CapitaLand China Trust Integrated Sustainability Report 2024
CapitaLand China Trust (CLCT) is Singapore’s largest Chinafocused real estate investment trust (REIT). Listed on the Singapore Exchange Securities Trading Limited (SGX-ST) on 8 December 2006, the objective of CLCT is to invest on a long-term basis, in a diversified portfolio of incomeproducing real estate and real estate-related assets in China, Hong Kong SAR and Macau that are used primarily for retail, office and industrial purposes (including business parks, logistics facilities, data centres and integrated developments). CLCT is managed by CapitaLand China Trust Management Limited (CLCTML), a wholly owned subsidiary of Singaporelisted CapitaLand Investment Limited (CLI), which is a leading global real asset manager with a strong Asia foothold. About Us Contents Vision To be the leading China-focused real estate investment trust, with a diversified and professionally managed portfolio of quality assets, capturing long-term growth drivers. Mission To deliver resilient distributions and sustainable total returns to Unitholders. For more information, please visit our corporate website at www.clct.com.sg. Overview About This Report 1 Board Statement 2 CEO Message 3 Sustainability Highlights 4 Appendix GHG Emissions Data Methodology 42 Key ESG Data Summary 44 Build Environmental Environmental and Manufactured Capital 14 Enable Social Human Capital | Social and Relationship Capital 24 Steward Governance Organisational Capital | Financial Capital 37 Sustainability Approach 5 Sustainability Governance 6 Materiality Assessment 10 Environmental, Social and Governance Framework 12 GRI Content Index 48 SASB Disclosure Index 54
About This Report 1 CapitaMall Qibao ceased operations in March 2023 and is therefore not included in the Report. 2 CapitaMall Shuangjing is not included in the environmental, social and governance operational data reporting as the Manager does not have operational control over the asset. The mall was divested in January 2024. 3 As CLCT’s logistics park assets are not operated by CLI, the energy and water data of these assets are not included in the portfolio’s environmental performance. The emissions data of these assets are included under Scope 3. CLCT’s fourth Integrated Sustainability Report (ISR) aims to provide a comprehensive overview of the organisation’s Environmental, Social and Governance (ESG) performance and reflects our ongoing commitment to responsible and impactful growth. Published in mid-April 2025, this Report is available on https://investor.clct.com.sg/isr.html. International Standards And Guidelines This ISR has been prepared in accordance with the Global Reporting Initiative (GRI) Standards 2021, an internationally recognised sustainability reporting standard that covers a wide range of disclosures. The Report is also in compliance with the sustainability reporting requirements set out in the Listing Manual Rule 711A and 711B of the SGX-ST. Our business model is built upon the fundamental concepts as guided by the Integrated Reporting Framework by the Value Reporting Foundation, and it incorporates elements of the framework to communicate value creation. It is also aligned with the Sustainable Development Goals of United Nations (UN SDGs). Additionally, this Report references the Sustainability Accounting Standards Board (SASB) Standards sustainability disclosure topics and metrics for real estate sector-specific standards, and outlines CLCT’s risk management framework with reference to the Guidelines on Environmental Risk Management (EnRM) for Asset Managers issued by the Monetary Authority Singapore (MAS). The IFRS Sustainability Disclosure Standards (IFRS SDS) issued by the International Sustainability Standards Board (ISSB), include IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. In Singapore, mandatory climate-related disclosures will be phased in, requiring all listed issuers to start adopting ISSB standards from period starting 1 January 2025. Accordingly, this Report includes climate-related disclosures consistent with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and has taken reference from the IFRS SDS issued by the ISSB. CLCT is progressively incorporating climate-related disclosures under the Standards, in preparation for the Singapore Exchange Regulation enhanced sustainability reporting regime, effective for CLCT from FY 2025. The above standards were selected as they are internationally recognised reporting frameworks covering a comprehensive range of sustainability disclosures relevant to CLCT. Reporting Scope And Period As at 31 December 2024, the portfolio comprised nine retail properties, five business parks and four logistics parks, primarily located in Tier 1 and leading cities in China. This Report discloses information on the 181, 2, 3 properties within CLCT’s portfolio, unless otherwise stated, for the financial period from 1 January 2024 to 31 December 2024 (FY 2024). This ISR covers CLCT as disclosed in our financial statements reported in the Annual Report (AR) 2024 (https://investor. clct.com.sg/misc/ar2024.pdf). Unless otherwise stated, the same approach used in our financial statements is also used to consolidate sustainability information and is consistently applied across our reporting boundaries for the financial period. CLCT adopts the Greenhouse Gas (GHG) Protocol Corporate Standard in disclosing performance data for energy, GHG, water and waste across our 18 properties. As such, CLCT only reports the assets that are under the Manager’s operational control. There is no restatement of information this year. CLCT’s properties are managed by the REIT Manager and property management teams. The respective teams are identified as employees of CLCT. Non-executive members of the CLCTML Board are not considered employees of the REIT. This ISR has undergone a thorough internal review. To ensure transparency and accuracy, CLI continues to appoint an independent external consultant to externally assure its Global Sustainability Report (GSR) annually, with reference to the ISAE 3000 International Standard on Assurance Engagements. The scope of this external assurance engagement covers the CLI Group’s global portfolio and employees, including those of CLCT. CLI’s GSR 2024 will be published by 31 May 2025 on the CLI