MATERIALITY CICTML Board endorses the material ESG issues that are most relevant and significant to CICT and its stakeholders. A doublemateriality approach is adopted, considering issues which are material from either the impact or financial2 perspectives, or both. Potentially material ESG issues arising from activities across CICT and CLI’s value chain (including potential risks and opportunities in the immediate and longer term) are primarily identified via ongoing engagement with the CICT team, CLI's business units and external stakeholders, as well as reviews of sources including investor questionnaires, and ESG surveys, benchmarks, frameworks such as GRESB and SASB. 2 To identify ESG issues which are potentially financially material, CICT takes reference from the SASB Standards for Real Estate and Real Estate Services, which identify sustainability factors that are material to short, medium, and long-term enterprise value for the industry. 3 For more information on CICT’s ERM and the Group-wide RCSA exercise, please refer to the Risk Management section of the AR 2023 and Risk Management under the Governance section of the SR 2023. 4 Economic Performance, Market Presence and Governance are deemed to be material for CICT but not considered as ESG Factors. In addition, CICT has a regular review, assessment and feedback process in relation to ESG topics. Identified material issues are reported in a corporate risk register through the annual group-wide Risk and Control SelfAssessment (RCSA) exercise3, which identifies, assesses and documents material risks and the corresponding internal controls to manage those risks. These material risks include fraud and corruption, environmental (e.g. climate change), health and safety, and human capital risks which are ESG-relevant. Identified material ESG issues are then prioritised based on the likelihood and their potential impact on CICT's business continuity. For external stakeholders, priority is given to issues important to the community and applicable to CICT and CLI. In FY 2023, the ESGmaterial topics were endorsed by CICTML Board for their continued relevance. For more details, please refer to the Material Topics and Boundaries section of the SR 2023. Review material ESG factors through the assessments of: • Risk and Control Self Assessment Exercise • GRESB Survey • S&P Dow Jones Sustainability Assessment • Surveys • Engagements • Feedback Seek Board’s endorsement for prioritised material ESG factors Material ESG factors4 priority list See table on the next page on the Prioritisation of Material ESG Issues Reference other ESG standards and frameworks including: • GRI Standards • UN Principles for Responsible Investment • UN SDGs • SASB real estate sector-specific standards • TCFD REGULAR REVIEW, ASSESSMENT AND FEEDBACK PROCESS FOR MATERIAL ESG FACTORS 1 2 3 4 124 CAPITALAND INTEGRATED COMMERCIAL TRUST SUSTAINABILITY APPROACH
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