CapitaLand Investment Limited - Annual Report 2021

Sustainability BOARD STATEMENT At CapitaLand Investment, sustainability is at the core of everything we do. We are committed to growing in a responsible manner, delivering long term economic value, and contributing to the environmental and social well-being of our communities. The material environmental, social and governance (ESG) factors have been identified and encapsulated in the CapitaLand 2030 Sustainability Master Plan, which was launched in 2020, and will be reviewed by the Board of Directors together with management every two years. The CapitaLand 2030 Sustainability Master Plan steers our efforts on a common course to maximise impact through building a resilient and resource efficient real estate portfolio, enabling thriving and future-adaptive communities, and accelerating sustainability innovation and collaboration. Ambitious ESG targets have been set which include carbon emissions reduction targets validated by the Science Based Targets initiative (SBTi). During the first scheduled review in 2022, the CapitaLand 2030 Sustainability Master Plan will incorporate CapitaLand Group’s restructuring and CLI’s listing in September 2021. The Board is responsible for overseeing the Company’s sustainability efforts, and takes ESG factors into consideration in determining its strategic direction and priorities. The Board also approves the executive compensation framework based on the principle of linking pay to performance. The Group’s business plans are translated to both quantitative and qualitative performance targets, including sustainable corporate practices and are cascaded throughout the organisation. Our sustainability performance has consistently been highly ranked by globally recognised indices such as Dow Jones Sustainability World Index and Global Real Estate Sustainability Benchmark. As an industry leader, CapitaLand Investment will continue to push the boundaries to adopt meaningful ESG practices and enhance sustainability in the real estate sector. SUSTAINABILITY FRAMEWORK SUSTAINABILITY COMMITMENT In 2020, we unveiled CapitaLand’s 2030 Sustainability Master Plan to elevate the Group’s commitment to global sustainability in the built environment given our presence in more than 200 cities and over 30 countries. The Master Plan focuses on three key objectives. • Build portfolio resilience and resource efficiency • Enable thriving and future-adaptive communities • Accelerate sustainability innovationand collaboration. We identified five pathways to achieve our sustainability objectives and will adapt our strategies as technologies evolve and new scientific data becomes available: 1. Integrate sustainability in CapitaLand’s real estate life cycle From the earliest stage of our investment process, to design, procurement, construction, operations and redevelopment or divestment, sustainability targets will be embedded in policies, processes, best practices, and key performance indicators of our business operations. 2. Strengthen innovation and collaboration to drive sustainability Wewill continue to source globally for new ideas and technologies to meet our sustainability ambitions andworkwith like-minded partners to create shared values. 3. Leverage sustainability trends and data analytics This allows CapitaLand to track critical performance and progress in water usage, waste management, energy consumption, carbon emissions, and health and safety. These measurements along with social indicators are key to driving performance improvement across our operating properties and development projects. 4. Monitor and report progress to ensure transparency As we track our sustainability progress, we will continue to validate our performance by external assurance and align our Global Sustainability Report to international standards. 5. Increase engagement and communication with key stakeholders It is key to build awareness among our employees, investors, customers and communities, and collectively effect transformational change to achieve our 2030 targets. CapitaLand Investment Limited 68 BUILD Portfolio Resilience and Resource Efficiency ENABLE Thriving and Future-Adaptive Communities ACCELERATE Sustainability Innovation and Collaboration GENERATING VALUE IN SIX CAPITALS • Manufactured Capital • Environmental Capital • Social and Relationship Capital • Human Capital • Financial Capital • Organisational Capital Anchored by strong governance & sustainable financial performance Measured by Return on Sustainability & global benchmarks