72 CAPITALAND CHINA TRUST APPENDIX TCFD RECOMMENDATIONS Risk Type Primary Risk Driver Potential Impacts CLCT's Risk Level in 3 Scenarios (2030) Mitigation Measures 1.5°C 2°C 3°C Transition Risk Regulator expectation changes Regulators with more stringent polices and regulations around climate change for the buildings / real estate sector - More comprehensive disclosures expected on climate change actions and metrics • CLI’s group level carbon emissions targets are validated by the Science Based Targets Initiative (SBTi) • At Group level, CLI’s carbon emissions has been externally audited since FY 2010. • CLCT’s climate-related disclosures are aligned to international standards, and CLI makes on-going efforts to follow the latest developments around climate and emissions reporting standards. CLCT will encompass such developments into its disclosure, to stay aligned with best practice disclosure standards on climate risk (e.g. exploring ISSB reporting recommendations and incorporating them into its disclosure). Customer expectation changes Consumer preferences could shift towards greener buildings - Increased number of tenants seeking for assets with high-performing green credentials • CLCT does a continuous assessment of the green building certification for its properties and will implement necessary asset enhancements to align with relevant/latest certification levels. • At Group level CLI has green building certification and green lease target for its portfolio as part of the CLI 2030 SMP. CLI will extend green lease options in more markets to CLI tenants, with green building requirements and expectations.
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