SLP and GLP focus on ESG integration

February 08, 2022 | 16:37
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SEA Logistic Partners (SLP) and its joint venture partner GLP have incorporated strict environmental, social, and governance criteria in their strategies and due diligence to ensure sustainable development across their operations in Vietnam.
SLP and GLP focus on ESG integration
SLP and GLP focus on ESG integration

SLP has formed a joint venture with GLP, a global investment manager and business builder in logistics, real estate, infrastructure, finance, and related technologies, in October 2020 to develop modern logistics real estate in Vietnam.

The partnership enables SLP to leverage GLP’s fund management, development, operation expertise and resources, as well as GLP’s extensive global customer network to create world-class industrial and logistics infrastructure in Southeast Asia to support the growth of customers and the region’s economic development.

GLP takes a thoughtful, innovative, and sustainable approach to growth and value creation for its customers and investors, from expertly investing capital to efficiently operating its business. This mindset flows into the joint venture with SLP, benefiting countries with their projects.

With a global presence of 68 offices in diverse markets across the Asia-Pacific, Europe, and the Americas, GLP has set strict environmental, social, and governance (ESG) criteria for its operations.

With climate change and risk management as the highest priority, the company has added a comprehensive set of ESG considerations into its investment review process to support the transition to sustainable business and protect investors from associated risks.

GLP is committed to a broad range of ESG policies and initiatives to manage risk, elevate the business, create value for investors, support employees and customers, and show respect to the local communities.

According to Ming Mei, co-founder and CEO of GLP, during 2020, the company took its sustainability responsibility to the next level by evaluating all it had accomplished and expanding ESG policies to better integrate sustainability measures into their business and investment decisions. “As a global leader and pioneer in our industry, we have a responsibility to our shareholders, investors, customers, partners and ourselves to be ambitious in our sustainability efforts and we plan to deliver on that responsibility across the markets and in the communities where we work and operate,” said Mei.

Mei said GLP had been a people-focused business since their founding but their focus on health and safety during the pandemic was a potent reminder that to build a lasting and sustainable business, people matter the most.

“Building sustainable businesses and investing responsibly means embedding ESG into our business and investment decisions. Our activities can have a material impact which can affect our businesses, stakeholders, communities, environment, and reputation,” he added.

The company renewed its commitment to sustainability by integrating ESG policy deeper into business and investment decisions. Notably, it developed a new due diligence process that covers environmental and social aspects and improved ESG governance to a level equal to ethical standards and company values.

As a customer-centric business, GLP knows sustainability is an essential part of its customers’ businesses.

Last year the company rolled out sustainable building guides in multiple markets to support customers achieve sustainability goals that incorporate elements like increased insulation, LED lighting, water refuse systems, solar and renewable energy, biodiversity and green fields surrounding buildings, exterior colours harmonised with the landscape and more.

It also collaborated with customers on disaster and emergency response planning and the transportation of emergency relief supplies to support local communities.

Looking ahead, ESG Policy Commitments will be integrated into the investment approach across fundraising, screening and due diligence of investments as well as developing and managing the assets.

GLP’s key ESG achievements by 2020

- Launched an updated ESG policy and due diligence process to incorporate more ESG considerations into the investment review process;

- Achieved the world’s first building verified as Net-Zero Carbon for Construction in Europe;

- 21 per cent of GLP buildings are certified with international green certifications.

- Reached 224MW solar power, generating 235,000MWh.

- Formed a partnership with Contemporary Amperex Technology Co., Ltd. to expand the use of clean energy in logistics and transportation;

- Raised more than $2.3 billion of sustainability linked loans and green bonds;

- Increased the size of GLP China’s Spring Charity Foundation to support 24,000 students in 56 schools; and

- Launched an internal learning platform with over 100 diversity and inclusion programmes to upskill and train colleagues.

SLP operation in Vietnam

Since entering Vietnam in October 2020 through a joint venture with GLP, SLP has acquired six development sites with a total land area of more than 780,000 square metres. Over the next 3-4 years, the joint venture aims to invest approximately $1 billion to build 1-1.5 million sq.m of modern logistics real estate in Vietnam. SLP will initially focus on the two largest markets in the country, Greater Hanoi, and Greater Ho Chi Minh City, and nearby provinces. So far, the two first developments have started construction in Haiphong city in the north and Long An province in the south.

SLP is committed to ESG initiatives and is focused on making sustainability a core component of its business by practising responsible investing and development and promoting greater well-being in Vietnam.

By Bich Ngoc

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