CapitaLand Integrated Commercial Trust - Sustainability Report 2023

CEO MESSAGE 1 Reviewed as part of its scheduled review of the CLI 2030 SMP in 2023. 2 Exclude Gallileo which is undergoing AEI, and 103 Miller Street which is exempted from certification. Dear Stakeholders, Sustainability is at the core of everything we do. From managing environmental footprint, to improving social integration and adhering to corporate governance practices, the way we do business impacts our environment and society. We are aligned with CLI, on our sustainability commitments outlined in the revised 2030 SMP. Managing climate change through portfolio resilience is the first pillar of the SMP, and one of the most pressing issues affecting the environment in Singapore and globally. To operationalise the SBTi-approved carbon emissions reduction target for scope 1 and 2 emissions, CLI has reviewed its carbon intensity reduction targets and other environmental targets1. CICT has adopted the new targets, including changing reference for the baseline year to 2019 from 2008. CLI and CICT are also working towards setting a target for scope 3 carbon emissions reduction to better track the group-wide material scope 3 emissions. For CICT, adopting a dynamic approach to drive ESG initiatives across our portfolio allows us to be nimble in coping with evolving climate issues. Our ESG initiatives underpin our sustainability strategy and can impact business growth. We have noticed a growing trend where investors measure an organisation’s sustainability efforts with ESG metrics when making financing decisions. Besides climate change, we are also focused on enabling thriving and future-adaptive communities, the second pillar of the SMP. Our ESG efforts include corporate governance, the third pillar of the SMP. TOWARDS A GREENER FUTURE The SMP highlights several pathways towards our 2030 targets and guide our efforts towards Net Zero initiatives. These included sourcing for green energy to achieve our renewable energy target of 45% in the revised SMP. While we are proactively engaging potential partners to secure green energy, our access remains limited to Singapore’s green energy plan, which aims to expand the availability of renewable energy sources within the country. The solar photovoltaic (PV) systemat IMM Building was successfully installed and has been fully operational since August 2023. With a peak power rating of 2,359 kWp, this PV system can generate an estimated 2.9 GWh of renewable energy annually, covering nearly 20% of the property's total annual landlord energy consumption. In Australia, our properties, 66 Goulburn Street and 100 Arthur Street, have procured green energy since 2023. This will contribute to a more sustainable environment and eliminate any scope 2 emissions. Besides adopting green energy usage, we are focused on greening our portfolio through AEIs and maintaining green ratings. In FY 2023, approximately 99%2 of our portfolio is green-rated. Greenwood Plaza in Australia is currently under review for a green rating. Meanwhile, we are targeting a minimum green rating of LEED Gold for Gallileo in Germany with its AEI commencing in 2024. Sustainability is a journey. We will continue to focus on driving meaningful and sustainable initiatives that make a difference. 6 CAPITALAND INTEGRATED COMMERCIAL TRUST