Sustainability Report 2024 CapitaLand Integrated Commercial Trust
1 Sustainability Report 2024 CapitaLand Integrated Commercial Trust is the first and largest real estate investment trust listed on Singapore Exchange Securities Trading Limited (SGX-ST) with a market capitalisation of US$10.4 billion or S$14.1 billion, as at 31 December 2024. It debuted on SGX-ST as CapitaLand Mall Trust in July 2002 and was renamed in November 2020 following the merger with CapitaLand Commercial Trust. As the largest proxy for Singapore commercial real estate, CICT owns and invests in quality incomeproducing assets primarily used for commercial (including retail and/or office) purpose, located predominantly in Singapore. CICT's portfolio comprises 21 properties in Singapore, two properties in Frankfurt, Germany, and three properties in Sydney, Australia, with a total property value of S$26.0 billion based on valuations of its proportionate interests in the portfolio as at 31 December 2024. CICT is managed by CapitaLand Integrated Commercial Trust Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited, a leading global real asset manager with a strong Asia foothold. OUR MISSION To deliver stable distributions and sustainable total returns to unitholders. OUR VISION Asia’s premier commercial REIT. OUR PURPOSE Creating inspiring work-play environments and delightful experiences anchored by a strong ESG commitment. OUR VALUES • Winning Mindset • Integrity • Respect • Enterprising GLOSSARY 2030 SMP : CLI 2030 Sustainability Master Plan AR 2024 : CICT's Annual Report 2024 BCA : Building and Construction Authority CaaS : Cooling-as-a-Service CICT / Trust : CapitaLand Integrated Commercial Trust CHF : CapitaLand Hope Foundation CICTML / Manager : CapitaLand Integrated Commercial Trust Management Limited, the manager of CapitaLand Integrated Commercial Trust CICTML Board / Board : Board of the Manager of CICT CIF : CapitaLand Innovation Fund CLI / Sponsor / CLI Group : CapitaLand Investment Limited CSXC : CapitaLand Sustainability X Challenge Directors : Directors of the Board of CapitaLand Integrated Commercial Trust Management Limited EHS : Environmental, Health and Safety EMS : Environmental Management System ESG : Environmental, Social and Governance ESIA : Environmental & Social Impact Assessment ETS : Environmental Tracking System FBC : Fraud, Bribery and Corruption GFA : Gross Floor Area GHG : Greenhouse Gas GRI : Global Reporting Initiative GSR : Global Sustainability Report ISSB : International Sustainability Standards Board OHS : Occupational Health and Safety REIT : Real Estate Investment Trust RCSA : Risk and Control Self- Assessment SASB : Sustainability Accounting Standards Board SBG : Sustainable Building Guidelines SBTi : Science Based Targets initiative Sq ft / m2 : Square Feet SR / SR 2024 / Report : CICT's Sustainability Report 2024 UN SDGs : United Nations Sustainable Development Goals Unitholders : Unitholders of CICT
2 CapitaLand Integrated Commercial Trust 3 Sustainability Report 2024 To understand our shoppers’ needs, enhance their experiences and improve the appeal of our malls For our Shoppers To be the landlord of choice by understanding our tenants’ needs and concerns and enrich their workplace experiences For our Tenants To build vibrant communities and create a sense of belonging For our Communities To provide timely and consistent communication to investors and be a choice investment For our Investors To develop a highperformance work culture that embraces diversity and teamwork For our Employees To be a fair and reasonable buyer of goods and services and share industry best practices For our Suppliers Growing Responsibly We will grow in a responsible manner, deliver long-term economic value, and contribute to the environmental and social well-being of our communities. Core Values Integrity Enterprising Winning Mindset Respect CONTENTS OVERVIEW CEO Message 5 Pathways and Trends 6 ESG and Corporate Governance Highlights 8 Awards & Recognition 10 Sustainability Approach 11 ENVIRONMENTAL Commitment & Progress 17 Managing Climate Change 18 Managing Environmental Footprint 22 Operational Efficiency 24 Enhancing Efficiency 28 SOCIAL Commitment & Progress 30 Health and Safety 31 Social Integration 33 Engaging our Stakeholders 34 Our Shoppers 37 Our Tenants & Community 41 Our Investors 45 Our Employees 47 Our Suppliers 52 GOVERNANCE Commitment & Progress 53 Corporate Governance 55 Fraud, Bribery and Corruption 55 Risk Management 58 Financial 59 REFERENCES Material Topics and Boundaries 60 GHG Emissions Data Methodology 61 SASB Disclosure Index 63 GRI Content Index 65 United Nations Global Compact 70 DATA PACK ON CICT'S WEBSITE Key ESG Performance Summary 2024 Portfolio Green Ratings Climate Scenario Analysis 2022
