2024 | Digital Edge ESG Report
At Digital Edge, we bridge the digital divide by empowering those in underserved markets to access high quality, high speed digital infrastructure. And as the demand for digital resources continues to grows exponentially, we want to invest in the world’s digital future both sustainably and responsibly.
INNOVATE WITH PURPOSE ESG REPORT 2024
CEO Letter INTRODUCTION to report on annually to provide our stakeholders with As Digital Edge enters its 昀椀fth year of operations, In 2023 we exceeded this goal at NARRA1 in Manila, we continue to progress our ESG journey facing both the most transparent picture of our progress. I would becoming the 昀椀rst data center in the Philippines to RESPECT FOR challenges and opportunities along the way. like to draw your attention to several signi昀椀cant receive LEED Gold certi昀椀cation and the 昀椀rst data RESOURCES highlights from 2023: center in Southeast Asia to achieve EDGE (Excellence in Together, our team is working to advance our business Design for Greater E昀케ciencies) certi昀椀cation, a standard RESPECT FOR objectives and expand our footprint, while keeping true • Digital Edge Awarded EcoVadis Platinum Medal to our shared vision to build the sustainable digital developed by International Finance Corporation (IFC). PEOPLE AND We completed our submission to sustainability ratings We are also on track to achieve LEED Gold at our newly infrastructure of the future. We are adapting, innovating COMMUNITIES agency EcoVadis for the 昀椀rst time in 2023 and we were launched data center in Jakarta, EDGE2, and remain and evolving our business but always with a purpose RESPECT FOR honored to receive EcoVadis’ Platinum Medal, placing committed to building responsibly across all our greater than ourselves. That is the core of our ESG Digital Edge at the top 1% in our industry. To achieve TRANSPARENCY ongoing construction projects. framework at Digital Edge – Respect. Respect for EcoVadis Platinum is an accomplishment for any Resources, Respect for People and Communities and company. For us, achieving it at such an early stage APPENDIX Respect for Transparency – a blueprint that embodies in our company’s development is especially exciting. We look forward to your feedback as you read this a set of dynamic processes and holds us steadfast in I commend our ESG Steering Committee and all report and, as ever, myself and our founders remain our goal of Innovating with Purpose. members of the Digital Edge team for this honor. open to hearing suggestions for new innovations or • Renewable Energy Procurement Continues initiatives that can support us to further progress our Investors, customers, employees and community ESG goals. Although we are still at the beginning of our Another important ESG e昀昀ort that remains crucial to members globally are increasingly watching data center journey, I am con昀椀dent in our commitment to embed the industry’s sustainable evolution is the continued operators like us and expecting us to uphold our values. responsibility and sustainability across all our endeavors transition to renewable energy sources. While we have However, it isn’t enough to be dedicated solely to to achieve our mission to bridge the digital divide. In this observed some challenges in procuring renewable pioneering world-class technology that will revolutionize report we rea昀케rm our commitment to continue to energy in parts of the Asia-Paci昀椀c region, in only a few data center e昀케ciency. In addition, we must focus our innovate – for Digital Edge, our team, our communities years we have successfully achieved 11% supply across e昀昀orts on broader initiatives including energy our platform. We recognize there is still much more and our planet – with purpose. conservation, fair treatment of our people and to do and remain committed to our ambitious goal communities and upholding the ethics that are intrinsic to transition 50% of operational data center electricity to our organizational DNA. We don’t just want to meet Sincerely, to renewables by 2025, and 100% by 2030. We will the expectations of our stakeholders, we want to exceed continue to work with our partners and investors them – every day, across our footprint. in this pursuit. Our third annual ESG Report builds on the aspirations • Growth in Green Buildings set out over the last two years, and outlines the concrete Since day one we have embedded green building Samuel Lee actions taken across our ESG pillars in 2023 to progress principles across our design and construction CEO our commitments. In this report, we present key ESG processes with a target to achieve a minimum of metrics from across our business which we will continue LEED Silver for all our new build data center projects. © 2024 Digital Edge ESG Report 2
ABOUT DIGITAL EDGE Digital Edge is investing in INTRODUCTION innovation for the digital infrastructure RESPECT FOR RESOURCES of the future. We believe in growth RESPECT FOR PEOPLE AND COMMUNITIES and transformation, with purpose and RESPECT FOR TRANSPARENCY sustainability in mind. APPENDIX Digital Edge is a trusted data center platform company building Headquartered in Singapore and with 昀椀nancial backing from enterprise and hyperscale sites throughout the Asia-Paci昀椀c region. Stonepeak, our commitment to developing the digital infrastructure We focus on secure, scalable and interconnected facilities to support in the Asia-Paci昀椀c region goes beyond mere growth. We strive for the evolving needs of businesses, including the demands required for sustainable expansion, recognizing the impact our growth can have Arti昀椀cial Intelligence (AI), for reliable and e昀케cient data management on the environment, organizations and communities we engage with. and connectivity. We are innovating with purpose, shaping the digital landscape with a pragmatic and strategic focus on e昀케ciency, sustainability and We operate cutting-edge, energy-e昀케cient data centers, leveraging client-centric 昀氀exibility. localized expertise to tailor solutions for diverse markets. This regional positioning empowers us to deliver a distinct approach, o昀昀ering customers a spectrum of choices for their data center needs, from the straightforward to the intricate. © 2024 Digital Edge ESG Report 3
ABOUT DIGITAL EDGE Our sites in operation or under construction (HQ) Singapore, Headquarters (4) Busan, South Korea (RO) Hong Kong, Regional O昀케ce (5) Beijing, China Expanding Asia-Paci昀椀c (1) Osaka, Japan (2 Data Centers) (6) Navi Mumbai, India INTRODUCTION (2) Tokyo, Japan (7 Data Centers) (7) Jakarta, Indonesia (2 Data Centers) Footprint (3) Seoul, South Korea (2 Data Centers) (8) Manila, Philippines RESPECT FOR RESOURCES RESPECT FOR PEOPLE AND COMMUNITIES RESPECT FOR 5 TRANSPARENCY 2 3 Japan APPENDIX China 1 4 6 Countries Korea RO 1.4M+ Hong Kong Square Feet Total IT Space 450+ 6 Passionate Experts India 8 Philippines 500+MW Singapore, Of Total Power* * Headquarters HQ 17 Data Centers 7 © 2024 Digital Edge ESG Report Indonesia *Includes sites under construction. 4
ABOUT DIGITAL EDGE Our Values INTRODUCTION RESPECT FOR RESOURCES We have a deep respect for people, cultures and talent and lead business in an ethical RESPECT FOR Respect way that promotes powerful connections and collaborations. PEOPLE AND COMMUNITIES RESPECT FOR TRANSPARENCY APPENDIX We nurture a problem-solving culture in which diverse ideas and nascent technologies Innovation are used to scale applications and business success. Grit We are driven by a focus and determination to achieve results. We thrive on challenges and excel in the face of adversity and complexity. We are continuously evaluating and optimizing every aspect of our business to deliver Excellence the highest possible performance quality and precision. We conduct business with discipline and transparency and can be relied upon to do Responsibility what’s right for our colleagues, clients, communities and the planet. © 2024 Digital Edge ESG Report 5
ESG AT DIGITAL EDGE Building ESG Expertise innovations that guide our progress and underscore Our responsibility to our stakeholders and the our accountability to stakeholders. Our ESG e昀昀orts are environment aligns with our expansion e昀昀orts. The a collaborative e昀昀ort, shared with our partners, suppliers Building ESG infrastructure we are building and the interconnection and customers, collectively working to build the digital options we are delivering create seamless ecosystems. infrastructure today that is needed for Asia’s digital future of tomorrow. INTRODUCTION We work to empower our local operations, recognizing Expertise the importance of understanding the diversity of our RESPECT FOR footprint across Asia-Paci昀椀c. Our Environmental, Social ESG Governance and Governance (ESG) initiatives are the fundamental Our ESG Governance is guided by key Digital Edge leaders RESOURCES principles that underscore our dedication to sustainability whose roles align directly with our ESG pillars. These leaders serve as champions, actively involving their RESPECT FOR at Digital Edge. Our ESG pillars are Respect for Resources, PEOPLE AND Respect for People and Communities and Respect for teams in ESG-related processes, promoting our values COMMUNITIES Transparency. Integrated with our core values, these internally and externally and contributing to the positive RESPECT FOR pillars help drive our business success in both mature ESG culture across the organization. The ESG Steering and emerging markets. Committee plays a vital role in discharging the company’s TRANSPARENCY responsibilities, further cementing our commitment to In our 3rd ESG Report, we are proud to share our pursuing a long-term sustainability strategy that goes APPENDIX achievements, data-driven insights and strategic beyond mere short-term pro昀椀t. ESG STEERING COMMITTEE Samuel Lee Jay Park Charmaine Cheng John Freeman Chief Executive Chief Development Senior Vice President, President People and Culture O昀케cer O昀케cer Liane Cresswell Jonathan Walbridge Andy Rigoli Naz Ghouse Chief Financial O昀케cer Senior Director, Chief Business Director, ESG Corporate Operation O昀케cer © 2024 Digital Edge ESG Report Communications 6
ESG AT DIGITAL EDGE ESG Highlights INTRODUCTION RESPECT FOR RESOURCES RESPECT FOR Respect for Resources Respect for People Respect for Transparency PEOPLE AND and Communities COMMUNITIES 0.35 RESPECT FOR st total recordable TRANSPARENCY 1 >220 incident rate, 275% colocation data demonstrating APPENDIX center in Jakarta to Volunteer our excellent increase in booking and operate on 100% Hours safety record precontracted revenues renewable energy delivering CSR activities across Korea, Indonesia, Philippines and Singapore 74% 100% st st Employee of our operational 100% 1 1 engagement data centers achieved Innovation in LEED Gold rate international standards Uptime Energy E昀케ciency achieved by a data Award center in Manila certi昀椀cations Innovate with Purpose Cutting-edge Secured Top 1% Platinum Medal Investment in cutting- wins edge energy e昀케ciency with from hyperscale ® accounts, demonstrating in our 昀椀rst third-party Sustainability Statepoint Cooling, Fuel our ability to handle Program Assessment by EcoVadis Cell Technology and Hybrid JAN 2024 Super Capacitor high-power density © 2024 Digital Edge ESG Report deployments 7
