CapitaLand Investment Limited - Annual Report 2021

Risk Management INVESTMENT & DIVESTMENT Deployment of capital into loss-making or below- target return investments due to wrong underwriting assumptions or poor execution. Inadequate planning to identify suitable divestment opportunities. REGULATORY & COMPLIANCE Non-compliance to applicable local laws and regulations, including tax, data protection and privacy regulations, in the markets where CLI operates. › Risk management department conducts a comprehensive independent risk evaluation for all projects above a stipulated investment value threshold. › Hurdle rates and weighted average cost of capital based on relevant risk adjusted input parameters, used as investment benchmarks are reviewed/updated annually and adjusted accordingly where necessary. › Maintain a framework that proactively identifies the applicable laws and regulations (including taxation), and embeds compliance into day-to-day operations. › Leverage in-house specialised teams (such as compliance and tax) and external consultants to provide advisory services and updates on changes to laws and regulations. › Establish Group-wide procedures and policies to address the requirements of the applicable data protection and privacy laws through policies such as, Personal Data Protection Policy, Group Data Breach Reporting & Management Policy, Group Vendor Management Policy, Global Omnichannel Marketing Policy, Group Data Governance Policy and PDPA Group Compliance Manual. › Build on strong experience and track record in multi-sector asset and portfolio management to increase our competitive advantage. › Keep abreast of the changing regulatory landscape to identify potential improvements in the various compliance areas. Material Risk Key Mitigating Actions Opportunities FINANCIAL Exposure to financial risks involving liquidity, foreign currency and interest rates and their volatility. › Measure and evaluate financial risks using multiple risk management models, such as conducting stress testing and ‘Value-at-Risk’ modelling. › Hedge and limit certain financial risk exposures using various forms of financial instruments. For more details, please refer to the Financial Risk Management section on page 240. › Manage our financial risks to give confidence to our investors and enhance our fund management track record. Corporate Governance Chairman MIGUEL KO KEY RES PONS I B I L I T I ES Leads the Board and facilitates the conditions for the overall effectiveness of the Board, Board Committees and individual Directors; provides oversight, direction, advice and guidance to the Group CEO Board of Directors 11 DIRECTORS (9 INDEPENDENT DIRECTORS AND 2 NON-INDEPENDENT DIRECTORS) KEY RES PONS I B I L I T I ES Fosters the success of the Company so as to deliver sustainable value over the long term engages with stakeholders based on the principles of sustainability and sound governance Audit Committee Executive Committee Executive Resource & Compensation Committee Nominating Committee Risk Committee Strategy Committee CHALY MAH CHEE KHEONG (Chairman) MIGUEL KO (Chairman) STEPHEN LEE CHING YEN (Chairman) STEPHEN LEE CHING YEN (Chairman) KEE TECK KOON (Chairman) ANTHONY LIM WENG KIN (Chairman) 4 IDs 2 IDs and 2 Non-IDs 3 IDs and 1 Non-ID 2 IDs and 1 Non-ID 4 IDs 3 IDs and 2 Non-IDs OUR GOVERNANCE FRAMEWORK INTRODUCTION CapitaLand Investment Limited (the Company and, together with its subsidiaries, the Group) embraces the tenets of sound corporate governance including accountability, transparency and sustainability. It is committed to enhancing value over the long term to its stakeholders with the appropriate people, processes and structure to direct and manage the business and affairs of the Company, achieve operational excellence and deliver the Group’s long-term strategic objectives. The values, ethics and practices of the Group provide the foundation for a trusted and respected business enterprise. The Board of Directors (Board) is responsible for and plays a key role in setting the Company’s corporate governance standards and policies of the Group. This sets the tone from the top and underscores its importance to the Group. This corporate governance report (Report) sets out the corporate governance practices and structures that were adopted and in place since the Company’s listing on the Mainboard of the Singapore Exchange Securities Trading Limited (SGX-ST) by introduction on 20 September 2021 (Introductory Listing), and which are benchmarked against the Code of Corporate Governance 2018 (Code). The Company’s governance framework and processes are in compliance with the Code’s principles of corporate governance, and also substantially with the provisions underlying the principles of the Code. Where there are deviations from the provisions of the Code, appropriate explanations are provided in this Report. Annual Report 2021 81 80 CapitaLand Investment Limited