About the Report BOARD STATEMENT At CICT, we are committed to growing in a responsible manner, by delivering long-term economic value and contributing to the environmental and social well-being of our communities. The operations of CICT’s properties are managed by the property managers (which mainly comprise subsidiaries of CLI), in accordance with the property management agreements. The material ESG factors have been identified with set targets for 2030, considering CICT’s business focus and in alignment with the CLI 2030 SMP. Advancing towards a common set of goals, the CICTML Board has reviewed and endorsed the material ESG factors put up by the management team. CICT’s ESG factors aim to maximise impact through building portfolio resilience, optimising resources, enabling thriving and future-adaptive communities, and stewarding responsible business conduct and governance. The CICTML Board is responsible for overseeing CICT’s sustainability efforts and takes these ESG factors into consideration when determining its strategic direction and priorities. The CICTML Board also approves the executive compensation framework based on the principle of linking pay to performance. The Manager’s business plans are translated to both quantitative and qualitative performance targets, including sustainable corporate practices. Our sustainability performance has consistently been wellregarded by global indices such as FTSE4Good Index Series. The Manager will continue to identify and adopt meaningful ESG practices and enhance sustainability in the real estate sector. INTERNATIONAL STANDARDS AND GUIDELINES This Report is prepared in accordance with the GRI Standards 2021 and aligns with Monetary Authority Singapore (MAS) Guidelines on Environmental Risk Management for Asset Managers and complies with the SGX-ST Listing Manual Rules 711A and 711B. CICT adopts the GRI Standards for this Report due to its global recognition and coverage of sustainability disclosures pertinent to CICT’s business. This Report also incorporates elements of the Value Reporting Foundation Integrated Reporting framework, references the UN SDGs and SASB real estate sector-specific standards. This Report has considered the IFRS Sustainability Disclosure Standards (Standards) issued by the ISSB. CICT is progressively incorporating climate-related disclosures under the Standards, in preparation for the Singapore Exchange Regulation (SGX RegCo) enhanced sustainability reporting regime, effective from financial year 2025. REPORTING SCOPE AND PERIOD As a CLI-sponsored REIT, CICT is externally managed by wholly owned subsidiaries of CLI, including CICTML and the property managers who oversee the daily property operations. Employees1 of CICTML and the property managers are responsible for the Trust and its property and portfolio operations. Their respective teams are identified as employees of the Trust. The non-executive directors of the CICTML Board are not employees of the REIT. This Report covers CICT’s portfolio for the financial period from 1 January 2024 to 31 December 2024 (FY 2024), unless otherwise stated. In FY 2024, CICT acquired a 50.0% interest in ION Orchard (comprising ION Orchard and ION Orchard Link) on 30 October 2024 and divested 21 Collyer Quay on 11 November 2024. As at 31 December 2024, CICT’s portfolio includes 21 properties in Singapore, two in Frankfurt, Germany, and three in Sydney, Australia. Guided by GHG Protocol (operational control method) which sets the global standard on how to measure, manage and report GHG emissions, this Report details the environmental performance of properties under CICT’s operational control. They include the 21 operating properties in Singapore, which account for 94.5% of CICT’s portfolio property value as at 31 December 2024. The overseas assets, which are third-party managed, comprise the Australia and Germany portfolios. This Report covers their consumption data for energy, water and waste, as available at the time of reporting. Additional environmental metrics are being tracked and monitored internally. This Report has undergone a comprehensive internal review. Our Sponsor, CLI, is obtaining external assurance, with reference to the International Standard on Assurance Engagements 3000 (ISAE 3000), for its GSR 2024 expected to be released in May 2025. CICT’s properties and employees are included within the scope of CLI’s external assurance engagement. This Report is to be read in conjunction with CICT’s AR 2024. In line with our commitment to environmental sustainability, this Report is not printed. 1 Employees hired by and/or report to the Manager. 4 CapitaLand Integrated Commercial Trust
CEO Message We are committed to growing CICT responsibly by integrating sustainability into our business approach to create long-term value for our stakeholders. As Singapore's largest REIT and the proxy for Singapore’s commercial real estate, we remain focused on building a resilient and sustainable portfolio for the future through our ESG efforts. In 2024, we made notable advancements in our sustainability journey, guided by our sponsor CLI’s 2030 SMP. This progress is underpinned by the collective efforts of our Board, management and the CICT team. Advancing our decarbonisation efforts On the environmental front, we continued our focus on reducing our carbon footprint, improving energy efficiency, and aligning with global sustainability benchmarks. One key achievement this year was the adoption of CaaS systems at Raffles City Singapore, Plaza Singapura, and The Atrium@Orchard. This initiative is expected to reduce energy consumption across the three properties by over 30% compared to 2023 levels, lower carbon emissions, and support our properties’ green certifications. To date, 100% of our portfolio by GFA is green-rated. In addition, we unveiled CQ @ Clarke Quay following our asset enhancement initiative which included upgraded sustainability features designed to achieve energy savings of approximately 1.03 million kilowatt hours per year on a stabilised basis. This is equivalent to powering the annual electricity consumption of about 240 four-room HDB flats1. CICT continued to be recognised by global sustainability benchmarks for its ESG