in the renewable energy to all our conduct of every aspect of its y Comply with applicable properties in Bengaluru. The business statutory and regulatory solar park has an electricity requirements y Ensure compliance towards all generation capacity of 215 million its statutory obligations y Ensure appropriate access units per annum and offsets up
to safe water, sanitation and to 173 million kg of CO2 annually. y Provide a healthy, safe and hygiene for all employees in our Increasingly, our corporate secure working place to all our premises occupiers are embracing clients and contractors and expanding solar energy y Set, monitor and review y Promote inclusive growth and production through installations of environmental targets on a empower its employees and rooftop solar panels. regular basis toward achieving continuously develop their continuous improvement knowledge and skill sets in In addition, we also provide cycles order that they realise their true At Embassy Office Parks, we are at some of our parks to ensure a potential very aware of our responsibility green and easy commute for park to the environment. All of our users, within the park. Embassy y Work towards improving decisions from development to TechZone also has a dedicated the quality of life of the delivery are driven by our focus cycling lane. In all the activities communities residing in the on sustainability. Right from we undertake, the focus has been vicinity of our operations rainwater harvesting systems to to remain relevant and forward- through social capital architectural techniques that not thinking, and our approach interventions in infrastructure, only maintain harmony with, but towards the environment healthcare, education, also leverage the surrounding continues to remain a primary vocational domains environment, we ensure that our focus. Energy management infrastructure is an example of India is still in the early stages of buildings that meet international Our sustainability policy a major transformation, bringing standards while remaining Embassy Office Parks new opportunities to its 1.3 billion environmentally accountable. Management Services Private people and moving the country Limited is committed to to centre stage in many areas of Alternative sources of energy building a sustainable enterprise international affairs. The energy have always played a major role through responsible practices sector is expanding quickly but in shaping the way we plan our and thereby contributing to is set to face further challenges projects. Through our Rooftop economic prosperity, social as India’s modernisation and Solar Power Project, we are development and environmental its economic growth gather exploring the possibility of stewardship in all its business pace, particularly given the installing rooftop solar plants decisions. The company believes policy priority to develop India’s in all of our parks. The energy in pursuing its business objectives manufacturing base. generated from these plants ethically, transparently and with
32 Environmental, Social & Governance Report, FY2020
Of all the material topics identified by EOP during the reporting period, Energy & Emissions constitute to be the most significant among them. All the services and facilities in all the locations consume energy either in the form of fuel or electricity. While we continue to strengthen the best practices to lower energy consumption and emission, identification of new areas of improvement remains on the radar of the management
The increasing cost of energy and its linkage with climate change is a major business concern. To optimise our energy consumption and decouple climate change impact from Embassy Office Parks has energy usage we have decided World helped tenant partners to to focus on improving process environment day commission solar roof top energy efficiency, find alternate installations to increase the sources of uninterrupted low- Embassy Office Parks along use of renewable energy. cost energy and invest in the with the tenant partners Companies such as [Swiss renewable energy. have come forth to support Re Global, IBM, JP Morgan, multiple environmental, and Wells Fargo] have We continuously strive to identify social and governance opportunities for improving joined EOP’s initiatives (ESG) initiatives on World energy efficiency and utilisation in renewable energy of clean energy. Energy Environment Day. It has production. conservation through process partnered with Lithium and equipment optimisation and Urban Technologies, world’s A continued area of focus use of renewable energy sources largest electric vehicle for Embassy Office Parks are the main focus areas for us. commercial fleet operators, has been in designing and We motivate our employees and to introduce e-vehicles for building developments empower them to continuously intra-park commute. These that meet LEED and IGBC identify opportunities for electric vehicles (EV) are certification requirements. energy conservation across our powered by renewable energy operations. Two of Embassy’s Office powered with zero emissions Parks – Embassy Manyata and zero carbon footprint. Our primary sources of energy and Embassy TechZone are grid electricity, solar power This initiative will help in were awarded the rare IGBC and diesel generated power. controlling congestion, reduce (Indian Green Business Energy management purview cost of transportation, reduce Council) Green Campus that is under the direct control of noise and air pollution, control Platinum Certification. EOP is what has been considered footfalls, increase safety reported. measures, increase time and Occupiers of the office productivity for park users parks joined hands for and most importantly reduce tree plantation drive and fossil-powered transportation over 1200 saplings were with positive impact on the distributed across the environment. business parks of Embassy.
33 Embassy Office Parks REIT / Total business ecosystem
Environmental Consciousness
These consumptions of energy is majorly in air-conditioning, Direct energy (GJ) Indirect energy (GJ) lighting office buildings and equipment such as AHU’s and chillers. Total direct energy 6,72,870 15,65,420 14,19,237 consumption by EOP for the reporting year is 2,73,779 GJ as compared to 6,72,870 GJ in 2018 which demonstrates a reduction of 59% in overall direct energy 2,73,779 consumption by the facilities. This is primarily due to the increased use of renewable power as wheeled from the grid and lesser use of DG power. Total indirect FY2018 FY2019 FY2018 FY2019 energy consumption by EOP for the reporting year is 15,65,420 GJ as compared to 14,19,237 GJ in 2018 which demonstrates an FY2019 FY2020 increase of 10% in overall direct Description Unit energy consumption by the Diesel KL 17,981 7,316 facilities. Our strategy for the Grid Power KWH 26,26,36,941 30,07,38,619 upcoming years involves energy Renewable Power Wheeled KWH 13,14,42,601 13,39,53,683 management as a key focus area wherein we are trying to transfer DG Power KWH 6,10,65,543 2,42,34,598 use of non-renewable energy Solar Power KWH 1,52,985 1,46,612 to renewable energy making us Total Power Consumed KWH 45,52,98,070 45,90,73,513 energy efficient.
The availability of resources, predominantly energy is becoming more constrained, we are making every effort to limit the intake of natural resources and use them more efficiently. We continuously work towards managing our energy needs sustainably and improve energy efficiency.
34 Environmental, Social & Governance Report, FY2020
Emissions Management
Global warming is such a huge phenomenon that the world is witnessing unusual and rapid changes in climate. These changes are characterised by prolonged seasons, extreme changes in weather patterns, rise in ambient temperatures, and increasing floods and draughts. Green House Gas (GHG) emissions are one of the major causes of climate change.
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Emissions Management
India is highly vulnerable to Scope 2 emissions the base year emissions (FY2019) extreme weather events and has by the FY2020. With its pointed much at stake in the success of focus & continuous efforts EOP Grid Power (TCO e) any global agreement to combat 2 is in the process of estimating its climate change. According to scope 3 emissions in the coming Intergovernmental Panel on 2,49,613 years. In the current scenario, Climate Change (IPCC) and other most of the operations depend on 2,15,362 projections, climate change will non- renewable sources of energy, slow India’s economic growth, which is the major contributor to impact health and development GHG emission. However, the share and make poverty reduction more of renewable energy as an energy difficult, all the while threatening source has gone up significantly food security. In line with the during the reporting period Indian Government’s commitment compared to previous years. under the Paris Agreement which includes reduction in emissions GHG emissions of the refrigerant FY2019 FY2020 intensity of its GDP, EOP has due to leakages from the air started to measure its emissions conditioners or chillers is not footprint. For the reporting period, captured in this reporting year. We Source: 0.82 kg CO2/kWh for FY2019 this footprint determination is and 0.83 kg CO /kWh for FY2020, Ref: endeavour to report the refrigerant restricted to scope 1 and scope 2 impact in the next reports Central Electricity Authority - CO2 Baseline 2 emissions only. In the coming Database for the Indian Power Sector years, this shall extend to include As the Way Forward, while scope 3 emissions as appropriate. recognising the significance of The scope 1 emissions have climate change impact on our reduced by a whopping 59% We have quantified our emission business and community where and scope 2 emissions have according to Green House we operate, we will continue to increased by 16% between FY2019 Gas (GHG) Protocol and ISO work towards reducing our energy and FY2020. The reduction in 14064. Our emissions primarily consumption to minimise our Scope 1 emissions is majorly result from grid electricity. We carbon footprint. due to the reduced use of diesel recognise that this is an area consumption for DG power in the for improvement, and we aim to In the coming year, EOP will be new blocks of our parks which reduce carbon emissions in the formalising the process of its got connected to the state grid coming years. greenhouse gas emission by power. The subsequent increase in implementing a system as per ISO scope 2 is due to the consumption 14064 and ensuring a third-party Scope 1 emissions from state grid power. Company verification of the determined has aimed to reduce its CO 2 footprint. emission by 50% as compared to Diesel (TCO2e)
49,860
20,287
FY2019 FY2020
Assumption: 1 KL of Diesel to GJ – Multiplying factor of 37.42
Multiplying factor for TJ to TCO2e – 74.1
36 Environmental, Social & Governance Report, FY2020
Renewable Energy project Embassy 247, Mumbai Powered by solar
Solar gives more than Commercially viable and what it takes environmentally responsible
525 kW 25 years Generation: Saving: panels of annuity saving 7,40,000 units ` 70,00,000 per annum per annum ` `
25 years of life
` Investment: ` 21 million Break-even of 16,275 tones 25,725 teak 3 years of CO2 mitigation* wood plantation*
*Reference: Ministry of Renewable Energy
Generation estimate
Aspects Value/rational Number of panels 1591 Watt / panel 330 Total watt 525 kW (=300*1591/1000) Area per panel 2 square meter Total area covered 4000 square meter (plus 20% installation buffer added) Generation rate 4 units / kW/ day (annual average) (Ref: PVSyst simulation – Oorjan) Total generation estimate 741,300 unit/annum (=353 days*4 unit*525) (353 days considering 12 days downturn per year)
37 Embassy Office Parks REIT / Total business ecosystem
Water Management
Water is often wasted and undervalued with forecasts pointing to a majority of the world’s population living in areas of high- water stress over the next two decades. Water, like climate change, is set to be a key issue for the 21st century. It is through water that the impacts of climate change are most likely to be felt, with changing patterns of precipitation and melting glaciers affecting the supply of this critical resource.
