ESR Group Limited (“ESR” or the “Company”, together with its subsidiaries as the “Group”; SEHK Stock Code: 1821), APAC’s largest real asset manager powered by the New Economy, Mitsubishi Fuso Truck and Bus Corporation ( “MFTBC”), and Daimler Truck Financial Services Asia Co., Ltd.

( “DTFSA”), have signed a Memorandum of Understanding (“MOU”) to work together to accelerate the electrification of the logistics supply chain in Japan.

The ESR/MFTBC MOU defines five focus areas of collaboration:

1. Development of green charging network for FUSO zero-emission vehicles (“ZEVs”) at ESR's logistics facilities mainly in the metropolitan area of Japan.

2. Joint consideration of utilisation of ESR’s logistics facilities in Japan to promote implementation of carbon neutral logistics, such as installing infrastructure for ZEVs.

3. Joint development of a strategy and commercial model to supply renewable energy to FUSO's ZEVs at ESR’s logistics facilities using rooftop and ground-based solar power generation systems to enhance the environmental value of EV truck operation.

4. Consideration of strategies for utilising FUSO's ZEV batteries or recycled batteries at ESR's logistics facilities in Japan to contribute to the efficient use of EV battery resources.

5. Aiming to contribute to regional decarbonisation through potential expansion of the above initiatives and knowledge to ESR’s facilities in the Asia-Pacific region.

Stuart Gibson, ESR Group Co-founder and Co-CEO, said: “As part of our focus on creating a low-carbon and climate resilient future, we are delighted to partner MFTBC to jointly develop environmentally 2 friendly e-mobility solutions to accelerate the electrification of logistics vehicle fleets in Japan. As the transportation industry shifts towards electrification, the need for efficient and reliable charging solutions for trucks at warehouses is paramount. By leveraging our comprehensive warehouse network, ESR is well-positioned to support our customers’ shift towards electric vehicles for logistics.”

Alexander Loesing, Chief Transformation Officer of MFTBC, commented: “The partnership framework with ESR and DTFSA is a remarkable initiative to support decarbonisation in logistics from both vehicle and facility perspectives. We believe that the installation of rapid chargers at ESR facilities as the first step of the partnership will lead to establishing additional operation models of ‘eCanter’ regardless of driving ranges and so further expansion of ‘eCanter’. We will take a lead to decarbonising logistics by a wide range of activities by the three companies.”

Hans-Georg von Gumppenberg, CEO & Representative Director of DTFSA, says, “The collaboration with ESR and MFTBC significantly fortifies our FUSO Green Lease solution, elevating our ecosystem to offer customers a more sustainable alternative in the leasing market. This strategic partnership aligns with our commitment to environmental responsibility and enhances the overall value proposition for our customers.”

The first initiatives of the collaboration will be the installation of quick EV chargers for eCanters (MFTBC’s light-duty electric trucks) at key ESR's distribution centres located in the Greater Tokyo Bay area from Chiba to Kanagawa Prefectures starting in 2024.

The electricity for truck charging will primarily be generated by solar power generation equipment installed on the rooftop of ESR's distribution centres, realising the sustainable operation models of eCanter that ESR and MFTBC are aiming for. Additionally, the high-quality rest areas at ESR’s distribution centres will allow drivers to take their breaks while their vehicles are being charged.

To accelerate positive impact for a sustainable future, ESR unveiled its ESG 2030 Roadmap in May 2023.

The foundation of the roadmap is aligned to the Group’s three key pillar ESG Framework and strategy: creating a Human Centric environment that is safe, supportive and inclusive for internal and external stakeholders; developing and maintaining a sustainable and efficient Property Portfolio; and delivering outstanding Corporate Performance for sustained and balanced growth with the highest standards of governance. Targets of the 2030 Roadmap include installing 1,000 MW of rooftop solar power capacity, attaining sustainable building certifications and ratings for 50% of the Group's portfolio, and reducing energy consumption intensity in line with the Group’s Net Zero Carbon commitment and decarbonisation roadmap. To learn more about the ESG initiatives and targets of ESR, please visit:

https://www.esr.com/environmental-social-governance/

Related Reading:

ESR Australia has signed leading logistics provider Toll Group at its c.A$1.2 billion Westlink Industry Park in Kemps Creek | The Industrialist

ESR launches A$1 billion ESR Australia Development Partnership II (EADP II), partnering with GIC  | The Industrialist

ESR Starts Development on Largest Logistics Park in Japan | RE Talk Asia

ESR Unveils its ESG 2030 Roadmap Accelerating Positive Impact for a Sustainable Future | RE Talk Asia

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eCanter truck charging at ESR Logistics Centre