Risk Management 78 CapitaLand China Trust MATERIAL RISKS AND KEY MITIGATING ACTIONS CLCT Group conducts an annual Group-wide Risk and Control Self-Assessment (RCSA) exercise to identify, assess and document key material risks, including new and emerging risks, that CLCT Group faces as well as the respective mitigating measures and any opportunities that we can leverage to achieve our strategic objectives. The following measures are taken to mitigate the identified material risks based on the 2024 RCSA exercise. • Conduct a detailed assessment of physical risks, and health and safety related risks in the evaluation of any new acquisitions. • Incorporate shadow internal carbon price in the evaluation of new investment/capital expenditure decisions. • Regularly review CLCT Group’s mitigation and adaptation efforts, which include future-proofing our portfolio, enhancing the operational efficiency of our properties and establishing targets for carbon emissions reduction and water, energy and waste efficiency. • Implement measures to drive decarbonisation across CLCT Group’s value chain. • Entrench a sustainable safety culture through deep safety capabilities, disciplined safety practices, and a progressive and pervasive safety mindset that drives key safety performance targets for both CLCT Group and our supply chain. • Maintain CLI's Environmental, Health and Safety Management System that is externally certified to ISO 14001 and ISO 45001 in 19 countries. • For more information, please refer to CLCT’s Integrated Sustainability Report FY 2024, to be published in midApril 2025. • Focusing on capital recycling, capital efficiency and fundraising, to optimise CLCT Group’s capacity to capture opportunities. • Leverage CLCT Group’s strong network of investment and asset management professionals with deep knowledge in multi-sector assets. • CLCT Group harnesses outsourced IT management from CLI to strategise effective Cyber Security defense by continuously reviewing against existing or evolving threat landscapes, and institute measures to minimise vulnerability exposure and manage threat vectors, including enhanced protection controls for systems that hold personal data. • Conduct regular mandatory staff IT Security Awareness Training to mitigate human intervention in the information security chain. • Conduct IT Security Incident Management Procedure test, third-party vulnerability test and annual Disaster Recovery Plan exercise to assure IT infrastructure/management system security and ensure timely recoverability of business-critical IT systems. • Board oversight with regular updates to ARC on the state of Cyber Security risk activities and key control improvements, with periodic review and updates of the Group-wide IT Security Policy. • Keen industry competition from established players who are able to capture our customers by meeting their expectations or reacting aptly to market trends. • Ongoing business digitalisation exposes the business to IT-related threats, which may result in compromising the confidentiality, integrity and availability of CLCT Group’s information assets and/ or systems. MATERIAL RISKS KEY MITIGATING ACTIONS • Physical risks such as rising sea levels, violent storms, long intense heat waves, flash floods and freshwater depletion. Transition risks such as increasingly stringent regulations and expectations from stakeholders. • Increased expectations from stakeholders for our properties to provide a safe and healthy environment that contributes to their well-being. Climate-related Safety, Health and Well-being Competition Cybersecurity and Information Technology
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