Integrated Sustainability ReportPerformance

Environmental

CLCT’s Environmental Targets

CLI’s revised 2030 Sustainability Master Plan outlined the Group’s 2030 targets and pathways to transit to a low-carbon business, improve resource use and enable a circular economy. As a CLI-listed REIT, CLCT has incorporated KPIs, most of which are linked to remuneration for all employees in the REIT Manager, including top management.

2030 Sustainability Master Plan (SMP) Targets And ClCT’s Performance

Top Management Commitment and Employee Involvement

CLCT’s Sustainability Management Committee (SMC) is led by CLCT’s CEO and supported by key management team members that oversees the REIT’s sustainability objectives and strategies directly. Supporting the SMC is CLCT’s Sustainability Working Committee (SWC), which collaborates closely with CLI’s EHS Committee to implement sustainability-related initiatives across its operations.

Key Performance Indicators (KPIs) Tied to Remuneration

The remuneration for all employees in the REIT Manager, including top management, is linked to CLCT’s environmental targets through KPIs. Employees are actively encouraged to report environmental-related issues and complaints, as well as instances of non-compliances and non-conformities.

Tracking Our Environmental Results

Environmental Tracking System (ETS)

Since 2008, we have monitored the energy and water usage, waste generation and carbon emissions of our managed and owned properties through CLI’s Environmental Tracking System (ETS). CLCT leverages this platform to survey the various environmental initiatives implemented at its properties globally including energy and water efficiency measures, biodiversity and habitat risks, as well as physical risks that include flood risk and water management initiatives.

As a cloud-based platform, the ETS facilitates benchmarking on consumption patterns and helps identify opportunities for further operational efficiency improvements. It allows each property to conduct analysis against set targets and past trends to understand consumption patterns, compare against properties within the region, and identify areas for improvement. The consolidated data is also analysed against reduction targets. This facilitates a better understanding of consumption patterns and identification of areas for eco-efficiency improvements in CLCT’s portfolio. Regular desktop audits are conducted to ensure data completeness and accuracy.

Carbon Emissions and Intensity

As a CLI-listed REIT, reducing carbon emissions is a key part of CLCT’s strategy to mitigate transition risks for a low-carbon economy. CLCT is aligned to CLI’s commitment to reduce carbon emissions of its operations with a 1.5°C trajectory, with an aim to be Net Zero by 2050.

In 2023, CLCT’s total Scope 1 and 2 GHG emissions²⁰ was 40,519 tCO₂e. This translates to a carbon emissions intensity of 30.2 kgCO₂/m², a 43.0% reduction compared to 2019 baseline. This reduction is attributed to effective energy-saving measures such as controlling indoor temperatures appropriately and ensuring equipment are switched off when not in use. On a year-on-year (YoY) basis, CLCT’s emissions intensity recorded a slight increase of 3.2%. This is due to the operational improvement of our assets as China emerged from COVID-19 as well as asset enhancement initiatives (AEI) activities that we embarked on during the year to convert spaces to common areas, resulting in higher landlord consumption.

Recognising the need to monitor and address CLCT’s indirect Scope 3 emissions, we have started tracking emissions from corporate air travel, tenants' energy consumption and properties that are third-party managed. These contributed to total Scope 3 emissions of 98,035 tCO₂e in 2023.

Energy Consumption, Intensity and Renewables

Improving energy efficiency and implementing onsite and offsite renewables are the most impactful and costeffective ways to mitigate emissions. In 2023, the total energy consumption of operational properties was 88,584 MWh. This translates to an energy consumption intensity of 66.1 kWh/m², a 36.0% reduction compared to 2019 baseline. On a YoY basis, CLCT’s energy consumption intensity recorded a slight increase of 6.9%, similarly due to recovery from COVID-19 and AEI activities.

As a CLI-listed REIT, CLCT implements various energy conservation measures including:

Water Consumption and Intensity

CLCT adopts a strategic approach to water management in its portfolio and is committed to reducing water consumption. A regular survey is conducted to better understand water source and discharge from each property. At all CLCT’s properties, the primary source of water withdrawal is from municipal resources and wastewater is responsibly disposed of through municipal facilities.

In 2023, CLCT’s total water consumption was 695,401 m³. This translates to a water consumption intensity of 0.519 m³/m², a 39.5% reduction compared to 2019 baseline. On a YoY basis, CLCT’s water consumption intensity recorded a slight increase of 3.9%, similarly due to operational improvement and AEI activities. The majority of CLCT’s water usage comes from cooling towers, toilets, washing activities and landscaping.

As CLCT’s properties are mostly located in medium to extremely high-water stress areas²¹, we continue to implement initiatives to ensure efficient operations and minimise water wastage. These conservation initiatives have been rolled out in CLCT’s retail malls and business parks:

Our property managers conduct routine assessments of facilities to monitor water usage, promptly identifying and addressing any fluctuations or anomalies. CLCT organises quarterly operational meetings with tenants and employees to enhance water-saving awareness, reinforcing the significance of water conservation and sharing reduction measures with stakeholders.

Waste Management

Recognising the importance of responsible waste management, CLCT actively engages stakeholders, including tenants, shoppers, and the general public, to reduce and recycle waste. Recycling and disposal bins for different waste types are strategically placed at our properties.

Our main contractors are required to implement procedures that minimise construction waste and ensure proper disposal. To further reduce our environmental impact, the collection and recycling of waste are diligently tracked by our property management teams. CLCT actively encourages and promotes eco-friendly practices within our operations, such as returning of used photocopier toner cartridges and using of paper certified by the Forest Stewardship Council (FSC) in our corporate office. To promote sustainability, CLCT's ISR is not printed and will only be made available on our website.

In 2023, CLCT collected a total of 8,139 tonnes of waste, of which 18.6% (equivalent to 1,510 tonnes) were recyclable waste comprising paper, plastic, metals and other materials. 0.1 tonnes of hazardous waste²² was collected in 2023.