website. The annually published ISR is recommended to be read alongside CLCT’s AR 2024 for a comprehensive understanding of its business and performance. Reflecting our ongoing commitment to environmental sustainability, no physical copies of this ISR have been printed. Location of Disclosures This year, information required under GRI 2021, TCFD, MAS EnRM and the IFRS SDS may be included in the sustainability report by cross-referencing to another source. We have provided the references in the GRI content index as to where this information can be found within the ISR. For any further inquiries, please contact: Ms Nicole Chen Head, Investor Relations Tel: 6713 2888 Email: ask-us@clct.com.sg Website: www.clct.com.sg Retail • CapitaMall Xizhimen • Rock Square • CapitaMall Wangjing • CapitaMall Grand Canyon • CapitaMall Xuefu • CapitaMall Xinnan • CapitaMall Nuohemule • CapitaMall Yuhuating • CapitaMall Aidemengdun Business Park • Ascendas Xinsu Portfolio • Singapore-Hangzhou Science & Technology Park Phase I • Singapore-Hangzhou Science & Technology Park Phase II • Ascendas Innovation Towers • Ascendas Innovation Hub Logistics Park • Shanghai Fengxian Logistics Park • Kunshan Bacheng Logistics Park • Wuhan Yangluo Logistics Park • Chengdu Shuangliu Logistics Park 1 Integrated Sustainability Report 2024
At CLCT, sustainability is at the core of everything we do. We are committed to growing in a responsible manner, delivering long-term economic value, and contributing to the environmental and social well-being of our communities. The material Environmental, Social and Governance (ESG) factors have been identified and encapsulated in the CapitaLand Investment 2030 Sustainability Master Plan (SMP), which was refreshed in 2023 as part of the review by the CapitaLand Investment Board of Directors together with Management. The CapitaLand Investment 2030 Sustainability Master Plan steers our efforts on a common course to maximise impact through building portfolio resilience and resource efficiency, enabling thriving and future-adaptive communities, and stewarding responsible business conduct and governance. Ambitious ESG targets have been set which include carbon emissions reduction targets validated by the Science Based Targets initiative (SBTi). CapitaLand Investment revised its SMP targets to elevate its SBTi-approved targets in line with a 1.5˚C scenario, incorporate its Net Zero commitment, and enhance its focus on social indicators. The CLCT Board is responsible for overseeing the REIT’s sustainability efforts, and takes ESG factors into consideration in determining its strategic direction and priorities. The CLCT Board also approves the executive compensation framework based on the principle of linking pay to performance. CLCT’s business plans are translated to both quantitative and qualitative performance targets, including sustainable corporate practices and are cascaded throughout the REIT. Board Statement 2 CapitaLand China Trust
CEO Message Dear Stakeholders, FY 2024 has been a meaningful year for our sustainability journey, a year of progress and continuance of our commitment to sustainability. Guided by CLI’s 2030 SMP, our goal remains to deliver long-term and lasting value for our stakeholders. We are pleased to share the latest milestones and achievements in our sustainability journey, and we strive to maintain steady progress forward. Sustainability Recognition And Accolades This year, we are proud to celebrate significant achievements that reflect our dedication to sustainable practices. For the second consecutive year, we achieved a 5-star rating in the 2024 GRESB Real Estate Assessment, alongside an “A” rating for the 2024 GRESB Public Disclosure with a score of 100 points. We also maintained a ‘BBB’ rating for our MSCI ESG Ratings and attained a ‘Low Risk’ rating for the Sustainalytics ESG Risk Ratings this year. Overall, these accomplishments inspire us to maintain our momentum and continue striving for impactful sustainability efforts. Sustainable Operations We integrated sustainable practices across our operations and portfolio, with a particular focus on energy efficiency. This has yielded positive results, with four of our assets – CapitaMall Nuohemule, CapitaMall Xuefu, Ascendas Xinsu Portfolio4 and Singapore-Hangzhou Science & Technology Park Phase II attaining LEED Gold certification in 2024. With this, approximately 60%5 of CLCT’s portfolio, by gross floor area (GFA), are green certified. This marks a substantial increase from 36% of CLCT’s portfolio in 2023, and we are committed to continue our efforts to integrate sustainability principles into our everyday operations. Furthermore, we have made significant strides in integrating renewable energy into our portfolio this year. Renewable energy accounts for 10.3% of our portfolio’s electricity consumption in FY 2024, representing an increase from 3.0% in FY 2023. We purchased offsite renewable energy with CapitaMall Yuhuating, CapitaMall Xinnan, Ascendas Xinsu Portfolio, Ascendas Innovation Hub, Ascendas Innovation Towers, Singapore-Hangzhou Science Technology Park Phase I and Singapore-Hangzhou Science Technology Park Phase II, and have installed onsite solar panels at CapitaMall Yuhuating and Kunshan Bacheng Logistics Park. Sustainable Financing Journey Building upon our progress in FY 2023 where CLCT established its Sustainability-Linked Finance Framework, we continue to advance in our sustainable financing journey. As of 31 December 2024, sustainability-linked loans account for 42% of total debt, a steady increase from 31% in FY 2023. This improvement demonstrates our dedication to responsible growth and our focus on embracing sustainable financing instruments to strengthen our financial flexibility. Embracing Diversity And Inclusion We recognise that diversity and inclusion are integral to fostering innovation and driving growth. As of 31 December 2024, 37.5% of our Board of Directors comprises female leaders, with three out of eight directors being women. Additionally, we continue to maintain a strong focus on gender diversity within our REIT Manager and property management teams across Singapore and China. Extending beyond gender representation, we also prioritise diversity in experiences, backgrounds, and perspectives to foster a well-rounded and inclusive working environment for all. Sustainability Stewardship Sustainability remains central to our everyday activities and strategies here at CLCT. We embed ESG targets into our investment and operational decision-making, striving to continuously elevate our sustainability performance and sustainable financing endeavours. By fostering resilience and embracing opportunities, we remain dedicated to contributing to the environmental and social well-being of the communities we serve. We extend our sincere gratitude and appreciation for your ongoing support and steadfast partnership as we advance on this sustainability journey together. CHAN KIN LEONG GERRY Chief Executive Officer 4 Attained LEED GOLD certification for research & development Block 1 to 6 of Ascendas Xinsu Portfolio. 5 By portfolio gross floor area excluding carpark space. Refers to CLCT properties managed by CLI (by sq m). 3 Integrated Sustainability Report 2024
