CICT GROUP’S MATERIAL RISKS AND KEY MITIGATING ACTIONS A Group-wide Risk and Control Self-Assessment (RCSA) is conducted annually to identify key material risks, which include new and emerging risks, that CICT Group faces in delivering our strategic objectives, our respective mitigating measures and any opportunities that we can leverage on. Based on the 2023 RCSA results, the measures that we have taken to mitigate the material risks are set out below: Material Risk Key Mitigating Actions Climate Related Physical risks such as rising sea levels, violent storms, long intense heat waves, flash floods and fresh water depletion. Transition risks including potentially more stringent regulations and increased expectations from stakeholders. • Detailed assessment of the physical risks in the evaluation of any new acquisitions. • Incorporate shadow internal carbon price in the evaluation of new investment/capital expenditure decisions. This helps to price in climate- related costs and opportunities, support low-carbon investments, prepare for stringent climate legislation, and avoid stranded assets. • Regularly review CICT Group’s mitigation and adaptation efforts, which include → future proofing our portfolio against changing climatic conditions from the design stage and → improving the operational efficiency of our properties, setting targets for carbon emissions, water, energy and waste efficiency. • Leverage CLI's well-established environmental management system which is externally certified to ISO 14001 in 19 countries. • Take actions to influence decarbonisation along CICT Group’s value chain, including engaging with suppliers and tenants. • For more information, please refer to CICT’s SR 2023. Competition Keen industry competition from established real estate players who are able to attract and manage more capital by meeting investors’ expectations or reacting aptly to market trends. • Constantly strive to differentiate ourselves from competitors by proactively engaging customers on their requirements and provide relevant solutions. • Focus on building key enablers that give CICT Group a competitive advantage amidst the competition and digital disruptions, such as embarking on digital transformation in our processes, enhancing our data analytics capabilities to speed up data-driven decisions. • Incorporate ESG considerations in CICT Group’s business. • Leverage in-house team of industry analysts to keep CICT Group on top of latest market trends. • Constant stream of customer-centric initiatives and a shopper loyalty programme also help to set us apart. Overview Leadership Performance Framework Other Information ANNUAL REPORT 2023 129
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