ESG AT DIGITAL EDGE Digital Edge’s ESG e昀昀orts align with the insights derived and anchored in our core value of respect—Respect from our Materiality Study conducted in 2021 and for Resources, Respect for People and Communities and reviewed annually. These 13 topics are those most Respect for Transparency— these topics form the key Materiality important to our stakeholders, presenting signi昀椀cant priorities in our overarching ESG strategy. We continue opportunities to in昀氀uence our business in the short to evaluate our key materiality topics with plans to INTRODUCTION and long run. Grouped under our three ESG pillars update our assessment in the next year. RESPECT FOR RESOURCES RESPECT FOR ESG Pillars Material Topics PEOPLE AND COMMUNITIES RESPECT FOR TRANSPARENCY GHG Energy Water Circular Respect for Emissions Management Management Economy APPENDIX Resources Respect for People Health Human Diversity, Community and Safety Capital Equity and Relations Management Inclusion and Communities Business Customer Responsible Respect for Supply Chain Ethics Privacy and Data Security Transparency © 2024 Digital Edge ESG Report Business Economic Continuity Performance 8
ESG AT DIGITAL EDGE Material Topic De昀椀nitions INTRODUCTION RESPECT FOR RESOURCES RESPECT FOR Respect for Resources Respect for People and Communities Respect for Transparency PEOPLE AND COMMUNITIES GHG Emissions We are implementing processes to actively measure Health and The occupational health and safety of our employees Business Ethics We employ sound governance practices including and manage Scope 1 (own operations), Scope Safety and contractors is a top priority. We assert the anti-bribery and corruption, tax compliance, RESPECT FOR 2 (indirect emissions) and Scope 3 (value chain) importance of transparent incident reporting anti-competitive behavior, whistleblowing and TRANSPARENCY greenhouse gas emissions. Includes exposures to and drive a High-Risk Activities Program that other required compliance. We work to ensure our GHG emissions regulation and our e昀昀orts to mitigate helps maintain a workplace free of serious injuries, employees and partners share our values and ethics. emissions through technology, reduction and o昀昀sets. illness and fatalities. We strive for zero incidents. APPENDIX We e昀昀ectively train our employees and transparently share our progress. Customer We have robust data handling and storage practices, Energy We have robust strategies for energy consumption, and proactively review security to ensure customer Privacy and Management energy e昀케ciency and intensity and energy-related data is private and con昀椀dential. We secure Data Security compliance. These encompass our renewable energy Human Capital We uphold the highest labor standards in our best-in-class data management certi昀椀cations sourcing, leading energy usage practices and energy Management workplace. We respect human rights and ensure across our locations. e昀케ciency projects. fair wages and overtime pay and other important workers’ rights. We have policies and procedures in place to e昀昀ectively attract, retain and incentivize Responsible We extend our commitment to ESG practices to Water We emphasize responsibility in our consumption of employees to act as partners in our company’s Supply Chain our partners through ongoing engagement, and growth and success. water, water usage e昀케ciency, and the management Management consider the social and environmental issues which of wastewater and e昀툀uent discharge and recycling impact across our supply chain. in our data centers. Diversity, Our workforce re昀氀ects the diversity of the markets Equity and we serve. We are committed to non-discrimination Business We actively manage risks to our business and the and undertake e昀昀orts to create an inclusive Circular Our Basis of Design emphasizes the life-cycle economy and are acutely aware of the systemic Inclusion Continuity environment that fosters an equitable platform for management of our data center’s materials and importance of our data center infrastructure to Economy employee growth. We engage with our employees component parts. We manage the scarcity in critical the operation of many sections of the economy. around DEI regularly and ensure they feel welcomed raw materials and are committed to green building and accepted at Digital Edge. standards and certi昀椀cates, and reuse and recycling wherever possible. Economic We have a strong business strategy in place that will ensure our continued and sustainable growth Community We engage with local populations in the Performance as a company and our ability to execute our plans Relations communities where we operate and ensure those in each market. communities are not adversely impacted by our existence. We invest in job creation, local capital expenditures and strong stakeholder engagement to remain an active and trusted business in our © 2024 Digital Edge ESG Report communities. 9
ESG AT DIGITAL EDGE Key Performance Indicators - Targets & Results INTRODUCTION RESPECT FOR RESOURCES Pillars Material Topics Targets 2023 Results RESPECT FOR Respect for GHG Emmissions Across portfolio, transition 50% of operational data center electricity to renewables by 2025, and 100% by 2030 11.72% renewable energy PEOPLE AND Resources Energy Management 100% of all new green昀椀eld developments achieve a minimum LEED Silver Certi昀椀cation Achieved NARRA1 - LEED Gold. On track to meet COMMUNITIES or exceed at BOM1, EDGE2, SEL2 and TYO7 RESPECT FOR EDGE2 PUE 1.24, NARRA1 PUE 1.193, Our ambition is to design all new green昀椀eld developments to achieve a target annualized design PUE of 1.25 or better at TRANSPARENCY * ** and SEL2 PUE 1.25 100% load Water Management Design all new green昀椀eld developments to achieve WUE range of 1.0 - 1.50 or better Achieved at EDGE2 and NARRA1. (WUE is not APPENDIX applicable for BOM1, SEL2, and TYO7 as the sites are air-cooled.) Circular Economy Minimum of one circular economy-related project across our footprints per calendar year 3 projects: Recycling in EDGE1, PUS1 and SEL1 Respect for Health & Safety Our aim in safety is to perform signi昀椀cantly better than the industry standards for TRIR. Operations TRIR: 0.0 People and Operational Data Centers: TRIR 0.6 or less | Construction: TRIR 1.5 or less. Construction TRIR: 0.46 Communities Note: TRIR = Total recordable incident rate 100% of construction and operational sites certi昀椀ed with ISO 45001 (Health and Safety) and ISO 14001 (Environment) 100% Management System Human Capital Management Annual employee attrition rate 99.999% for customer facing infrastructure 100% © 2024 Digital Edge ESG Report Economic Performance 500+MW by 2027 500MW (Includes sites under construction) * While we aim to achieve this target whenever possible, factors like climate, resources, and deployment needs can a昀昀ect PUE. If unable to reach
ESG AT DIGITAL EDGE The United Nations Sustainable Development Goals (UN SDGs) and their associated targets were created to address barriers to economic, social and environmental Endorses the United Nations progress. Every company has a responsibility to analyze their activities and understand how they align and INTRODUCTION support these important global goals. We have aligned Sustainable Development Goals our ESG strategy with the eight UN SDGs most relevant RESPECT FOR to our business. RESOURCES RESPECT FOR PEOPLE AND COMMUNITIES RESPECT FOR TRANSPARENCY APPENDIX We are committed to setting aggressive goals As we grow and add employees to the Digital Edge Digital Edge’s growth includes brown昀椀eld and We are actively hiring across all levels of our team, we prioritize their health, safety and green昀椀eld construction across the Asia-Paci昀椀c related to procurement and use of renewable energy organization in the Asia-Paci昀椀c market, ensuring across our footprint. well-being and develop training and programs region. In all construction projects, we work with well-paying, technology-related jobs exist in the that align with these goals. We also ensure our local leaders to ensure our processes consider water communities where we operate. construction processes consider the health and scarcity and availability and take into consideration well-being of those who live and work in the footprint the way our facilities process and consume water in of our facilities. every local geography where we operate. We help our customers achieve their business Nearly two billion people in the Asia-Paci昀椀c region As we build data centers across the Asia-Paci昀椀c We are committed to aligning our carbon emissions objectives in a dynamic and growth-oriented region lack access to the internet. By providing important region, we employ a circular economy focused reduction process to Science Based Targets (SBTs) through necessary technology infrastructure across technology infrastructure across the region, we can approach to ensure our build processes consider and setting a roadmap to achieve carbon neutrality the region. meaningfully increase the access for individuals the lifecycle of all materials and recycle and reuse in this decade. in cities and communities to technology and its materials wherever possible. © 2024 Digital Edge ESG Report bene昀椀ts. 11
RESPECT FOR RESOURCES As a data center provider, it’s critical we embrace innovation to tackle environmental challenges Investing in new ways of and future-proof our business. By continuing to adopt cutting-edge technologies and processes we will be able to achieve our ambition to build INTRODUCTION working and operating. the most e昀케cient, reliable and sustainable data RESPECT FOR RESOURCES centers in the world. RESPECT FOR Jay Park PEOPLE AND Chief Development O昀케cer COMMUNITIES RESPECT FOR TRANSPARENCY APPENDIX In our 昀椀rst ESG Report in 2022, we set an As we grow and mature as a company, we Materiality Topics and Key Performance Indicators: aggressive goal to achieve carbon neutrality are consistently evaluating our existing and at Digital Edge by 2030. In line with that goal, potential environmental impact to ensure GHG Energy we are investing in innovative ways of working best-in-class management of resources, Emissions Management and operating that support our responsible strategic use of new technologies and usage of energy, waste and water with a investment in renewable and heightened focus on biodiversity and circular carbon-free energy. Water Circular economy principles. To bring us closer to all Management Economy our ESG goals, we are ensuring our design and build approach includes new technologies that can be deployed responsibly, e昀케ciently and at scale. © 2024 Digital Edge ESG Report 12