FY 2024 Highlights Accolades BBB MSCI ESG Ratings Second consecutive year with 5-Star Rating 2024 GRESB Real Estate Assessment Sixth consecutive year with A Rating 2024 GRESB Public Disclosure 10.3% of the portfolio’s electricity consumption are from renewable energy sources of the main contractors appointed this year are ISO 14001 and ISO 45001 certified 100% lapses reported for corporate governance, corruption and employee misconduct Zero Sustainability Highlights 6 By portfolio gross floor area excluding carpark space. Refers to CLCT properties managed by CLI (by sq m). 7 Attained LEED GOLD certification for research & development Block 1 to 6 of Ascendas Xinsu Portfolio. 42% of total debts are sustainability-linked loans ISO 45001 Low Risk Sustainalytics ESG Risk Rating Zero incidents resulting in fatality and permanent disability for CLCT employees and contractors ~60%6 of CLCT’s portfolio (by GFA) are LEED Gold certified where new certifications include • CapitaMall Nuohemule • CapitaMall Xuefu • Ascendas Xinsu Portfolio7 • Singapore-Hangzhou Science & Technology Park Phase II 4 CapitaLand China Trust
Sustainability Approach Steward Responsible Business Conduct and Governance SUSTAINABILITY COMMITMENT CapitaLand China Trust commits to CLI 2030 SMP goals and targets. Build Portfolio Resilience and Resource Efficiency Enable Thriving and FutureAdaptive Communities Absolute Scope 1 and 2 GHG emissions by Carbon emissions intensity by Energy consumption intensity by 46% 72% 15% • Achieve 45% of total electricity consumption from renewable sources • Work towards setting new scope 3 carbon emissions reduction target Water Conservation & Resilience Waste Management & Circular Economy Low Carbon Transition • Achieve Net Zero emissions by 2050 for Scope 1 and 2 greenhouse gas (GHG) emissions • Reduce: 8,9 8 8 20%8 25% 15%8 Reduce waste intensity in our dayto-day operations by Achieve 25% recycling rate in our day-to-day operations Reduce water consumption intensity in our day-to-day operations by • Contribute to communities’ social well-being through outreach initiatives by staff & CapitaLand Group’s philanthropic arm, CapitaLand Hope Foundation (CHF) Human Capital Development • ≥40% female representation in senior management • ≥80% staff engagement score 10 • ≥85% staff to attend at least 1 ESG training Social Impact • Foster a safety culture with zero fatality, permanent disability, major injury • Incorporate social integration design features in properties • Implement wellness related initiatives & certifications for physical assets Health & Wellness • Green leases for new & renewal of leases; work with tenants to improve their sustainability performance • Achieve high level customer satisfaction • Contractors & vendors to abide by CLI’s Supply Chain Code of Conduct • Zero tolerance to child labour/ forced labour Customer & Supplier Partnerships ≥40% ≥85% ≥80% Note: Enable & Steward targets are intended to reflect the organisation-wide goals set by CLI on a group basis, and are intended to be implemented subject to and taking into account (i) fair & equitable employment practices and principles under applicable laws and market practice and (ii) the business and operational needs of the company and the organisation, as applicable. 8 Using 2019 as the base year 9 This refers to gross greenhouse gas emissions. For more information on greenhouse gases covered by this target, please refer to the GHG Emissions Data Methodology. 10 Employee engagement score of at least 80% (with at least 85% participation). • Ensure sustainability targets integrated into CLI Performance Share Plan & Balanced Scorecard framework to determine executive remuneration & KPIs • At least 85% staff to attend 1 compliance related training • Identify, assess & manage sustainability risks & opportunities • Ensure sustainability risks & opportunities are managed in line with overall risk appetite & strategy Corporate Governance Transparent Reporting Governance • ESG reporting aligned & externally assured to international standards ESG Risk Management 5 Integrated Sustainability Report 2024
Sustainability Governance RESPONSIBLE BUSINESS CONDUCT CLCT is committed to promoting respect for human rights and proactively addressing human rights issues that may affect the REIT’s activities, in accordance with CLI’s policies and commitments. These policy commitments are endorsed by the boards and management of both CLI and CLCTML, and are integrated into CLCT’s operations and business relationships. CLCT adopts CLI’s Social Charter to uphold human dignity and self-respect. This charter applies to our workforce and supply chain, covering human rights, child labour, forced labour, human trafficking, code of conduct, diversity and inclusion, and promoting a healthy work-life balance. Additional human rights commitments, such as grievance procedures, anti-harassment policies, and remedial measures, are implemented across various levels of the organisation. BOARD, TOP MANAGEMENT AND EMPLOYEE COMMITMENT STRATEGIC SUSTAINABILITY MANAGEMENT STRUCTURE CLI Board of Directors CLCTML Board of Directors Executive and Sustainability Committee (Board Committee) CLI Leadership Council (Comprising Senior Management) Various Sustainability Work Teams/ Committees including Business units and corporate departments covering Headed by Chief Executive Officer Chief Financial Officer Head, Investment & Portfolio Management Head, Investor Relations CLCT Sustainability Management Committee Team Members CLCT Sustainability Working Committee Headed by Head, Investment & Portfolio Managment and Head, Investor Relations Finance Investment & Portfolio Management Property Management Investor Relations Staff CLI’S SUSTAINABILITY MANAGEMENT STRUCTURE CLCT’S SUSTAINABILITY MANAGEMENT STRUCTURE Environment, Health and Safety ii Environmental Health and Safety Stakeholder Engagement Investment, Asset Management Innovation Enterprise Risk Management Human Resource, Group Procurement, others Provide board level strategic oversight of ESG policies and integration i Provide senior management oversight of ESG implementation i Drive implementation of initiatives under ESG pillars i i Including climate-related risks and opportunities ii Includes the CLI Environmental, Health and Safety Committee 6 CapitaLand China Trust
