CapitaLand Investment Limited - Annual Report 2021

Sustainability Sustainability PUSH BOUNDARIES OF CHANGE CapitaLand will transit to a low-carbon business that is alignedwith climate science. In November 2020, we had our carbon emissions reduction targets approved by the Science Based Targets initiative (SBTi) for a ‘well-below 2°C’ scenario. The targets are in line with the goals of the Paris Agreement to keep global temperature rise well below 2°C in this century, and we will continue to align with SBTi’s standards as we transition to a low carbon economy. CapitaLand is also developing a new metric, Return on Sustainability, in addition to financial returns to measure the Group’s ESG impact. CapitaLand has also launched the CapitaLand Sustainability X Challenge (CSXC), the first sustainability focused innovation challenge by a Singapore headquartered real estate company. The objective of CSXC is to globally source for emerging sustainability technologies and solutions in the built environment. The CSXC covers seven challenge statements and reflect the key themes and goals in CapitaLand’s 2030 Sustainability Master Plan. CapitaLand aims to be a leader in sustainable finance and secure S$6 billion through sustainable finance by 2030. Proceeds and interest rate savings from CapitaLand’s efforts in sustainable finance can also be used to drive more sustainability initiatives and innovations within the company. MEASURED AGAINST GLOBAL BENCHMARKS CapitaLandwas one of the first companies in Singapore to voluntarily publish an annual Global Sustainability Report since FY 2009 and externally assured the entire report since FY 2010. Benchmarking against an international standard and framework that is externally validated helps us to overcome the challenges in sustainability reporting that may arise from our portfolio of diverse asset types and geographical presence globally. We are also a signatory to the United Nations (UN) Global Compact and our Global Sustainability Report serves as our Communication on Progress, which will be made available at www.unglobalcompact.org when published. For our efforts, we are listed in the Global 100 Most Sustainable Corporations Index, Dow Jones Sustainability World Index and Asia-Pacific Index, Global Real Estate Sustainability Benchmark (Global Sector Leader, Diversified- Listed), FTSE4Good Index Series, MSCI Global Sustainability Indexes and The Sustainability Yearbook. Our CapitaLand Investment Global Sustainability Report 2021 will be published by 31 May 2022. We will continue to prepare our sustainability report in accordance with the Global Reporting Initiative Standards: Core option and apply the Guiding Principles of the International Integrated Reporting Framework and ISO 26000:2010 Guidance on Social Responsibility. In addition, we will continue to reference the UN Sustainable Development Goals (UN SDGs), and the Sustainability Accounting Standards Board (SASB). We will enhance our climate-related disclosure and implementation in line with the Taskforce for Climate- related Financial Disclosure (TCFD). The report will continue to be externally assured to AA1000 Assurance Standard andwill cover the Group’s global portfolio and employees, including our listed real estate investment trusts (REITs) and business trusts - CapitaLand Integrated Commercial Trust, Ascendas Real Estate Investment Trust, Ascott Residence Trust, CapitaLand China Trust, Ascendas India Trust and CapitaLand Malaysia Trust, unless otherwise indicated. BOARD, TOP MANAGEMENT AND STAFF COMMITMENT AND INVOLVEMENT CapitaLand’s sustainability management is guided by the CapitaLand Sustainability Council. The Sustainability Council comprises selected independent directors of CapitaLand Investment’s Board and senior management of CapitaLand’s Executive Committee. It is supported by the Group Sustainability Office and various work teams to drive continued progress and improvement in the areas of ESG. It was chaired by one of CapitaLand Investment Board’s independent directors andmember of its Executive Resource and Compensation Committee and Risk Committee. The work teams comprise representatives from CapitaLand business units and corporate functions. Each business unit has its own Environmental, Health and Safety (EHS) Committee to drive initiatives in countries where the Group operates with support from various departments. The CapitaLand Board is also updated regularly through the Risk Committee and Audit Committee on matters relating to sustainability risks and business malpractice incidents. The Board is also updated on the sustainability management performance of the Group, key material issues identified by stakeholders and the planned follow-up measures. At the Board level, we recognise the importance of sustainability as a business imperative which is consistent with the principle that the Board plays an important role in considering and building sustainability considerations as part of its strategic development. With effect from January 2022, a CLI Board Committee, the Strategy Committee, will be charged with the responsibility of overseeing sustainability strategies and plans, including providing guidance to Management and monitoring progress against achieving the goals of any sustainability initiatives. The Board Strategy Committee replaces the Sustainability Council which was stepped down on 31 December 2021. STRATEGIC SUSTAINABILITY MANAGEMENT STRUCTURE 1 This refers to CLI’s owned and managed properties by m 2 2 Figure is for 2021 Jan to Sep. In 2021, there is significant reduction in energy, water and carbon emissions intensities as compared to baseline year of 2008 likely due to the significant drop in activities at its properties amid COVID-19 46% of CapitaLand’s global portfolio1 achieved green building certification Estimated S$300mil utilities cost avoidance since 2009 due to operational efficiencies2 CapitaLand Sustainability X Challenge received over entries from over 25 countries 270 over 41 training hours per staff BUILD ENABLE ACCELERATE CapitaLand Sustainability Council Strategic oversight of ESG policies and integration Board of Directors CapitaLand Management Council Strategic management of ESG implementation across the Group Various Sustainability Work Teams Involving business units and corporate departments, covering: • Investments • Environment, health and safety • Innovation • Stakeholder engagement • Enterprise risk management All Staff Annual Report 2021 71 CapitaLand Investment Limited 70