performance. Notably, CICT maintained GRESB’s highest 5-star rating and was recognised for the first time as a GRESB Global Listed Sector Leader, Regional Sector Leader (Asia) and Regional Listed Sector Leader (Asia) in the Diversified Office/Retail category. These accomplishments underscore our commitment to driving climate action, enhancing operational excellence, and positioning CICT as a sustainability leader in the REIT sector. In FY 2024, CICT increased its green financing with the issuance of S$300 million 3.75% 10-year fixed rate notes and S$200 million 3.30% 10.5-year fixed rate notes in July and October 2024 respectively. The total outstanding sustainability-linked green loans and bonds as at 31 December 2024 were S$4.8 billion (31 December 2023: S$4.2 billion). We recognise the importance of addressing our indirect Scope 3 emissions while continuing to reduce our Scope 1 and 2 emissions. As part of CLI's carbon reduction initiatives, we have conducted a preliminary review to identify material Scope 3 categories across our portfolio. These categories are disclosed in this Report and will guide us in implementing more targeted and impactful decarbonisation measures. Creating positive social impact Beyond environmental performance, CICT is committed to creating vibrant and engaging spaces that enhance the well-being of our tenants, shoppers, and communities. Our properties offers more than functionality, serving as hubs where the community can connect and share experiences. In 2024, we continued to prioritise impactful stakeholder and community programmes, including tenant partnerships, wellness initiatives, and sustainability campaigns, to foster a positive environment and enrich experiences for all. By strengthening relationships and promoting meaningful engagement, we continue to build trust, enhance satisfaction among tenants and shoppers, and contribute as a responsible corporate citizen driving social impact. Continued strong focus on governance We uphold the highest governance standards, prioritising accountability, integrity, and transparency while proactively managing sustainability risks and opportunities in alignment with our overall risk appetite and strategy. By integrating ESG considerations into our decision-making processes, we address potential challenges, capitalise on opportunities prudently, and create long-term value for stakeholders. Our commitment to ESG excellence is reflected in our transparent reporting, which adheres to global frameworks such as the GRI, and UN SDGs. This Report marks our first step in referencing the IFRS Sustainability Disclosure Standards (Standards) issued by the ISSB. CICT is progressively incorporating climate-related disclosures under the Standards, in preparation for the SGX RegCo enhanced sustainability reporting regime, effective from financial year 2025. Reinforcing our position as a responsible leader in the REIT sector, we are proud to have been honoured with the Singapore Corporate Governance Award and the Singapore Corporate Sustainability Award at the SIAS Investors’ Choice Awards 2024. We are committed to enhancing our ESG and reporting efforts and will continue to engage with tenants, suppliers and partners across our value chain to achieve progress. Shaping a sustainable future through innovations, green initiatives and partnerships We crowdsource sustainability innovations globally through platforms such as the CSXC and CIF to accelerate our drive towards the 2030 SMP targets. As at March 2025, nine selected innovations and green initiatives have been implemented at our properties. By collaborating with our partners and tenants on these projects, we foster a culture of environmental responsibility and amplify our efforts through collective action. We will continue to work closely with them to create a positive impact on the environment and the communities where we operate. Sustainability is an ongoing journey and CICT remains steadfast in championing progress through innovation, strengthening stakeholder engagement and implementing impactful initiatives. By maintaining excellence in governance practices while effectively managing risks and opportunities, we strive to continuously improve and shape a more sustainable future for all. Tony Tan Tee Hieong Chief Executive Officer 1 The average household electricity consumption is based on Energy Market Authority’s statistics. 5 Sustainability Report 2024
Pathways & Trends 6 CapitaLand Integrated Commercial Trust 7 Sustainability Report 2024 CapitaLand Hope Foundation as a vehicle to amplify the social impact of our contribution to the communities by collaborating with ecosystem partners to support key underserved needs of children, youth and seniors through donations, volunteerism and thought leadership. Build a culture of volunteerism among staff and leveraging its ecosystem to rally customers and business partners to do good together. Build Portfolio Resilience and Resource Efficiency Enable Thriving and FutureAdaptive Communities Integrate sustainability in the entire real estate life cycle. In particular, factoring environmental and social (including health and safety) impact assessments and an internal carbon price into the investment evaluation process. Source climate-technology solutions through the global CSXC for piloting and adoption throughout the portfolio. Strengthen innovation and collaboration by tapping on the S$50 million CIF to drive sustainability by sourcing globally and within CLI for new ideas