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. Role of Sponsor’s Board, Management and Employees The Sponsor’s (CLI) Board recognises the importance of sustainability as a business imperative and ensures that sustainability considerations are factored into CLI’s strategy development. This enables CLI to remain competitive and resilient in an increasingly challenging business environment. The CLI Board is kept informed on a regular basis through its Executive and Sustainability Committee (ESC)11 on CLI Group’s sustainability management performance, key material issues12 identified by stakeholders, and the planned follow-up measures. The CLI Board is updated by the Risk Committee and Audit Committee at least once a year. The CLI Board discusses matters relating to sustainability risks and relevant performance metrics, which include CLI Group’s progress on achieving the carbon emissions reduction targets, green building certification, human capital development, stakeholders’ expectations on climate change, social impact and/or other matters. The CLI Board is also informed of any incidents relating to workplace safety, business malpractice, and environmental impact, which may include climate-related damage or disruptions. CLI Group’s Chairman also chairs the ESC which is a Board Committee. This committee is responsible for overseeing CLI Group’s sustainability strategies, including providing guidance to management and monitoring progress against achieving the goals of CLI Group’s sustainability initiatives. 11 The Executive Committee and the Strategy and Sustainability Committee merged with effect from 1 January 2025, to form the Executive and Sustainability Committee. 12 This includes those related to climate-related risks and opportunities. 7 Integrated Sustainability Report 2024
Sustainability Governance The CLI Group’s sustainability targets12 are reviewed and approved by the ESC and Board. The ESC is scheduled to meet on a quarterly basis. The ESC’s responsibilities12 are set out in the Board committees’ role descriptions in CLI’s Corporate Governance Report. For more information, please refer to the CLI’s AR 2024 on Board Committees. The CLI Leadership Council makes strategic resource allocation decisions and meets on a regular basis. The CLI Leadership Council comprises the CLI Group Chief Executive Officer (CEO), the CEOs of the various business units, and key management executives of the corporate office. The sustainability work teams comprise representatives from CLI’s business units and corporate functions. Each business unit has its own Environmental, Health, and Safety (EHS) Committee to drive initiatives in the countries where it operates, with support from various departments. Role of CLCTML Board, Management and Employees CLCT has established a Sustainability Management Committee (SMC), chaired by the CEO of the REIT Manager, to focus on sustainability and climate-related matters. The SMC, comprising senior management, oversees sustainability objectives and strategies and provides regular updates to the Board of Directors on the value and mission statements, goals, strategies overviews, policies and progress related to sustainable development. The SMC is supported by CLCT’s Sustainability Working Committee (SWC), which comprises key members from various business functions, to implement sustainabilityrelated initiatives across CLCT’s operations in line with CLI’s sustainability framework and policies. CLCT’s sustainability governance aligns with the Sponsor’s sustainability management. CLCT is represented at the CLI Senior Leadership Council by the CEO of the REIT Manager of CLCT who provides guidance on sustainability strategies and goals for CLCT. The content of this report, including material ESG topics, is reviewed and approved by the CLCTML Board of Directors, which also discusses and reviews sustainability policies and strategies during its meetings. CLCT’s SWC collaborates closely with CLI’s EHS Committee to implement sustainability-related initiatives across its operations. In addition to environmental initiatives, CLI also champions Occupational Health and Safety (OHS) with commitment from the top management and employee participation through an integrated EHS Management System as well as stakeholder engagement activities. CLCTML’s CEO is accountable for the EHS performance of CLCT. Employees are encouraged to be forthcoming in reporting both environmental-related issues and OHSrelated incidents, including non-compliances and nonconformities. Key Performance Indicators (KPIs) Tied to Remuneration The remuneration for all employees in the REIT Manager, including top management, is linked to CLCT’s environmental targets through KPIs. CLCT aims to minimise environmental impacts by setting targets for green building ratings, carbon emissions, energy, water, and waste reduction. Beyond environmental KPIs, CLCT also integrates OHS KPIs with the remuneration of all CLCT employees, including its top management. These targets are tied to the remuneration of top management and employees. Further information on this can be accessed in the Environmental and Social chapter of this Report. BOARD DIVERSITY, INDEPENDENCE AND PERFORMANCE Maintaining Diversity on the Board CLCTML’s Board embraces diversity and has a Board Diversity Policy which provides for the Board to comprise talented and dedicated Directors with a diverse mix of