CapitaLand China Trust - Sustainability Report 2021

Environmental ENVIRONMENTAL AND MANUFACTURED CAPITAL Our Approach to Environmental Management CLCT is aligned with CapitaLand’s commitment to minimise its environmental impact and contribute towards desired positive outcomes for the benefit of stakeholders. CLCT strives to implement and integrate environmentally friendly features in its properties and improve overall energy efficiency. The asset enhancement initiatives (AEI) undertaken also consider environmental sustainability. Monitoring environmental impact is an important part of CLCT’s business operations, as the efficient use and management of environmental resources such as energy, water and waste contributes to higher efficiency and sustainability of CLCT’s portfolio. Managing Environmental Footprint CapitaLand’s Environmental Management System (EMS) is a key tool in managing CLCT’s environmental footprint across its portfolio. The EMS is integrated with CapitaLand’s Occupational, Health and Safety Management System (OHSMS) to form CapitaLand’s Environmental, Health and Safety Management System (EHSMS) that complies with ISO 14001 and ISO 45001 standards. The ISO 14001 and ISO 45001 standards are recognised internationally for the environmental management of businesses and occupational health and safety management of businesses respectively. Risk Management of Environmental Aspects and Impact The EHSMS provides a systematic process to manage CLCT’s environmental impact and continuously improve its environmental performance, by identifying and managing potential risks that may result in a negative impact on the environment. The significance of each environmental aspect and impact is assessed using a risk assessment technique based on factors compromising the likelihood of occurrence, severity of impact and control measure to be implemented. CLCT strives to minimise impacts such as resource depletion, carbon emissions and waste generation. This is achieved by setting green building rating and environmental performance targets and implementing various measures to achieve them. The targets are linked to the remuneration for staff including top management. Training and Awareness To facilitate effective implementation of CapitaLand’s EHSMS, training and awareness programmes are conducted for all CLCT’s staff. In FY 2021, CLCT achieved a participation rate of 91% from the property management teams in China, who attended EHS-related training sessions. It is mandatory for new employees from the property management teams to be introduced to CapitaLand’s EHS policy and EHSMS. Internal and External Audits As a CLI-sponsored REIT, CLCT taps on the internal audit system by CapitaLand to ensure that the implementation of its EMS is effective and aligned to the ISO 45001 standards. CapitaLand also ensures that external audits are conducted annually by an accredited third-party certification body. An annual audit of the EMS provides assurance to CLCT’s stakeholders on CLCT’s commitment to best practices. Sustainable Building Guidelines CLCT adheres to CapitaLand’s Sustainable Building Guidelines (SBG) guides for all its refurbishment works. The SBG is an in-house guide developed since 2007 to ensure that environmental considerations are factored in at all stages of a project, from feasibility, design, procurement, construction, operation to redevelopment. The SBG is regularly reviewed to ensure continuous improvement, with four main objectives: CAPITALAND’S ENVIRONMENTAL, HEALTH AND SAFETY (EHS) POLICY As a CLI-sponsored REIT, CLCT is committed to protecting the environment and upholding the occupational health and safety (OHS) of everyone in the workplace, and will: • Carry out exemplary EHS practices to minimise pollution and health and safety risks • Seek continual improvement on its EHS performance • Comply with pertinent legislations and other requirements • Implement the CapitaLand Sustainable Building Guidelines and Occupational Health and Safety programmes This policy is readily available to all employees, tenants, suppliers, service providers and partners. Integrated Sustainability Report 2021 19