GHG Digital Edge is committed to incorporating innovation across our operations to ensure we Emissions mitigate our carbon footprint and are prepared for the future. INTRODUCTION data center electricity consumption to renewable or carbon-free Green Building Certi昀椀cation at Digital Edge* sources by 2025, and 100% by 2030. RENEWABLE ENERGY AT DIGITAL EDGE RESPECT FOR We know that bold steps are required to reduce the RESOURCES Metric Unit 2021 2022 2023 In 2022, we implemented a carbon management tool, carbon footprint and enhance the energy e昀케ciency completed analysis of Scope 1 and 2 emissions and became of our industry. We believe we are setting the highest Total square Square 2.1 2.11 2.25 RESPECT FOR footage under feet million million million one of the 昀椀rst data center leaders in Asia to commit to SBTi standards for sustainable data centers in the and the iMasons Climate Accord globally. In 2023, we began PEOPLE AND management Asia-Paci昀椀c region. For example, our EDGE1 data center COMMUNITIES assessing our Scope 3 emissions, beginning with data in Total square Square 0 0 0.14 the categories of employee commuting and business travel. utilizes a 100% Renewable Energy Certi昀椀cate to support geothermal power sources, making it the 昀椀rst RESPECT FOR footage of feet million We will continue to expand our data-collection to include fully operating colocation data center in Jakarta to do TRANSPARENCY buildings with a additional Scope 3 categories and will share this data as it so. We are also in the process of assessing renewable green building becomes available. We are also committed to continuing energy options for our EDGE2 facility. Additionally, our certi昀椀cation collaboration with Digital Edge vendors and suppliers that APPENDIX PEK1 data center in Beijing is now sourcing 50% of its share our ESG principles to improve our Scope 3 data tracking. power from renewable sources, namely wind and * For fully operational sites only. All square footage stated in 2021 and 2022 hydroelectricity. Though our work in this area were facilities acquired. Our carbon reduction process remains focused on 昀椀ve key areas: continues, these are key steps to achieving our 1. Renewable Energy Procurement ambition for carbon neutrality by 2030 and sourcing Even with the limited availability of renewable energy in 50% of our power from renewable resources by 2025. We know that globally, data centers and data transmission the APAC region, we continue to purchase green power and 1 networks represent 1% of energy-related GHG emissions, capture credit for grid-supplied renewable energy across our a percentage that is likely to grow based on the need for footprint to hit our targets. additional capacity every year. We believe our industry can 2. Building Green make changes today that ensure our carbon footprint decreases We have continued to pursue LEED Silver Certi昀椀cation for CO2 Emissions at Digital Edge* even as our overall footprint increases. all new Digital Edge facilities. In 2023, our new NARRA1 in Metric Unit 2021 2022 2023 the Philippines achieved LEED Gold Certi昀椀cation. Digital Edge is working to achieve carbon neutrality by 2030 3. Carbon Accounting through several strategies, including transitioning 100% of our Scope 1 Metric Tons 240 650 613 In addition to tracking Scope 1 and 2 emissions, we are Emissions operational data center electricity consumption to renewable or beginning to assess key categories of Scope 3 emissions carbon-free sources. Consistent with this goal, we have joined Scope 2 Metric Tons 18,794 73,120 82,725 across Digital Edge’s footprint. the Science Based Targets initiative (SBTi) and set a near-term, 4. Facilities Innovation Emissions company-wide emissions reduction target. We are also a Taking a holistic approach to sustainable data center Scope 3 Metric Tons --- --- 984** member of iMasons Climate Accord - a coalition whose mandate Emissions design and operations including considering factors such as is to achieve global carbon accounting of digital infrastructure modernizing outdated equipment and spearheading energy to in昀氀uence market-based decisions and drive the industry to e昀케ciency projects in our legacy facilities. achieve carbon neutrality. 5. Carbon O昀昀sets Carbon Reduction Progress and Goals As we progress towards achieving our 2025 and 2030 * Includes only fully operational sites ** Digital Edge began Scope 3 emissions calculations for business travel and goals, we are committed to o昀昀setting our remaining carbon Our commitment to carbon reduction and mitigation across our employee commuting in year 2023 footprint through responsible nature-based initiatives and © 2024 Digital Edge ESG Report footprint includes strategies to address emissions now and in community-focused projects globally. the future. Our ambition is to transition 50% of our operational 1 13 https://www.iea.org/energy-system/buildings/data-centres-and-data-transmission-networks
Energy From our company’s inception, sustainability has been ingrained in Digital Edge’s business. Management INTRODUCTION At the core of our focus on sustainability is energy e昀케ciency developments to achieve a target annualized design PUE of 1.25 and industry-leading Power Usage E昀昀ectiveness (PUE). or better at 100% load. While this is our target and we will strive LEED CERTIFICATION ACHIEVEMENTS RESPECT FOR We focus on energy e昀케ciency upgrades to legacy sites and to achieve this wherever possible, we acknowledge there are AT DIGITAL EDGE RESOURCES design all our new build data centers using the latest technology a multitude of factors that can impact PUE, such as external Digital Edge’s Data Center Design Standards adhere that will enable us to better manage our carbon footprint. climate conditions, local availability of resources and customer RESPECT FOR deployment requirements. Where we are unable to achieve to the criteria set for LEED Silver Certi昀椀cation, as determined by the U.S. Green Building Council. Given the advancements of data and growth of global a PUE of
Energy CASE STUDY Management Manila Data Center Wins Energy INTRODUCTION E昀케ciency Award RESPECT FOR RESOURCES RESPECT FOR Digital Edge won the prestigious W.Media enabled the NARRA1 data center to achieve a market Asia-Paci昀椀c Cloud & Datacenter Award for Innovation leading annualized PUE of 1.193. We estimate that PEOPLE AND COMMUNITIES in Energy E昀케ciency, for our NARRA1 data center in the cooling technology has enabled us to achieve Manila. The award recognizes our e昀昀orts to pioneer annual electricity and water savings at NARRA1 of RESPECT FOR groundbreaking cooling technology to achieve approximately 11% and 33% respectively. We are TRANSPARENCY market leading levels of energy and water e昀케ciency, proud that NARRA1 is one of the most advanced a signi昀椀cant achievement given the hot and humid and sustainable data centers in the market today. APPENDIX climate of the Philippines. ® The deployment of StatePoint liquid cooling (the 昀椀rst commercial colocation operator in Asia to use this technology) alongside NARRA1’s e昀케cient engineering design, including LEED Gold certi昀椀cation, As a data center operator, investing in energy e昀케ciency is a win-win, because e昀케cient energy management is critical in both meeting our carbon targets and delivering cost savings to our customers. We’re aligning our business objectives with our ESG obligations to create purpose. Vic Barrios © 2024 Digital Edge ESG Report Country Manager, Philippines, Digital Edge 15
Energy CASE STUDY Management Digital Edge Secures INTRODUCTION its First Green Loan RESPECT FOR RESOURCES RESPECT FOR Digital Edge secured its 昀椀rst-ever green loan to and energy for the data center’s shell and core. 昀椀nance the initial phase of development for our The energy e昀케ciency objectives for SEL2 are aligned PEOPLE AND COMMUNITIES new data center in South Korea, SEL2. This 100+MW with Digital Edge’s commitment to be a carbon neutral campus will be the largest commercial colocation data center platform by 2030. RESPECT FOR campus in South Korea and will leverage our next TRANSPARENCY generation architecture to achieve market-leading This award-winning green loan is structured standards of energy e昀케ciency, including realizing a referencing the latest Green Loan Principles published APPENDIX targeted annualized design PUE of 1.27, signi昀椀cantly by the Loan Market Association, Asia-Paci昀椀c Loan 4 below the global industry average of 1.55. Market and the Loan Syndications and Trading Association. The 昀椀nancing consortium includes both The facility is on track to achieve LEED Silver and will international and domestic banks and the loan will be also utilize fuel cell technology, called Bloom Energy, issued in two tranches, a 昀椀xed tranche and a 昀氀oating to reduce greenhouse gas emissions and generate tranche over a 5-year term. The joint Green Loan electricity with more predictable energy costs and Co-ordinators for the 昀椀nancing were Crédit Agricole greater reliability to power the general lighting CIB and ING Bank N.V. (“ING”). 4 https://uptimeinstitute.com/about-ui/press-releases/2022-global-data-center-survey-reveals-strong-industry-growth Our 昀椀rst green loan is a key milestone in our growth journey and is evidence of how the economic performance of our platform goes hand in hand with our commitments to sustainability. We are excited to progress our Seoul project and bring world class digital infrastructure to this thriving market. © 2024 Digital Edge ESG Report Jonathan Walbridge Chief Financial O昀케cer 16
Water At Digital Edge, we are dedicated to constructing facilities that excel in Water Usage E昀케ciency Management (WUE) and ensuring responsible management of wastewater across our regions. ® INTRODUCTION We have committed to minimize water consumption wherever The deployment of Nortek’s Statepoint Liquid cooling feasible and target a WUE range of between 1.00 to 1.50 for technology in key facilities provides water savings of 20% Water Use at Digital Edge* RESPECT FOR new data centers in our Basis of Design. for data centers in hot and humid climates and almost 90% RESOURCES in cooler climates compared with previous indirect cooling Metric Unit 2021 2022 2023 Water Usage E昀케ciency Progress and Goals systems. Water withdrawn Cubic 10,886** 106,826** 118,053 RESPECT FOR In 2023, we continued our e昀昀orts in tracking water withdrawal and consumption across our footprint with the implementation We have also taken considerable measures to implement meters PEOPLE AND COMMUNITIES of data tracking processes that enabled us to fully calculate our water treatment programs and real-time monitoring and Water Cubic 10,886** 106,826** 118,053 WUE, outline key opportunities for water management optimization methods to decrease overall water withdrawal consumed meters RESPECT FOR processes and implement water management technologies from our facilities. In our SEL2 campus in Korea, we use Percentage of Percentage 26 11 1 TRANSPARENCY in key sites. We use technical guidance and tools from World water-e昀케cient 昀椀xtures, landscape features that require little water withdrawn Resources Institute Aqueduct 4.0 to assess water stress. irrigation and have installed submeters to track usage over in regions with Two of our current geographic locations – Beijing and Jakarta time. In our EDGE2 facility in Jakarta, we use potable water APPENDIX high or extremely – are in high or extremely high baseline water-stressed regions, from rainwater collection for landscape irrigation and WC high baseline where it will be even more important to select appropriate 昀氀ushing as well as AC 昀氀ushing throughout the facility. water stress cooling technology that supports reducing our water usage. These actions have shown positive results. * Includes only fully operational sites **Data includes updates from previous year’s report © 2024 Digital Edge ESG Report 17