At the same time population We take the stewardship of the to exceed available sustainable growth, urbanisation and rising environment seriously as we are water supplies by 40% within 2030. per capita consumption are aware that our locations are in The issue of water crisis plagues expected to result in rapidly water scarce regions. We are large parts of the world including increasing demand for water. committed to the conservation of Africa, parts of North America and Businesses will be impacted fresh water, treatment, recycling Asia. positively and negatively and will and reuse of water in all our have a significant role to play in locations. We largely depend on According to a 2030 Water developing and implementing surface water to meet our water Resources Group Report, in India, solutions to the water challenge. requirement. While water demand the aggregate gap between At present, however, awareness across various industrial sectors demand and supply of water is and understanding of water- is on the rise, availability of water expected to be 50% of the demand related risks and opportunities is is becoming a concern for an in 2030. We have taken steps generally limited in the business industry like ours. The global towards recharging the ground and investment communities. water requirements are projected water through rainwater harvesting.
38 Environmental, Social & Governance Report, FY2020
Major water sources FY2020 (%)
23 17 Other Lakes, River, sources - Sea (Surface tankers water)
Ground Municipality water water supply/ (Borewell Local bodies and well 32 28
All locations water consumption
Water Sources Units FY2019 FY2020 Lakes, River, Sea (Surface water) KL 6,25,011 4,81,576 Ground water (Borewell and well) KL 7,63,917 7,90,571 Rainwater collected KL 15,541 10,775 Wastewater from outside source KL - - Municipality water supply/Local bodies KL 9,27,032 9,15,436 Other sources - tankers KL 5,75,041 6,49,198 Total KL 29,06,542 28,47,556
In the reporting year, our total to identify, assess and prioritise wastewater is used for domestic water withdrawal in all our water projects, and to capture purpose and landscaping. locations was 28,47,556 KL as water savings, financial savings against 29,06,542 KL in 2018, and water quality improvements. We are working towards a decrease of almost 2%. For During the reporting period, adopting a “Zero discharge of all the water sources used at we have also initiated process wastewater” policy i.e. 100 per our parks we undertake water improvement activities that can cent utilisation of water at all our quality monitoring and ensure minimise the water usage. plants to prevent contamination TDS level is less than 1000mg/L. of groundwater and reduce Located in semi-arid water scarce All our facilities try to optimise damage to the ecology, while in regions, water recycling and water consumption and maximise some locations such as Bangalore, water conservation practices have effluent recycle and reuse. Mumbai and Pune, rainwater been implemented in various We monitor water discharge harvesting programmes are ways at all the locations. We have in volumes released to the actively being pursued. At Express adopted a “Zero discharge of environment, sent for treatment, Towers Mumbai we are in the wastewater” policy i.e. 100 per entering products, evaporated or process of installing STP in the cent utilisation of water at all our used for other purposes. All our coming year plants to prevent contamination parks, except Express Towers, of groundwater and reduce Mumbai have sewage treatment As a way forward, while damage to the ecology, while in plants installed. The recycled continuing our efforts on some locations such as Bangalore, water is used for gardening, identifying water management Mumbai and Pune, rainwater flushing, and HVAC majorly. programmes internally, we also harvesting programmes are With regards to the quality of endeavour to collaborate with our actively being pursued. water discharged, we analyse the external stakeholders and conduct chemical oxygen demand (COD) water audits of our facilities. Each of our facilities has a role and total suspended solids (TSS) to play in meeting our water use parameters as mandated by the reduction goals. Tools have been law of land. The STP treated developed to assist our operations
39 Embassy Office Parks REIT / Total business ecosystem
Waste Management
Our environment and sustainability policy emphasises on production of eco-friendly products with a focus on minimal waste generation due to reusing and recycling of waste. Waste minimisation, waste recovery & reuse and scientific disposal of waste are the key approaches adopted by us for all type of wastes, whether hazardous or non-hazardous. We believe that effective waste management is essential for environmental protection and management and we are committed to reducing and effectively managing our waste.
40 Environmental, Social & Governance Report, FY2020
At EOP, we use resources in majorly comprises of hazardous of Central/State Pollution a responsible way to reduce waste, non-hazardous waste and Control Boards and compliance waste. We ensure that all waste e-waste. The sludge generated reports are submitted to the is collected, segregated at the from STP is used as fertiliser for authorities. source, stored separately and plants in the facility. We carry delivered to authorised waste out disposal of hazardous waste The food waste generated are dealers (in few of the parks through government authorised either converted to manure the dry waste segregation at agencies. The disposition of by the OWC installed in our source was not documented, waste of all types (including non- parks or its send to the nearby we have initiated the system hazardous), generated or handled piggeries through authorised for documentation and will at all our facilities, to various vendors. be reported in the next year (approved) recycler’s/re-user’s, report). Waste produced by are done strictly as per directives
List of hazardous wastes
Parameters Units All Locations Hazardous Wastes FY2019 FY2020 Used Oil KL 85.08 111.85 Waste oil KL STP Sludge Tons 26.54 31.55 Oil filters Nos 5090 4384 Oil Cotton rags Tons 2.56 2.50
All the facilities at the locations used within the premises and/ generated as prescribed in the are equipped with sewage or used for gardening purposes. water consents in any location, treatment plants that treat the Wherever there were instances we take our best efforts to rectify water to the effluent quality recorded of any non-compliance, or refurbish the STP’s within standards prescribed in the water either in the effluent parameters prescribed timelines. consents. This treated water is or in the quantities to be
List of non-hazardous wastes
Parameters Units All Locations Non-Hazardous Wastes FY2019 FY2020 Metal scrap Tons 49.99 191.55 Plastics Tons 81.63 77.72 Rubber Tons 52.78 8.37 Paper (1) Tons 1705.39 1738.08 Solid waste Tons 2257.65 2285.49 e-Wastes Tons 5.66 5.16 Battery waste Tons 27.96 34.21
41 Embassy Office Parks REIT / Total business ecosystem
Compliance
At EOP, a comprehensive compliance management system is in place at all the facilities. We are committed to compliance with all applicable statutory and regulatory requirements and the company has ensured adequate and requisite infrastructure and support to comply with all the obligations.