and technologies to meet our bold sustainability ambitions. Work with partners to create shared values that benefit the wider real estate community through partnerships and mentorships. Raise capital through sustainable finance instruments by embracing sustainable finance initiatives that demonstrate our sustainability leadership. Any interest rate savings can be channelled back into our decarbonisation efforts. Develop capability and build a culture of sustainability throughout the organisation. Empower staff with relevant knowledge and skillsets to make decisions that align with our sustainability goals. Cultivate stakeholder engagement through thought leadership and advocacy, towards ensuring CapitaLand as a sustainable brand that cares for the environment and communities that it serves. Leveraging CLI 2030 Sustainability Master Plan Pathways Steward Responsible Business Conduct and Governance GLOBAL TRENDS Capitalising on Opportunities and Mitigating Risks Climate Change Pg 18 to 21 Innovation Pg 29 Real Estate Trends Pg 22 to 23 and 33 1 CICT relies on CLI's external assurance conducted annually since its 2010 GSR under CapitaLand Limited. The assured data covers the sustainability performance of CLI’s global operations and portfolio, which includes CICT properties in Singapore. Ensure robust ESG governance structure, where the CICTML Board reviews and endorses key material ESG issues and the sustainability strategy presented by the management. The management and the CICT sustainability committee are responsible for execution on the ground through cross-team collaboration. Monitor and report to ensure transparency of sustainability progress. Continue to validate performance by external assurance1 and align sustainability report to international standards and frameworks. Integrate ESG into Balanced Scorecard Framework and sustainability targets embedded in policies, processes, best practices, and key performance indicators. Use data analytics and digitalisation to track and analyse trends in environment parameters and use the insights for portfolio optimisation. Click to view CLI 2030 SMP.
ESG Highlights 8 CapitaLand Integrated Commercial Trust 2024 Progress Advancing Our Low Carbon Transition Embracing the Tenets of Sound Corporate Governance To Reduce To Achieve of CICTML Employees Attended Fraud, Bribery & Corruption Awareness Training 100% Female Representation in Senior Management Level 50% Training Hours per Employee 28 ~ Targets and Performance (reduction targets are based on a 2019 baseline1) 2030 Targets 1 To operationalise the SBTi-approved reduction targets, CLI revised its baseline year from 2008 to 2019 in its Global Sustainability Report 2022. Aligning with CLI, CICT has adopted 2019 as the baseline year since its Sustainability Report 2023. 2 This refers to gross greenhouse gas emissions. For more information on greenhouse gases covered by this target, please refer to the GHG Emissions Data Methodology. CICT plans to address any remaining residual carbon with carbon offsets and are currently reviewing the carbon offsets strategy with CLI. Please see the Carbon Mitigation Hierarchy on page 21. Fostering Positive Change through Social Good of Employees Attended at Least One ESG Training >98% Supply Chain Vendors Committed to Abide by Supply Chain Code of Conduct 100% Employee Workrelated Fatality or Permanent Disability Zero Volunteering Hours by Employees 940 Absolute Scope 1 & 2 GHG Emissions2 by 46% > 8% Carbon Emissions Intensity by 72% > 17% Energy Consumption Intensity by 15% > 12% Water Consumption Intensity by 15% > 9% Waste Intensity in Daily Operations by 20% > 16% Waste Recycling Rate in Daily Operations 25% 8% Renewable Energy 45% 2%
Corporate Governance Highlights Figures may not add up due to rounding. Board Composition Committee Composition Meeting Attendance 4 members 5 Males 4 Females Board Independence Audit and Risk Committee Tenure Mix Age Spread Gender Diversity 50 years & below 51-60 years old 61 years & above 22.2% 22.2% 55.6% 44.4% 22.2% 33.3% 0-3 years 3-6 years >6 years 66.7% Independent 33.3% Non-independent 100% Independent 3 members Nominating and Remuneration Committee 67% Independent 3 members Executive Committee 100% Non-Independent 100% 9 Board Meetings 100% 5 Audit and Risk Committee Meetings 100% 2 Nominating and Remuneration Committee Meetings 100% Annual General Meeting 100% Extraordinary General Meeting Compliance with the Code of Corporate Governance 9 Directors 9 Directors Please refer to the Corporate Governance section from page 75 in AR 2024 Board Matters Remuneration Matters Accountability and Audit Unitholder Rights and Engagement 9 Sustainability Report 2024
Awards & Recognition Singapore Corporate Awards Gold - Best Investor Relations (REITs and Business Trusts category) SIAS Investors’ Choice Awards • Singapore Corporate Governance Award • Singapore Corporate Sustainability Award (REITs and Business Trusts category) GRESB Real Estate Assessment 2024 Maintained 5-Star Rating with a score of 91 points and recognised as a Sector Leader in the following categories: • Global Listed Sector Leader (Diversified: Office/Retail) • Regional Sector Leader (Asia | Diversified: Office/Retail) • Regional Listed Sector Leader (Asia | Diversified: Office/Retail) Maintained ‘A’ for GRESB Public Disclosure with a score of 100 points (Ranked 1st in Asia | Mixed Use: Office/Retail) Constituent of the FTSE4Good Index Series for 18 consecutive years Equileap Ranked First in Singapore for gender equality in 2025 Sustainalytics Rated 8.4 Negligible Risk Included in the 2025 Top Rated ESG Companies List Singapore Governance and Transparency Index (SGTI) 2024 Ranked 4th with an overall score of 101.5 (REIT & Business Trust category) sector leader 2024 REAL ESTATE 10 CapitaLand Integrated Commercial Trust
