2 For an overview of a scenario analysis, please see page 25 of TCFD's Recommendations of the Task Force on Climate-related Financial Disclosures, https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf. Strategy to identify climate-related risks and opportunities – A Life Cycle Approach All new investments into operational assets and development projects undergo the EHS Impact Assessment during due diligence to identify any environmental risks (including climate change) and opportunities related to the asset/project site and its surroundings. The assessment covers performance metrics such as energy efficiency, as well as transition and physical risks and opportunity considerations. An internal shadow carbon price is also applied. Significant findings from the assessment would be incorporated in the investment paper submitted to CICTML Board for approval. Through the implementation of CLI’s SBG, which CICT is also aligned to, the aim is to identify and address the risks and opportunities of climate change right from the design stage. The local context of each project will be studied in detail, and appropriate measures will be taken into consideration with regards to the adaptation of climate change. SBG also sets guidelines for buildings to be more energy efficient, e.g. setting green rating targets, specifying minimum equipment efficiency, and requiring the use of onsite renewable energy whenever possible. At the operational asset level, the CLI EHS Management System (EHSMS), which is audited by a third-party accredited certification body to ISO 14001 standard, serves to monitor transition risks relating to climate regulations via EHS legal registers updates and regular stakeholder engagements. Operational issues pertaining to climate change, energy and water are also identified and managed through the EHSMS to strengthen the climate resilience of the Trust’s portfolio. was reviewed with and augmented by another third party consultant. Scenario analysis is a process for identifying and assessing the potential implications of a range of plausible future states under conditions of uncertainty. Scenarios are hypothetical constructs and not designed to deliver precise outcomes or forecasts. Instead, scenarios provide a way for organisations to consider how the future might look if certain trends continue or certain conditions are met. In the case of climate change, for example, scenarios allow an organisation to explore and develop an understanding of how various combinations of climate-related risks, both transition and physical risks, may affect its businesses, strategies, and financial performance over time2. While every effort was made to provide accurate and complete information, CICT does not represent or warrant that the information in this Statement is free from errors or omissions, is complete or is suitable for your intended use. In particular, no representation or warranty is given as to the accuracy, likelihood of achievement or reasonableness of any forwardlooking statements contained in this statement or the assumptions on which they are based. Climate scenarios may change and third party platform output may improve over time. Such material is, by its nature, subject to significant uncertainties and contingencies outside of CICT’s control. Actual results, circumstances and developments may differ materially from those expressed or implied in this report. STRATEGY CICT’s selected ESG issues have been deemedmaterial and applicable to its real estate portfolio and operations. The material ESG issues are subject to regular reviews, assessments and feedback to ensure their relevance in the context of the evolving operating market and climate change environment. Since 2016, climate change and emissions reduction are material ESG issues identified as relevant and critical to CICT andCLI. Climate change risk has been identified as a key risk as part of the ERM Framework and comprised the physical and transition risks. Physical risks are a result of climate change and can be acute or chronic in climate patterns, such as rising sea levels, violent storms, long intense heat waves, flash floods and freshwater depletion. Transition risks result from a transition to a lower-carbon economy, which could entail potentially more stringent regulations and increased expectations from customers and stakeholders. In line with CLI’s focus, CICT has a roadmap in place to identify and address climate-related risks and opportunities throughout the entire real estate life cycle. This includes every stage, from the earliest stage of the investment process to design, procurement, construction, operations or divestment. Adopting a life cycle approach provides CICT the opportunity to build resilience throughout its operations and future-proof its real estate portfolio. Overview Environment Social Governance References SUSTAINABILITY REPORT 2023 25
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