42 Environmental, Social & Governance Report, FY2020
All our employees have also been We evaluate and amend y Compliance status report from sensitised in this regard and are our compliance programme the locations is submitted to committed to fully comply with all periodically to reflect changes the Management on a periodic compliance-related policies and in regulations and the overall basis. procedures. The fact that most regulatory environment. y Effectiveness of compliance of Embassy locations have been is ensured by regular reviews certified to management systems y A comprehensive listing of all and audits. such as ISO 14001 and BS OHSAS applicable rules & regulations 18001 bears testimony to the fact as applicable to each of the that commitment to compliance is locations has been drawn up, the fulcrum of all operations in the together with their obligations. company. Responsibilities has been defined for compliance to each of these obligations
One of the open notice during the reporting period is GolfLinks Key environmental and its occupier have received a notice in 2017 from the Karnataka obligations being adhered-to State Pollution Control Board stating that the sewage treatment by all the parks plant at Embassy GolfLinks was inspected by the relevant officials and was found to not be Consents of Establishment (CFE) & Consents operating in accordance with the for Operation (CFO) of the facilities standards stipulated pursuant to under Air, Water and Hazardous Waste an order passed by the National Management Acts Green Tribunal and a public notice issued by the Karnataka State Pollution Control Board detailing revised standards required to be Periodic environmental monitoring of all adopted for such plants in 2017. applicable stack emissions, ambient air GolfLinks Embassy Business quality, ambient noise and all effluent Park Management Services LLP parameters and submission of mandatory (property Management Team) has taken up the STP’s for reports to the Pollution Control Board refurbishment phase wise and it is expected to complete by first quarter of FY2021 to complete the compliance and to grant consent Collection & disposal of all hazardous wastes and other wastes and e-wastes as per All the open non-compliances regulations and authorisations are detailed in our Annual report FY2020: Reference : Embassy Office Parks REIT Annual Report FY2020 (Link: https:// Preparation & submission of all www.embassyofficeparks. environmental returns reports and com/AnnualReport-FY20/pdf/ statements as called-for in the rules and Embassy-AR2020.pdf) Page: 148 regulations.
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Environmental, Social & Governance Report, FY2020 SOCIAL
45 Embassy Office Parks REIT / Total business ecosystem
Safety of Our People
Our purpose is to create long-term financial, physical and social value. We do this by providing the right space for our customers and communities so that businesses and people can thrive.
At Embassy Office Parks, we health and safety risk and adopt Every action and decision believe that the successful to best safety practices we have taken at EOP is guided management of health and safety implemented OHSAS 18001 across by our commitment of is fundamental to the wellbeing our locations and currently we are of our employees, contractors, in the process of migrating to ISO providing a safe and service partners, occupiers and 45001. healthy work environment. visitors to our properties. It’s Our constant endeavour also one of the ways we create We ensure that the physical and is to create a workplace a better working environment mental health of our employees is not with no harm and where and is essential to our continued negatively impacted by their work, safety is considered a performance and growth. and endeavour to enhance their wellbeing through the environments collective responsibility. We aim to provide safe and that they work in. We aim to achieve We are constantly working healthy working conditions for the this by providing appropriate towards our target of prevention of work-related injury occupational health services and zero injuries and maintain and ill health and are committed wellbeing initiatives. All employees accountability for health to eliminating hazards and are expected to acknowledge reducing occupational health and their own individual duties and and safety practices. safety risks. We are committed responsibilities, to take reasonable to continual improvement of care, and to prevent injuries to our OH&S management system. themselves, fellow employees and To address our occupational members of the public.
46 Environmental, Social & Governance Report, FY2020
A safety committee headed accidents are done through our Rigorous and elaborate by our senior management Incident Management System health and safety policies personnel reviews the safety plan which also maintains the count action points every month in the of the incidents investigated, and mechanisms are in review meeting. To ensure equal statistics maintained compared place, which ensure that representation from everyone, and the improvement projects there is full compliance of a formal joint manager-worker taken up thereafter. safety norms at all levels health and safety committee of the organisation. operates at each location. In the reporting period, there Quarterly meetings are held to have been no reportable review sustainability and Health accidents across our operations and Safety performance which are and locations. We also monitor attended by all the location heads near miss incidents apart from and the safety head. The same reportable accidents. We have is communicated to the higher not received any occupational executives on a quarterly basis. disease complaints/cases in the reporting period. To maintain and We continuously work towards improve upon the well-established identifying and mitigating risks safety systems, extensive trainings and determine the root cause of were conducted by internal all accidents in order to prevent and external experts on fire- them in future. Continuous fighting and emergency handling, monitoring and reporting of all electrical safety and road safety.
To ensure employee health and Awareness cum periodic to promote over all prosperity, refresher trainings on various we have Ambulance in most safety topics to our personnel of premises or Connect with and effective implementation of ambulance agencies. Health designed operational controls awareness programmes are form the cornerstone of our held for executives, contract safety approach. workers as well as their family members and health tips are communicated via newsletters and LOTO (Lock out Tag posters at the locations. Regular Out) system and wellness activities such as Yoga Work Permit Systems programmes are undertaken, and periodic inspections of hygiene are done. We make sure that high-risk areas in all the Awareness building locations are identified and the by training and retraining workforce involved in the same at regular intervals to all undergo necessary check-ups and sections of employees – treatment. at all levels.
47 Embassy Office Parks REIT / Total business ecosystem
Safety of Our People
Safety awareness & training to all new joinees – Employee, Workmen, Contract labour
Periodic External Periodic Safety audits from committee meetings competent persons involving all sections of employee category
Safety Approach at all locations Near Misses Top Management – capture, commitment analysis and - all meetings actions start with a review of safety performance
HIRA (hazard identification and Risk Assessment) is in place for the activities
Embassy, India’s leading real estate developer has been conferred the prestigious ‘Sword of Honour’ by the British Safety Council for two of its business parks – Embassy Manyata Business Park, in Bangalore and Embassy TechZone in Pune. The award was presented to the company at the Drapers’ Hall, London on November 24, 2017.
48 Environmental, Social & Governance Report, FY2020
Workplace and Diversity
Embassy Office Parks is equal opportunity employer and practices diversity in race, nationality, religion, gender, age, culture, language, thoughts and physical ability. We recognise and respect each individual for their civil, economic and fundamental rights and fully comply with labour norms and prevailing fair practices.
There is recognition of freedom communicate and raise awareness prevention of sexual harassment of association and employee’s among employees regarding and has set up Internal Complaints participation in management the benefits and opportunities Committee (ICC) at its work is encouraged. Creating an available to them. places to redress the complaints ethical work environment is on of women employees. During the the priority of the leadership At present, there are two defined reporting the period, no complaint team. Beside, having “Code benefit plans for our talents, has been filed with ICC with of conduct” for Management viz., gratuity and provident fund allegation of Sexual Harassment cadre staff (MCS) and “Standing contribution by EOP. Female orders” for workmen, various employees are eligible to avail 6 At EOP, there exist a formal anti-discrimination laws are made months of maternity leave. Male grievance mechanism that has mandatory compliance at all employees are eligible for 14 been institutionalised during the locations of EOP which helps to calendar days paternal leave. reporting period for receiving promote the ethical behaviour in & addressing the concerns of the workplace. Ethical business Compensation levels are also all internal as well as external rules and guidelines are applicable determined purely on the basis stakeholders. During the reporting to employees’ for interaction with of qualification, experience, skills period, there were no complaints each other, customers, suppliers, set and performance and no other pertaining to sexual harassment/ and other external parties. parameter. EOP encountered discrimination/ violation of human Ethical codes cover a wide range, a challenging workplace rights of any kind. Adoption & including guidelines for accepting environment during the last few practise of the whistle blower business courtesies, prohibited years. Increased competition policy results in immediate conflict of interest activities, translated into a premium in cognizance of employee guidelines regarding confidential the need to retain intellectual grievances. Having such systems and proprietary information, capital, enhance workspace and in place has helped the company appropriate use of company people productivity, and adapt foster healthy relationship with its property and technology. proactively to a rapidly changing employees in the long run. APSEZ Inappropriate behaviour is subject industry environment. EOP prevents any kind of child labour to counselling and appropriate continued to invest in workplace on its premises. disciplinary action. environment with the objective to sustain its respect as one of EOP prevents any kind of child The best output at the workplace the best places to work within the labour on its premises. It further can be achieved only if our sector. extends the applicability of same colleagues are provided with to its contractors & suppliers an opportunity to lead a Prevention of sexual as well. These are incorporated happy, healthy and fulfilling life into the contract agreements & with remunerations that are harassment of women at agreed upon by the contractors competitive and other benefits. workplace & suppliers. There have been no Our contribution to provident EOP is sensitive to women reported cases of child labour fund, pension fund and ESI ensure employees at workplace. As during the reporting period. happiness of our employees. required under the Sexual 100% of our workforce is covered Harassment of Women at under health & life insurance the Workplace (Prevention, benefits; workmen are covered Prohibition & Redressal) Act, 2013, under Workers’ Compensation the Company has a formal policy (WC) Policy or ESI Policy. We to ensure safety of women and
49 Embassy Office Parks REIT / Total business ecosystem
The Energize and Q Life Programme
The Energize and Q Life programme is at the core of that commitment. As part of such programmes, we organise cultural, sports, lifestyle and corporate social responsibility events which drive a sense of community amongst our tenants.
