PublicationsIntegrated Sustainability Reports

Dear Stakeholders,

In 2023, our commitment to sustainability continues to drive our actions as we strive to create long-term economic value for our stakeholders. Building upon the progress made last year, we are pleased to share the latest updates on our sustainability journey and achievements in alignment with CapitaLand Investment's 2030 Sustainability Master Plan (SMP).

SUSTAINABILITY RECOGNITION AND ACCOLADES

We are delighted that our dedication to sustainable practices has been recognised with a 5-star rating in the 2023 GRESB Real Estate Assessment. This significant improvement from our previous 2-star rating reflects our unwavering efforts and commitment to sustainability. Additionally, we also maintained an "A" rating for 2023 GRESB Public Disclosure.

As we advance on our progress in the environmental, social, and governance aspects, we have raised our MSCI ESG Ratings from 'B' to 'BBB', reflecting our responsible and sustainable business practices. Similarly, our Sustainalytics ESG Risk Rating has been upgraded from 'Low Risk' to 'Negligible Risk', highlighting our robust policies and practices.

PROGRESS IN ENERGY EFFICIENCY

Our focus on energy efficiency has yielded positive results, with four of our assets – CapitaMall Xizhimen, Ascendas Innovation Towers, Ascendas Innovation Hub, and Singapore-Hangzhou Science & Technology Park Phase I¹⁰ attaining LEED Gold certification in 2023. Including CapitaMall Wangjing and Rock Square which attained LEED Gold certification in 2022, 36%¹¹ of our portfolio's GFA is currently green certified. We have made substantial progress in implementing green leasing across all¹² our CLI-managed properties, further solidifying our commitment to sustainable practices.

To reduce environmental impact, we have successfully purchased offsite renewable energy for the first time at Ascendas Innovation Towers and Ascendas Innovation Hub this year, accounting for 3.0% of our portfolio's electricity consumption in FY 2023. In addition, we have completed the installation of 253 solar panels on the roof of Kunshan Bacheng Logistics Park, with the anticipation of generating onsite renewable energy in 2024.

SUSTAINABLE FINANCING JOURNEY

Our sustainable financing initiatives have garnered noteworthy success. We are pleased to share that we have secured additional sustainability-linked loan of S$100 million in FY 2023. As at 31 December 2023, sustainability-linked loans account for 31% of total debt (FY 2022: 13%). This improvement reflects our commitment towards responsible growth and our resolute focus on embracing sustainable financing instruments to enhance our financial flexibility.

In addition, CLCT established a Sustainability-Linked Finance Framework in October 2023. This framework includes key performance indicators (KPIs) tied to green building certifications, renewable energy, and energy consumption intensity targets.

EMBRACING DIVERSITY AND INCLUSION

We are equally committed to diversity, equity, and inclusion. Our efforts have led to an increase in female representation on our Board to 40.0%¹³ in 2023, up from 25.0% last year. We continued to maintain gender diversity within our REIT Manager and property management teams in Singapore and China. We are committed to cultivate a positive working environment for employees across diverse backgrounds to promote employee engagement, motivation and retention.

SUSTAINABILITY STEWARDSHIP

Sustainability remains at the heart of our strategies here at CLCT. Our ESG targets are integrated into our investment and business decisions as we continue to enhance our sustainability performance and broaden our sustainable financing endeavours. As we build resilience and seize opportunities, we remain steadfast in our commitment to contribute to the environmental and social well-being of the communities we operate in.

We extend our gratitude for your continuous support and unwavering partnership as we continue this sustainability journey together.

Tan Tze Wooi

Chief Executive Officer

CLCT is Singapore’s largest China-focused REIT. This is CLCT’s third Integrated Sustainability Report (ISR), and it aims to provide a comprehensive overview of the organisation’s Environmental, Social and Governance (ESG) performance. Published in mid-April 2024, this Report is available on https://investor.clct.com.sg/isr.html.

INTERNATIONAL STANDARDS AND GUIDELINES

This ISR has been prepared in accordance with the Global Reporting Initiative (GRI) Standards 2021, an internationally recognised sustainability reporting standard that covers a wide range of disclosures. The report is also in compliance with the sustainability reporting requirements set out in the Listing Manual Rule 711A and 711B of the Singapore Exchange Securities Trading Limited (SGX-ST).

Our business model is built upon the fundamental concepts as guided by the Integrated Reporting Framework by the Value Reporting Foundation, and it incorporates elements of the framework to communicate value creation. It is also aligned with the Sustainable Developments Goals of United Nations (UN SDGs). Additionally, this Report references the Sustainability Accounting Standards Board (SASB) Standards sustainability disclosure topics and metrics for real estate sector-specific standards, and outlines CLCT’s risk management framework with reference to the Guidelines on Environmental Risk Management for Asset Managers issued by the Monetary Authority Singapore (MAS). Together with our Sponsor, CLI, CLCT will continue to adopt a progressive approach in refining its climate-related disclosures based on the 11 recommendations from the Task Force on Climate-related Financial Disclosures (TCFD).

REPORTING SCOPE AND PERIOD

As at 31 December 2023, the portfolio comprised 103 retail properties, five business parks and four logistics parks, primarily located in Tier 1 and leading cities in China. This Report discloses information on the 18^3,4,5 properties within CLCT’s portfolio, unless otherwise stated, for the financial period from 1 January 2023 to 31 December 2023 (FY 2023).

CLCT adopts the Greenhouse Gas (GHG) Protocol Corporate Standard in disclosing performance data for Energy, GHG, Water and Waste across our 18 properties. As such, CLCT only reports the assets that are under the Manager’s operational control. There is no restatement of information this year.

Retail

• CapitaMall Xizhimen
• Rock Square
• CapitaMall Wangjing
• CapitaMall Grand Canyon
• CapitaMall Xuefu
• CapitaMall Xinnan
• CapitaMall Nuohemule
• CapitaMall Yuhuating
• CapitaMall Aidemengdun
• CapitaMall Shuangjing⁴

Business Park

• Ascendas Xinsu Portfolio
• Ascendas Innovation Towers
• Ascendas Innovation Hub
• Singapore-Hangzhou Science & Technology Park (Phase I)
• Singapore-Hangzhou Science & Technology Park (Phase II)

Logistics Park

• Shanghai Fengxian Logistics Park
• Kunshan Bacheng Logistics Park
• Wuhan Yangluo Logistics Park
• Chengdu Shuangliu Logistics Park

The operations of CLCT’s properties are managed by the REIT Manager and property management teams. The respective teams are identified as employees of CLCT. However, non-executive members of the CLCTML Board are not considered employees of the REIT.

On an annual basis, to ensure transparency and accuracy, CLI had engaged an independent external consultant to carry out assurance over the CLI Group’s performance data for FY 2023. CLCT’s performance data is also scoped in as part of the CLI Group’s annual external assurance engagement. CLI's report will continue to be externally assured with reference to the ISAE 3000 International Standard on Assurance Engagements. It covers the Group’s global portfolio and employees, including CLCT and CLI ‘s other listed real estate investment trusts and business trusts. CLI’s Global Sustainability Report (GSR) 2023 will be published by 31 May 2024 on the CLI website. This ISR has also undergone a comprehensive internal review.

Published annually, this ISR is recommended to be read alongside CLCT's Annual Report 2023 for a comprehensive understanding of its business and performance. Reflecting our ongoing commitment to environmental sustainability, no physical copies of this ISR have been printed.

For any further inquiries, please contact:

Ms Nicole Chen
Head, Investor Relations
Tel: 6713 2888
Email: ask-us@clct.com.sg
Website: www.clct.com.sg