CapitaLand Integrated Commercial Trust - Annual Report 2023

At CICT, we proactively assess global trends and environmental shifts impacting our investment decisions, business operations and financial performance. Our strategic positioning and vigilant risk management enable us to seize valuable opportunities arising alongside these trends. Response CICT shares CLI’s commitment to the 2030 SMP and to achieve Net Zero by 2050. Our operational focus is on greening our portfolio, improving resource efficiency, piloting innovation and implementing conservation measures in line with the SMP targets. We maintain transparent reporting and disclosures, adhering to global GRI Standards and TCFD recommendations. We regularly assess our portfolio's performance through global independent benchmarks like GRESB and investor surveys. Environmental impact is one of the key consideration factors for our new acquisitions. Response CICT is future-proofing its portfolio through AEIs, redevelopments, portfolio reconstitution and portfolio management to address evolving tenant needs. Our diversified portfolio comprising retail, office and integrated developments allow CICT to weather through property market cycles and offer tenants a ready network to grow within our portfolio. We actively engage stakeholders and recalibrate space strategies to keep pace with evolving needs. Our retail spaces are designed for connection, collaboration, experimentation, and facilitating end-toend omnichannel experiences such as click-and-collect services. Office tenants benefit from our core and flex strategy, offering flexible and scalable workspace solutions within the portfolio. Such initiatives boost occupancy and enable a vibrant and differentiated consumer experience. Trend Sustainability gains momentum as global economies and companies drive towards a carbon-neutral society. • Governments increasingly commit to Net Zero, signalling policy shifts from awareness to concrete action on climate change. • Businesses place greater emphasis on transparency of ESG measurement and disclosures, human rights, diversity, equity and inclusivity as well as supply chain management. • Investors and stakeholders prioritise measuring and reporting performance against sustainability benchmarks and frameworks. Trend Evolving workspace requirements and the shift towards blending physical and digital (phygital) elements into retail experiences are redefining real estate usage. • Hybrid work styles drive corporate demand for quality and adaptive workspaces that emphasise collaboration and employee wellness. • Resilience of physical retail and normalisation of e-commerce propel retailers towards a phygital presence, with retail spaces designed for omnichannel approaches to facilitate online and offline transactions. • Demand for quality and green spaces emerging as a prerequisite for occupiers, especially those committed to carbon neutrality. CLIMATE CHANGE EVOLVING REAL ESTATE TRENDS 14 CAPITALAND INTEGRATED COMMERCIAL TRUST GLOBAL TRENDS

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