SUSTAINABILITY REPORT 2023 73 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 Electricity price shifts Growing adoption of renewable energy could drive changes in electricity costs - Increase in capital investment in renewable energy - Fluctuations in operating costs from electricity price variability • At Group level, CLI has a renewable energy target, and a carbon emissions target which is validated by Science Based Targets Initiative (SBTi), for its portfolio. • CLI has embarked on group procurement of green power purchase agreements for key markets. • At Group level, CLI continues to implement energy efficiency improvement initiatives at its properties, where feasible. None Negligible Moderate Significant Severe Opportunity Primary Driver Potential impacts Approach Use of new technologies including Proptech (property technology) to manage emissions Investment in technologies for improving energy and water Reduced exposure to regulations, carbon price, electricity price and water price increases Reduction in operating costs At Group level, CLI continues to pilot new technologies in existing buildings and deploy sustainability innovations in its global portfolio via the CapitaLand Innovation Fund. Increased demand for green products and services Shift in consumer preferences and development of low emissions goods and services Increase in revenue by tapping on the green rental premium created by increased demand for sustainable buildings Increase in asset value for low carbon buildings Ongoing discussions with tenants to identify opportunities to support their carbon reduction commitments. Continuous assessment of the green building certification for CLCT’s properties and adopting the necessary asset enhancements to align with the relevant/latest certification levels.
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