CapitaLand China Trust - Sustainability Report 2021

Appendix Metrics and Targets At the Group level, CLI has tracked and reduced the carbon emissions of its managed and owned operational properties, including those of CLCT, via its cloud-based Environmental Tracking System. All related metrics have been regularly disclosed in its annual Global Sustainability Report. Since 2010, CapitaLand has been disclosing scope 1, 2 and 3 GHG emissions of its global portfolio and the data has been externally assured. Furthermore, in 2020, the Group had their carbon emissions reduction targets approved by the Science Based Targets initiative (SBTi) for a Well-below 2˚C scenario. This target is in line with the goals of the Paris Agreement to keep global temperature rise well below 2˚C in this century. In 2022, the Group would be evaluating the targets and the progress towards them and explore options for any long-term targets of decarbonisation. Please refer to the CLI Investment Global Sustainability Report 2021 which will be published by May 2022. At the REIT level, in FY 2021, Direct Scope 1 carbon emissions amounted to 1,997 tonnes CO 2 e. Indirect Scope 2 carbon emissions amounted to 38,700 tonnes CO 2 e for FY 2021. Overall carbon intensity (tCO 2 e/m 2 ) for Direct Scope 1 and Indirect Scope 2 carbon emissions was reduced by 61.4% from the 2008 baseline. To calculate its carbon emissions, CLCT takes guidance from the operational control approach as defined by the GHG Protocol Corporate Standard, in line with the Group. Aligned with the Group, CLCT has set sustainability and climate related performance metrics and targets that are linked to the remuneration policies for members of senior management, such as the Balance Scorecard (BSC) framework for FY 2021 which had included both quantitative and qualitative targets relating to climate change. CLI also implemented a shadow internal carbon price in 2021 to quantify climate-related risk and opportunities for its new investments. It is also developing a new metric, Return on Sustainability, in addition to the regular financial return to measure the Group’s ESG impact. CLI will continue to explore new metrics to measure climate- related risks and opportunities. CapitaLand China Trust 44