Sustainability Approach SUSTAINABILITY COMMITMENT CICT aligns its sustainability goals with CLI to achieve sustainable performance for its portfolio. Both CICTML and the property managers oversee CICT’s business and operations, ensuring adherence to CLI’s sustainability framework, policies, and guidelines, including its ethics and business conduct code. Guided by the CLI 2030 SMP, CICT is committed to driving efforts to meet the SBTi-approved Scope 1 and 2 emissions reduction targets aligned with a 1.5°C trajectory1. CICT is also aligned with CLI’s commitment to achieve Net Zero2 by 2050 for its Scope 1 and 2 emissions. Specific pathways are established for each ESG pillar and focus area, with strategies to evolve alongside advancements in technology and scientific research. Roadmaps and plans are developed to achieve CICT’s sustainability objectives, which will enable the Trust to create a greater positive impact on both the environment and communities. GROUP-WIDE COMMITMENT Role of CLI Board, Management and Staff CLI's group-wide sustainability management comes under the purview of a CLI Board Committee – the Executive and Sustainability Committee (ESC)3. The ESC, which is a Board committee, is led by CLI's Chairman. The committee is responsible for overseeing CLI’s sustainability strategies, including providing guidance to management and monitoring progress against achieving the goals of CLI’s sustainability initiatives. The CLI ESC is supported by the CLI Leadership Council which makes strategic resource allocation decisions. The sustainability work teams comprise representatives from CLI’s business units and corporate functions. Each business unit has its own EHS Committee to drive initiatives. The property managers, led by the CEO of Commercial Management at CLI, have their own EHS committee. The property managers are supported by an Engineering, Systems and Sustainability team responsible for integrating sustainability into operations. Provide boardlevel strategic oversight of ESG policies and integration Provide senior management oversight of ESG implementation** Drive implementation of initiatives under ESG pillars CLI Board of Directors CICTML Board of Directors Executive and Sustainability Committee (ESC) CLI Leadership Council (Comprising Senior Management) Various Sustainability Work Teams/ Committees comprising Business units and corporate departments covering Staff Environment, Health and Safety* • Portfolio Management • Investment • Finance • Investor Relations • Asset Management • Property Management (including Engineering, Systems & Sustainability) Working Committee Representatives: Stakeholder Engagement Investments, Asset Management Innovation Enterprise Risk Management Human Resource, Group Procurement, others * Includes EHS Internal Audit and Environment Tracking System (ETS) ** Including climate-related risks and opportunities Business Unit / REIT Sustainability Committee Business Unit / REIT CEOs Sustainability Committee Chairman: CEO Management Team: • Portfolio Management • Investment • Finance • Investor Relations Management and implementation of CICT’s sustainability objectives and strategies CICT SUSTAINABILITY COMMITTEE CLI SUSTAINABILITY MANAGEMENT STRUCTURE Sustainability work teams include BU representatives Serve as sustainability champions (accountable for business unit performance) FOCUS 1 This is using the absolute contraction approach. 2 This refers to net greenhouse gas emissions. For more information on greenhouse gases covered by the target, please refer to the GHG Emissions Data Methodology. 3 The Executive Committee and the Strategy and Sustainability Committee merged to form the Executive and Sustainability Committee with effect from 1 January 2025. 11 Sustainability Report 2024
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
MAINTAINING DIVERSITY ON THE BOARD The CICTML Board embraces diversity and has in place a Board Diversity Policy. The Board Diversity Policy ensures that the Board comprises talented and dedicated Directors with a diverse mix of expertise, experience, perspectives, skills and backgrounds, with due consideration to diversity factors. Diversity factors include, but not limited to, diversity in business or professional experience, age and gender. For more information, please refer to the Corporate Governance section of CICT's AR 2024. GLOBAL BENCHMARKING CICT remains guided by externally validated international standards and frameworks in our sustainability reporting. This Report is prepared in accordance with GRI Standards, in alignment with GRESB and incorporates elements of the Value Reporting Foundation Integrated Reporting framework, references the UN SDGs and SASB real estate sector-specific standards. This Report has considered the IFRS Sustainability Disclosure Standards (Standards) issued by the ISSB. CICT is progressively incorporating climaterelated disclosures under the Standards, in preparation for the SGX RegCo enhanced sustainability reporting regime, effective from financial year 2025. CICT is committed to the 10 principles of the United Nations Global Compact (UNGC) in the areas of human rights, labour, environment and anti-corruption. This