KUALA LUMPUR: Hong Leong Investment Bank Bhd (HLIB Research) is upbeat on Sunway REIT's (SunREIT) target to reduce greenhouse gas (GHG) output by 45 per cent by 2030 through its Green Lease Partnership Programme.
The programme aimed to reduce Scope 3 emissions of its properties.
The bank-backed research firm affirmed a positive outlook on the company's initiative as it encouraged shared efforts with tenants in upholding its pledge to fulfil environmental, social and governance (ESG) commitments.
SunREIT has an internal target of adding one green building to its portfolio annually through acquisitions or average earning indexes (AEI) on its existing properties.
"So far, it has garnered 100 per cent of hotel master lessees and 21 per cent of retail and office tenants. Currently, four buildings under SunREIT have been green-certified.
"As for energy sources, it strives to derive 40 per cent from renewable energy by 2030. Overall, we like SunREIT for its continuous efforts and proactive stance in the ESG realm, given its track record in pioneering innovative ESG programmes," it said.
HLIB Research also said that SunREIT stood out from its KL REIT peers within the ESG realm for the company's clear targets and commitments to its sustainability efforts.
Last year, SunREIT integrated ESG assessments for new acquisitions such as energy efficiency, greenhouse gas emissions, biodiversity and habitat considerations.
To date, four of SunREIT's buildings, namely Sunway Carnival Mall, Sunway Pinnacle, Sunway Resort Hotel and Sunway Lagoon Hotel, have been green-certified.
SunREIT also generated a total of 3,008 MWh of solar energy, primarily from solar rooftop panels, which is equivalent to 1.39 per cent of renewable energy from total electricity consumption from the installation of new solar panels in Menara Sunway, Sunway Carnival Mall and
Sunway Resort Hotel totalling 983kWp in 2022.
HLIB Research said the target is achievable given that a big chunk of the 35 per cent renewable energy capacity will be purchased externally in the coming years while the remaining five per cent will continue to be installed in-house.
The bank-backed research firm maintained a 'Buy' call on SunREIT with a target price of RM1.87.