expertise, experience, perspectives, skills and backgrounds, with due consideration to diversity factors, including diversity in business or professional experience, age and gender. The Board values the benefits that diversity can bring to the Board in its deliberations by enhancing decision-making capacity, avoiding groupthink and fostering constructive debate, which contributes to the effective governance of CLCT’s business and long-term sustainable growth. The Nominating and Remuneration Committee (NRC) has reviewed the size and composition of the Board and its committees and is of the opinion that the current size is appropriate with an appropriate balance and diversity of skills, knowledge, experience, gender, age and tenure, taking into account CLCT’s diversity targets, plans and timelines and objectives of the Board Diversity Policy and the business needs and plans of CLCT and its subsidiaries (CLCT Group), for effective decision-making and constructive debate. In terms of skill sets, the Board comprises Directors with a variety of skills and expertise in areas including investment management, real estate, accounting, finance, governance, sustainability, banking and capital markets. In terms of experience, the Board comprises Directors who are corporate and business leaders and who collectively have experience in general business management, have served on public listed company boards, have international or regional experience and have exposure in various industry sectors and the China market. 8 CapitaLand China Trust
Further details on CLCT’s Board diversity targets, plans and timelines for achieving the targets and progress towards achieving the targets are described on pages 58 to 59 of CLCT’s AR 2024. Board Independence The Board has a strong independent element as at the date of CLCT’s Annual Report, 6 out of 10 Directors, including the Chairman, are non-executive independent directors (ID). Other than the CEO, non-executive Directors make up the rest of the Board. None of the Directors have served on the Board for 9 years or longer. No lead ID is appointed as the Chairman is an ID. Profiles of the Directors and their roles are set out on pages 16 to 20 of CLCT’s AR 2024. The roles of the Chairman and the CEO are held by separate individuals to ensure a clear division of responsibilities between the leadership of the Board and Management, such that no individual has unfettered powers of decisionmaking. The Chairman does not share any family ties with the CEO. As the roles of the Chairman and the CEO are held by separate individuals who are unrelated, and the Chairman is an ID, no lead ID has been appointed. There is a rigorous process to evaluate the independence of the Directors: (a) each Director discloses his/her business interests and confirms annually that there are no relationships which interfere with the exercise of his/her independent business judgement in the Unitholders’ best interests; such information is reviewed by the NRC; and (b) the NRC considers each Director’s conduct and contributions at Board and Board Committee meetings, in particular, whether he/she has exercised independent business judgement in discharging his/her duties. Thereafter, the NRC’s recommendation is presented to the Board for its approval. Directors must recuse themselves from the NRC’s and the Board’s deliberations on their own independence. The NRC also reviews the independence of an ID when there is a change in their circumstances and makes recommendations to the Board. IDs are required to report to the Manager any changes which may affect their independence. Further details on the Board independence and the respective roles of the Chairman and CEO can be found in pages 56 to 58 of CLCT’s AR 2024. Board Performance The Manager believes that regular self-assessment and evaluation of Board performance enables the Board to reflect on its effectiveness, including the quality of its decisions, and for Directors to consider their performance and contributions. The process helps identify key strengths and areas for improvement which are essential to effective stewardship of CLCT. The NRC recommends for the Board’s approval the objective performance criteria, and the Board undertakes an annual evaluation of the effectiveness of the Board, Board Committees and individual Directors. As part of the process, a questionnaire is sent to the Directors. Management also provides feedback on areas including Board structure, strategy, performance and governance, as well as Board functions and practices. The results are aggregated and reported to the NRC, and thereafter the Board. The findings are considered by the Board and follow up action is taken where necessary. No external facilitators were appointed to assist in the evaluation process of the Board and Board committees. Further details on the Board performance and outcome of the evaluation can be found in page 62 of CLCT’s AR 2024. 9 Integrated Sustainability Report 2024
Materiality Assessment STAKEHOLDER ENGAGEMENT CLCT proactively engages its stakeholders to better address their needs, build social and relationship capital, and create shared values for the long-term. CLCT identifies its stakeholders as individuals, organisations, and communities that are directly or indirectly impacted by its operations. Its stakeholders include employees, investors, tenants, shoppers, contractors, vendors, governments and NGOs. Through the various engagement channels, CLCT seeks to understand its stakeholders’ views, to effectively communicate with them and address their concerns. Stakeholders Engagement Channels Topics 6 Capitals of Integrated Reporting Framework Employees Regular dialogue sessions with senior management Employee engagement surveys Volunteer programmes Recreation club activities Wellness activities • Work-life balance • Remuneration and benefits • Employee welfare • Human Capital • Social and Relationship Capital Investment Community (Investors, analysts and media) Annual general meetings Financial results and business updates announcements Media releases and interviews Annual reports and sustainability reports Company website Regular analyst and investor meetings Responses to sustainability surveys • Operational efficiency, monetary savings, cost avoidance • Earnings, net property income, distribution per unit, business