commitment aligns with that of our Sponsor, CLI, a signatory to the UNGC since 2015. CLI is also a signatory of the UN-supported Principles of Responsible Investing (UN PRI) and the Institute of Limited Partners Association (ILPA) Diversity in Action initiative since February 2023. As a testament to our efforts to enhance ESG standards and improve disclosures, CICT continues to be listed in ESG indices such as FTSE4Good Index Series. CICT will continue to rely on CLI’s external assurance in their GSR with reference to the ISAE 3000 International Standard on Assurance Engagements. The assurance will cover the sustainability performance of CLI’s employees and global portfolio, which includes the properties under CLI’s six listed REITs and business trusts, such as CICT. CLI’s GSR 2024 will be published on its website in May 2025. MATERIALITY The CICTML Board endorses the material ESG issues that are most relevant and significant to CICT and its stakeholders, taking into consideration their relevance or impact to the business, strategy, financial planning, business model and key stakeholders. A double materiality approach is adopted, considering issues which are material from either the impact or financial perspectives1, or both. Potentially material ESG issues arising from activities across CICT and CLI’s value chain - including immediate and longer term risks and opportunities - are identified primarily through ongoing engagement with the CICT team, CLI’s business units and external stakeholders. In addition, we review various sources including investor questionnaires, and ESG surveys, benchmarks and frameworks such as GRESB and SASB to enhance our understanding of the industry's material ESG issues. In addition, CICT has a regular process to review, assess and feedback in relation to ESG topics. Identified material issues are reported in a corporate risk register through the annual group-wide RCSA exercise2, which identifies, assesses and documents material risks and the corresponding internal controls to manage those risks. The material risks include fraud and corruption, environmental (including climate change), health and safety, and human capital which are ESG-relevant. Identified material ESG issues are then prioritised based on the likelihood and potential impact on CICT’s business continuity. For external stakeholders, priority is given to issues important to the community and applicable to CICT and CLI. In FY 2024, the ESG material topics were endorsed by the CICTML Board for their continued relevance. For more details, please refer to the Material Topics and Boundaries section of this Report. 1 To identify ESG issues which are potentially financially material, CICT takes reference from the SASB Standards for Real Estate and Real Estate Services, which identify sustainability factors that are material to short, medium, and long-term enterprise value for the industry. 2 For more information on CICT’s ERM and the group-wide RCSA exercise, please refer to the Risk Management section of CICT’s AR 2024 and the Risk Management section under Governance of this Report. 13 Sustainability Report 2024
Sustainability Approach Regular Review, Assessment and Feedback Process for Material ESG Factors 1 Economic Performance, Market Presence and Governance are deemed to be material for CICT but not considered as ESG Factors Review material ESG factors through the assessment of: • Risk and Control Self Assessment Exercise • GRESB Survey • S&P Dow Jones Sustainability Assessment • Surveys • Engagements • Feedback Seek Board’s endorsement for prioritised material ESG factors Reference other ESG standards and frameworks • ISSB • GRI Standards • Value Reporting Foundation Integrated Reporting Framework • UN SDGs • SASB real estate sector-specific standards • See table below on the Prioritisation of Material ESG Issues. Material ESG factors1 priority list PRIORITISATION OF ESG MATERIAL ISSUES Environmental Social Governance Critical • Climate change and carbon emissions reduction • Energy efficiency • Water management • Occupational health and safety • Human capital • Stakeholder engagement1 • Products and services2 • Supply chain management • Diversity (Board and staff) • Risk management3 • Business ethics Moderate and Emerging • Waste management • Biodiversity • Human rights4 1 Includes green leases and tenant engagement on ESG matters 2 Includes products and services promoting customer health and safety, and green-certified buildings 3 Includes consideration of compliance, economic performance and cybersecurity 4 Relates to our zero tolerance stance regarding child/forced labour and covers employees and supply chain 14 CapitaLand Integrated Commercial Trust
