Integrated developer Frasers Property (Thailand) Plc (FPT) continues its journey towards meeting environmental, social and governance (ESG) as well as sustainability goals as it aims to be a net-zero carbon corporation by 2050.
Thanapol Sirithanachai, country chief executive officer, said the property industry plays a critical role in driving decarbonisation as it is responsible for roughly 40% of total global carbon emissions, primarily from materials used in construction and electricity used to operate and maintain properties.
"Our parent firm Frasers Property Limited [FPL] early last year announced its commitment to be a net-zero carbon corporation by 2050," he said. "FPL and all of its subsidiaries worldwide embrace sustainable development and strive to do business without exploiting people of today and tomorrow."
As a subsidiary, FPT adopted this global policy last year, starting with training and educating all employees on sustainability throughout 2021. The employees are now empowered to act on its sustainability goals, such as going paperless and waste separation, said Mr Thanapol.
The roadmap for 2022-23 is to embed ESG into its business models throughout the entire value chain -- from investment to design, development and operations -- with a focus on carbon reduction, energy efficiency and innovative solutions.
The sprawling Omnichannel Distribution Center developed by Frasers Property Thailand's industrial business.
"All new industrial and commercial projects such as warehouses, office buildings and retail centres we develop from now on will be green-certified," he said. "Existing projects that are not green buildings will be gradually renovated with energy-conservation materials."
With an aim to decarbonise, the company plans to instal solar rooftops on rental warehouses and some commercial properties over the next 3-5 years. It targets at least 80% of all its owned and managed properties obtaining green certification by 2024.
"It is not easy to get green certification for existing buildings because obtaining such a certificate considers all the processes from the beginning, including pre-construction, construction and post-construction processes," said Mr Thanapol.
He said green financing, meaning loans that support environmentally-friendly activities, will become a big trend as financial institutions gradually stop lending to businesses that emit carbon such as coal.
Mr Thanapol said for residential projects, FPT will improve the well-being of residents both socially and environmentally by adding green spaces, designing glass-roofed laundry areas for drying clothes, selecting materials to reduce energy and resource consumption, and using air filter technology and EV chargers.
Mr Thanapol
"We adopted the ESG practice many years ago," he said. "In terms of property management, we applied green management for property projects including waste management, resources management, recycling and upcycling."
Mr Thanapol said several of the company's properties are already green-certified with universal designs. FPT developed a commercial project such as Samyan Mitrtown with that concept in mind, he said.
Samyan Mitrtown offers space for general public use, such as a sky garden and Samyan CO-OP, which is a free co-learning space that people from all walks of life can use 24 hours a day.
"Real estate is a people-centric business. If we develop it and no one uses it, it will be lifeless," he said. "We are a place maker and space creator that develops projects that connect with people."
The company's social contributions include taking care of employees, who should be happy physically and mentally when working because this means they will be more efficient, said Mr Thanapol.
In terms of governance, FPT is a listed company and it always complies with the Stock Exchange of Thailand's regulations on good corporate governance in all aspects, such as transparency and fairness in management, as well as responsibility for society and environment, he said.
"With climate change, competition, trade tariffs, customer demand and employee needs, ESG practices are no longer 'nice to have', but rather a necessity for all corporations," said Mr Thanapol.
"If you don't do it today, you will be left behind."