Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Water management
• Occupational health and safety
• Human capital
• Stakeholder engagement
• Supply chain management
• Diversity
• Waste management
• Biodiversity
• Human rights
• Products and services (including customer health and safety)

Environmental Achievements

• 39% carbon emissions intensity reduction since 2008
• 33% of ART’s global portfolio achieved green building certification
• Secured first green loan of S$50 million in early January 2021 to finance the development of lyf one-north Singapore

Social Achievements

• Retained ISO 14001 and ISO 45001 certification in 13 countries for more than a decade
• Ascott’s vendors and suppliers acknowledged to abide by the CapitaLand Supply Chain Code of Conduct
• No reported incident relating to discrimination, child labour or forced labour

Governance Achievements

• Ranked 1st in Singapore Governance and Transparency Index 2021 within the REITs and Business Trusts category
• Received the title of ‘Best Crisis Management (mid to large cap)’ at the IR Magazine Forum & Awards - South East Asia 2021

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and travel
• Climate change (transitional and physical risks)
• Fraud, bribery, and corruption
• Safety, health, and well-being
• Industry competition
• Cyber security and information technology risks
• Economic volatility
• Investment and divestment risks
• Project management challenges
• Regulatory and compliance issues

Mitigation Strategies

• Active portfolio and capital management
• Diversification of portfolio and geographic presence
• Business interruption insurance
• Collaborative relationships with supply chain partners
• Contactless technologies and hygiene measures
• Business continuity plans
• Regular review of mitigation and adaptation efforts for climate change
• Shadow internal carbon price and Return on Sustainability (ROS)
• Group environmental and health & safety management systems (ISO 14001 and ISO 45001)
• Ethical culture and zero-tolerance stance against fraud, bribery, and corruption
• Work-related safety targets
• Digital transformation and data analytics
• ESG considerations in business decisions
• Rigorous investment criteria and due diligence
• Robust project management mechanisms
• Proactive identification and management of regulatory and compliance risks
• Cyber security strategy and IT security awareness training
• Disciplined financial management and diversified funding sources
• Natural hedging and optimal mix of fixed and floating interest rates

Supply Chain Management

Responsible Procurement

• CapitaLand Supply Chain Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Violent storms
• Intense heat waves
• Flash floods
• Freshwater depletion

Transition Risks

• Stringent regulations
• Increased stakeholder expectations

Opportunities

• Improved energy efficiency
• Increased use of renewable energy
• Climate resilience

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, ISO 45001, Green Mark GoldPLUS

Awards & Recognition

• Global Sector Leader - Hotel in the Global Real Estate Sustainability Benchmark (GRESB) 2021
• Ranked 1st in Asia Pacific Hotel – Listed category in GRESB 2021
• Best Crisis Management (mid to large cap) at the IR Magazine Forum & Awards - South East Asia 2021

Environmental Metrics

ESG Focus Areas

• Climate change and carbon reduction
• Energy efficiency
• Water management
• Waste management
• Biodiversity
• Occupational health and safety
• Human capital
• Stakeholder engagement
• Products and services
• Supply chain management
• Diversity (Boards and staff)
• Human rights
• Risk management
• Business ethics

Environmental Achievements

• 7% reduction in carbon emissions intensity since 2019; 30% since 2008
• 12% reduction in energy consumption intensity since 2019; 17% since 2008
• 11% reduction in water consumption intensity since 2019; 34% since 2008
• 37% of CLAS’ global portfolio achieved green building certification
• Six properties were green certified in 2022, and four more from January to May 2023, bringing the total to 38% of CLAS’ gross floor area.

Social Achievements

• Zero employee work-related fatality and permanent disability
• No reported incidents relating to discrimination, child labour or forced labour
• 100% of Ascott’s suppliers across 13 countries acknowledged to abide by the CapitaLand Supply Chain Code of Conduct

Governance Achievements

• Retained ISO 14001 and ISO 45001 certification in 13 countries for more than a decade
• Adopted a Board Diversity Policy
• All members of the Boards attended the sustainability training as prescribed by the SGX-ST
• 3 out of 8 (37.5%) of CLAS' directors are women

Climate Goals & Targets

Environmental Challenges

• Waste data in certain countries is not readily available or cannot be consolidated due to local supply chain challenges.
• CLAS faces more exposure to physical risks under the 3°C scenario in the long term, as minimal transition policies are expected to be in place while the development of low-carbon technology or related market changes may be slower.
• Under the 1.5°C and 2°C scenarios, CLAS faces higher levels of transition risks as more stringent climate-related policies are expected to be introduced and implemented.

Mitigation Strategies

• CLAS aims to improve tracking of the waste data at its properties, reduce waste generation and achieve the targets set out in CLI’s 2030 Sustainability Master Plan.
• CLAS commenced a climate scenario analysis to understand how climate-related risks and opportunities and financially-material physical and transition risks could impact the portfolio.
• CLI and CLAS will review and update, if appropriate, the processes associated with risk management in order to account for the material environmental and climate-related risks identified.