Through these events, we endeavour to create a quality work environment for the employees of our tenants, leading to low employee turnover for our tenants.
Through the Energize and Q Life initiative, we try and create a vibrant workspace, where employees interact with each other and gain a sense of fulfilment, making their association with us an enriching one.
Over the last few years, Energise has been the catalyst that helps the workforce of our tenants to Over 2000 enthusiastic participants be motivated and keep them gathered at Embassy Manyata engaged as a community. A diverse range of activities are Business Park arranged from talent shows to sports activities that cater to both sports and intellectually inclined Embassy Office Parks hosted the 10th edition of Contours individuals which helps in retaining Women’s Day Run at Embassy Manyata Business Park on March and engaging the interest of all 3, 2019. Having successfully completed nine successful race stakeholders at our office parks. editions, the 10th edition of the run was held to spread awareness Much of these activities are on the importance of staying fit and raise funds in aid of Shristi planned well in advance to ensure Special Academy. The Run was also a good start point for women maximum participation of all our to embrace a healthy lifestyle. It was open to both women and park users which are broken down men and featuring various categories – 2K, 5K and 10K Runs. into quarterly activities for ease of Around 2000 enthusiastic participants took part in the event execution and monitoring. from across the city.
50 Environmental, Social & Governance Report, FY2020
Talent Management
Embassy Office Parks considers Employees as its most vital asset and HR plays role of a business partner in enabling business excellence in today’s competitive environment through engagement and development of employees.
EOP encourages its employees have undergone the annual We firmly believe to perform better & aspire to performance appraisal. that the High levels of achieve greater heights in their employee engagement, career. Regular performance For a sustainable business, passion for excellence appraisal is a medium through identification of Critical Positions which performance of employees and strong leadership pipeline coupled with sharp is assessed on the basis of certain is essential. At EOP we have skills have empowered parameters and discussions programmes focusing on building the Company to report regarding trainings & skill a robust talent pipeline and sustained growth. development are taken. During create a strong leadership base the reporting periods 100% e.g. Leadership In V.U.C.A. world, employees (eligible as per policy) Embassy Nexus Programme- on the payroll at all our locations People Manager Programme, etc.
Embassy Group awarded at the Global HR Excellence Awards 2020
Embassy Group, India’s leading the Professional council, consisting Through a nurturing and Real Estate Group bagged of an eminent panel of Jury. purposeful employee experience, 3 Awards at the Global HR we have created second families Excellence Awards 2020, held The Dream Companies stand at work. Elimination of overly in Mumbai on February 16, for typical characteristics like rigid structures has enabled room 2020. The World HRD Council managing disruptions, high risk for information flow, innovation, recognised the Embassy Group & creative eruptions, managing face to face communication, fun as the Dream Company to work dissonance, multiple aspirations & camaraderie and continuous for in Real Estate. Additionally, and high ambition for achievement, improvement.” Embassy was awarded with the durability and malleability, Best Workplace Practices Award, happiness and job satisfaction, In an industry such as Real Estate and ranked 14th in the overall a sustainable approach to a where attrition is high, Embassy category of Dream Companies to self-managed career and a has succeeded in talent retention work for across sectors. commitment to fast paced growth. by creating an eco-system that empowers employees to stay The World HRD Congress is a Embassy Group has set an example invested with the organisation. platform that reviews evolving over the last decade by writing a Embassy’s rich and diverse trends in HRM and provides new generation of people policies talent pool from sectors such opportunities to acquire skills and organisational behaviour as Infrastructure, Banking and maximise competencies, that today holds good for any Education, Finance, FMCG, IT, in today’s fast paced business Industry. Maria Rajesh, CHRO Hospitality etc. has enabled environment. The Congress is Embassy Group expressed, “These cross leveraging of strengths and governed by a Global & National recognitions mean a lot to all of capabilities. Embassy Group has Advisory Council that guides the us here at the Embassy Group, been a key follower and believer strategic intent of the event and which stands for integration of the policy “culture is the key” is the largest rendezvous of HR and inclusion in every sense. We and has embedded the same Professionals. The methodology firmly believe that people are our at the Group level across the and process included a greatest assets and the success of organisation. submission of white paper to the our organisation is driven by the Academic council, followed by happiness index of our employees.
51 Embassy Office Parks REIT / Total business ecosystem
Talent Management
We follow certain practices to extent we have added room for At EOP, we are proud to have promote and encourage a culture entrepreneurial thinking and instituted “A Culture of Learning”, of mutual support and team initiative taking, making it possible a culture that begins from the spirit within the organisation for our employees to extend first day a new employee joins through creating a culture of cross beyond the usual. the organisation. Over the years, functional team’s collaboration we have instituted continuous and mutual respect. Cross At EOP, we employ over 85 people learning processes that aim at functional teams consisting of across facilities and offices in providing fresh knowledge and skill people from different Functions India; the team enjoys an average inputs to the employees, to ensure work together as a team to age of 36; over the years, the development of their competencies, identify and implement various Company has demonstrated a dynamism, motivation and Projects to achieve business goals. commitment towards individual effectiveness in a systematic and development, marked by an planned way, thereby improving At EOP, the Human Resource ongoing culture of training and the productivity and overall function represents the foundation skills replenishment. The result is organisational effectiveness. of our respect, industry leadership a willingness to adapt one’s role and global competitiveness. We and mind set to rapid changes EOP learning and development have accorded talent management in the external environment. A strategies aims to develop a the highest priority, evolving it progressive culture of business workforce’s capabilities, skills from a business support function partnership has, over the years, and competencies to create into the core of the Company’s translated into some of the a sustainable, successful competitive strategy. We recruit highest manufacturing and organisation, and is an important young and enthusiastic talent, operating standards in the world, part of our organisation’s overall blended with the rich experience strengthening the Company’s business Vision, Strategy and Goals. derived across the years. To this competitiveness.
Talent Management Highlights
Headcount as on April 1, 2019 Category Age Group Executives Outsourced Percentage Total number of employees Age group < 30 years 6 1 7% 30-50 years 53 31 85% >50 years 6 2 8% Total 65 34 Gender Male 47 23 71% Female 18 11 29% Total 65 34
Headcount Category Age Group Executives Total Percentage Number of new employee Age group < 30 years 6 0 17% hires in FY2020 30-50 years 21 7 80% >50 years 1 0 3% Total 28 7 Gender Male 22 6 80% Female 6 1 20% Total 28 7
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Headcount Category Age Group Executives Total Percentage Attrition Age group < 30 years 1 0 8% 30-50 years 3 7 77% >50 years 2 0 15% Total 6 7 Gender Male 2 2 31% Female 4 5 69% Total 6 7
Location wise employee headcount as on April 1, 2019 Location Executives Age <30 Age 30-50 Age >50 Male Female Bangalore 38 4 29 5 25 13 Mumbai 11 2 8 1 8 3 Pune 9 0 9 0 7 2 Noida 7 0 7 0 7 0 Totals 65 6 53 6 47 18
Location wise new employee hires in FY2020 Location Executives Age <30 Age 30-50 Age >50 Male Female Bangalore 23 4 18 1 17 6 Mumbai 3 0 3 0 3 0 Pune 1 0 1 0 1 0 Noida 1 0 1 0 1 0 Totals 28 4 23 1 22 6
Location wise attrition in FY2020
Location Executives Age <30 Age 30-50 Age >50 Male Female Bangalore 5 1 2 2 1 4 Mumbai 1 0 1 0 1 0 Pune 0 0 0 0 0 0 Noida 0 0 0 0 0 0 Totals 6 1 3 2 2 4
Employee Training Average Training Location Executives No of Programs Total Hours hours per employee in a Year per annum Bangalore 152 19 1000 6.58 Mumbai 13 4 96 7.38 Noida 9 3 64 7.11 Pune 5 88 6.29 Totals 188 31 1248 6.64
Gender Headcount Training Mandays Male 134 880 Female 54 368 Total 188 1248
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The Community Around Us
Embassy REIT’s focus areas for social development include the spheres of education, health & hygiene and sustainable infrastructure.
