Sustainability Approach ROLE OF CICTML BOARD, MANAGEMENT AND STAFF The CICTML Board considers sustainability issues as part of its strategic formulation and confirms the material ESG factors listed by the Manager and property managers. The Board oversees the management and monitoring of the key material ESG factors and determines the Trust’s risk appetite, guiding the nature and extent of material risks that CICT is prepared to accept in pursuit of its strategic and business objectives. Among the material risks, climate change (including climate-related risks and opportunities) is recognised as particularly crucial. The Board is actively involved in discussions on climate-related initiatives and regularly evaluates climate change risks as part of its Enterprise Risk Management (ERM) Framework. Updates to the Board are provided at least biannually during quarterly or ad hoc Board meetings, comprising various climaterelated topics, such as the 2030 SMP, climate-related risks and opportunities, green capital expenditure, green ratings of properties, and performance metrics, including carbon emissions data, progress towards reduction targets, and stakeholder expectations regarding climate change. Reports of any environmental incidents, including climaterelated damages or disruptions, are also presented to the Board. Environmental impact factors are integral to the asset investment evaluation process and strategy and are accordingly brought to the Board’s attention. The CEO of CICTML, who also serves as an Executive Director, chairs the Sustainability Committee. The committee provides strategic oversight, drives initiatives, and guides reporting on climate-related risks and opportunities, as well as broader environmental issues. The CEO is responsible for CICT’s climate-related targets. A key objective of the senior management is to transit to a lowcarbon business aligned with climate science and to build a resilient and resource-efficient portfolio. To support this, the Directors of CICTML, senior management and relevant stakeholders participate in training sessions regularly to enhance their capacity in managing climate-related risks and opportunities. The frequency and content of these capacity-building training courses are reviewed regularly to incorporate current and emerging issues relating to environmental risk management. Roles and Responsibilities of CICT’s Sustainability Committee Roles and Responsibilities CEO and Executive Director • Responsible for decisions on ESG-related targets and engagements with stakeholders Portfolio Management • Works closely with Asset Management and Property Management teams to evaluate solutions relating to matters including green energy procurement, greening of the portfolio and related capital expenditure, and promoting workplace safety and health • Engages with staff and investors on ESG matters Investment • Responsible for seeking growth opportunities with climate change impact as one of the assessment criteria Finance • Responsible for securing green financing and engaging with stakeholders such as bankers and debt investors Investor Relations • Responsible for engagements with stakeholders including investors and ESG rating agencies as well as ESG reporting matters Asset Management • Responsible for proposing solutions relating to matters including green energy procurement, greening of the portfolio and related capital expenditure • Engages various internal stakeholders on ESG matters Property Management – Operations, Engineering, Systems and Sustainability • Responsible for driving innovative ESG solutions and operational efficiency and processes, including innovations and green initiatives and execute potential scale-up, achieving target consumption savings, promoting workplace safety and health and engaging with staff, tenants, service providers and relevant government agencies for ESG matters 12 CapitaLand Integrated Commercial Trust
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