Dear Stakeholders, I am pleased to share CICT's Sustainability Report 2022, which provides an overview of our progressive strategicapproachandachievements in integrating sustainability into the way we do business. We are committed to continually improve reporting standards in line with recommendations by the Global Reporting Initiative and the Task Force on Climate-Related Financial Disclosures. We focus on eight key United Nations Sustainable Development Goals most aligned with CapitaLand’s 2030 Sustainability Master Plan (SMP). COMMITMENTTONET ZERO One of the key focus areas of the SMP is building the resilience of assets through decarbonisation efforts to mitigate climate change. CICT is aligned with CapitaLand Investment’s (CLI) science-based targets set out in the 2030 SMP that is in line with a 1.5°C scenario1, which will translate to Net Zero by 2050, and enhance its focus on social indicators. Our commitment to Net Zero is a group-wide initiative, from Board to management and employees. This means that the remuneration of management and employees is tied to sustainability performance targets in addition to financial targets. We will continue to innovate and leverage technologies to accelerate our transition to Net Zero. We strive to achieve this by improving operational efficiency, resource allocation and, where possible, using renewable energy in our properties. FORGINGTOWARDS 2030 TARGETS We adopt a holistic approach to identify and mitigate our carbon footprint across the real estate life cycle, including investment and operations, which is in line with the CapitaLand Sustainable Building Guidelines. For example, each property’s green journey will be evaluated for all new investments. CICT also adopts CLI's internal carbon price, which was implemented in 2021, to quantify climate-related risks and opportunities. In addition, we look to achieve a 100% green-rated portfolio for our operational properties by 2030. As we plan for green capital expenditure in asset plans, we will strive to achieve a balance between greening assets and revenue generation. In our drive to achieve Net Zero, we leveraged CapitaLand Sustainability X Challenge (CSXC), which was inaugurated in 2020. This global sustainability-focused initiative welcomes emerging and innovative technological solutions globally to address environmental challenges and drive decarbonisation. We have since initiated two pilot projects in selected properties from CSXC 2021, where testing is still ongoing. In CSXC 2022, we identified two other winning innovations relating to water leak detection and optimisation of water meter accuracy which will be tested at our properties. In addition, we have expanded our recycling efforts to food waste management and implemented trials for food waste treatment to produce bio-organic fertiliser and grey water at Tampines Mall and Funan. Operationally, we are exploring more renewable sources of energy. As part of our efforts to implement the photovoltaic system at IMM Building, 3,633 solar panels (11,960 sq m) have been installed on the roof of IMM Building in December 2022. Another 672 solar panels (1,760 sq m) will be installed in the second phase of this project in 1H 2023. Together, the estimated annual renewable energy to be generated is approximately 2.9 GWh. Phase 1 installation of solar panels at IMM Building We established a Green Finance Framework in February 2022 that outlines the criteria and guidelines which underpin CICT's green financing transactions. As of 31 December 2022, about 30% of CICT's group borrowings are sustainability-linked or green financing. 1 To operationalise its SBTi-approved carbon emissions reduction target for scope 1 and 2 emissions, CLI is reviewing its carbon emissions intensity reduction targets and other environment targets, including changing reference to 2019 as the baseline year instead of 2008. The targets are being reviewed as part of the scheduled review of CapitaLand’s 2030 SMP in 2022 and will be published before end May 2023. Integrated Sustainability Report 2022 3 CEO Message
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