CapitaLand Integrated Commercial Trust - Annual Report 2021

CICT TASKFORCE FOR CLIMATE-RELATED FINANCIAL DISCLOSURE (TCFD) REPORT CICT is making a progress update of its climate- related disclosure in line with Taskforce for Climate- related Financial Disclosure (TCFD). CICT’s sponsor and substantial unitholder, CapitaLand Investment (CLI) had started to align its climate related disclosures with TCFD recommendations in the four key areas of governance, strategy, risk management and metric and targets since 2017 and further declared its support for TCFD and its recommendations in 2019. As such, CICT is closely referring to CLI’s reporting where applicable and is committed to continue adopting TCFD recommendations. The Board of the Manager of CICT (the Board) considers sustainability issues as part of its strategic formulation, confirms the material ESG factors listed by the Manager and Property Managers and oversees the management and monitoring of the material ESG factors. The Board sets the Trust’s risk appetite, which determines the nature and extent of material risks that CICT is willing to take to achieve their strategic and business objective. As part of the material risk issues being highlighted, climate change has been identified as critical. The Board regularly reviews climate change risks as part of its Enterprise Risk Management (ERM) Framework. The Board is actively involved in discussions on environment-related and climate-related initiatives. The Board is updated at least twice a year at the quarterly or ad hoc Board meetings on relevant climate-related topics including CapitaLand 2030 Sustainability Master Plan, plan to sustain green rating of the properties, performance metrics such as carbon emissions performance, progress on the reduction targets, as well as stakeholders’ expectations on climate change. They are also kept aware of any environmental incidents, which may include climate-related damages or disruptions. As Environment, Health and Safety (EHS) factors are considered as part of an asset investment evaluation process and strategy, they are presented to the Board where relevant. CICT has a Sustainability Committee championed by the CEO (also an Executive Director) of the Manager. This Sustainability Committee provides strategic oversight, drives initiatives and reporting related to climate-related risks and opportunities, as well as the broader environmental issues. The Property Managers under CLI has an EHS Committee led by the CEO of Retail and Workspace. The CEO of the Manager is responsible for CICT’s climate change-related targets. A key objective of the Manager’s senior management is to transit to a low-carbon business that is aligned with climate science and build a resilient and resource efficient portfolio. As part of these efforts, CICT’s directors, senior management and relevant stakeholders will undergo annual training to further build capacity with respect to climate-related risk and opportunity management. The frequency and content of these capacity building trainings will be regularly reviewed to incorporate emerging issues relating to environmental risk management. In 2021, CLI Group-wide sustainability management comes under the purview of CapitaLand Sustainability Council (SC) that report to the CLI Board. CapitaLand’s Management Council consisting of CLI senior management team provides strategic management of ESG implementation across the Group. It is supported by the Group Sustainability Office and various work teams to drive continued progress and improvement in the areas of ESG. The work teams comprise representatives from CLI business units and corporate functions. This governance is cascaded from the Group level to CICT level through CICT’s Sustainability Committee. Governance Annual Report 2021 51 TCFD