Supply Chain Management

Supplier Audits: 100% of Ascott’s suppliers across 13 countries acknowledged to abide by the CapitaLand Supply Chain Code of Conduct

Responsible Procurement

• CapitaLand Procurement Policy
• CapitaLand Supply Chain Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Coastal flooding
• Tropical cyclones
• Fluvial flooding

Transition Risks

• Shifts in carbon prices
• Changes in regulator expectations
• Changes in customer expectations and increased demand for green products and services
• Shifts in electricity prices
• Use of new technologies

Opportunities

• Increase in revenue by tapping on the green rental premium created by increased demand for sustainable buildings
• Increase in asset value for low carbon buildings
• Reduced exposure to increases in carbon price, electricity price and water price
• Reduction in operating costs

Reporting Standards

Frameworks Used: GRI Standards 2021, Value Reporting Foundation's Integrated Reporting (IR) Framework, United Nations Sustainable Development Goals (UN SDGs), TCFD

Certifications: ISO 14001, ISO 45001, EDGE, Green Mark, BREEAM, DGNB, Green Star

Third-party Assurance: KPMG LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Occupancy detection technologies
• Orange Enzyme Cleaner

Awards & Recognition

• Global Sector Leader – Hotel (GRESB 2022)
• Ranked 1st in REITs and Business Trusts category (Singapore Governance and Transparency Index 2022)
• Best Annual Report (Mid-cap) and Best ESG Materiality Reporting (Mid-cap) (IR Magazine Forum & Awards – South East Asia 2022)
• Best Investor Relations (Gold) (Singapore Corporate Awards)

Environmental Metrics

ESG Focus Areas

• Climate change and carbon emissions reduction
• Energy efficiency
• Water management
• Occupational health and safety
• Human capital
• Stakeholder engagement
• Supply chain management
• Diversity (Boards and staff)
• Risk management
• Business ethics
• Human rights

Environmental Achievements

• 8.5% reduction in energy intensity (per m² from 2019 baseline)
• 7.8% reduction in water intensity (per m² from 2019 baseline)
• Achieved green building certifications for 49% of global portfolio
• 0.7% reduction in carbon emissions intensity (per m2 from 2019 baseline)

Social Achievements

• 84% staff engagement score, with 89% survey participation
• Zero staff work-related fatality and permanent disability incidents
• Zero contractor work-related fatality and work-related permanent disability incident
• No reported incidents relating to discrimination, child labour or forced labour

Governance Achievements

• Ranked 1st in the REITs and Business Trusts category of the Singapore Governance and Transparency Index 2023 for the third consecutive year
• 3 out of 8 (37.5%) of CLAS’ directors are women

Climate Goals & Targets

Environmental Challenges

• Climate-related physical risks (rising sea levels, violent storms, heat waves, floods, freshwater depletion)
• Climate-related transition risks (stringent regulations, stakeholder expectations)
• Business interruption from disasters (pandemics, terrorist attacks, fires, power outages)
• Fraud, bribery, and corruption
• Keen industry competition
• Cybersecurity threats
• Economic instability (inflation, unemployment)
• Financial risks (liquidity, foreign currency, interest rates)
• Investment & divestment risks (loss-making investments, inadequate planning)
• Geopolitical instability
• Regulatory and compliance risks

Mitigation Strategies

• Business continuity plans and standard operating procedures
• Assessment of physical risks and incorporation of shadow internal carbon price in investment decisions
• Mitigation and adaptation efforts (future-proofing portfolio, improving operational efficiency)
• Group environmental management system (ISO 14001)
• Decarbonisation actions (supply chain and customer engagement)
• Business interruption insurance coverage
• Culture of ethics and integrity, zero-tolerance stance against FBC
• FBC Risk Management Policy, Whistleblowing Policy, Ethics and Code of Business Conduct Policies, Anti-Money Laundering and Countering the Financing of Terrorism Policy
• Mandatory e-learning modules on FBC
• Strong safety culture, Group occupational health and safety management system (ISO 45001)
• Differentiation through customer-centric initiatives, leveraging Sponsor's network, incorporating ESG considerations
• Asset enhancement initiatives and brand refresh
• Leveraging in-house industry analysts
• Cyber Security Strategy, IT Security Awareness Training, IT Security Incident Management Procedure, vulnerability testing, Disaster Recovery Plan exercise
• Disciplined financial management, portfolio diversification, focusing on robust markets
• Fixed-rate utility contracts, energy-saving technology, go-green initiatives
• Rigorous investment criteria, comprehensive due diligence, robust approval process
• Integrating sustainability into investment, redevelopment, and divestment processes
• Monitoring geopolitical environment, government policies, and regulatory changes
• Establishing good relationships with local authorities
• Framework for identifying and mitigating regulatory and compliance risks
• Group-wide policies and procedures (Data Protection, AML/CFT, Sanctions Compliance, Tax Strategy)
• Mandatory e-learning modules on compliance

Supply Chain Management

Responsible Procurement

• CLI’s Supply Chain Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Violent storms
• Long intense heat waves
• Flash floods
• Freshwater depletion

Transition Risks

• Stringent regulations
• Increased expectations from customers and stakeholders

Opportunities

• Improved energy efficiency
• Low-carbon investments

Reporting Standards

Frameworks Used: GRI, GRESB, TCFD, UNGC, UN PRI, SASB

Certifications: ISO 14001, ISO 45001

Third-party Assurance: ISAE 3000

Awards & Recognition

• Global Sector Leader (Listed – Hotel) in the 2023 GRESB Real Estate Assessment for the third consecutive year
• Ranked 1st in the REITs and Business Trusts category of the Singapore Governance and Transparency Index 2023 for the third consecutive year