strategy, market outlook • ESG risks and opportunities • Financial Capital • Social and Relationship Capital Tenants and shoppers Tenants: Tenant satisfaction survey, green fit-out guide and joint promotions and strategic partnerships Shoppers: mall campaigns, exhibition, social media campaign CLI’s social media channels • Facilities management • Customer experience • Social and Relationship Capital • Environmental Capital Supply Chain (Main contractors, vendors, and suppliers) CLI’s Supply Chain Code of Conduct Environmental, Health and Safety (EHS) management system Quarterly EHS monitoring Vendor evaluation, events, meetings, and training • Design and quality • Occupational health and safety practices • Workers’ welfare and well-being • Environmental compliance • Environmental Capital • Human Capital • Social and Relationship Capital Community (Government/ national agencies/ Community and NGOs) Senior management representation on boards of various industry bodies and sustainability-related public discussions Longstanding partner to various national programmes Participation in external conferences/forums to consult and share experience with academics, NGOs and business associations Corporate advertisements • Sustainable building developments • Stakeholder programmes to advocate sustainable tenant/customer behaviours • Advocacy of best practices • Social and Relationship Capital Frequency Annual Quarterly Ongoing 10 CapitaLand China Trust
i This includes green leases and tenant engagement on ESG matters. ii This relates to CLI’s zero tolerance stance towards child/forced labour. iii This includes consideration of compliance, economic performance and Cybersecurity. iv Sustainable Financing is not a material ESG issue identified by the CLI ESC, but will be highlighted under “Financial Capital” in our Report. MATERIAL ESG TOPICS 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. It adopts a double materiality approach, considering issues which are material from either the impact perspective or financial perspective13 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 CREATING VALUE AND ALIGNMENT TO UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGS) CLCT’s material ESG issues and the value created, aligned to CLI’s 2030 SMP focus areas and commitments, are mapped to the six integrated reporting Capitals of the Value Reporting Foundation’s Integrated Reporting Framework – Environmental, Manufactured, Human, Social and Relationship, Organisational and Financial. This is further mapped against eight UN SDGs that are most aligned with CLI’s 2030 SMP focus areas, and where CLI and CLCT can achieve the greatest positive impact. The mapping of the six Capitals and eight UN SDGs can be found on the 2030 Targets and 2024 Performance table on pages 14, 24, 37 and 38 of this Report. 13 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. as S&P Global’s Corporate Sustainability Assessment, GRESB and standards such as 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 SelfAssessment (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 ESGrelevant. Identified material ESG issues are then prioritised based on the likelihood and potential impact of issues affecting the business continuity of CLI and CLCT. For external stakeholders, priority is given to issues important to the community and applicable to CLI and CLCT. For FY 2024, the material ESG topics that were identified were approved by the CLI ESC. PRIORITISATION OF MATERIAL ESG ISSUES Environmental Social Governance Build Enable Steward Environmental Capital Manufactured Capital Human Capital Social & Relationship Capital Organisational Capital Financial Capital Critical Critical Critical • Climate change and carbon emissions reduction • Energy efficiency • Water management • Products and Services (Green Buildings) • Occupational health and safety • Human Capital • Products and Services (Promoting customer health and safety) • Diversity (Board and Staff) • Stakeholder engagementi • Supply chain management • Risk managementiii • Business ethics • Sustainable Financingiv Moderate and Emerging Moderate and Emerging Moderate and Emerging • Waste management • Biodiversity • Human rightsii 11 Integrated Sustainability Report 2024
Environmental, Social and Governanc 12 CapitaLand China Trust Environmental Social Material Issues Objectives • Reduce carbon emissions and transit to low-carbon operations • Build resilience for its portfolio against the physical impact of climate change and prepare for changing regulations toward a low-carbon economy • Reduce energy consumption and transit to renewable energy sources • Reduce water consumption • Minimise waste generation and increase recycling rate • Manage biodiversity to contribute positively to the natural environment • Engage stakeholders to adopt environmentally sustainable behaviours • Promote a culture o OHS management f stakeholders includ vendors, service pr • Reduce occupation • Leverage CLI’s robu and exceed OHS le Policies • CapitaLand Investment 2030 Sustainability Master Plan • CapitaLand Science-Based Targets • CapitaLand Investment Environmental, Health and Safety (EHS) Policy • CapitaLand Investment Sustainable Building Guidelines (SBG) • EHS Policy • Social Charter • Diversity & Inclusio • Harassment Policy • Procurement Policy • Supply Chain Code • Unitholders’ Comm Accountability • CLCTML’s CEO is the REIT’s Environmental, Health and Safety Champion • ISO 14001-certified Environmental Management System ensures accountability to all employees • KPIs are linked to remuneration for all employees in REIT Manager; performance is tracked regularly • CLCTML’s CEO is ac • Managers and emp implementation thr • KPIs are linked to re and performance is Method / Action Plan Environmental Management System (EMS) • Ensure legal compliance • Identify environmental aspects and manage impact • Adopt SBG, including the Environmental and Social Impact Assessment (ESIA) • Appoint ISO 14001-certified main contractors and set environment targets/requirements in the procurement of products and services • Ensure environmentally sustainable operations - implement EMS Standard Operating Procedures (SOPs) KPIs and Performance-linked Remuneration • Green existing property portfolio • Set eco-efficiency targets and improve performance through tracking of