Sustainability Management CLI is committed to being a responsible company and places sustainability at the core of what it does. CLI has committed to achieving Net Zero carbon emissions for Scope 1 and 2 by 2050, contributing to the environmental and social wellbeing of the communities where it operates, as it delivers long-term economic value to its stakeholders. For its efforts, CLI continues to be listed on the Dow Jones Best-in-Class World Index and Asia Pacific Index, GRESB (4star rating), FTSE4Good Index Series, and MSCI ESG Leaders Index (AAA rating). In 2024, CLI was the only Singaporebased real estate company listed on the Dow Jones Bestin-Class World Index and Asia Pacific Index under the “Real Estate Management and Development” category, as well as the longest-standing real estate company in Singapore to be listed on the Dow Jones Best-in-Class Asia Pacific Index. The listings underline CLI’s holistic approach and commitment to sustainability, which includes setting and meeting ambitious ESG targets. The CLI Board recognises the importance of sustainability as a business imperative and ensures that sustainability considerations are factored into CLI’s strategy development. This enables CLI to remain competitive and resilient in an increasingly challenging business environment. For the board statement, CLI sustainability management structure, material ESG factors and performance, please refer to the CLI Global Sustainability Report 2024, which will be published by 31 May 2025. The CLI 2030 Sustainability Master Plan (SMP) outlines its sustainability targets and clear pathways across its portfolio. Its Scope 1 and 2 targets are validated by the Science Based Targets Initiative to the 1.5ºC scenario. CLI’s material ESG factors are aligned to the 2030 SMP and mapped against 8 UN SDGs. (Please refer to the sustainability section1 of the CLI website for the CLI 2030 SMP and ESG policies.) CLI’s climate-related disclosures can be found in the CLI Climate Resilience Report 20232 on the CLI website and the CLI Global Sustainability Report 2024, which will reference and adopt various international standards and guidelines. 1 www.capitaland.com/en/investment/sustainability.html 2 www.capitaland.com/content/dam/capitaland-sites/international/about-capitaland/sustainability/sustainability-reports/CLI_Climate_Resilience_Report_2023.pdf 44 CapitaLand Investment Limited 45 Annual Report 2024 Risk Management Risk-Aware Culture Internal Control System Independent Review and Audit RISK IDENTIFICATION & ASSESSMENT RISK RESPONSE RISK MONITORING & REPORTING ERM FRAMEWORK RISK STRATEGY Board Oversight & Senior Management Involvement • Key Risk Indicators • Quarterly Risk Reporting • Portfolio Monitoring of Financial Risks • Special Risk Focus Update • Accept • Avoid • Mitigate • Transfer • Risk Appetite • Risk & Control Self-Assessment • Investment Risk Evaluation • Quantitative Analysis • Scenario Analysis • Whistle-blowing CLI maintains a robust risk management framework that enables proactive identification, assessment and response to material risks. This supports CLI’s objective as a global real asset manager to generate sustainable returns and create long-term value for our stakeholders. Our risk strategy focuses on optimising opportunities within approved risk appetite levels, positioning CLI to deliver sustainable long-term results. CLI’s Enterprise Risk Management (ERM) Framework is adapted from the International Organisation for Standardisation 31000 International Risk Management Standards and is benchmarked against other recognised best practices and guidelines. The Framework is reviewed annually and updated as appropriate. It sets out the required environmental and organisational components to enable integrated, systematic and consistent identification, assessment, response, monitoring and reporting of material risks, as illustrated below.
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