Creating Value and Alignment to United Nations Sustainable Development Goals (UN SDGs) CICT-endorsed material ESG issues and the value created1, aligned to CLI’s 2030 SMP focus areas and commitments, are mapped to CICT’s resources namely, Financial, Organisational, Properties, Environment, and Stakeholders and Communities. They are further mapped against eight UN SDGs that most aligned with the CLI’s 2030 SMP focus areas, and where CICT can achieve the greatest positive impact. The UN SDGs call on companies everywhere to advance sustainable development through the investments they make, the solutions they develop, and the business practices they adopt. In doing so, the goals encourage companies to reduce their negative impacts while enhancing their positive contributions to the sustainable development agenda. Areas of Focus CICT’s Commitments Resources and UN SDGs supported Environmental Low-carbon Transition • Transit to low-carbon business and reduce energy consumption through improved energy efficiency and increased use of renewable energy. • Green operational portfolio by 2030. • Strengthen climate resilience of portfolio by addressing climate-related risks and opportunities throughout the real estate life cycle. • Sign green leases with tenants. Environment Properties Water Conservation and Resilience • Reduce water consumption, reuse water and prevent water pollution. Sustainable Innovation and Technology • Actively embrace innovation to ensure commercial viability without compromising the environment for future generations. • Leverage CLI’s Supply Chain Code of Conduct to influence supply chain to operate responsibly in the area of environmental management Social Dynamic Human Capital • Adopt consistent, equitable, and fair labour policies and practices in rewarding and developing staff. Staff can make a significant contribution based on their talent, expertise and experience, regardless of ethnicity, age or gender. Stakeholders & Communities Properties Healthy and Safe Buildings • Aim to provide a safe work environment that contributes to the general well-being of our staff, tenants, contractors, suppliers and the communities that use our properties. Proactive Customer Relationship Management • Commit to activities that align with our focus on community investment. Engage stakeholders to raise awareness in the areas of environment, health and safety, as well as promote sustainability within the tenant community. Robust Supply Chain Management • Leverage CLI’s Supply Chain Code of Conduct to influence supply chain to operate responsibly in the areas of environment, human rights, and health and safety. 1 For details on the value CICT has created, please see the respective Environmental, Social, and Governance sections of this Report, where our commitments and progress are outlined. 15 Sustainability Report 2024
Sustainability Approach Areas of Focus CICT’s Commitments Resources and UN SDGs supported Governance Board Diversity • Guided by a Board Diversity Policy to comprise talented and dedicated Directors with a wide mix of expertise (including industry, domain and functional expertise), skills, experience (including international experience) and perspectives, with due consideration to diversity in gender, age, tenure, ethnicity and culture, and geographical background including nationality, as well as any other relevant aspects of diversity. Stakeholders & Communities Organisational Compliance and Training • Commit to meet high standards of risk management in the way it conducts business. All staff must understand and be responsible for ensuring that risks are managed effectively in their daily work. • Require third-party service providers and vendors to adhere to anti-bribery and anti-corruption provisions. • Leverage CLI’s Supply Chain Code of Conduct to influence the supply chain to operate responsibly in the area of anti-corruption. Economic ESG and Financial Performance Metrics • Integrate CICT’s ESG performance with financial metrics. Financial 16 CapitaLand Integrated Commercial Trust
17 Sustainability Report 2024 Environmental Commitment & Progress Please refer to CICT's website for information on our Environmental Framework. Areas of Focus 2030 Targets & Commitments 2024 Performance Low-carbon Transition Achieve science-based target of reducing absolute Scope 1 and 2 GHG emissions by 46% from 2019 baseline1 8% reduction in absolute Scope 1 and 2 GHG emissions Reduce carbon emissions intensity by 72% from 2019 baseline 17% reduction in carbon emissions intensity Continue to enhance climaterelated disclosures Reduce energy consumption intensity by 15% from 2019 baseline 12% reduction in energy consumption intensity Generate 45% of total electricity consumption from renewable sources 2% of total electricity consumption from renewable sources Achieve a minimum green rating for all operating properties 100% of CICT portfolio by GFA are minimally BCA Green Mark certified or equivalent Water Conservation and Resilience Reduce water consumption intensity by 15% from 2019 baseline 9% reduction in water consumption intensity Waste Management and Circular Economy Reduce waste intensity in our dayto-day operations by 20% from 2019 baseline 16% reduction in waste intensity Achieve 25% recycling rate in its day-today operations 8% recycling rate Sustainable Innovation and Technology Actively embrace innovation to ensure commercial viability without compromising the environment for future generations Nine innovations and green initiatives are underway or pending installation in CICT properties (more details in Operational Efficiency: Enhancing Efficiency under the Environment section of this Report) Sustainable Operation Excellence Obtain ISO 14001 certification for EMS Maintained ISO 14001 for EMS EMS is externally audited annually, providing assurance to top management and external investors on CICT's compliance and alignment to best practices 1 This refers to gross greenhouse gas emissions. For more information on greenhouse gases covered by this target, please refer to the GHG Emissions Data Methodology. CICT plans to address any remaining residual carbon with carbon offsets and are currently reviewing the carbon offsets strategy with CLI. Please see the Carbon Mitigation Hierarchy on page 21.
