SLP’s sustainable development in logistics

SEA Logistics Vietnam, an industrial infrastructure developer and GLP’s operational platform in Southeast Asia, is making significant strides in integrating sustainability at the core of its business operations.

Through a comprehensive range of environmental, social, and governance (ESG) initiatives, the company (SLP) aims to create value for stakeholders, support its employees and customers, and show respect to the communities in which it operates.

Since its establishment in Vietnam in 2020, SLP has emerged as a top provider of modern logistics facilities in Vietnam and a partner of choice for customers of various industries, boasting an investment portfolio of nine state-of-the-art logistics facilities, totalling nearly one million square metres.

These strategically located facilities offer comprehensive solutions to diverse customer demands, aligning with SLP’s commitment to industry-leading ESG standards and frameworks.

In its pursuit of growth, SLP places a premium on environmental protection and green building certifications throughout the development and asset acquisition process. Internally, the company invests in enhancing tenant experience and service quality, including the installation of energy-efficient equipment and the creation of verdant open spaces.

To further enhance energy efficiency, SLP integrates sustainable practices into every facet of its assets, spanning energy, water supply, irrigation, and waste treatment. Notable features include LED lighting, VFD pumps, and readiness for solar panel rooftop installation at all facilities. Water and irrigation systems incorporate smart technologies, drought-tolerant landscaping, and high-efficiency fixtures. Comprehensive waste management systems are in place to monitor, recycle, and conduct waste steam audits.

The company embraces a global and local approach to sustainable business practices, engaging with local governments and communities to embed environmentally conscious elements into its operations. SLP remains dedicated to upholding the highest standards of corporate governance, ensuring enhanced corporate performance and accountability.

“We aim to be a leader in ESG in the region and globally because we believe sustainability is an essential part of our long-term success,” said Kent Yang, SLP chairman. “By continuously improving our ESG policy, programmes, and performance, we aim to meet or exceed the evolving standards and expectations of our shareholders, investors, employees, partners, and communities.”

In recognition of its sustainability commitments, SLP Park Yen Phong in Bac Ninh province achieved LEED certification in February 2023, while SLP Park Haiphong received LEED certification in August.

SLP Park Haiphong uses a concrete roof for office areas, tile roof with an insulation layer for warehouse areas, brick walls, sandwich rockwool panel wall, and solar control glass to reduce interior artificial lightning and save energy, with more than 90 per cent of regularly occupied spaces boasting effective daylighting.

Furthermore, as part of a global effort, the group endorses various industry ESG standards and frameworks, upholding transparency and benchmarking. GLP has been reporting to GRESB, the global ESG benchmark for real estate assets, since 2013, consistently achieving its Green Star rating. In 2021, GLP became a signatory to the UN-supported Principles for Responsible Investment, demonstrating its ongoing commitment to responsible investing.

To address climate change risks, GLP is actively increasing investments in renewable energy to support the global energy transition and decarbonisation efforts. By the end of 2022, the group had achieved a solar energy capacity of 700MW and has plans to further invest in wind energy capacity, as well as solar, wind, electric vehicles, and battery technologies.

In its ongoing pursuit of ambitious net-zero targets, GLP has conducted a thorough market review of peers and industry best practices. This effort has culminated in a comprehensive carbon reduction strategy and roadmap, encompassing both business and real estate portfolios, along with private equity investments, all of which incorporate science-based targets.

Additionally, GLP is on track to establish GHG emissions targets for scope 1-3 emissions by 2025, in alignment with the guidance provided by the Science-Based Targets Initiative. They have received 463 green building and energy certifications in its real estate portfolio, which covers 14.84 million sq.m.

In a noteworthy philanthropic endeavour, GLP has also donated over $1.6 million directly to charitable organisations and through the GLP Foundation, contributing to the wellbeing of local communities and those most in need.

Craig A. Duffy, global head of Fund Management said, “Sustainability is an important factor to help future-proof our business and support long-term value creation for our shareholders and investment partners. We regularly communicate and engage with our stakeholders on our ESG policies, commitments, and progress to ensure priorities are aligned.”

Vietnam Investment Review