CapitaLand Investment Limited - Annual Report 2021

Sustainability Sustainability MATERIALITY CapitaLand has a regular review, assessment and feedback process in relation to ESG topics. Key to this is an annual Group-wide Risk and Control Self-Assessment exercise to identify, assess and document material risks and corresponding internal controls. These material risks include fraud and corruption, environmental (e.g. climate change), health and safety, and human capital risks which are ESG-relevant. With the restructuring of CapitaLand into CapitaLand Investment and CapitaLand Development, these ESG material issues are prioritised based on the likelihood and potential impact of issues affecting business continuity of CapitaLand Investment. For external stakeholders, priority is given to issues important to the society and applicable to CapitaLand Investment. For more information on stakeholder engagement, please refer to the upcoming CapitaLand Investment Global Sustainability Report 2021. CREATING VALUE AND ALIGNMENT TO UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGS) The Guiding Principles of the International Integrated Reporting Council Framework were referenced in this report, and the value we create is mapped into six Capitals – Environmental, Manufactured, Human, Social and Relationship, Organisational, and Financial. This is also mapped against eight UN SDGs that are most aligned with our CapitaLand Sustainability Master Plan 2030 targets, and where CapitaLand Investment can achieve the greatest positive impact. For more information, please refer to the CapitaLand Investment Global Sustainability Report 2021 which will be published by 31 May 2022. BUILD Portfolio Resilience and Resource Efficiency • Low Carbon Transition • Water Conservation and Resilience • Waste Management and Circular Economy • Transit to low-carbon business and reduce energy consumption through improved energy efficiency and increase use of renewable energy • Reduce water consumption, reuse water and prevent water pollution, especially in countries where the availability of clean water and sanitation are of concern • Green our global operational portfolio by 2030 • Strengthen climate resilience of our portfolio by addressing climate related risks and opportunities throughout the real estate lifecycle • 47% reduction in carbon emissions intensity since 20081 • S$300 million in utilities cost avoidance since 2009, arising from 41% and 45% energy and water reduction (per m² from base year 2008) respectively1 • Achieved 17 green building ratings • Continued to enhance implementing the recommendations of the TCFD and improve TCFD reporting Environmental Capital Manufactured Capital SMP Pillars and Focus Area Our Commitments 2021 Value Created 1 Data provided is for the period from 1 January to 30 September 2021. The full year data from 1 January to 31 December 2021 will be available in CapitaLand Investment Global Sustainability Report 2021. COMMITMENT TO OUR STAKEHOLDERS We develop high- performing people and teams through rewarding opportunities for our People Staff We deliver sustainable shareholder returns and build a strong global network of capital partners for our Investors including business partners We create great customer value and experiences through high-quality products and services for our Customers Tenants, shoppers, residents We care for and contribute to the economic, environmental and social development of communities for our Communities Government agencies/ NGOs, general public, the environment, suppliers/contractors CORE VALUES Winning Mindset | Enterprising | Respect | Integrity Prioritisation of ESG Material Issues Critical • Climate change and carbon reduction • Energy efficiency • Water management • Occupational health & safety • Human capital • Stakeholder engagement • Supply chain management • Diversity (board and staff) • Product and services • Compliance • Business ethics Moderate and emerging • Waste management • Biodiversity • Human rights ENVIRONMENT SOCIAL/LABOUR PRACTICES GOVERNANCE Annual Report 2021 73 CapitaLand Investment Limited 72