For identifying climate-related risks and opportunities, CICT generally considers the short-term time frame to be within two to three years, medium-term time frame as until 2030, and long-term time frame to be beyond 2030. 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 (including climate change) risks 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 risk 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. At the operational asset level, the CLI Environmental, Health and Safety 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. Through the implementation of CLI’s SBG, 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 adaptation of climate change. SBG also sets guidelines for buildings to be more energy efficient, such as setting green rating targets, specifying minimum equipment efficiency, and requiring the use of onsite renewable energy whenever possible. The CLI 2030 SMP further outlines the targets and pathways for transition to a low-carbon business that is aligned with climate science. Energy use and carbon reduction targets, as well as green certification targets are set for its operational assets. Initiatives are put in place to improve the environmental performance, resilience and durability of its assets through system upgrades, system optimization, effective maintenance and changes to user behaviour. The continued achievement of high green building ratings as well as energy and water efficiency measures put in place to achieve the reduction targets would help to mitigate the impact of changing weather conditions. For new investments For operating properties To meet environment targets for operating properties For new developments / redevelopments Scenario analysis on future climate-related risks and opportunities CICT’s portfolio went through a process of climate scenario analysis from 2022 to understand how the identified climate-related risks and opportunities could impact future operations. The analysis considers scenarios based on the latest global and scientific developments (scenarios from 1.5°C to 3°C for current to long-term time frames), to draw conclusions on the financially material physical and transition risks and validate its current strategy. Together with CLI, CICT will then review the mitigation and adaptation plans, and identify opportunities, in alignment with the 2030 SMP. The SMP was designed to build resilience throughout CLI and CICT’s operations and future-proof the real estate portfolio to guard against climate change risks. The same plan will also avoid premature obsolescence and adopt available opportunities. 19 Sustainability Report 2024
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