8 CAPITALAND CHINA TRUST CEO MESSAGE 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 10 Attained LEED Gold status for Block 1 to 3 of Singapore-Hangzhou Science & Technology Park Phase I – the remaining blocks are LEED Gold certified since 2014. 11 By portfolio gross floor area excluding carpark space. Cover CLCT properties managed by CLI (by sq m). 12 Refers to green leases implemented for new and renewed leases. Cover CLCT properties managed by CLI. 13 Excluding Ms Kuan Li Li, who has stepped down as the Non-Executive Independent Director on 1 January 2024, the Board gender diversity would be 33%.
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