Circular Digital Edge’s growth focuses on building smart and embedding sustainability in the Economy development processes of both green昀椀eld and brown昀椀eld upgrades and expansions. INTRODUCTION Recycled Waste in 2023 EPIC AND WASTE4CHANGE RESPECT FOR In August 2023, Digital Edge hosted the second Edge RESOURCES Peering & Interconnect Conference (EPIC) Asia. EPIC 38.9% aims to bring together senior leaders from the subsea, RESPECT FOR SEL1 PUS1 EDGE1 recycled network infrastructure peering and interconnect PEOPLE AND (Korea) (Korea) (Indonesia) communities worldwide, to solve Asia’s biggest COMMUNITIES infrastructure deployment challenges. Hosted in RESPECT FOR Jakarta, Indonesia, this event was attended by senior professionals from more than 60 companies across TRANSPARENCY the digital ecosystem. 32.3% As part of our partnership with Waste4Change, APPENDIX composted an environmental services company specializing in sustainable waste management solutions, we directed Collaborated with the event’s waste to recycling through Waste4Change’s 61% 56% Waste4Change Zero Waste Services. Of the 60kg of waste collected at recycled recycled the event, 34% of the non-recyclable waste was diverted for fuel reuse, 60% was diverted to recycling 28.8% and 6% was composted. We are encouraged by our processed into alternative progress but know this is a small step and there is fuel production more work to do in our waste and recycling e昀昀orts. Our Basis of Design build process considers the full lifecycle of At our SEL1 and PUS1 in South Korea, Digital Edge has a data center and prioritizes circular economy principles such implemented successful waste management systems involving as closed material loops and lifecycle analysis at every stage of recyclables. These two sites are tracking and recording infrastructure development. With practices such as prioritizing recyclables with the aim of decreasing the amount of both reuse and recycling and partnering with consultants in green general and recycled waste. We recycled 61% of all waste at build designs, we can signi昀椀cantly reduce waste and emissions SEL1 and 56% of all waste at PUS1. We will continue to track of our facilities. and report on our progress as the systems mature. At our EDGE1 facility in Jakarta, we have actively collaborated with Circular Economy Progress and Goals Waste4Change since 2022 to advance our responsible waste, In our construction processes, we monitor recycling, reuse and recycling and conservation practices. We have committed to other circular economy initiatives and their e昀昀ects. Recognizing zero waste to land昀椀ll at this site and of the waste generated at that facilities can evolve in capacity and environmental impact EDGE1 in 2023, 38.9% of it was recycled, 32.3% composted and © 2024 Digital Edge ESG Reportover their lifecycle, we prioritize longevity and sustainability in 28.8% processed into alternative fuel production. We also plan our approach. to collaborate with Waste4Change in our EDGE2 facility in 2024. 18
Biodiversity Through responsible practices and conscious e昀昀orts, we strive to contribute to the preservation and enhancement of the biodiversity surrounding our facilities. INTRODUCTION Biodiversity at Digital Edge Digital Edge understands the importance of biodiversity EXISTING PROPOSED SITE RESPECT FOR conservation as a key factor when developing our sustainability DC 01 SITE FOR FUTURE EXPANSION RESOURCES strategy and objectives. We are just beginning our e昀昀orts in this area and plan to develop a corporate-level biodiversity RESPECT FOR management guide in 2024 that will allow us to measure our biodiversity performance across our operational footprint. PEOPLE AND COMMUNITIES As part of our Sustainability Impact Activities, EDGE2 in RESPECT FOR Indonesia has partnered with a local community program that TRANSPARENCY supports the planting of 3,200 Mangrove seedlings in Pulau Tidung, in recognition of the importance of nurturing native B biodiversity in the communities where we operate. As we APPENDIX A mature in this area of our ESG strategy and work, we will continue to participate in programs and initiatives that are EXISTING aligned with our ESG goals and have the most impact. DENSE TREES SITE OPENING IN INDIA The BOM campus is Digital Edge’s 昀椀rst data center project in India and will be 300MW at full capacity, making it one of the largest facilities in Asia. It is designed to cater to hyperscale, high power density deployments, leveraging Digital Edge’s cutting-edge engineering architecture. Given the BOM campus is on an ecologically diverse site, we partnered with architecture 昀椀rm, Edi昀椀ce, to create a design that had minimal disturbance and excavation of the earth, allowing the site to preserve critical tree growth areas and protect soil conditions. We will share more of our progress and sustainability © 2024 Digital Edge ESG Report updates on this site in our next ESG report. 19
RESPECT FOR PEOPLE AND COMMUNITIES We recognize that there are challenges in building a culture of Our people are the key excellence and innovation but believe that we will thrive through teamwork and learning together. INTRODUCTION to driving impact and RESPECT FOR Charmaine Cheng RESOURCES Senior Vice President, People and Culture RESPECT growth across the digital FOR PEOPLE AND COMMUNITIES RESPECT FOR infrastructure landscape TRANSPARENCY APPENDIX at Digital Edge. Our people bring to their teams and roles a As a company that values our people and Materiality Topics and Key Performance Indicators: deep understanding of the markets where we culture, our leadership is focused on: operate and specialized skills and expertise Health Human unique to our industry. • Creating a safe and healthy workplace for and Safety Capital We embrace the unique qualities of our our team members, partners and suppliers. Management local teams and partners and strive to meet • Nurturing an inclusive environment that individual needs while collectively fostering an celebrates our culturally diverse identities Diversity, Community innovative and purpose-driven culture. Success as a team. Equity and Relations is a collective e昀昀ort, and our achievements • Building opportunities for local communities as a company are dependent upon both through job creation and economic Inclusion respecting the unique qualities of our people development in the markets we serve. and creating a shared Digital Edge experience. © 2024 Digital Edge ESG Report 20
Health At the core of our dedication to our team members and partners across our and Safety operations is a steadfast commitment to the health and safety of everyone who enters a Digital Edge facility. INTRODUCTION We emphasize transparent incident reporting and drive a • Prevention of serious and potentially serious incidents. we consistently surpass these goals every operational year 5 and remain steadfast in our commitment to ensure the lowest High-Risk Activities Program to ensure a workplace free of • A learning organization with growth mindset to realize possible TRIR. As we continue to integrate health and safety RESPECT FOR severe injury, illnesses and fatalities. Our commitment is to our shared vision for zero harm. measures into construction and operations processes, we focus achieve zero incidents through an ongoing focus on consistent RESOURCES on three critical areas: (a) Design for Safety, (b) Construction communication, robust change management, adherence to Through these strategic outcomes, we underscore our Safety and (c) Operation and Critical Environment Safety. RESPECT health and safety protocols, e昀昀ective training to our employees, FOR PEOPLE AND commitment to fostering a robust EHS culture, sound prevention visitors and contractors, and fostering a safety-oriented culture COMMUNITIES measures and seamless integration across the entire business. within the workplace. ISO CERTIFICATIONS RESPECT FOR Health and Safety Progress and Goals In 2023 we had no serious injuries or fatalities across the We continue our e昀昀orts to certify all Digital Edge construction and operations of our data centers, and our group TRANSPARENCY Digital Edge embraces a comprehensive Environment, Health total recordable incident rate (TRIR) continued to be low at sites in ISO 45001 standards for health and safety and and Safety (EHS) Policy throughout our management systems, ISO 14001 standards for environmental management. 0.33 globally. We achieved zero incidents to full-time employees outlining our dedication to safeguarding the well-being of our APPENDIX We are proud that all 13 operational sites received and in operational data centers. We continue to steer employees and contractors. This Policy establishes three certi昀椀cation in April 2023. Additionally, asserting our contractors to higher EHS performance. Our TRIR during strategic outcomes for health and safety: construction of our data centers is 0.46, signi昀椀cantly less commitment to go above and beyond in health and safety, all our sites in development phase are certi昀椀ed • A progressive & pervasive EHS culture, where EHS is woven than the latest US OSHA (Occupational Safety and Health with ISO 14001 and ISO 45001. into daily a昀昀airs of the business. Administration) TRIR of 2.5 for the industry. At Digital Edge, Health and Safety Performance Categories 2021 2022 2023 TRIR SIF TRIR SIF TRIR SIF Digital Edge 0.00 0 0.00 0 0.00 0 Employees Construction 0.89 0 0.11 0 0.46 0 Operations 0.00 0 0.00 0 0.00 0 Total 0.50 0 0.10 0 0.33 0 TRIR = Total Recordable Incident Rate SIF = Serious Injury & Fatality Cases © 2024 Digital Edge ESG Report Image courtesy of CKB Integrated Logistics Services. 5 21 Digital Edge de昀椀nes High Risk Activity (HRA) as an activity that has high potential to result in a workplace health and safety Serious Incident or Fatality (SIF) if not adequately controlled.