OUR VISION livelihoods for people from mandate. During the reporting To build a sustainable ecosystem socially and economically period, EOP has contributed and actively contribute to disadvantaged communities. ` 8.59 crore (Reference: Page 263, the Social, Economic, and Further, while many see Corporate consolidated financial statement Environmental development of the Social Responsibility as an act of of Embassy REIT Annual Report communities in which we operate. philanthropy; we at EOP envision FY2020) towards its CSR it as a tool for ‘value creation’, a activities. The initiatives of CSR At EOP, we truly believe that belief that is integrated in all our Committee are aligned with the for a sustainable future, it is core operations and business needs of communities around imperative to build a healthy, strategy. us, particularly our marginalised tolerant and more connected communities. The CSR committee society by providing quality The Companies’ Act 2013 bolsters is responsible for monitoring the education, improved health our commitment towards the implementation of the CSR policy services, infrastructure facilities community, with the company and plan. and fostering sustainable contributing more than the
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Schedule VII of Company’s CSR Policy CSR Policy from time to time. The Act 2013, which has identified Laying down guidelines for CSR Committee shall approve the following focus areas of undertaking programmes geared and recommend to the Board intervention: towards social welfare activities or the projects or programmes to initiatives, the CSR Policy also acts be undertaken, the modalities of y Supplementing and improving as a mechanism for undertaking execution and implementation the quality of education in projects, programmes and schedule from time to time. government/government activities beyond business. Apart from recommending and aided/under-served schools Through this CSR Policy, we approving budgets for project y Building infrastructure for have adopted the following CSR implementation, the CSR government/government Activities: Committee will also institute a aided/under-served schools monitoring mechanism to track (a) In alignment with the above the progress of each project. The y Healthcare including preventive vision, the Company through its CSR Committee shall report it to healthcare facilities CSR Activities will endeavour to the Board. y Sustainable infrastructure for enhance value creation in the the society society and our communities, The CSR cell of the Embassy through its services, conduct Group (“CSR Cell”) will assist y Slum area development and and initiatives, so as to promote the CSR Committee with the rural development projects sustained growth for society implementation and impact y Promoting gender equality, and communities, in fulfilment of assessment of the CSR initiatives. empowering women, setting up its role as a socially responsible Their responsibilities include homes and hostels for women corporate. among others: and orphans; setting up old age homes, day care centers (b) The objective of this CSR y Identifying CSR Activities at the and such other facilities for Policy is to: directions of the Board and the senior citizens and measures CSR Committee. (i) Outline projects, programmes for reducing inequalities faced and activities to be undertaken by y Undertaking impact assessment by socially and economically the Company. of the CSR Activities backward groups (ii) Specify the modalities of y Determining the modalities of y Eradicating hunger, poverty execution of such projects, execution including targets and and malnutrition, promoting programmes and activities. timelines in consultation with healthcare including preventive the CSR Committee healthcare and sanitation (iii) Monitor the process to be including contribution to the followed for such projects, y Timely implementation of the Swachh Bharat Kosh set-up by programmes and activities. CSR Activities approved by the the Central Government for the Board in compliance with the (iv) Directly or indirectly take promotion of sanitation and applicable provisions of the up programmes that benefit the making available safe drinking Companies Act, 2013 and CSR communities in and around its water Rules work centers and results, over a y Ensuring environmental period, in enhancing the quality y Providing periodic reports sustainability, ecological of life and economic well-being of to the CSR Committee on balance, protection of flora the local populace; and implementation as well as and fauna, animal welfare, agro assessment carried out through (v) Generate community goodwill forestry, conservation of natural field visits and feedback for the Company and help resources and maintaining sessions reinforce a positive and socially quality of soil, air and water responsible image, through our y The Company in its capacity including contribution to the CSR Activities. as manager of the Embassy Clean Ganga Fund set-up by Office Parks REIT will follow the Central Government for The CSR Committee shall be the guidelines provided by rejuvenation of the river Ganga responsible for monitoring the
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y Protection of national heritage, We may undertake the CSR independent professional third art and culture including Activities either ourselves parties/professional institutions. restoration of buildings and or through other qualiising sites of historical importance NGOs or agencies. The Regular and interactive feedback and works of art; setting up projects, programmes or sessions shall be conducted at all public libraries; promotion and activities identified by the CSR levels including with other NGOs development of traditional arts Committee and approved by through which CSR Activities are and handicrafts the Board shall be implemented being undertaken as well as the in a project mode through respective beneficiaries of all the y Training to promote rural the CSR Cell, which will CSR Activities undertaken by the sports, nationally recognised entail charting the stages of Company. Field visits shall be sports, Paralympic sports and execution through planned conducted at regular intervals to Olympic sports processes, measurable targets, ensure effective implementation. y Contribution to the Prime mobilisation and allocation Proper documentation shall be Minister’s National Relief Fund of budgets and prescribed done in a monthly information or any other fund set up by timelines. It also involves report (“MIS”) format to record the Central Government for assigning of responsibility key observations of such feedback socio-economic development and accountability. Suitable sessions and field-visits. If and relief and welfare of documents/agreements shall deemed necessary by the CSR the Scheduled Castes, the be entered into with NGOs Committee, the effectiveness of Scheduled Tribes, other and the other agencies for the the various programmes/activities backward classes, minorities purposes of implementation of undertaken under the CSR and women the CSR Activity, in case the Policy may be evaluated through CSR Activity is proposed to be external agencies and reports y Contributions or funds provided implemented through the third- shall be prepared pursuant to such to technology incubators party agencies. The conditions evaluation. located within academic of grant of amounts for all CSR institutions which are approved Activities and the break-up of In order to facilitate quick by the Central Government the allocations shall be set out decision-making, the company y Measures for the benefit of and evaluated from time to has devised a decentralised armed forces veterans, war time. To the extent feasible, a approach for CSR. It has different widows and their dependents project-based accountability teams working at different levels approach to stress on the at all the locations. At the apex is According to the mandate above, long-term sustainability of CSR the senior level corporate team we will support interventions Activities shall be adopted, followed by the CSR Location in the areas of Education, and the indicative action plan Head who works with Project Livelihoods, Healthcare, and implementation schedule officers and community mobilisers Sustainable Infrastructure and (timelines) for the projects, (CM). These project officers and Environment. programmes and activities shall CMs engage with the communities be adopted. at the ground level, understanding The CSR cell also makes the their needs and concern. To make necessary recommendation to To ensure effective the initiatives more relevant, the the CSR committee (viz. data implementation of the CSR unit adopted a cluster based collection, survey, quotations projects, programmes and and domain specific approach. and costs involved etc.). For this activities undertaken in The CSR team conducts regular purpose, the CSR Committee may terms of this CSR Policy, the need assessment surveys using also approach external consultants progress of each such project, participatory methods with the for necessary assistance as it may programme and activity will be community representatives, often deem fit at such costs as may reported to the CSR Committee through third independent parties be approved by the Board. The periodically, with all requisite as well. Overall and project- CSR Cell undertakes sufficient documentation. Update on wise impact assessment is also due diligence of each of the CSR CSR implementation shall be regularly conducted. Activity before it is recommended. submitted to the Board by the CSR Committee, periodically. The Board along with the CSR The CSR Committee will Committee and the CSR Cell shall conduct impact studies on be responsible for implementation a periodic basis, through of this CSR Policy.
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Strategic goal In line with the brand promise, build a sustainable eco-system and actively contribute to the social, economic and environmental development of the communities where operate in.
Education Sustainable infrastructure Community engagement
EMPOWER students of government Drive positive change by providing Champion initiatives through schools with the skills for self- infrastructure-based solutions to collaborative projects that ENGAGE development and future employability ENHANCE basic amenities around clients, employees, residents, through holistic and innovative learning Embassy communities. government and external stakeholders programmes. for community development.
