CapitaLand Integrated Commercial Trust - Annual Report 2021

CICT is aligned with CapitaLand Group’s 2030 Sustainability Master Plan (SMP) unveiled in 2020 to elevate the Group’s commitment to global sustainability in the built environment. The Master Plan focuses on the following three key pillars to drive CapitaLand’s sustainability efforts in the environment, social and governance (ESG) pillars, enabling the Group to create a larger positive impact for the environment and society. The three key pillars are underpinned by strong governance and sustainable financial performance. 1. Build portfolio resilience and resource efficiency 2. Enable thriving and future-adaptive communities 3. Accelerate sustainability innovation and collaboration There are five identified pathways to achieve our sustainability objectives. We will adapt our strategies as technologies evolve and new scientific data becomes available. 1. Integrate Sustainability in CapitaLand’s Real Estate Life Cycle From the earliest stage of our investment process, to design, procurement, construction, operations and redevelopment or divestment, sustainability targets will be embedded in policies, processes, best practices, and key performance indicators of our business operations. 2. Strengthen Innovation and Collaboration to Drive Sustainability CapitaLand will continue to source globally for new ideas and technologies to meet our sustainability ambitions and work with like- minded partners to create shared values. 3. Leverage Sustainability Trends and Data Analytics This allows CapitaLand to track critical performance and progress in water usage, waste management, energy consumption, carbon emissions, and health and safety. These measurements, along with social indicators are key to driving performance improvement across our operating properties and development projects. 4. Monitor and Report Progress To Ensure Transparency As CapitaLand track its sustainability progress, performance will continue to be validated by external assurance and be aligned to its Global Sustainability Report with international standards. 5. Increase Engagement and Communication With Key Stakeholder It is key to build awareness among our employees, investors, customers and communi ties , and collectively effect transformational change to achieve our 2030 targets. PUSH BOUNDARIES OF CHANGE To push the boundaries of change, CapitaLand will transit to a low-carbon business that is aligned with climate science. In November 2020, CapitaLand had its 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. CapitaLand is also developing a new metric, Return on Sustainability, in addition to the regular financial return to measure the Group’s ESG impact. CapitaLand has launched the inaugural CapitaLand Sustainability X Challenge (CSXC), the first sustainability focused innovation challenge by a Singapore headquartered real estate company that globally sources 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. CICT aims to capitalise on its environmental sustainability achievements to tap into sustainable financing opportunities and diversify its funding sources. As such, CICT established a Green Finance Framework in February 2022 to expand its funding sources from green loans to green bonds. In FY 2021, CICT raised about S$1.6 billion of green/ sustainability-linked loans. CapitaLand Integrated Commercial Trust 32 Sustainability Approach