Health CASE STUDY and Safety Advances in Technology INTRODUCTION At Digital Edge, we are intentional about investing in We also continue to 昀椀nd new and exciting ways to RESPECT FOR technology that raises the bar for the industry. We are use robotics in our facilities to safeguard the wellbeing RESOURCES currently developing an ecosystem of high technology of our employees and contractors. Digital Edge has RESPECT investments that is advancing new ways of building deployed a state-of-the art robot in NARRA1 facility FOR PEOPLE AND and operating. in Manila and soon in our other new facilities. This COMMUNITIES technology allows us to monitor environmental RESPECT FOR With our partner, Donghwa ES, we have developed sensors or abnormal heat, reducing the risks to a Hybrid Super Capacitor (HSC). The HSC can replace data center personnel in hazardous areas. Given TRANSPARENCY lithium-ion batteries traditionally used in data center the high-powered electrical systems that underpin designs. These lithium-ion batteries pose a 昀椀re- servers in data centers, a fault can present substantial APPENDIX hazard that can seriously harm building structure dangers to those servicing the equipment, including and equipment. With its signi昀椀cant decrease in 昀椀re 昀椀re. Robots can be employed to handle initial fault risk, 100,000+ discharge/charge cycles capability, response activities and thereby minimize the risk minimal maintenance, wider operating temperature of injury to personnel. In combination with Big Data range, ability to recharge in minutes vs. hours and and Arti昀椀cial Intelligence, robots’ real-time analysis 2.5X longer lifespan, HSC is a viable and safer option capabilities can help operators act on issues before to traditional lithium-ion batteries. Initial tests have they escalate into major problems. proved successful, and we are beginning to deploy HSC on a small scale across our new data centers. We are embracing transformative technologies and robotics within our data centers to unlock a future where precision meets e昀케ciency, while also creating a safer, smarter and more resilient data center. As these technologies continue to evolve, we are excited to explore new ways to deploy them and bring bene昀椀t to our business and our customers. © 2024 Digital Edge ESG Report John Yung Senior Vice President, Technology & Innovation 22
Human Capital At Digital Edge, we strive to create a sense of purpose and engagement for our employees and Management ensure all receive the support they need to succeed. INTRODUCTION We have expanded our workforce to over 450 employees in employees set and manage their objectives, performance We completed our second “Engage” survey to understand how the three years since our company began, but the competition reviews, including 360-degree feedback, manage their time connected our employees felt to their work and organization RESPECT FOR for talent remains challenging. Industry research suggests a o昀昀 and other personal information. We have developed as well as to listen to key areas they would like to see improved. employee handbooks and new hire onboarding training Our score of 74% indicated above average levels of engagement talent shortage of data center engineers in the coming years, RESOURCES with signi昀椀cant workforce turnover and increased demand modules to help them connect with the team and business compared to industry benchmarks and that employees have a 6 functions more quickly. In 2024, we will put in place an employee positive experience working at Digital Edge. Highlights include RESPECT for data center management globally. This shortage is global, FOR PEOPLE AND referral program to help build our pipeline of future applicants. a sense of togetherness towards the same goals, allowing their but especially concerning in our Asia-Paci昀椀c region where COMMUNITIES We will also be developing an Education Sponsorship program for voices to be heard and entrusted with the responsibility to technology talent remains di昀케cult to source. To ensure we can employees to receive additional support for professional growth. make decisions and choose how they work. Moreover, our attract the best talent in the market, we ensure our bene昀椀ts RESPECT FOR packages and compensation are competitive in our industry. annual attrition rate decreased to 11.45% in 2023 from 14.52% TRANSPARENCY Our leadership team continued regular communication with all in 2022 (about 3% decrease) as we focused on our onboarding We also emphasize the importance of on-the-job training and employees, hosting quarterly town hall meetings to showcase interviews to inform us of how we can address challenges provide self-directed learning and professional growth opportunities across the region. business results, Q&A sessions to dive deeper into topics that during the 昀椀rst few months of joining. APPENDIX are of interest and highlighting our new Value Champion Award Human Capital Management Progress and Goals program that recognizes employees embedding the company In 2024, we look to develop additional well-being initiatives to values into their day-to-day work. We also share an end-of-year support us in continuing to build a more inclusive culture and Digital Edge continues to develop processes to meet employee needs. In 2023, we implemented a new Human Resources newsletter from our CEO to celebrate wins and explain foster a sense of belonging. the strategy and vision of the company for the year ahead. Information System tool “SuccessFactors” which helps © 2024 Digital Edge ESG Report 6 23 https://www.onnecgroup.com/2024/01/08/5-trends-that-will-shape-data-centres-in-2024/
Diversity, Equity, The diverse cultural background of our employees is an integral part of Digital Edge’s founding and Inclusion (DEI) principles and remains key to our success. INTRODUCTION At Digital Edge, we recognize and appreciate the diverse linguistic, cultural and values-based backgrounds that each FEMALE STAFF IN OPERATIONS RESPECT FOR employee contributes to the company. We view our regional At Digital Edge, we’ve gathered the narratives of three women in operations roles to hear 昀椀rst-hand about their journeys. diversity as an asset that allows our employees to learn from RESOURCES These stories exemplify the diverse pathways of women in the data center industry, underscoring the importance of one another, fostering an inclusive and equitable environment. fostering inclusivity and creating an equitable environment for all to thrive. RESPECT Our goal is to create a workplace where everyone can bring FOR PEOPLE AND their best selves to work every day and grow together. COMMUNITIES DEI Progress and Goals RESPECT FOR We are working to achieve a goal of 30% female representation Noriko Terai TRANSPARENCY in the workforce by 2030. We know this is an aggressive goal Operations Procurement Associate given the low representation of women working in the data Noriko stumbled onto data centers during a job search, initially unaware of the center industry globally. More than three-quarters of operators APPENDIX report that their data center workforce is around 10% women industry. However, upon learning about its critical role in supporting everyday technologies, she recognized its potential for stability and continuous development, 7 or less. Digital Edge’s 2023 employee snapshot numbers include 21% women, a slight decrease from our 2022 numbers of 22%. prompting her decision to pursue a career with Digital Edge. To address this, we are actively working to expand our applicant pool of women, ensure that certain roles have a subset of women in the pipeline and include women interviewees during the application process. For current female employees, we are Jessica Baral Magdaong providing access to mentor relationships and participation Site Operations Engineer in Women’s Network seminars which include skill-building Jessica’s journey into the data center industry was sparked by curiosity during her time and networking opportunities. as a subcontractor during the construction of a facility. She became fascinated by the underlying technologies and wanted to learn more. Despite the sector being traditionally In 2024, we are exploring graduate recruitment in India which male dominant, she sees the potential for women to excel in the industry with the right provides exposure and connection to women in the engineering support and encouragement. 昀椀eld. In addition to addressing gender diversity in our pipeline, we are gathering input on how to structure DEI workshops and initiatives for employees for 2024. These initiatives will include team building, engagement, education on diversity and more. 7 Jane Sanchez See Uptime Institute Global Data Center Survey 2021 Operations Support Specialist Jane, coming from a background in the construction sector, recognized the burgeoning opportunities within the data center industry. She knows that a lack of awareness among women around data center opportunities exists but sees these barriers can be overcome through education, mentorship, creating supportive work environments and inclusive hiring practices. © 2024 Digital Edge ESG Report 24
Diversity, Equity, and Inclusion (DEI) 8 INTRODUCTION Employee Snapshot Employee Snapshot: Female Representation RESPECT FOR Nationalities Represented at Director Level and Above: Total Percentage of Female Employees: 2022 2023 RESOURCES 2022 2023 22% 21% American 20% 15% RESPECT Australian 7% 6% FOR PEOPLE AND COMMUNITIES British 5% 4% Percentage of Female Employees at Percentage of Female Employees Below Director Chinese 16% 17% Director Level and Above: Level: RESPECT FOR Filipino 2% 4% 2022 2023 2022 2023 TRANSPARENCY Indian 2% 6% 18% 15% 24% 22% APPENDIX Israeli 2% 2% Japanese 12% 11% Korean 9% 6% New Zealand 2% 2% Singaporean 25% 17% Nationalities Represented Below Director Level: 2022 2023 American 1% 1% Canadian 1% 0% Chinese 35% 10% Filipino 9% 5% Indian 5% 4% Indonesian 3% 61% Japanese 14% 6% Korean 23% 8% Mongolian 1% 1% Singaporean 1% 3% Sri Lankan 7% 1% © 2024 Digital Edge ESG Report 8 The 昀氀uctuations in workforce ethnicity data year over year re昀氀ect our ongoing e昀昀orts to diversify and expand our workforce across various markets and regions. As we continue to hire, changes in percentages may occur. Decreases in speci昀椀c ethnicities are not indicative of a reduction in workforce diversity but rather a result of our expanding employee base in di昀昀erent demographics. 25
Diversity, Equity, CASE STUDY and Inclusion (DEI) EDGE2: Building with Diversity, INTRODUCTION Equity and Inclusion in Mind RESPECT FOR RESOURCES RESPECT Digital Edge’s newly constructed EDGE2 facility in The design concept also includes the intertwining FOR PEOPLE AND Jakarta was designed with core concepts and features of high tech and traditional as a symbolic celebration COMMUNITIES to re昀氀ect and celebrate the local values and culture. of the Indonesian people and their merging of older In addition to celebrating beauty and designing for traditions with modern ideas. RESPECT FOR human delight, the concept integrated culture, spirit, TRANSPARENCY place and the meaningful integration of art. Lastly, the design of EDGE2 e昀昀ectively combines modern and traditional arts to provide a di昀昀erent APPENDIX One of the key considerations in the design philosophy experience that is uniquely Indonesian. The resulting was the incorporation of iconic and traditional space is an inspiring and energetic representation of craftmanship of batik, designs that often incorporate Digital Edge, its innovative employees, valued visitors symbols inspired by nature, folklore and traditional and respect for the rich history and culture of Jakarta. beliefs of Indonesia. With our design concept in EDGE2, we wanted to show that our data center is not only equipped for the future, but also embraces a people-centred approach, exuding a welcoming warmth that resonates with our customer-centric culture in Indonesia. Stephanus Oscar CEO, EDGE DC © 2024 Digital Edge ESG Report 26