environmental performance OHS Management S • Ensure legal compl • Identify hazards an • Adopt CLI SBG, incl • Execute safe opera • Prefer ISO 45001 ce • Appoint ISO 45001 compliance audit o KPIs and Performan • OHS performance o • Stakeholder engage Stakeholder Engagement • Encourage end users, including tenants, shoppers, guests and the general community, to adopt environmentally sustainable habits • Engage supply chai supply chain partne • Encourage key stak the community to a 6 Capitals of Integrated Reporting Framework Climate Change and Carbon Reduction Energy Efficiency Water Management Waste Management Biodiversity Occupational Health and Safety Diversity and Human Rights Pro S ce Framework 13 Integrated Sustainability Report 2024 Governance of individual ownership and responsibility for from CLCT’s top management and employees to ding tenants and supply chain partners such as roviders and main contractors nal injury rates to achieve zero harm ust OHS Management System (OHSMS) to meet gal requirements • Maintain a robust governance structure to oversee the implementation of sustainability initiatives and ensure adherence to ethical practice on Policy y e of Conduct munication and Investor Relations Policy • Board Diversity Policy • Fraud, Bribery and Corruption (FBC) Risk Management Policy • Anti-Money Laundering and Countering the Financing of Terrorism Policy • Ethics and Code of Business Conduct Policies • Whistle-blowing Policy and other procedures ccountable for OHS performance ployees are accountable for OHS performance and rough the ISO 45001 certified OHSMS emuneration of all CLCT REIT Manager employees s tracked and disclosed regularly • CLCTML Board of Directors and CLCTML CEO as management representative System iance nd risk assessment luding the Design for Safety framework and ESIA ations via OHS SOPs ertified supply chain certified main contractors, or require OHS legal on site ce-linked Remuneration of CLCT’s employees and supply chain ement Employees • FBC guides available to all employees via CLI’s intranet • Annual declaration through the “CapitaLand Pledge”, to uphold CapitaLand’s core values, and not to engage in any corruption practices • Governance-related trainings • Enterprise Risk Management Framework and relevant risk policies reviewed annually • Whistle-blowing reporting channels Supply Chain/ Partners • FBC Risk Management Policy • Anti-corruption clause in key contracts • Group Procurement • Anti-Money Laundering and Countering Terrorism Financing • Supply Chain Code of Conduct in on OHS matters and share CLI EHS Policy with ers keholders, including shoppers, tenants, guests, and adopt safe and healthy behaviour • Engage our stakeholders regularly to ensure responsible operation in the area of anti-corruption • Communicate sustainability performance, progress, and targets to our stakeholders regularly to enhance transparency and accountability Human Capital Stakeholder Engagement Supply Chain Management oducts and Services Risk Management Business Ethics
Environmental Environmental and Manufactured Capital CLCT’S ENVIRONMENTAL TARGETS The 2030 SMP outlined the CLI Group’s 2030 targets and pathways to transit to a low-carbon business, improve resource use and enable a circular economy. As a CLI-listed REIT, CLCT has incorporated KPIs, most of which are linked to remuneration for all employees in the REIT Manager, including top management. Concurrently, we continue to actively engage stakeholders and implement various measures to achieve these targets. 2030 SMP TARGETS AND CLCT’S PERFORMANCE Area of Focus (short to medium term) 2030 Targetsi 2024 Performance IR Capitals and UN SDGs Low-carbon Transition Reduce carbon emissionsii intensity by 72% 44.3% reduction in carbon emissions intensity Environmental Capital Manufactured Capital Reduce energy consumption intensity by 15% 35.3% reduction in energy consumption intensity Contribute to CLI’s 2030 target to achieve 45% of electricity consumption from renewable sources Purchased offsite renewable energy and generated onsite renewable energy which account for 10. 3% of portfolio’s electricity consumption 100% of existing buildings to achieve a minimum green rating Obtained green certification for CapitaMall Nuohemule, CapitaMall Xuefu, Ascendas Xinsu Portfolioiii, Singapore-Hangzhou Science & Technology Park Phase II (Including these four new assets, ~60%iv of CLCT’s portfolio achieved green rating) Water Conservation and Resilience Reduce water consumption intensity by 15% 39.9% reduction in water consumption intensity Waste Management and Circular Economy Achieve 25% waste recycling rate in its day-to-day operations 19.1% waste recycling rate 2025 Targets 2024 Performance Sustainable Operation Excellence ISO 14001 certification for its Environmental Management System Retained ISO 14001 certification Manage risks of environmental impact Adopt CLI’s EMS which is externally audited annually, providing assurance on CLCT’s compliance and alignment to best practice All main contractors appointed are to be ISO 14001-certified, or to comply fully with local environmental laws and regulations, and audited annually by an independent accredited assessor All main contractors appointed in 2024 are ISO 14001 certified i Using 2019 as baseline, covering CLCT properties managed by CLI. ii Carbon Emissions mostly from purchased electricity consumption under Scope 2, and some direct energy consumption under Scope 1 as defined by the GHG Protocol (operational control approach). iii Attained LEED GOLD certification for research & development Block 1 to 6 of Ascendas Xinsu Portfolio. iv By portfolio gross floor area excluding carpark space. Refers to CLCT properties managed by CLI (sq m). Achieved/Exceeded Targets In progress towards meeting 2030 targets 14 CapitaLand China Trust