Environmental Managing Climate Change 18 CapitaLand Integrated Commercial Trust MANAGING CLIMATE-RELATED RISKS AND OPPORTUNITIES CICT recognises the impact of climate change on its portfolio presents both risks and opportunities. In pursuing a low-carbon transition, CICT aims to mitigate transition risks while building portfolio resilience against the physical risks of climate change through adaptation. The Financial Stability Board (FSB) established the Task Force on Climate-related Financial Disclosures (TCFD) in 2015 to enhance climate-related risk and opportunity disclosures. In line with CLI’s commitment and regulatory developments, CICT adopted the recommendations of the TCFD since 2021. Following the release of IFRS S1 and S2, the TCFD has been integrated into the ISSB, which will oversee corporate climate disclosures from 2024. For this report, CICT has voluntarily incorporated initial disclosures aligned with the ISSB standards ahead of the mandatory requirement by the SGX Regco. Recognising the evolving landscape of climate-related disclosure standards, CICT will continuously monitor and adapt its reporting practices to align with emerging best practices and regulatory requirements. Summary of CICT’s TCFD-Aligned Actions Progress in FY 2024 GOVERNANCE – See Sustainability Approach section of this Report Implementation of TCFD Reporting Started in Annual Report 2021 Board, Management and Staff Commitment, and Management Structure Established Board oversight in ESG strategies and issues Established Board and management training to build capacity in climate-related issues Established STRATEGY - See Sustainability Approach section of this Report Alignment to CLI 2030 SMP and commitment Established Identification and assessment of climate-related risks and opportunities using a life cycle approach and climate scenario analysis Established RISK MANAGEMENT – See Risk Management section of this Report and AR 2024 Conduct annual trust-wide RCSA exercise Established METRICS & TARGETS – See Operational Efficiency section of this Report Commitment to Net Zero ambition by 2050 and elevated science-based target for scope 1 and scope 2 carbon emissions for a 1.5°C scenario Established Public disclosures of climate-related metrics and targets, and performance data Established
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
Environmental Managing Climate Change Potential impacts of climate-related risks and opportunities assessed across the portfolio were identified under the different scenarios. CICT faces more exposure to physical risks under the 3°C scenario in the long term relative to transition risks as minimal transition policies are expected to be in place and the development of low-carbon technology or related market changes may be slow. Conversely, under the 1.5°C and 2°C scenarios, CICT faces higher levels of transition risks as more stringent climate-related policies are expected to be introduced and implemented. The insights on both quantitative and qualitative assessments of the risks identified provide a basis for the next steps in understanding the severity of risk impacts across time horizons. The outcomes of the 2022 climate scenario analysis for CICT’s portfolio and the mitigating measures which are both applicable to CICT in 2024 can be found in CICT’s Sustainability Report 2023 and on CICT’s website. While the climate scenario analysis for physical risk indicated that CICT’s properties had no risk of fluvial flooding, we recognise that intense or prolonged rainfall can cause flooding in certain low-lying areas of Singapore. This reinforced the need for proactive measures. A case study on how we safeguard our properties with flood prevention measures is shared on CICT’s website. We are also engaging our tenants to identify climate-related opportunities. As an ongoing process, CICT, alongside CLI, will review and update, if appropriate, the processes associated with risk management in order to account for the identified material environmental and climaterelated risks. CATEGORIES OF SCOPE 3 EMISSIONS For this Report, CICT expanded its Scope 3 reporting to four Greenhouse Gas Protocol’s Scope 3 categories. Category 13 Downstream Leased Assets accounted for 75% of CICT’s Scope 3 emissions This was followed by Category 3 Fuel and Energy-related Activities of 14%,Category 5 Waste Generated in own Properties of 10%, Category 2 Capital Goods (construction activities) of 0.93%. Category 6 Business Travel accounted for less than 0.07%. For more information, please refer to the Key ESG Performance Summary (Environmental) on CICT’s website. Cat 2 Capital goods (construction activities) Cat 3 Fuel and energy-related activities Cat 5 Waste generated in own operations Cat 6 Business travel Cat 13 Downstream leased assets 0.93% 14% 10% 0.07% 75% 126,687 tCO2e For Scope 3 emissions, CICT aims to conduct a comprehensive review to better track and disclose the material Scope 3 emissions. CICT will continue to work closely with its value chain, especially tenants and suppliers, to decarbonise. BUILDING CLIMATE RESILIENCE Aligned with CLI’s’s science-based target, CICT commits to reducing its absolute Scope 1 and 2 GHG emissions1 by 46% by 2030 from a 2019 baseline. This target is in line with the goals of the Paris Agreement to keep global temperature rise to 1.5 C in this century. CICT is also committed to Net Zero2 for Scope 1 and 2 emissions by 2050. Scope 3 Categories LOW LOW LOW HIGH Fuel and Energyrelated Activities Waste Generated in Own Operations Business Travel Downstream Leased Assets Materiality based on CICT’s 2024 Footprint Inclusion in 2024 Reporting Scope 1 This refers to gross greenhouse gas emissions. For more information on greenhouse gases covered by this target, please refer to the GHG Emissions Data Methodology. 2 This refers to net greenhouse gas emissions. For more information on greenhouse gases covered by the target, please refer to the GHG Emissions Data Methodology. 20 CapitaLand Integrated Commercial Trust
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