CDL Hospitality Trusts - Sustainability Report 2022


SUSTAINABILITY REPORT CONTENTS 93 Board Statement 94 About this Report 95 Our Sustainability Approach 100 Task Force on Climate-related Financial Disclosures (TCFD) Report 104 Responsible Investment and Sustainable Value 105 Good Governance and Ethical Business 108 Climate Resilience and Environmental Stewardship 115 Enabling Inclusiveness, Safety, Growth and Diversity of Our People 119 Engaging Local Communities and Advocate for Positive Impact 121 GRI Content Index SUSTAINABILITY REPORT 92 SUSTAINABILITY REPORT ANNUAL REPORT 2022

BOARD STATEMENT Dear Stakeholders, The Boards of Directors (the “Boards”) are pleased to issue CDL Hospitality Trusts’ (“CDLHT”) Sustainability Report (“Report”) for the financial year ended 31 December 2022 (“FY 2022”). This Report outlines CDLHT’s vision and strategic imperatives regarding sustainability and related aspects such as climate change, resource conservation and human capital. It further details the progress and performance made against the targets we have set to achieve our sustainability ambitions. As one of Asia’s leading hospitality trusts with approximately $3.1 billion assets under management as of 31 December 2022, we believe sustainability is vital to ensuring the longevity and success of our business and the planet. In this report, we highlight our sustainability strategies, performance, and goals across material Environmental, Social, and Governance (“ESG”) topics for FY 2022. Despite the continuously evolving and challenging landscape, CDLHT remains focused on its responsibility towards sustainability and will continue to evaluate its performance to ensure sustainable progress. CDLHT is cognisant of maintaining a balance between accomplishing organisational objectives whilst ensuring a positive impact and responsible contribution to our environment and society. Through the integration of sustainability into our business strategies and our core values, the Boards are committed and oversee all sustainability-related imperatives, whilst ensuring compliance with the regulation and guidelines from Singapore Exchange (“SGX”). CDLHT continues to remain compliant with country-specific regulations and standards, whilst maintaining strong corporate governance, integrity, and responsible business conduct across the organisation. As pandemic-related restrictions were lifted across key geographical markets at varying paces throughout FY 2022, CDLHT and its properties have adjusted to a “new normal”. CDLHT remains committed to monitoring and managing its environmental and social impacts by seizing opportunities for development and improvement, whilst managing overall business recovery. Despite the increased level of business activity, our energy efficiency is continually improving through the implementation of various initiatives. CDLHT exercises environmental stewardship through its spearheading of a community of best practices surrounding effective management of natural resource consumption. We set and review reduction targets and continuously explore opportunities to reduce usage and improve efficiency, as we detail this report. We aim to continuously advance our sustainability journey and have taken progressive steps in our data gathering and reporting. As part of our progressive approach to sustainability reporting, we commence the reporting on five new material topics in our FY 2022 report. These are: Responsible Investment, Climate Action and Resilience, Emissions Reduction, Data Privacy and Security, and Local Community Impact. People form the cornerstone of our business and we strive to create a safe environment for all stakeholders by ensuring the well-being, health, and safety of both employees and hotel guests is at the forefront of all we do. Moreover, as we believe in creating a positive impact to society through community engagement, our properties continue to partner with local charitable and social organisations to promote social responsibility. Moving forward, we will continue our efforts to find more effective ways to improve our environmental, economic, and social footprint, towards creating a more sustainable future. Board of Directors REIT Manager Board Trustee-Manager Board 93 OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION

