CapitaLand Integrated Commercial Trust - Annual Report 2021

Material Risks Risk Details Opportunities Key Mitigating Actions Sales & Leasing • Strong competition, poor economic and market conditions are some key factors that could result in key tenants not renewing their leases, adversely affecting the leasing performance of CICT Group’s properties. • Tap on strong experience and track record of asset and property manager. • Establish and maintain a diversified tenant base and sustainable trade mix. • Proactive tenant management strategies to understand and address customers’ changing needs. • Proactive tenant management strategies in line with the malls and workspaces’ positioning are in place. • Closely monitor tenants’ sales performance and maintain positive relationships and rapport with retailers to build loyalty with CICT Group’s properties. • Plan AEIs to maintain relevance and appeal of CICT Group’s assets. Climate Change • Physical risks such as rising sea levels, violent storms, long intense heat waves, flash floods and fresh water depletion. • Transitional risks include potentially more stringent regulations and increased expectations from stakeholders. • Enhance our positive reputation and strong track record in sustainability efforts as a competitive advantage for CICT Group to build a resilient portfolio of assets and achieve resource efficiency. • Accelerate sustainability innovation and collaboration with tenants, supply chain contractors, vendors and suppliers. • Assessment of the detailed physical risks in the assessment of any new acquisitions above a stipulated investment threshold. • Regularly review CICT Group’s mitigation and adaptation efforts, which include – future proofing our portfolio against changing climatic conditions from the design stage, – improving the operational efficiency of our properties, and – setting targets for carbon emissions, water, energy and waste efficiency. • CLI has a well-established Group environmental management system which is externally certified to ISO 14001. Fraud, Bribery & Corruption • Any forms of fraud, bribery and corruption that could be perpetuated by employees, third parties or collusion between employees and third parties. • Promote an ethical culture at all levels of CLI Group. • Adopt a zero-tolerance stance against fraud, bribery and corruption (FBC) in the conduct of business and reinforce the importance of integrity – one of CLI’s core values. • Communicate the commitment to integrity from the top through policies and practices, such as FBC Risk Management Policy, Whistle-blowing Policy, Ethics and Code of Business Conduct Policies and Anti-Money Laundering and Countering the Financing of Terrorism Policy and mandatory FBC eLearning. Safety, Health & Well-being • Increased expectations from stakeholders to provide a safe and healthy environment, including well-being, at our assets and operations. • Regularly review CICT Group’s mitigation efforts which include work-related safety targets applicable to both CICT Group and our supply chains. • CLI has a well-established health and safety management system which is externally certified to ISO 45001. CapitaLand Integrated Commercial Trust 50 Risk Management