Governance

Sound Corporate
Governance

We prioritize strong corporate governance to ensure sound decision-making and build trust with our shareholders and stakeholders. Our professional board of directors and dedicated committees are committed to transparency, responsibility, and sustainable growth.

Kendall Square REIT Management, in line with Article 14 of the Real Estate Investment Company Act, oversees our REIT's asset investment and operations for mid to long-term growth. The Risk Management, Investment Review, and ESG Committees (established in 2021) play pivotal roles in enhancing corporate value and driving our mission of sustainable development.




POLICIES


  • ESG Policy

    Our ESG policy formalizes our longstanding commitment to responsible business practices by integrating ESG considerations into our investment decisions and management processes.


  • Code of Ehics & Business Conduct

    We have been dedicated to uphold our legal and ethical responsibilities and establish corporate transparency throughout our business activities. In November 2021, we established the Code of Conduct & Business Ethics to strengthen the foundation of ethical management in the middle of the rapidly changing business environment. In doing so, we provide clear standards of judgment and behavior for members to practice fair and transparent business conduct.


  • Supplier Code of Conduct

    We are dedicated to maintaining high legal and compliance standards, as outlined in our Code of Conduct and Business Ethics Policy. We expect our suppliers to share our commitment to ethical business practices, sustainable development, fair employee treatment, and environmental responsibility.



  • Corporate governance policy


    ESR KendallSquare REIT ensures robust corporate governance by delegating asset management and general affairs to specialized companies, as per the Real Estate Investment Trust Act. We maintain a stable, transparent, and rational governance structure to support sound management. The manager (Kendall Square REIT Management) upholds strict internal control standards and a code of ethics, overseen by a compliance officer. Our risk management and investment review committees ensure thorough analysis and informed decision-making, backed by a comprehensive legal and risk management framework.







Governance structure


ESR KendallSquare REIT is governed by a general meeting of shareholders and a board of directors, established in line with the Commercial Act and Real Estate Investment Trust Act. These bodies ensure transparency, enhance investment returns, and protect investors through their decision-making and oversight roles.

Our board consists of six logistics REITs experts, including an internal auditor who is a certified public accountant. We maintain a minimum of three directors and one auditor, as specified in our articles of incorporation. Under the Real Estate Investment Trust Act, we are not required to appoint outside directors. Notably, female representation on our board increased in 2022. All board members and our internal auditor comply with the legal qualifications, ensuring robust and qualified governance.







ESG policy and action


ESR KendallSquare REIT's ESG strategy and policy are established by the ESG Committee. Subsequently, detailed action plans are drawn up by ESG-related personnel and relayed to the various business departments. Diverse efforts are made so that all employees are aware of the ESG strategy and policy. We conduct ESG training for all employees every year to raise their understanding of ESG. We also introduced the annual 'ESG Champion' scheme, under which awards are given for outstanding performance in terms of sustainability, to spread ESG values throughout the company.