Community At Digital Edge, we are committed to being a strong corporate citizen and empowering each Relations data center to address their community’s needs in ways that make sense for them. INTRODUCTION To uphold our commitment as responsible corporate citizens OUR SUSTAINABLE IMPACT INITIATIVE IN-ACTION we must take steps to ensure that our business meets each RESPECT FOR location’s needs and expectations. We are dedicated to actively Indonesia Mangroves participating in and earning the respect of the communities RESOURCES Our Indonesian team planted 3,200 mangrove seeds at where we operate. This involves creating opportunities for Tidung Island in collaboration with Mangrove Jakarta. RESPECT community members and making investments in local initiatives. FOR PEOPLE AND This activity not only contributes to the restoration of coastal COMMUNITIES Community Relations Progress and Goals ecosystems but also serves to mitigate carbon emissions. The initiative involved 20 employees, fostering awareness In 2022, Digital Edge initiated a Sustainability Champions and engagement in environmental responsibility. RESPECT FOR program to empower local leaders in driving Sustainable TRANSPARENCY Impact (SI) within their respective markets. These initiatives Korea Plogging are employee-driven and align with elements of our ESG Digital Edge employees in South Korea participated in strategy, reinforcing our dedication to making a positive impact APPENDIX an environmentally focused plogging project. Plogging, in our communities. The SI activities in 2023 continue to include volunteering employee time, charitable donations and a concept originating from Sweden that involves jogging while collecting litter, was implemented along the rivers in-kind contributions. in Busan as well as the symbolic and culturally signi昀椀cant Han River in Seoul. The organized e昀昀ort involved employees wearing designated plogging gear and utilizing trash bags for litter collection. Philippines Future Talent Project Faculty and engineering students from Colegio de San Juan de Letran-Calamba in Laguana, Philippines visited our NARRA1 data center to see the facility and learn about the day-to-day operations and the electrical and mechanical complexity of operating a data center. Our goal is to do more partnerships and collaborative sessions with learning institutions within the Laguna area to uplift the community and nurture future talent of the industry. Halogen Singapore Halogen Singapore is a charity whose mission is to realize a world made better by future-ready young people, who step up and catalyze change in their communities. Digital Edge’s Singapore employees participated in Halogen’s Network for Teaching Entrepreneurship (NFTE) program which is designed to activate the entrepreneurial mindset and build business skills in youth from underserved communities. The Digital Edge employees served as coaches, supporting the students © 2024 Digital Edge ESG Report in their multi-week training sessions. 27
RESPECT FOR TRANSPARENCY At Digital Edge, good governance goes beyond ful昀椀lling our responsibilities At Digital Edge, our approach to to the company and our employees. It means investing in best-in-class governance practices that support our INTRODUCTION good governance emphasizes approach to innovation and create a RESPECT FOR competitive advantage in the marketplace. RESOURCES RESPECT FOR responsible corporate practices John Freeman PEOPLE AND President COMMUNITIES RESPECT FOR in every aspect of our TRANSPARENCY APPENDIX operations. Our commitment extends to ensuring In 2023 we continued to: Materiality Topics and Key Performance Indicators: our approach to innovation is guided by • Build a culture dedicated to the highest a foundation of integrity and respect for levels of ethics, integrity and transparency. Business Customer all our stakeholders. Privacy and • Operationalize and integrate key policies Ethics We are founded on the principles of and processes across the organization. Data Security accountability, transparency and ethical • Institute due diligence practices to ensure Responsible Supply Business corporate governance. Upholding the highest our partners’ and suppliers’ values and Chain Continuity standards across our value chain is paramount practices match our own. in maintaining trust and ensuring we follow through on our commitments. Economic Performance © 2024 Digital Edge ESG Report 28
Business Through ethical and transparent business practices, Digital Edge remains steadfast Ethics in our commitment to building best-in-class governance across our footprint. INTRODUCTION We foster a shared set of values and ethics among our and good governance. 100% of our new employees have been use of Digital Edge’s networks and more. A full list of our employees and partners through implementing robust trained through TRACE focusing on individual policies and committee charters, policies and governance documents RESPECT FOR governance practices. This includes anti-bribery and corruption compliance processes. For all Digital Edge’s sales, construction are publicly available on our website: measures, tax compliance, prevention of anti-competitive and 昀椀nance department employees, we conducted live training digitaledgedc.com/governance. RESOURCES behavior, whistleblowing and other compliance protocols. on zero tolerance of bribery and corruption (ABC Compliance Through these e昀昀orts, we build trust with our customers, RESPECT FOR Training) with a 100% completion rate. In 2023, we continued investors, employees and other stakeholders. our Third-Party Due Diligence Policy for all third parties prior PEOPLE AND COMMUNITIES to engagement. This policy was launched in 2022 to ensure DIGITAL EDGE HIRES HEAD OF GLOBAL COMPLIANCE Business Ethics Progress and Goals our partners apply the same standards of business conduct In 2023, Digital Edge continued to develop and operationalize RESPECT FOR as we do ourselves. All third parties are subject to the Policy. Meghal Vakil, Senior Compliance Counsel, joined the TRANSPARENCY key compliance policies and practices. We hired a new Head Depending on the category of the Third Party (and their Digital Edge team in 2023 to oversee the revision of of Compliance who is updating our current policies and associated Risk Rating), di昀昀erent levels of due diligence our existing policies and direct ethics and compliance, spearheading new initiatives to ensure we retain strong, and procedures are required. APPENDIX training, risk mitigation and data privacy governance ethical standards. initiatives. She brings with her over 18 years of We have in place several individual policies and procedures experience in technology law, food law, real estate We continued our partnership with TRACE, an international that address anti-corruption, anti-bribery, insider trading, tax law and contract documentation. In her prior role, business association dedicated to anti-bribery, compliance compliance, modern slavery, whistleblower concerns processes, she spearheaded Global Ethics Compliance, managing ethics and compliance, risk mitigation, data privacy and digital legal contracts. As a part of the Tata group for 13 years, she has worked in di昀昀erent industries such as Manufacturing, Retail and FMCG with companies such as Voltas, Tata Starbucks and Tata Consumer Products Limited. We are pleased to have Meghal join our team to ensure we retain our robust, ethical standards. © 2024 Digital Edge ESG Report 29
Customer Privacy Digital Edge’s data handling and storage practices ensure robust data management and and Data Security security in line with our industry’s highest standards. INTRODUCTION Our customers deserve and expect high protection against cyberattacks, data leaks and breaches from us as their RESPECT FOR partners. To meet these expectations, we have implemented a comprehensive set of practices that instill strong trust RESOURCES in the security and integrity of our data center systems. RESPECT FOR This commitment extends to ensuring the safety not only PEOPLE AND of our customers but also their users. Our proactive measures COMMUNITIES are designed to fortify the protective layers safeguarding against potential threats. RESPECT FOR Customer Privacy and Data Security Progress and Goals TRANSPARENCY We prioritize the privacy of all stakeholders, including customers, website or facility visitors, suppliers, partners and APPENDIX other collaborators in our business. We take our responsibility to protect stakeholder data seriously and align ourselves with the certi昀椀cations that are leading the data center industry. In 2023, Digital Edge had no reported incidences of data breach. In 2023, Digital Edge also introduced a Visitor Management System (VMS) to streamline access and check-in/out processes for contractors and visitors at our data centers. This automated system e昀케ciently handles site visits and Permit to Work (PTW) requests and uses authentication features to issue access cards via electronic kiosks, categorizing individuals accordingly. The VMS is an important addition that balances customer experience with the needs for data privacy and security. We will continue to adopt the latest technologies that deliver privacy and security, improved e昀케ciencies and the best customer experience. DATA SECURITY AND PRIVACY CERTIFICATIONS ACHIEVED In April 2023, all Digital Edge’s operational data centers achieved ISO 27001 standards for information security management systems. Digitial Edge has also added two additional privacy and security certi昀椀cations. All operational data centers have achieved SOC2 Type 2 and Payment Card Industry Data Security Standards (PCI DSS) related to © 2024 Digital Edge ESG Report internal security controls and systems. We plan for new sites to be certi昀椀ed within one year of opening. 30
Responsible Our dedication to ESG practices extends to our partners through continuous Supply Chain engagement, considering the social, environmental and governance factors that in昀氀uence our entire supply chain. INTRODUCTION At Digital Edge, we require ethical and compliant practices from our partners, vendors and suppliers that are aligned with our RESPECT FOR standards. Our Business Partner Code of Conduct outlines our expectations, ensuring adherence to all relevant laws, rules and RESOURCES regulations. This also includes compliance with anti-corruption RESPECT FOR and anti-bribery laws speci昀椀c to operational regions. PEOPLE AND COMMUNITIES Responsible Supply Chain Progress and Goals In January 2024, Digital Edge was awarded RESPECT FOR EcoVadis’ Platinum Medal in our 昀椀rst year TRANSPARENCY of completion of its assessment. The EcoVadis supply chain management platform assesses businesses on various aspects of sustainability APPENDIX JAN 2024 including environmental, labor and human rights, ethics and sustainable procurement performance. Digital Edge’s Platinum Medal puts us in the top 1% of the best companies in our sector across 21 sustainability criteria. Our compliance department is currently working to update our Business Partner Code of Conduct letters, noti昀椀cations and other processes. The goal of this policy update is to solicit an annual commitment and certi昀椀cation of ESG compliance to build on our existing practices and ensure there are no obligations to comply outside Digital Edge’s own policy. Additionally, all suppliers, particularly those deemed medium to high risk, undergo assessment through our GAN Integrity Portal. Digital Edge employs a comprehensive framework to determine a supplier’s level of risk. Suppliers categorized as medium or high risk undergo a thorough background check, aligning with our goal to maintain a 100% risk assessment coverage by 2025. Continual assessment and process updates enable us to consistently revise and enhance our Business Partner Code of Conduct and expectations as we grow and expand. © 2024 Digital Edge ESG Report 31
