SUSTAINABILITY REPORT 2023 15 ESG INTEGRATION ACROSS CLCT’S BUSINESS FUNCTIONS CEO and Executive Director • Responsible for decisions relating to ESG targets. Finance • Responsible for securing green financing and engaging with stakeholders such as bankers. Investment & Portfolio Management • Seeks investment opportunities with climate change impact as one of the assessment criteria. • Proposes solutions for procurement of renewable energy, greening of assets, and related capital expenditure. • Engages various internal stakeholders on ESG matters. Environmental, Health and Safety Team • Responsible for monitoring environmental performance of assets against annual and long-term targets. Property Management • Collaborates closely with Investment and Portfolio Management team to evaluate solutions for green energy procurement, greening of assets, and related capital expenditure. • Engages with tenants, service providers, and relevant government agencies for ESG matters. Investor Relations • Engages investment community and ESG rating agencies on CLCT's sustainability targets and performance. • Responsible for ESG reporting matters. RECOGNITION BY GLOBAL BENCHMARKS CLI has been a signatory to the United Nations (UN) Global Compact since 2015 and our Communication on Progress for FY 2023 will be published at www. unglobalcompact.org. In February 2023, CLI also became a signatory of the UN-supported Principles for Responsible Investment (UN PRI), as part of our commitment to invest responsibly. For these efforts, CLI continues to be listed on the Dow Jones Sustainability World Index and Asia-Pacific Index, GRESB (Global Sector Leader – Listed (Diversified) with the highest 5 Star rating), FTSE4Good Index Series, MSCI Global Sustainability Indexes and The Sustainability Yearbook. CLI’s Global Sustainability Report 2023 will continue to be externally assured with reference to the International Standard on Assurance Engagements (ISAE) 3000, and will cover CLI’s global portfolio and employees, including CLCT and CLI’s other listed real estate investment trusts (REITs) and business trusts. In the 2023 GRESB Real Estate Assessment, CLCT achieved the highest 5 Star rating, placing the REIT in the top 20% of the global benchmark. MATERIALITY CLCT is guided by CLI’s materiality assessment process, which identifies and prioritises the management of material ESG issues that are most relevant and significant to CLCT and its stakeholders, taking into consideration their relevance or impact to the business, strategy, financial planning, business model and key stakeholders. A double materiality approach is adopted, considering issues which are material from either the impact or financial perspectives16, or both. Potentially material ESG issues arising from activities across CLI and CLCT’s value chain (including potential risks and opportunities in the immediate and longer term) are primarily identified via ongoing engagement with CLI’s business units and external stakeholders, and reviews of sources including investor questionnaires, as well as ESG surveys, sustainability benchmarks and frameworks such as Dow Jones Sustainability Indices, GRESB and SASB. In addition, CLI and CLCT have a regular review, assessment and feedback process in relation to ESG topics. Identified material issues are reported in its corporate risk register through the annual Group-wide Risk and Control Self-Assessment (RCSA) exercise, which identifies, assesses and documents material risks and the corresponding internal controls to manage those risks. These material risks include fraud and corruption, environmental (e.g. climate change), health and safety, and human capital risks which are ESG16 To identify ESG issues which are potentially financially material, CLI takes reference from the SASB Standards for Real Estate and Real Estate Services, which identify sustainability factors that are material to short, medium, and long-term enterprise value for the industry.
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