SUSTAINABILITY REPORT 2023 69 APPENDIX TCFD RECOMMENDATIONS Risk Type Primary Risk Driver Potential Impacts CLCT's Risk Level in 3 Scenarios Mitigation Measures 1.5°C (NGFS, 2100) 2°C (NGFS, 2100) 3°C (NGFS, 2100) Physical Risk Extreme cold Cold days and extreme cold could become more common and/or severe - Increase in heating demand leading to higher utility costs and potentially higher Scope 1, if fuel oil or natural gas boilers are used • Ongoing maintenance to ensure that air heating systems and generators are in good working order and appropriate for both the local and changing climate conditions. • Future retrofits and designs to consider welfare of employees, tenants, visitors, and customers in such environments. Extreme heat Hot days and extreme heat could become more common and/or severe - Increase in cooling demand leading to higher electricity costs • Ongoing maintenance to ensure that air cooling systems and generators are in good working order and appropriate for both the local and changing climate conditions. • Implement health and safety initiatives to protect people from extreme heat risk, including work restrictions during peak temperature hours, as required. Fluvial flooding Damage to assets located in high flood risk zones - Increase in assets exposed to growing severity of river floods - Increase in operating costs (e.g. repair costs, business interruption) • Develop flood control features / measures including flood gates and drainage infrastructure where appropriate. Platform level to be checked against flood maps for new design or redevelopment. • Ensure flood emergency response plans are implemented. Coastal flooding Properties in coastal areas may be exposed to steady and continuous sea level rise - Increase in assets exposed to coastal flooding - Increase in capital expenditures to construct flood control infrastructure • Monitor national-level initiatives to mitigate coastal flooding risk. • Develop flood control features / measures where appropriate. • Ensure flood emergency response plans are implemented. (Note: The risk delta from 1.5°C to 3°C scenarios for the significant risk level is close to 0.02%)
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