Business Ensuring uninterrupted operability is crucial for the long-term sustainability Continuity of our business. INTRODUCTION Digital Edge is dedicated to safeguarding against key risks such as weather-related incidents, 昀氀oods and 昀椀re. We remain steadfast RESPECT FOR in providing our customers and partners with the uninterrupted operability needed in today’s digital landscape. RESOURCES RESPECT FOR Business Continuity Progress and Goals PEOPLE AND In 2023, Digital Edge achieved 100% uptime in all our data COMMUNITIES centers and had no information security incidents. As the digital landscape changes, we are raising the standard of infrastructure RESPECT FOR in both the developed and emerging markets to future-proof our TRANSPARENCY business. We take a proactive approach and invest in enterprise risk management (ERM) to maintain uptime performance and protect against potential business interruptions. APPENDIX Our state-of-the-art infrastructure addresses considerations like weather, seismic activity, access to water, 昀椀re suppression systems, emergency management systems and other integrations to ensure business continuity. We are also deploying technologies like big data and robotics in key facilities to monitor and optimise data in real time, maximise uptime and enhance overall e昀케ciency. In 2023, Digital Edge conducted our 昀椀rst emergency simulation training to test and evaluate the e昀昀ectiveness of our escalation process 昀氀ow. The exercise identi昀椀ed strengths, weaknesses and areas for improvement in response procedures as well as the team’s readiness in handling such incidents. We continue to improve our escalation processes and utilize our Risk Management Policy that provides a framework to assess, monitor and mitigate risks across our footprint. ASSESSING CLIMATE RISK AND RESILIENCE In 2023, we continued our collaboration with Jupiter Intelligence, a renowned authority in climate risk analytics, to perform climate risk analysis for all Digital Edge data center locations. Jupiter’s ClimateScore™ Planning incorporates a comprehensive set of applications for asset-level physical risk analysis, providing our leaders with insights into potential impacts of weather events on © 2024 Digital Edge ESG Report our facilities. 32
Economic Digital Edge has established a robust business strategy to secure ongoing and Performance sustainable company growth, ensuring our capability to execute plans e昀昀ectively in every market. high-performance edge cloud services to East and Southeast INTRODUCTION Our goal is to grow to a platform with over 500MW of for a 300MW AI-enabled hyperscale data center campus Asia. These partnerships will help service providers access operating capacity by 2027. With our ongoing construction that will leverage local expertise and prioritize renewable global interconnectivity and provide customers with e昀케cient RESPECT FOR projects, we are on track to achieve this capacity. Our current energy sources. access to key interconnect locations. focus is on delivering these projects and consolidating our RESOURCES existing platform to ensure a consistent, integrated experience As Digital Edge grows, we depend on key partnerships with RESPECT FOR with the same standard of service across all our facilities. local experts to support our expansion. We have partnered In 2023, Digital Edge partnered with SUNeVision to o昀昀er comprehensive interconnection and colocation services with Hulic, a leading Japanese real estate developer, to develop PEOPLE AND for hyperscale deployments throughout the APAC region. COMMUNITIES Economic Performance Progress and Goals TYO7, an interconnect-focused data center in downtown Tokyo. In 2023, we secured critical customer wins from key This initiative addresses the increasing demand for central The partnership provides enterprises with seamless access RESPECT FOR hyperscale accounts and demonstrated our capability to colocation space and provides proximity to Japan’s central to cutting-edge, carrier-neutral data centers and colocation TRANSPARENCY services. Lastly, in December of 2023, Digital Edge acquired cater to these high-power density deployments. This included network hub. We have also formed strategic partnerships to the remaining shares held by the original founders of having our OSA1 facility selected by a major customer to further enhance our interconnection options and bolster the PT Indointernet Tbk (“Indonet”), a leading Indonesian digital be their number one AI data center in Asia, and pre-selling digital ecosystems within our existing data centers. In 2023 we APPENDIX 24MW of capacity in our soon-to-be launched SEL2 facility. infrastructure company, thereby increasing its majority announced a partnership with HGC Global Communications Ltd investment in the company. This additional investment in In early 2024 we also completed construction of EDGE2 in (HGC), a fully-昀氀edged ICT service provider and network Indonesia, a data center capable of supporting modern operator, to provide advanced network solutions that enable Indonet further consolidates Digital Edge’s position in the ® Indonesian market and will enable the continued deepening AI workloads and equipped with StatePoint Liquid Cooling businesses to capture new opportunities in fast-growing Asian technology to ensure energy e昀케ciency and low PUE of markets. We also partnered with Zenlayer, a massively of the 昀椀ber and connectivity services we o昀昀er our colocation 1.24. We also acquired 47-acres in Navi Mumbai, India distributed edge cloud service provider, to jointly bring customers across the platform. © 2024 Digital Edge ESG Report 33
Economic CASE STUDY Performance Edge Peering Internet Exchange INTRODUCTION (EPIX) RESPECT FOR RESOURCES RESPECT FOR Digital Edge is excited to partner with one of the high-speed connectivity for various participants region’s leading cloud providers, Tencent Cloud, like Carriers, ISPs, Content Providers and Enterprises. PEOPLE AND COMMUNITIES to further enhance digital infrastructure in Indonesia. Tencent Cloud’s connection to our EDGE1 facility RESPECT FOR This partnership allows Tencent Cloud direct access provides enhanced network performance, reduced TRANSPARENCY to Digital Edge’s Edge Peering Internet Exchange operational costs and underscores its con昀椀dence in (EPIX) platform, streamlining data exchange. Indonesia’s cloud market. EPIX is a carrier-neutral internet exchange providing APPENDIX Digital Edge is committed to o昀昀ering diverse connectivity options to our colocation customers, including providing internet exchanges to enable peering and foster a thriving digital ecosystem within our data centers. Through working with leading cloud services providers such as Tencent Cloud we are able to further our mission to bridge the digital divide and bolster digital infrastructure across Asia’s fast-growing markets, including Indonesia. © 2024 Digital Edge ESG Report Jonathan Chou Chief Product O昀케cer 34
About This Report INTRODUCTION rd Digital Edge’s 3 Annual ESG Report was compiled RESPECT FOR by our ESG Steering Committee with input from leaders and experts across the business focused RESOURCES on material issues related to environment, social RESPECT FOR and governance structures, policies and procedures PEOPLE AND at Digital Edge. Our Basis of Reporting remains COMMUNITIES focused on our outlined key performance indicators RESPECT FOR (KPIs) and the targets set forth in this year’s report. TRANSPARENCY We will continue to report annually on our progress APPENDIX against these KPIs and targets. This report includes data speci昀椀c to the 2023 昀椀scal year at Digital Edge. Throughout the report, we may reference ESG initiatives that also extend into early 2024 and strategies that will inform our reporting in the future. This report was prepared in alignment with the Sustainability Accounting Standards Board (SASB) standards for software and IT services companies. We have also expanded our disclosure to align with the Task Force on Climate-Related Financial Disclosures (TCFD). © 2024 Digital Edge ESG Report 35
Digital Edge 2023 SASB Index Digital Edge is proud to align our reporting data to the Sustainability Accounting Standards Board (SASB) framework for Software and IT Services. All data presented here is for the year ended December 31, 2023, unless otherwise noted. INTRODUCTION D.E. Pillars SASB Topic/Code Accounting Metric Category Unit of Measure 2023 Disclosure RESPECT FOR RESOURCES Environmental Footprint of Hardware Infrastructure RESPECT FOR Resources TC-SI-130a.1 1. Total energy consumed Quantitative Gigajoules (GJ) 1. 593,563 Gj PEOPLE AND 2. Percentage grid electricity Percentage (%) 2. 88.28 % COMMUNITIES 3. Percentage renewable 3. 11.72 % TC-SI-130a.2 1. Total water withdrawn Quantitative Thousand cubic RESPECT FOR 1. 118,053 m3; 1% 2. Total water consumed, percentage of each meters (m3), TRANSPARENCY in regions with High or Extremely High Baseline 2. 118,053 m3; 1% Percentage (%) Context on why % of water consumed and withdrawn is 10% less than 2022: Our reference Water Stress APPENDIX to Water Stress is from the latest version of World Resources Institute, Aqueduct, Aqueduct 4.0, launched on August 16, 2023 with updated inputs to the hydrological model, providing more accurate baseline data. There are two changes that a昀昀ected Digital Edge: a) Seoul where water stress is lowered from ‘High’ to ‘Medium-High’ b) Jakarta where water stress is increased from ‘Low’ to ‘High’. TC-SI-130a.3 Discussion of the integration of environmental Qualitative n/a Digital Edge integrates environmental excellence in all data center operations and in design considerations to strategic planning for data and construction process in any new facilities. Details of our environmental program can be center needs found in the Respect for Resources section of this report. Data Privacy & Freedom of Expression Transparency TC_SI-220a.1 Description of policies and practices relating to behavior Discussion and n/a Information about Digital Edge's privacy policies and practices can be found in the advertising and user privacy Analysis Respect for Transparency: Customer Privacy and Data Security section of this report. TC-SI-220a.2 Number of users whose information is collected for Quantitative Number In 2023, Digital Edge collected no data for secondary purposes from any users. secondary purposes TC-SI-220a.3 Total amount of monetary losses as a result of legal Quantitative Reporting None proceedings associated with user privacy currency TC-SI-220a.4 1. Number of law enforcement requests for user Quantitative Number, None information Percentage (%) 2. Number of users whose information was requested 3. Percentage resulting in disclosure TC-SI-220a.5 List of countries where core products or services are Discussion and n/a Digital Edge is committed to complying with all local governmental requirements. subject to government-required monitoring, blocking, Analysis © 2024 Digital Edge ESG Report content 昀椀ltering, or censoring 36
D.E. Pillars SASB Topic/Code Accounting Metric Category Unit of Measure 2023 Disclosure Data Security TC-SI-230a.1 1. Number of data breaches Transparency Quantitative Number, None 2. Percentage involving personally identi昀椀able Percentage (%) information (PII) INTRODUCTION 3. Number of users a昀昀ected RESPECT FOR TC-SI-230a.2 Description of approach to identifying and Discussion and n/a Digital Edge has implemented controls to ensure cybersecurity that includes internal RESOURCES addressing data security risks, including use Analysis controls and external monitoring. More information about our commitment to privacy of third-party cybersecurity standards can be found in the Respect for Transparency section of this report. RESPECT FOR PEOPLE AND COMMUNITIES RESPECT FOR Recruiting & Managing a Global, Diverse & Skilled Workforce TRANSPARENCY People and TC-SI-330a.1 Percentage of employees that require a work visa Quantitative Percentage (%) 1.27% APPENDIX Communities TC-SI-330a.2 Employee engagement as a percentage Quantitative Percentage (%) Based on our annual employee survey, 74% of our employees are considered actively engaged. TC-SI-330a.3 Percentage of: Quantitative Percentage (%) The following data is voluntarily collected from employees and does not include employees 1. Gender who chose not to disclose their nationality. 2. Diversity group presentation for (a) executive management Nationalities represented Nationalities represented (b) non-executive management at the Director level and above: below Director level: (c) technical employees, and American: 15% American: 1% (d) all other employees Australian: 6% Chinese: 10% British: 4% Filipino: 5% Chinese: 17% Indian: 4% Filipino: 4% Indonesian: 61% Indian: 6% Japanese: 6% Indonesian: 10% Korean: 8% Israeli: 2% Mongolian: 1% Japanese: 11% Singaporean: 3% Korean: 6% Sri Lankan: 1% New Zealand: 2% Singaporean: 17% Gender Representation of Global Employees Management (Executive and Non-executive): 2% Women; 14% Men Technical Employees: 3% Women; 37% Men © 2024 Digital Edge ESG Report All Other Employees: 16% Women; 28% Men 37
