CapitaLand Integrated Commercial Trust - Annual Report 2021

At the Group level, CLI has tracked and reduced the carbon emissions of its managed and owned operational properties, including those of CICT, via its cloud-based Environmental Tracking System. All related metrics have been regularly disclosed in CICT’s sustainability reporting in its annual reports and CLI’s annual Global Sustainability Report. Since 2010, CapitaLand has been disclosing scope 1, 2 and 3 GHG emissions of its global portfolio and the data has been externally assured. CICT relies on CLI’s external assurance which includes the Trust’s assets. Furthermore, in 2020, the Group had their carbon emissions reduction targets approved by the Science Based Targets initiative (SBTi) for a ‘Well-below 2˚C’ scenario. This target is in line with the goals of the Paris Agreement to keep global temperature rise well below 2˚C in this century. In 2022, the Group would be evaluating the targets and the progress towards them and explore options for any long-term targets of decarbonisation. Please refer to the CapitaLand Investment Global Sustainability Report 2021 which will be published by May 2022. At the Trust level, for the year 2021, the carbon related performance and targets can be found on page 132 to 138 of this report. To calculate its carbon emissions, CICT takes guidance from the operational control approach as defined by the GHG Protocol Corporate Standard, in line with the Group. For more information, please refer to page 134. Alignedwith the Group, CICT has set sustainability and climate related performance metrics and targets that are linked to the remuneration policies for members of senior management, such as the Balance Scorecard (BSC) framework for FY 2021 which had included both quantitative and qualitative targets relating to climate change. CLI implemented a shadow internal carbon price in 2021 to quantify climate-related risk and opportunities for its new investments. And this was applied as part of the EHS Impact Assessment conducted during CICT’s respective due diligence of its three investments in Sydney, Australia. In addition to the regular financial return to measure the Group’s ESG impact, CLI is developing a new metric, Return on Sustainability. CLI will continue to explore new metrics to measure climate-related risks and opportunities which CICT will assess and adopt where relevant for its portfolio. Metrics and Targets Annual Report 2021 55 TCFD