70 CAPITALAND CHINA TRUST 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 Tropical Cyclones Properties may face more frequent and severe tropical cyclone - Higher chance of damage to specific asset locations that are tropical cyclone-prone - Increase in operating costs (e.g. business interruption) • Check and ensure structures are sufficient to withstand increased windspeed. • Improvements to roofs and site drainage systems including reinforcement / improvement where appropriate. • Increased operational management, including regular inspections of backup generation facilities. • Ensure business continuity plans and emergency response plans for severe storms are implemented, including plans for power supply cuts or system failures. Wildfires Risk of wildfires could increase in extremely dry conditions, such as drought, and during high winds - Increase in assets exposed to wildfires - Increase in operating costs (e.g. business interruption) • Design and monitor landscaping to prevent vegetation encroachment to structures. • Inclusion of fire breaks (e.g., service roads) between outside vegetation and structures. • Distribution of escape plans to employees/ occupants. • Ensure business continuity plans and emergency response plans for wildfires are implemented (distribution of escape plans to employees and occupants). None Negligible Moderate Significant Severe
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