This article first appeared in The Edge Malaysia Weekly on October 28, 2024 - November 3, 2024

Axis Real Estate Investment Trust (REIT) (KL:AXREIT) took to the stage for the first time at The Edge Malaysia ESG Awards 2024 after clinching the silver award in the REIT category.

Its CEO Leong Kit May says one of the firm’s biggest achievements, when it comes to sustainability, is obtaining five green building certifications, encompassing over three million sq ft of space.

Leong says a lot of engagement and collaboration is required to obtain green building certification. All of the company’s achievements, she adds, can be attributed to the ambitious targets it set in 2023.

They include the reduction of its combined Scope 1 and Scope 2 greenhouse gas (GHG) emissions to as close to zero as possible, or achieving net zero by 2050 or earlier.

Furthermore, the firm aimed to secure one new green building certification every year while meeting explicit reduction goals for energy consumption, water usage, GHG emissions and waste. Such a strategic focus enhances the firm’s sustainability credentials and reinforces its commitment to environmental stewardship.

The key challenge for Leong and Axis REIT in maintaining its ESG performance in the past year was obtaining comprehensive data for analysis and reporting.

To address this, the firm actively engaged internal and external shareholders throughout the year to ensure it gathered transparent and accurate data.

“In 2023, we took an additional step to enhance the credibility of our ESG disclosures by securing independent limited assurance for selected environmental and social metrics. This initiative is crucial for reinforcing trust in our ESG reporting and ensuring the integrity of the information we provide,” she says.

Asked what is one of the key aspects that sets Axis REIT apart from its peers in its ESG practices, Leong says it is the firm’s comprehensive approach in incorporating ESG criteria into its due diligence checklist for new property acquisition.

In the fourth quarter of last year, the firm further enhanced its due diligence checklist for new property acquisition by including vulnerability assessment for climate risks. This is to ensure the firm rigorously evaluates its potential acquisition targets.

Looking ahead, Leong hopes to see the regulators continue to enhance their efforts at raising awareness of ESG standards.

“As ESG requirements for public listed companies like us continue to evolve, it will be crucial for the entire supply chain to follow suit. This collective effort will support a more comprehensive approach to achieving Malaysia’s ESG goals,” says Leong.

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