Government School school schedule and boosted equip Government Schools with Education by engaging extra-curricular world-class resources and a firm activities – from education foundation for sustained growth. We are committed to providing trips and summer camps to With 8 new Government School education for students in the talent development and inter- builds completed so far and communities in and around our school competitions. Our alumni extensive renovations, repairs and business parks. programmes for Government upgrades to facilities, we provide School graduates also ensure safe and inviting environments At EOP, our aim is to facilitate a smooth transition from for effective learning and students of Government Schools education to full employment with development. with a safe learning environment mentoring, scholarships, work for skill development through placement and skills development. holistic educational interventions. Innovative learning support in We enhance our education English, Math through Computers, programmes with infrastructure- Life Skills, Sports and more, based solutions, designed to blended into the existing
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New Build of Government Higher Primary Schools, Hegdenagar in Collaboration with ANZ
EOP has partnered with ANZ to an increase in enrolments of over school building] up in 9 months transform the Government Higher 200 students. The second phase is a testament to the fact that the Primary Schools in Hegdenagar. of the multi-year partnership partnership works. What really The two adjacent schools jointly kicked off in October 2019 with tilted the balance for us is that house more than 1,200 students – the new build of the Government Embassy not only constructs, but the first phase of the project was Urdu Higher Primary School. their values align strongly with our the completed in May 2019 with The new school building will purpose – to shape a world where the Government Kannada Higher have an additional capacity for people and communities thrive. Primary School, Hegdenagar 800 students - in anticipation of Not only does Embassy help build receiving a state-of-the-art school an increase in admissions. The infrastructure, but it is also a very building comprising of 15 new project will be completed in 2020. active participant in maintaining it classrooms, a multi-purpose hall, after that.” library, a computer lab, toilet “Working with Embassy, you are blocks and accessibility facilities working with a specialist that has S V Venkataraman for differently abled students. The done this before. The fact that Managing Director completion of the first phase saw they managed to bring [the new ANZ Bengaluru Service Centre
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Our holistic interventions Strong business performance and distribution mainly driven by robust leasing, mark-to-market rental reversions and early delivery of on-campus development projects
Education interventions Infrastructure Resources Health & Hygiene
• English • Renovation & Repair • Annual Distribution • Mid-day Meals • Computer Literacy • Set up of Library, Science • Mentoring • Health Supplements • Math & Computer Labs • Scholarship Programme • Annual Health Check- • Sports • Deep Cleaning • Educational Out-bound ups • Like skills • School Maintenance Trips • Medical Interventions • E-classrooms • School Buses • Summer Camps • Clean Drinking Water • After School Tutions • Yoga & Counselling • Preventive Awareness Sessions • Health Kits
In line with the Sustainable Development Goal of Quality education, EOP is working towards improving lives of number of people by providing access to quality and free of cost education to children from underprivileged sections of society through various initiatives.
Holistic Health & Hygiene Programme We are committed to enhancing the health & hygiene conditions for students in the communities in and around our business parks.
Embassy Office Parks also aims at improving lifelong resilience with end-to-end healthcare interventions for Government School students, ensuring better educational outcomes and a brighter future for all. Our 7-step holistic health & hygiene programme provides the full gamut of support from preventative – awareness, daily maintenance and clean drinking water to detective – comprehensive health screenings and medical interventions.
Together, with a consortium of Corporate partners including Cerner, Cognizant and Swiss Re, we have been able to benefit more than 25,000 students across 133 Government Schools in Bangalore, Pune and Noida.
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Since 2016, Cerner and Embassy and hygienic surroundings to healthcare, built for the have worked together to provide students through daily school and betterment of our communities. free health check-ups and toilet maintenance. It uplifts the living standards of maintained a medical record for communities. more than 4000 students of 14 The impact of our holistic health & Embassy adopted Government hygiene programme in FY2020: Embassy is a proud partner of Schools. With attendance levels The Anonymous Indian Charitable in schools dropping, recurring y 26,278 students were screened Trust’s EcoGram Solid Waste conditions noted each year, and for health issues and received Management project, which a general lack an understanding individualised medical reports aims to catalyse communities to of preventative measures to develop and implement strategic y 6,178 students treated for combat common health problems, infrastructure for sustainable identified medical issues Embassy and Cerner invited environmental management. other organisations to join them y 11,400 preventative health kits in combatting these issues in a distributed “To implement waste holistic manner. management in a locality, which y 189 classrooms and 200 toilets never saw a dustbin let alone cleaned daily Embassy signed an MoU with 3-way segregation at source, is Cerner and Bangalore North y 3.17L nutrition bars distributed an incredible uphill task. It entails Round Table Trust in 2019 to creating intensive awareness y 12 clean drinking water units implement a seven-step Health & amongst all stakeholders, installed Hygiene approach in Government be it the local government Schools. This includes introducing Sustainable infrastructure representatives, villagers or preventative health awareness commercial establishments, which We are committed to enhancing sessions throughout the academic actually translates into action. public infrastructure and year, distribution of health kits, And secondly, it requires setting improving environmental annual check-ups that test up solid operations of men, sustainability in the communities children for health problems machinery and infrastructure. in and around our business parks. including dental and vision. The Through Embassy’s support programme also offers medical we have been able to deliver EOP drives positive change by treatments and distribution of the EcoGram SWM project, providing infrastructure-based nutritional supplements three which encompasses end- solutions with new frontline times a week. Together, they will to-end waste management: services for environmental also ensure availability of safe collection, transportation, sustainability and community drinking water and provide clean secondary segregation and
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further processing. The positive EOP supports Sarvagna Our partners have included ANZ, environmental impact is huge, Healthcare Institute, which Cerner, Cognizant, Swiss Re, Wells apart from the fact that we have provides the urban poor of Fargo, L&T Technology Solutions, also created employment for Sarvagna Nagar in Bangalore with AXA XL and more in the areas of the marginalised communities. free dialysis and other subsidised Government School Education Embassy’s support has given health care. and Infrastructure, Health and us the freedom to focus on our Public Space Enhancement. work.” Corporate Connect The impact of our Corporate Embassy champions collective Myriam Shankar Connect Programme: action to engage and empower Managing Trustee a larger number of beneficiaries. The Anonymous Indian Charitable y 21 Corporates partnered with Driven by this idea, the Trust Community Outreach team at y 41 projects jointly undertaken Embassy has initiated a unique In addition to our Bangalore Rural y 1,500 corporate employees platform called the ‘Corporate waste management initiatives, engaged Connect Programme’ that we also work to contribute to champions inter-company (Note: The CSR activities are carried out at communities around our office the portfolio level and also includes activities collaboration towards achieving parks through public space for Embassy Energy outside the reporting social development. With the enhancement, clean-up drives boundary. For more details on CSR please vision to contribute to the social refer Page 34 of Embassy Office Parks REIT that actively involve our Corporate and economic development Annual report FY2020) communities, improving access to of under-served communities healthcare solutions and provision around its properties, Embassy of improved basic amenities hopes to join hands with the 190+ for sustained community Corporate occupiers within its transformation. Business Parks to create a larger radius of social impact through We have transformed more partnership. With a strong than 80 hotspots in Bangalore aligned focus on collaborating – and engaged more than 900 identifying innovative solutions, corporate employees in cleaning executing projects, and bringing up and painting. Embassy has also in the involvement of stakeholders transformed 101 under-flyover is the path we see towards future pillars. success.
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63 GOVERNANCE Embassy Office Parks REIT / Total business ecosystem
Governance At Embassy Office ParksREIT
EOP reaffirms its commitment to the highest standards of Corporate Governance practices. Corporate Governance is an integral part of the values, ethics and the business practices followed by EOP.
The core values of EOP
People-centric Relationship focused Respect and value for people Belief in the power of relationship
Responsible Business sense Inherent inner sense of responsibility Driven by simple arithmetic and numbers and ownership
Integrity Honesty and honouring commitments
In short, the philosophy can be has in place a comprehensive set of Board of Directors and described as observing of business compliance policies to implement practices with the ultimate aim of this corporate governance Management Constitution of the Board enhancing long-term shareholders framework. value and commitment to high y The Manager has eight Directors. standard if business ethics. EOP Authorisation Structure All the Directors of the Manager has in place a Code of Corporate Embassy Office Parks REIT was are Non-Executive Directors one Ethics and Conduct reiterating settled on March 30, 2017 at half of which are Independent its commitment to maintain the Bengaluru, Karnataka, India as Directors. highest standards in its interface an irrevocable trust under the y The Board of the Manager with stakeholders and clearly provisions of the Indian Trusts Act, is responsible for the overall laying down the core values and 1882 pursuant to a trust deed dated management and governance of corporate ethics to be practiced March 30, 2017 as amended on the Manager. by its entire management cadre. September 11, 2018. Embassy Office Parks REIT was registered with SEBI y Mr. Michael D Holland (as the Chief Embassy Office Parks REIT seeks on August 3, 2017 as a real estate Executive Officer of the Manager) to ensure a high standard of investment trust under Regulation is responsible for the day-to-day corporate governance consistent 3(1) of the REIT Regulations business, operations and the with global best practices. having registration number IN/ management of the Manager Our governance framework REIT/17-18/0001. Embassy Sponsor and Embassy Office Parks REIT, emphasises accountability, and Blackstone Sponsor are the subject to the superintendence, transparency and integrity, with sponsors of Embassy Office Parks control and direction of the Board a view to maximising Unitholder REIT. of Directors of the Manager. value. Embassy Office Parks REIT
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Management team Board of Directors
y Mike Holland – Chief Executive Officer Nominee Directors y Vikaash Khdloya – Deputy CEO and Chief y Jitendra Virwani – Managing Director, Operating Officer Embassy Group y Rajesh Kaimal – Chief Financial Officer y Aditya Virwani – Chief Operating Officer, (resigned w.e.f May 19,2020) Embassy Group y Aravind Maiya – Chief Financial Officer y Robert Christopher Heady – Head of Real erstwhile Deputy Chief Financial Officer Estate (Asia), The Blackstone Group (w.e.f May 19, 2020) y Tuhin Parikh – Head of Real Estate (India), y Sachin Shah – Chief Investment Officer The Blackstone Group y Bhhavesh Kamdar – President, Commercial Leasing Independent Directors y Ritwik Bhattacharjee – Head, Investor Relations y Dr. Punita Sinha – Chairman, Stakeholder’s Relationship Committee y Rajendran Subramaniam – Head, Projects & Capex y Vivek Mehra – Chairman, Audit Committee y Rajan M G – Head, Operations y Anuj Puri – Chairman, Investment Management Committee y Raghu Sapra – Assistant Vice President, Hospitality y Dr. Ranjan Pai – Chairman, Nomination & Remuneration Committee y Ray Vargis Kallimel – Head, Corporate Finance y Ramesh Periasamy – Company Secretary & Compliance Officer
The Board of Directors consists for appointments to the Board The Board of Directors has of eight Directors as on March and to senior management. The made formal annual evaluation 31, 2019, of which four are company has a code of conduct of its own performance and Nominee Directors and four are for management cadre staff that of its committees and independent Directors. [Five (including Executive Directors). individual Directors pursuant to Board Meetings have been held In -terms of the provisions of the provisions of the Companies during the reporting period – one Regulation 17(5) of the Listing Act, 2013 and the corporate each in the months of May 2019, Regulations and contemporary governance requirements August 2019, November 2019, practices of Good Corporate as prescribed under Listing January 2020 and February Governance, the Board has laid Regulations. 2020.] down a Code of Conduct for all Board Members and Senior Management committees The Board periodically reviews Management of the Company have been constituted by the Compliance Reports of all laws and the same is available on the board to enable a focused and applicable to the Company and website of the Company. All the quick decision making in the steps taken by the company Board organisation. Each committee to rectify instances of non- is responsible for handling a compliances, if any. The Board Members and Senior Management specific area. is satisfied that plans are in Personnel have affirmed place for orderly succession compliance with the said code.