D.E. Pillars SASB Topic/Code Accounting Metric Category Unit of Measure 2023 Disclosure Intellectual Property Protection & Competitive Behavior TC_SI-520a.1 Total amount of monetary losses as a result of legal Transparency Quantitative Reporting currency None proceedings associated with anti-competitive behavior regulations INTRODUCTION RESPECT FOR RESOURCES Managing Systemic Risks from Technology Disruptions RESPECT FOR PEOPLE AND TC-SI-550a.1 Number of Transparency Quantitative Number, Days None COMMUNITIES 1. Performance issues 2. Service disruptions RESPECT FOR 3. Total customer downtime TRANSPARENCY APPENDIX TC-SI-550a.2 Description of business continuity risks related to Discussion and n/a Discussion of business continuity can be disruptions of operations Analysis found in the Respect for Transparency section of this report. SASB Topic/Code Activity Metric Category Unit of Measure 2023 Disclosure TC-SI000.A 1. Number of licenses or subscriptions Quantitative Number, Percentage (%) Immaterial to Digital Edge 2. Percentage cloud based TC-SI-000.B 1. Data processing capacity Quantitative Data processing capacity shall be reported in units of measure Immaterial to Digital Edge 2. Percentage outsourced typically tracked by the entity or used as the basis for contracting software and IT services, such as Million Service Units (MSUs), Million Instructions per Second (MIPS), Mega Floating Point Operations per Second (MFLOPS), compute cycles, or other. Alternatively, the entity may disclose owned and outsourced data processing needs in other units of measure, such as rack space or data center square footage. The percentage outsourced shall include On-Premise cloud services, those that are hosted on Public Cloud, and those that are residing in Colocation Data Centers. TC-SI-000.C 1. Amount of data storage Quantitative Petabytes, Percentage (%) Immaterial to Digital Edge © 2024 Digital Edge ESG Report 2. percentage outsourced 38
Task Force on Climate-related Financial Disclosures (TCFD) Index INTRODUCTION RESPECT FOR Recommended Disclosure Response RESOURCES RESPECT FOR Governance PEOPLE AND A. Describe the board’s oversight of climate-related risks and Digital Edge’s Corporate Governance Framework Manual outlines the responsibilities of our Board of Managers in key areas of focus including strategy, COMMUNITIES opportunities. structure and capital, 昀椀nancial reporting and controls, culture, corporate governance, and other areas. Matters of the Board of Managers include setting RESPECT FOR the group’s purpose, values, and standards and approval of the group’s long-term objectives and commercial strategy. The Board is also responsible for approval of group operating and capital expenditure budgets and any material changes to them as well as our 3-year strategic business plan. Each of these TRANSPARENCY areas, and others, includes information regarding how our business may be adversely impact by climate-related risks. Our ESG Steering Committee, led by members of Digital Edge’s Group Management Committee, reports regularly to the Board of Managers on climate-related risks and opportunities and APPENDIX ensures these material topics are included in our regular strategic planning processes. B. Describe the management’s role in assessing and management risks Digital Edge’s Group Management Committee is ultimately responsible for the company’s ESG-related activities including the assessment and management and opportunities. of climate-related risks and opportunities. The ESG Steering Committee is an expressed Executive Committee, including CEO Samuel Lee and reporting regularly to the Board of Directors on the committee’s activities and 昀椀ndings. This committee is directly involved in the creation of Digital Edge’s annual ESG Report and shares that report with the Board of Directors for review and comment. Strategy A. Describe the climate-related risks and opportunities the organization Digital Edge’s materiality assessment, compiled by the ESG Steering Committee with key external advisors in 2021, guides our work across ESG- has identi昀椀ed over the short, medium, and long term. related initiative and speci昀椀cally outlines the environmental topics most material to Digital Edge. This material study identi昀椀ed GHG emissions, energy management, water management, and our circular economy activities as most material for Digital Edge’s business across all time horizons for the company. Annually, since 2022, Digital Edge also partnered with climate resilience intelligence leader Jupiter Intelligence to outline key weather and climate-related risks on a site-by-site basis across our data center footprint. This study highlighted key risks in our footprint, most importantly 昀氀ood control, temperature management, and electricity grid risk. As we go forward, we will review these plans annually and incorporate these risks into our site-level planning as well as Enterprise Risk Management (ERM) processes. © 2024 Digital Edge ESG Report 39
Recommended Disclosure Response Strategy B. Describe the impact of climate-related risks and opportunities on the 1.0 Transition Risks organization’s businesses, strategy, and 昀椀nancial planning. Transitioning to a lower-carbon economy may entail extensive policy, legal, technology, and market changes to address mitigation and adaptation requirements related to climate change. Depending on the nature, speed, and focus of these changes, transition risks may pose varying levels of 昀椀nancial INTRODUCTION and reputational risk to Digital Edge. RESPECT FOR 1.1 Policy and Legal: Climate change and energy policies, regulations, framework and guidance are rapidly evolving. For example, Singapore will be 2 RESOURCES introducing incremental carbon tax to all industrial facilities with an annual direct GHG emissions of 25,000 tonne of carbon dioxide equivalent (tCO e). In addition, there are several developments in Asia from o昀케cial bodies, such as regulators, requiring climate-related disclosures to be part of annual RESPECT FOR reporting of speci昀椀c groups of listed companies, and be aligned with international framework. On top of that, abrupt and unexpected shifts in energy cost may occur, such as one Asia faced in 2022 and 2023. To mitigate this, Digital Edge will keep abreast of regulatory and energy developments in markets we PEOPLE AND are in, and assess implications to our operations, goals and 昀椀nancial planning. COMMUNITIES RESPECT FOR 1.2 Technology Risk: In recent years, several new technologies were introduced in the data center industry and suppliers would claim energy e昀케ciency bene昀椀ts, amongst others. Yet, the uncertain role of di昀昀erent solutions and technologies over time in complex data center settings, for di昀昀erent uses TRANSPARENCY and di昀昀erent contexts made selection of technologies complicated. Additionally, 昀椀nancial impacts include capital investments in technology adoption. Following technology assessment and cost-bene昀椀t analysis, Digital Edge has made a strategic decision to strive to use energy e昀케cient equipment such APPENDIX as StatePoint™ Liquid Cooling (SPLC) technology for our new developments, where feasible. This will help us operate one of the most energy e昀케cient datacenter globally. For example, in Manila, Power Usage E昀昀ectiveness (PUE) was tested to be at 1.193 or better using SPLC during Integrated Systems Testing (IST). We also deploy SPLC technology in our new 23MW EDGE2 facility in Jakarta. 1.3 Market Risk: In our pursuit for renewable energy across markets we are in, a few key issues were observed - inadequate supply of renewable energy, lack of infrastructure to support increased renewable energy demand, immature governance mechanisms on renewable energy certi昀椀cates and steep renewable energy price, amongst others. Potential 昀椀nancial impacts includes increased operational cost due to costs for renewable energy. To mitigate, Digital Edge only works with credible partners with track record of delivering renewable energy at fair market prices and with internationally recognised governance mechanisms in place. 1.4 Reputation Risk: There is increased stakeholder scrutiny on range of sustainability issues including actionable commitments towards goals, governance and reporting. Potential risk could be customer loyalty and retention and employee satisfaction level. Digital Edge use social media, customer feedback and organizes events to track customer sentiment and changing preferences while simultaneously performing annual employee engagement survey. 2.0 Physical Risks 2.1 Acute Risk: Increased severity of extreme weather events such as drought, heat, cold, wild昀椀re, 昀氀ood and strong wind may potentially cause supply chain interruptions and employee ill health and absenteeism due to transportation di昀케culties, amongst others. Annually, Digital Edge partners with Jupiter Intelligence to perform scenario analysis and forecasts the impact of di昀昀erent climate change scenarios. 2.2 Chronic Risk: Rising mean temperatures and rising sea levels may potentially lead to increased insurance premiums in the long term. Digital Edge will look at opportunities on climate adaptation and insurance risk solutions in the foreseeable future. © 2024 Digital Edge ESG Report 40
Recommended Disclosure Response Strategy C. Describe the resilience of the organization’s strategy, taking into Digital Edge has set a goal to achieve carbon neutrality in our Scope 1 and 2 emissions by 2030, aligning those goals with the Science-Based Targets consideration di昀昀erent climate-related scenarios, including a 2°C or initiative (SBTi) 1.5°C or lower scenario as well as iMasons Climate Accord drive for carbon neutrality goal in digital infrastructure. lower scenario. INTRODUCTION RESPECT FOR RESOURCES RESPECT FOR Risk Management PEOPLE AND A. Describe the organization’s processes for identifying and assessing COMMUNITIES climate-related risks. RESPECT FOR TRANSPARENCY APPENDIX B. Describe the organization’s processes for managing climate-related risks. The ESG Steering Committee meets regularly and works in partnership with Digital Edge’s Board of Managers to regularly update our materiality study and identify climate-related risks for our business. We will continue to use external tools including Jupiter Intelligence to complete site-by-site analysis of local risks and incorporate those risks into our business planning processes. C. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. Metrics and Targets A. Disclose the metrics used by the organization to assess climate- Material topics and key performance indicators related to environment and climate-related risks can be found in the Respect for Resources section related risks and opportunities in line with its strategy and risk of this report. management process. B. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse See p.13 of this report. gas (GHG) emissions, and the related risks. C. Describe the targets used by the organization to manage climate- Digital Edge has set a goal to achieve carbon neutrality in our Scope 1 and 2 emissions by 2030, aligning those goals with the Science-Based Targets related risks and opportunities and performance against targets. initiative (SBTi) 1.5°C or lower scenario as well as iMasons Climate Accord drive for carbon neutrality goal in digital infrastructure. © 2024 Digital Edge ESG Report 41
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