CLI’S CARBON MITIGATION HIERARCHY Aligned with CLI, CLCT follows the carbon mitigation hierarchy for decarbonisation across the real estate life cycle, including asset enhancement projects. Avoid Low Consumption Design Applying sustainable design principles to lower consumption of energy, water, waste, materials and improved indoor environment quality (for AEI or new development projects). E.g. products with low embodied carbon, optimising daylight to reduce reliance on artificial lighting etc. Reduce High Energy Efficiency Building services (mechanical, electrical and hydraulic system) shall be efficient. E.g. high efficiency heating, ventilation and air-conditioning (HVAC) design and equipment, LED lighting, conversion of gas equipment (e.g. gas boilers) to electric such as heat pumps. Smart Building Analytics To adopt smart metering and monitoring system to enhance controllability of the various systems in the assets to operate more efficiently. E.g. Intelligent Building Platform (cloud-based; IoT-driven) that enables centralised monitoring and data analytics-based insights towards optimising equipment performance. Replace Onsite Renewables Explore opportunities to deploy renewable power systems at the assets. E.g. Solar photovoltaic (PV) on building rooftops wherever feasible, explore & pilot new technologies & innovations like micro-wind turbines, waste-to-energy solutions, building integrated PV etc. Green Power Procurement Enter into Renewable Power Purchase Agreements (PPA) with offsite solar, wind & hydro farms in geographics where it is technically and regulatory-wise feasible. Renewable Energy Certificates A lower priority solution to be utilised only in cases where no further onsite renewable or offsite renewable power procurement is feasible. Compensate Carbon Offsets Last-mile option to address any residual carbon after all direct carbon-abatement initiatives have been exhausted. The carbon offset strategy is reviewed at the CLI Group level. CLCT will align with CLI Group’s carbon offset strategy, which includes the planned use of offsets aligned to the current SBTi requirements, i.e. offsets will only be used in the last-mile for emissions reductions beyond CLI’s science-based reduction targets and decarbonisation strategies (i.e. residual emissions) to reach net zero; and will be sourced from high quality reputable carbon credit projects that undergo the necessary verification and certification processes, aligned to international standards. In this regard, CLI is aiming to ensure the credibility and integrity of the offsets that it plans to procure. 15 Integrated Sustainability Report 2024
Environmental Environmental and Manufactured Capital assessments, considering factors like likelihood, impact severity, and control measures. As part of the ISO 14001 EMS, legal requirements are reviewed quarterly, with compliance assessed annually. Training To ensure the effective implementation of CLI’s EHSMS, comprehensive training and awareness programmes are conducted for all CLCT employees. In FY 2024, 97.6% of the property management teams in China participated in EHSrelated training sessions. It is mandatory for new employees from the property management teams to be introduced to CLI’s EHS Policy and EHSMS. Please refer to the Social chapter on page 26 of this report for more details on training and awareness programmes. Internal and External Audit As a CLI-listed REIT, CLCT taps on the internal and external audit system by CLI to ensure that the implementation of its EMS is effective and aligned to the ISO 14001 and ISO 45001 standards. CLI ensures that external audits are conducted annually by an accredited third-party certification body. An annual audit of the EMS provides assurance to CLCT’s stakeholders on CLCT’s commitment to best practices. HIGH PERFORMANCE SUSTAINABLE ASSETS Green building ratings and certifications play a crucial role in assuring and showcasing the quality of CLCT’s portfolio. These ratings serve as an external validation that key environmental aspects have been considered and incorporated in new acquisitions, refurbishment, and operations. Green Building Rating As part of CLI’s 2030 SMP, CLCT targets to green all its existing properties by 2030 with each property achieving a minimum certification level by a green rating system administered by a national government ministry/agency or the World Green Building Council. To elevate our green building commitment, a detailed work plan has been established with annual green certification targets tied to the remuneration of key management and employees. In 2024, we attained LEED Gold certification for CapitaMall Nuohemule, CapitaMall Xuefu, Ascendas Xinsu Portfolio14, Singapore-Hangzhou Science & Technology Park Phase II. As of 31 December 2024, approximately 60% of CLCT’s portfolio by GFA is green-certified. 14 Attained LEED GOLD certification for research & development Block 1 to 6 of Ascendas Xinsu Portfolio. MANAGING ITS ENVIRONMENTAL FOOTPRINT CLCT adopts CLI’s EHS Policy and uses the EMS as a key tool in managing its environmental footprint across its portfolio. The EMS is integrated with CLI’s OHSMS to form CLI’s Environmental, Health, and Safety Management System (EHSMS). CLI’s EHSMS is audited by a third-party accredited certification body to ISO 14001 and ISO 45001 standards. ISO 14001 and ISO 45001 are internationally recognised standards for the environmental management of businesses and occupational health and safety management of businesses, respectively. CLCT’s EHS Committee is responsible for implementing the EHSMS. CLI Environmental, Health and Safety Policy As an international corporate social citizen, CLI is committed to protecting the environment and upholding the occupational health and safety of everyone in the workplace*, and will: • Implement the CLI EHS Policy • Seek continual improvement on its EHS performance • Comply with pertinent legislations and other requirements • Implement the CLI Sustainable Building Guidelines and Occupational Health and Safety programmes This policy is readily available to all employees, suppliers, service providers and partners. * This includes implementing the EHSMS. We stay committed to protecting the environment and continuously monitoring our portfolio environmental footprint and performance. We aim to reduce our GHG emissions footprint and waste generation while increasing the operational efficiency within our properties and operations. RISK MANAGEMENT OF ENVIRONMENTAL ASPECTS AND IMPACTS CLI’s EHSMS takes a systematic approach to managing CLCT’s environmental impact, continuously improving performance by assessing and managing potential environmental risks. The significance and impact of each environmental aspects are evaluated through risk 16 CapitaLand China Trust
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