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Governance At Embassy Office Parks Reit
These committees are under direct supervision of the Board. Further, the following committees are having been established and functioning as part of the Governance at EOP:
Management Debenture Investment Audit Committee Committee Committee Committee
Stakeholders’ Nomination and Corporate Social Risk Relationship Remuneration Responsibility Management Committee Committee Committee Committee
The composition and the “Terms Based on the nature of task, there helps to periodically review the risk of Reference” of the above are updates on an annual to a areas, evaluate the consequences, Committees of Board are in daily basis; for conditional tasks initiate risk mitigation strategy conformity with the applicable on occurrence of any incident; and implement corrective action provisions of the Companies Act, and, for preliminary tasks, during wherever required. The risk 2013 and the Listing Regulations. pre-construction, construction assessment standards are reviewed For complete details of the Board and operation stages. These are regularly or as and when any of Directors and Committees of then reviewed by the reviewer change in system or process takes the Board, please refer to the (functional head) & chief place or any incident takes place. section GOVERNANCE: Embassy compliance officer. REIT’s Philosophy on Corporate In addition to all policies, Governance in the Annual Report Apart from the comprehensive procedures and internal audit for the FY2020. compliance management system, mechanisms, EOP engages EOP also has an established risk external experts to carry out EOP has established a well- management framework that an independent review of the structured IT-enabled compliance allows identification of business effectiveness of various business management system that provides risks in various segments & processes. All internal audit comprehensive information on tracking of applicable laws in the processes are web-enabled all applicable legal, statutory relevant areas. EOP has also put and managed on-line by the & regulatory laws and its in place strong internal control Management Committee and the management. The system enables systems to evaluate compliance, Audit Committee. Accordingly, the management to track the efficiency & effectiveness of necessary compliance reports compliance status through key processes and risks. The are developed & submitted to comprehensive compliance formal risk assessment and various regulatory authorities dashboards & get cognizance of management system driven by in accordance with applicable the non-compliances immediately. the Risk Management Committee regulations.
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The following policies not only Embassy REIT has y Manager can be removed with govern the conduct of the Board approval of unrelated Unitholders but also the entire fraternity of word class corporate and the SEBI EOP: governance standards y Alignment with Unitholder y Code of Conduct and Ethics Asset interests due to a distribution- y Minimum 80% of value in linked management fees structure y Distribution Policy completed and income y Whistle Blower Policy producing Strong Related Party y Policy on Related Party y Minimum 90% of distributable Safeguards Transactions cash flows to be distributed y Sponsors are prohibited from voting on their related party y Stakeholders Grievances and y Restrictions on vacant land transactions Redressal Policy acquisition y Majority Unitholder approval y Corporate Social Responsibility required for acquisition or disposal Policy Debt of asset which exceeds 10% of y Unit holder approval required if y Risk Management Policy REIT value debt exceeds 25% of asset value y Board Evaluation Policy y Acquisition or sale price of new y Consolidated debt cannot asset cannot deviate from average y Business Continuity Policy exceed 49% of asset value valuation of two independent y Anti-Money Laundering valuers by + / -10% Policy and Anti-Corruption Manager y Fairness opinion from independent Compliance Policy y 50% independent directors valuer required if related party on the Board, with 50% y Prevention of Sexual leases exceed 20% of the representation on all committees Harassment Policy. underlying asset
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Stakeholder Engagement
At Embassy Office Parks Management Services Private Limited (EOPMSPL) we believe that stakeholder engagement is the key to sustainable growth that helps in fostering long term relationships. Creating shared value with our stakeholders and society plays an important role in our continued success.
We also understand that not impacted by our business based continued our efforts towards all stakeholders have direct on peer review, internal expertise, systems implementation in order business engagement with us past experiences, surveys and to aid in the overall engagement but are significant in the broader influence on organisation. EOP has process. context of Sustainability. Key mapped its internal and external stakeholders are those who have stakeholders and has identified - We proactively engage with actual or potential significant employees, customers, statutory stakeholders formally and impact on our business, and in bodies, lenders, unitholders informally to share information, turn are impacted by us. We have / investors and society as its discuss company’s priorities, identified stakeholders who are stakeholders. In addition, we programmes and performance,
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and determine opportunities and the society. We are also in interactions. In the current to collaborate to work towards the process of developing the reporting year, we interacted common goals. We engage in Sustainability strategy and we with our employees, business regular interaction with them believe that these stakeholder partners (suppliers and vendors), through a range of multi-channel interactions will be elemental regulatory authorities and communication medium. The in calibrating the strategy and local community. The more engagement begins at the shaping this report. non-traditional stakeholders inception of any project right from such as the NGOs, consumer the feasibility study, construction We periodically engage our groups, special interest groups and acceptance of project. We internal and external stakeholders and activist groups as relevant consult with the stakeholders in on pre-defined schedules and however need focus. We plan the region, remodel our approach on an ongoing need basis. The to engage with our other to reduce the adverse impact from stakeholders’ concerns are stakeholder groups in the next the operations on the environment also responded during these reporting cycle.
A summary of our approach to stakeholder engagement is presented below.
• Annual Meetings & AGMs Investors / • Quarterly results and distribution Unitholders • Throughout the year by interaction through dedicated email -ids • Website and publications and stock exchange announcements
Government Agencies / • Participation in conferences, forums and meetings Regulators • Compliance reports submission and feedback • Visits and audits
Community • Awareness campaigns • CSR initiatives • Feedback mechanism and evaluation process through meetings
Employees • Satisfaction surveys • Performance management systems half yearly • Interactions, Training sessions and Periodic communications
Suppliers & Contractors • Supplier meetings • Feedback through plant visits • Feedback mechanism and evaluation process
This being the first ESG Report about Sustainability and why Further EOP had conducted by EOP, involvement of only EOP has chosen to take steps several brainstorming sessions and the internal stakeholders has in this direction at each of the remote meetings regularly with been primarily considered. EOP locations. Subsequently, to derive the dedicated internal stakeholder interacted with these stakeholders maximum information from these team on the Identification of from different verticals like consultations focussed group potential material goal from ESG Operations, EHS, Finance, Investor discussions at each location was for each vertical, prioritisation Relations, CSR and Marketing the key methodology adopted. A of ESG matters. Based on the team, HR, Compliance and Legal two-day awareness session was prioritisation, the ESG matter were in regular meetings that were also conducted for all the relevant the discussed with the Senior conducted to progress on this stakeholders who will contribute Management including the CEO first ESG report at each location. towards the report with the active and the COO. The first meeting was a brief involvement of the leadership team.
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Materiality Matters
The Company has been one of the foremost proponents of inclusive growth and since inception it has been undertaking projects for overall development and welfare of the society.
The Company aims to contribute issues are addressed through reflects our vision, action plans to sustainable growth of the various material topics identified and progress towards the different society at large. As a means by an assessment process key challenges faced by us across to this end, the Company will keeping in mind a sustainable various aspects of sustainability. continue responding to society’s approach, stakeholders’ view and expectations and demands in importance to business. Since During the reporting cycle, we a holistic and decisive manner this is our first year of reporting, conducted a comprehensive in the fields of environment, the assessment has been done materiality assessment based on conservation of natural internally through a survey of and Global Reporting Initiative resources, health, education, rural employee’s representatives and (GRI) sector supplement for development, among others. management discussions. construction and real estate sector and Sustainability Accounting Materiality of information is the The insights gained from Standards Board (SASB) soul of sustainability reporting. stakeholder engagement guidelines for home builders, real For us at EOP, the challenges process helped us to identify estate and real estate services. posed by the three pillars of the sustainability challenges and sustainability (viz., economic, opportunities which are relevant environmental and social) are of to our business as well as our equal importance. Specifically, stakeholders. We believe that we are focusing on economic these material issues are the crux performance, climate change of our Sustainability Report as it and social responsibility. These
Our process for conducting the materiality assessment is outlined below.
1. Identification and compilation of issues/aspects relevant to EOP through an extensive study of the material issues: a. identified by global peers b. identified in the GRI sectoral guideline c. identified through stakeholder interactions d. identified by the core sustainability team of EOP
2. Seek inputs from the senior management on the issues/ aspects that are significant to EOP.
3. The relevant aspects were then prioritised into moderate, high and very high based on the criticality of the identified issue/aspect.
4. Following the prioritisation, the material aspects were reviewed and validated by the senior management of EOP.
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Material topics identified as relevant for EOP
Biodiversity Water Compliance Procurement Practices
Energy Diversity & Equal Health & Safety Remuneration Opportunity
Emissions Waste management Materials Grievance mechanisms
`
Anti-corruption Local Communities Labour relations Labour practices
Economic performance Transport Employment Training & education
Topics highlighted in orange are prioritised
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Awards and Certifications
The awards we have received over the years inspire us to continue excelling at what we do. These are some of the major awards we have received over the years.
1. Platinum award for “Best Office 3. Embassy Oxygen won the “Best participated in this competition. REIT” by REITs Asia Pacific Best Project – Corporate IT Park” Highlights of the PMC Garden of the Breeds REITs Awards at the workplace Excellence Competition 2020 are – 2019 Awards 2020 by iNFHRA (The Infrastructure Facility Human • Embassy Quadron won 2nd and 2. Embassy TechZone park, Resource & Realty Association). 3rd price in Seasonal flowers Pune receive the Winner category Trophy under the category of 4. Pune Municipality Corporation “Ecological Sustainability”. At (PMC), had organised their • Embassy TechZone won 1st iNFHRA (The Infrastructure 40th Garden competition price in Industrial garden Facility Human Resource & 2020 on 15th and February 16, category (Above 2.5 Acers) Realty Association) Workplace 2020. First time we (Embassy Excellence Conference & Quadron, Embassy Qubix • Embassy Qubix got Awards 2019-20 and Embassy TechZone) had motivational certificate
Times Business Awards 2018 Vestian FM Zone Most Environment Friendly Commercial / India Leadership Awards 2012 – Embassy Office Space - Embassy Manyata GolfLinks
CNBC Awaaz Real Estate Brand Extraordinaire Awards 2010 Embassy Group Commercial Best Commercial Property In Southern Region - Embassy GolfLinks
British Safety Council Sword of Asia Pacific Property Awards Honour Award 2017 in FY2017 Embassy Manyata and Embassy Best Commercial Renovation/ TechZone won the British Safety Council- Redevelopment in India – Express Towers Sword of Honour Award
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Memberships And Associations
The REIT Manager, EOPMSPL is a member of The National Association of Software and Service Companies for the FY 2020. NASSCOM is the premier trade body and chamber of commerce of the Tech industry in India and comprises over 2800 member companies including both Indian and multinational organisations that have a presence in India.
This is to certify that
Embassy Office Parks Management Services Pvt Ltd
is a Member of NASSCOM
Valid Till :31 March 2021 Membership ID : NSCM/2015/11/3609 Debjani Ghosh New Delhi,India President
Embassy Office Parks REIT is a member of Asia Pacific Real Estate Association (APREA) - a leading pan-Asian association made up of pension, insurance and sovereign wealth funds, investment and asset managers, family office platforms, developers and respected service providers. APREA represents our relentless commitment to the Asia Pacific’s real estate industry with an emphasis on advocacy, investment, continuous improvement, innovation, and high-quality member service.
73 Embassy Office Parks REIT / Total business ecosystem
GRI Index
General Disclosures Reference GRI standard Disclosure page number Remark 102-1 Name of the organisation Page 4 102-2 Activities, brands, products, and Page 4-8 services 102-3 Location of headquarters Page 9 102-4 Location of operations Page 4 102-5 Ownership and legal form Page 10 Unitholding pattern included 102-6 Markets served Page 4 102-7 Scale of the organisation Page 01, 4-8, 52 The financial parameters disclosed in the report also includes consolidated financials from Hilton at Embassy GolfLinks, Four Seasons Hotel and Embassy Energy Private Limited which is a part of the Embassy REIT portfolio but outside the reporting boundary 102-8 Information on employees and other Page 52 workers 102-9 Supply chain Page 26 102-10 Significant changes to the organisation Page 12 and its supply chain 102-11 Precautionary Principle or approach Page 14, 20 102-12 External initiatives We are not subscribed to any charters 102-13 Membership of associations Page 73 Memberships & Associations 102-14 Statement from senior decision-maker Page 2 102-15 Key impacts, risks, and opportunities Page 20 102-16 Values, principles, standards, and - The value, principles statement will be norms of behaviour framed and reported in the next report 102-18 Governance structure Page 64-67 102-40 List of stakeholder groups Page 68-69 102-41 Collective bargaining agreements Page 52 102-42 Identifying and selecting stakeholders Page 68-69 102-43 Approach to stakeholder engagement Page 68-69 102-44 Key topics and concerns raised Page 68-69 102-45 Entities included in the consolidated Page 1 financial statements 102-46 Defining report content and topic Page 1 Boundaries 102-47 List of material topics Page 70-71 102-48 Restatements of information - This is the first reporting period 102-49 Changes in reporting - This is the first reporting period 102-50 Reporting period Page 1 FY 2020 102-51 Date of most recent report - This is the first reporting period 102-52 Reporting Cycle - Annually 102-53 Contact point for questions regarding Page 1 the report
74 Environmental, Social & Governance Report, FY2020
Reference GRI standard Disclosure page number Remark 102-54 Claims of reporting in accordance with Page 1 This report has been prepared in the GRI Standards accordance with the GRI Standards: Core option 102-55 GRI content index Page 74 102-56 External assurance Page i-iv BSI opinion statement is attached Economic Performance 201-1 Direct economic value generated and Page 22 The financial parameters disclosed in distributed the report also includes consolidated financials from Hilton at Embassy GolfLinks, Four Seasons Hotel and Embassy Energy Private Limited which is a part of the Embassy REIT portfolio but outside the reporting boundary. Only the revenue and Net operating income for the 11 parks are captured. Environmental 302-1 Energy consumption within the Page 34 Separate segregation of energy usage organisation for cooling, heating and steam is not reported as data is not captured in this format. 303-3 Water withdrawal Page 39 305-1 Direct (Scope 1) GHG emissions Page 36 The GHG impact due to release related to the refrigerant of chillers and ACs leakages are not included 305-2 Energy indirect (Scope 2) GHG Page 36 emissions 306-2 Waste by type and disposal method Page 41 307-1 Non-compliance with environmental Page 42 laws and regulations Social 401-1 New employee hires and employee Page 49, 52 turnover 404-1 Average hours of training per year per Page 53 The training of outsourced workers and employee vendors are handled by their employer 413-1 Operations with local community Page 54 Local community engagement is the engagement, impact assessments, and most important parameter for our development programmes operations in this standard. We may attempt to report the other parameters in coming reports. The CSR activities are carried out at the portfolio level and also includes activities for Embassy Energy outside the reporting boundary
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