SUSTAINABILITY REPORT ABOUT THIS REPORT CDLHT presents its sixth Sustainability Report for FY 2022. The Report is intended to be read in tandem with the CDLHT Annual Report and makes reference to sections within it . CDLHT has been listed on the Singapore Exchange Securities Trading Limited since 2006 and comprises CDL Hospitality Real Estate Investment Trust (“H-REIT”) and CDL Hospitality Business Trust (“HBT”). H-REIT’s principal investment strategy is to invest in a diversified portfolio of income-producing real estate, which is primarily used for hospitality, hospitality-related and other accommodation and/or lodging purposes globally. HBT’s principal investment strategy is to invest in a diversified portfolio of real estate or development projects, which is or will be primarily used for hospitality, hospitality-related and other accommodation and/or lodging purposes globally and may also include the operation and management of the real estate assets held by H-REIT and HBT. M&C REIT Management Limited is the manager of H-REIT (the “H-REIT Manager”), and M&C Business Trust Management Limited, is the trustee-manager of HBT (the “HBT Trustee-Manager”, and collectively the “Managers”). For more information on CDLHT’s business, please refer to page 2 of the Annual Report. Reporting Period And Scope This report scopes our portfolio properties and showcases our sustainability strategies and performance that took place for FY 2022. CDLHT’s portfolio comprises 19 operational properties that span across numerous geographies, of which, 18 properties form a part of the reporting scope for FY 2022 (1). Portfolio Properties Location Orchard Hotel Singapore Grand Copthorne Waterfront Hotel M Hotel Copthorne King’s Hotel Studio M Hotel W Singapore - Sentosa Cove Claymore Connect Grand Millennium Auckland New Zealand Mercure Perth Australia Ibis Perth Raffles Maldives Meradhoo Maldives Angsana Velavaru Hotel MyStays Asakusabashi Japan Hotel MyStays Kamata Hilton Cambridge City Centre United Kingdom The Lowry Hotel Pullman Hotel Munich Germany Hotel Cerretani Firenze - MGallery Italy Reporting Standards And Guidelines This Report is compliant with the SGX Listing Rules 711A and 711B and has been prepared with reference to the Global Reporting Initiative (“GRI”) Sustainability Reporting Standards. CDLHT applies theGRI Standards to its Report as the internationally recognised disclosures are most relevant to its business and provide holistic and effective guidance on the management strategy, performance tracking and target-setting processes pertaining to CDLHT’s material ESG topics. The GRI Content Index is available on page 121 of the Report. For FY 2022, CDLHT has also begun a journey to report in line with the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations, two years ahead of the SGX requirements for listed companies classified under the real estate sector. CDLHT’s TCFD Report also serves as disclosure against the Guidelines on Environmental Risk Management for Asset Managers issued by the Monetary Authority of Singapore (“MAS”). Accessibility And Feedback We have made this Report available online on our corporate website at In line with our environmental objective to conserve resources and minimise impact on the environment, CDLHT will only print a limited number of this report. As we aim to continuously progress in our sustainability journey, we welcome any feedback and comments regarding our Report. Please contact Mr. Paul Kitamura (Head, Asset Management) at (1) Hotel Brooklyn in the United Kingdom was excluded from the scope for FY 2022 for our GHG emissions, resource usage, and employee headcounts as the occupational lease is a full repairing and insuring one where the lessor has limited access to data. In particular, the occupational lessee and hotel manager are two separate third parties. 94 SUSTAINABILITY REPORT ANNUAL REPORT 2022

VISION MISSION SUSTAINABILITY FRAMEWORK Establishing CDLHT as premier hospitality and lodging platform with sustainable, innovative, and quality accommodation spaces, generating long-term value for our stakeholders To enable sustainability profitability by acting as responsible stewards of our environmental and social landscapes VALUE Responsible investment and sustainable value ENVIRONMENT Climate resilience and environmental stewardship PEOPLE Inclusiveness, safety, growth and diversity COMMUNITIES Engage loval communities and advocate for positive impact GOVERNANCE Good governance and ethical business OUR SUSTAINABILITY APPROACH Guided by our sustainability vision and mission, CDLHT’s Sustainability Framework comprises five core sustainability pillars, which encompass our stakeholders’ priorities, drive our sustainability policies and initiatives, and allow us to create the greatest impact across our material ESG issues. Delivering Value And Best Practices As part of our commitment to be a responsible investor and generate long-term value for our stakeholders, CDLHT is driving ESG best practices across the portfolio through various initiatives. Through active asset management and understanding of various ESG initiatives across the portfolio, we create a community of practice that consolidates and shares these positive actions for implementation across all assets in CDLHT. Our environmental stewardship efforts span across building operations and include energy conservation, renewable energy sourcing, water conservation and waste reduction. These initiatives are being rolled out across all the properties in order to meet and exceed ESG benchmarks for our portfolio and align with industry best practice. Action Across Properties Portfolio hotels’ efforts on energy include energy conservation measures such as reducing the operating hours of lighting, heavy machinery, pool pumps. It has been possible to reduce air conditioning use in some cases by installing air curtains, films and shades to help keep buildings cool, as well as using better sealing for windows. Some properties have also upgraded their equipment to become less energy intensive – with the installation of more energy efficient stoves in kitchens and LED lighting, for example. Water conservation methods have included installation of water-saving shower heads and eco toilet flushing, along with monitoring of water use with smart water meters. Some properties also engage in rainwater harvesting for use in gardening. To reduce waste, we have implemented various measures, including using filtered water instead of disposable water bottles, recycling food waste and switching to digital guest invoicing and room keys. Finally, our properties are improving their social performance by offering regular trainings on workplace health and safety, as well as skills upgrading via e-learning platforms for staff. 95 OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION

SUSTAINABILITY REPORT Our Key Results And Targets We are proud of our progress made on many of our ESG Material Factors. We have set a range of environmental targets relating to energy water and waste, as well as social targets relating to safety, corporate social responsibility and training for our staff. ESG Factors Targets for FY 2022 Key results in FY 2022 Targets for FY 2023 Emissions • Started disclosing Scope 1 and 2 emissions in FY 2022 Aim to be Net Zero by 2050 Energy (*) • CDLHT aims to achieve an aggregate 5% to 7% reduction in energy consumption across our portfolio by 2026, with FY 2019 as the comparative baseline • On track Maintained Water • CDLHT aims to achieve an aggregate 2% to 7% reduction in water consumption by 2026, with FY 2019 as our comparative baseline • On track Maintained Waste • Established FY 2022 as our baseline and manage food waste by implementing food waste management systems • Five of our Singapore hotels have on-site food digesters to reduce food waste • Eight of our hotels have replaced single-use bathroom products with reusable pumps We target to remove or partly remove single use plastic bathroom amenities from operations for 50% of our hotel portfolio by FY 2023, using FY 2021 as our baseline year Safety Management • We aim to have zero incidents of fatality or permanent disability and strive to minimise any work-related injuries • Zero fatalities at our hotels in FY 2022 Maintained Average Training Hours • We target to achieve an increased number of training hours per employee • Exceeded We target to achieve a minimum of 20 hours of training per employee across our portfolio in FY 2023 Corporate Social Responsibility • We target to conduct at least one community event/project for 60% of the hotel portfolio for FY 2022 • Exceeded We target to conduct at least 15 community/social events or projects across the portfolio in FY 2023 (*) Refers electricity consumption reported for FY 2019 96 SUSTAINABILITY REPORT ANNUAL REPORT 2022

OPERATIONS/FUNCTIONS SUSTAINABILITY WORKING COMMITTEE (SWC) CEO AUDIT & RISK COMMITTEES BOARDS INTERNAL AUDIT SUSTAINABILITY OFFICER Sustainability Governance CDLHT ensures sustained progress towards our sustainability goals and ambitions through our governance structure, which ensures the Boards have due oversight of all our sustainability initiatives and strategic imperatives. At CDLHT, the Boards are responsible for overseeing all relevant sustainability considerations to ensure CDLHT’s business goals and strategies are progressing in accordance with the objectives set. The Boards also manage and monitor the material ESG factors and their performance, including those pertaining to climate-related issues such as emission reductions and climate action and resilience. The Audit and Risk Committees (“ARCs”) oversee our sustainability processes and strategies, and in particular look after risk management policies and identification of such risks, including those pertaining to climate risk. Management reports to the ARCs and Boards on CDLHT’s sustainability efforts and performance progressively during the quarterly meetings and at the end of each financial year end. CDLHT’s Sustainability Working Committee (“SWC”) comprises key personnel from various business functions and is led by the CEO of the Managers, Mr. Vincent YeoWee Eng. The SWC, overseen by the ARCs, manage and monitor CDLHT’s overall sustainability performance and leads the development of strategies that incorporate material ESG factors into daily operations. For FY 2022, the SWC has reported to the ARCs and Boards on CDLHT’s sustainability performance. A dedicated Sustainability Officer, hired in July 2022, holds the full-time responsibility of tracking the sustainability-related metrics and the progress of green initiatives and reports frequently to the SWC. To strengthen its sustainability and climate-related governance capabilities, CDLHT’s directors and senior management attended ESG workshops for FY 2022, strengthening their knowledge and considerations of environmental issues in asset management. The monitoring of our sustainability performance has also been strengthened by our portfolio-wide data capture and analysis software which is continuously being updated to enable CDLHT to collect data from various properties to better monitor and track individual property and portfolio performance so as to enhance oversight of sustainability performance at the portfolio level. 97 OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION

SUSTAINABILITY REPORT Our Material ESG Factors CDLHT’s Material ESG Factors under our Core ESG Pillars were determined in consultation with our ESG consultants, internal stakeholders and approved by our boards. These material factors are considered material because they are relevant for the continuity of our business. We have reviewed our identified material topics for FY 2022 and have renewed our commitments to the existing list of topics under our five core ESG pillars. In FY 2022, we have also expanded our reporting to include five new factors that we consider material in ensuring the sustainability of our operations. These are: Responsible Investment, Data Privacy and Protection, Climate Action and Resilience, Emissions Reduction, and Local Community Impact. We will also commence reporting on the topics of Safe and Liveable Buildings, and Fair Labour and Human Rights as part of our ESG framework from FY 2023. We have strengthened our sustainability framework by aligning our ESG pillars, material ESG factors, and our commitments to the relevant United Nations Sustainable Development Goals (“SDGs”). Core ESG Pillar Our Material ESG Factors SDGs Overarching Ambitions Responsible Investment and Sustainable Value • Economic Performance • Responsible Investment • Implement responsible investment practices • Create economic value for stakeholders and ensuring continual business growth Good Governance and Ethical Business • Board Diversity* • Whistleblowing Policy* • Compliance with Social and Environmental Regulations • Data Privacy and Protection • Ethical and Transparent Business • Safe and Liveable Buildings** • Ensure fair, responsible, compliant, and transparent business conduct • Educate and raise awareness on issues of modern slavery and human trafficking • Facilitate supply chain stewardship with vendors, partners, managers, and tenants Climate Resilience and Environmental Stewardship • Climate Action and Resilience • Emissions Reduction • Energy Efficiency • Water Stewardship • Waste Reduction • Understand and manage our climate opportunities and risks • Manage and minimise our carbon footprint and reduce our impact on the environment • Advocate, enable and enhance resource efficiencies in our portfolio Enabling Inclusiveness, Safety, Growth and Diversity of Our People • Diversity, Inclusion and Equal Opportunity • Employment and Employee Engagement • Fair Labour and Human Rights** • Health and Safety • Training and Development • Advocate, enable and enhance fair labour practices and employee wellbeing • Promote safe and healthy workplaces for our people and customers • Engage with our people and support their growth and development 98 SUSTAINABILITY REPORT ANNUAL REPORT 2022

Core ESG Pillar Our Material ESG Factors SDGs Overarching Ambitions Engaging Local Communities and Advocate for Positive Impact • Local Community Impact* • Advocate strategic partnerships to enhance sustainability • Promote positive community engagement * Refers to new material topics reported in this FY 2022 sustainability report. ** Refers to new material topics to be reported on from FY 2023 sustainability report. Stakeholder Engagement CDLHT maintains proactive regular communication and engagement with our various stakeholder groups. We reflect and address their key topics of concern, in relation to our organisation, and keep them abreast of our initiatives and progress through proactive regular communication and engagement. In FY 2022, we continued our dialogue with our internal stakeholders through various channels, whilst adhering to all regulations and guidelines. Feedback from internal stakeholders is gathered through quarterly board meetings, as well as dialogue with the operating and management teams of hotels across our portfolio. We maintain continuous engagement with external stakeholders, and target periodic engagement with our hotel suppliers and business partners through frequent meetings and vendor assessments. The table below summarises our engagement efforts in FY 2022. Stakeholder Group Engagement Approach Key Topics of Concern Board of Directors • Board meetings (including ad-hoc briefings with external ESG consultants) • Email communication • Economic performance • ESG performance & trends • Pandemic resilience • Risk management Government and Regulators • Ad-hoc briefings and consultations • Participation in surveys and focus groups • Risk management • Social and environmental related legislation Hotel Employees Led by hotel operators: • Training and transition assistance programmes • Annual employment survey • Performance and career development reviews • Career development opportunities • Training and development • Workplace safety and well-being, including pandemic readiness Hotel Guests • Customer satisfaction surveys • Social media • Feedback via General Manager • Customer health and safety, including pandemic readiness Master Lessees and Hotel Managers • Regular management meetings and communication • Bilateral communication, one-on-one meetings, and site visits • Workplace safety and well-being • Customer health and safety • Eco-efficiency of buildings • Pandemic readiness 99 OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION

SUSTAINABILITY REPORT Stakeholder Group Engagement Approach Key Topics of Concern Investors, Analysts and Media • Release of financial results and announcements, press releases and other disclosures through SGXNet and CDLHT’s website • Meetings and calls with analysts and media • Investor meetings, conferences and roadshows • Annual General Meetings • Annual reports and sustainability reports • Media releases and interviews • Responses to investors’ sustainability surveys • Business strategy and outlook • Corporate governance • Distribution and earnings • Market and operational performance • Regulatory compliance Hotel Suppliers and Business Partners Led by hotel operators: • Assessment of suppliers and vendors • Meetings with business partners • Economic performance • Environmental factors TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) REPORT In FY 2022, CDLHT began aligning our climate-related disclosures to the TCFD recommendations on Governance, Strategy, Risk Management and Metrics and Targets. The disclosures in this section are also in accordance with MAS’ Guidelines on Environmental Risk Management for Asset Managers, which have been in effect since June 2022 and aim to enhance the policies and actions of asset owners, as well as the disclosures surrounding them. We seek to continuously improve the management of climate-related issues and the quality of our TCFD-aligned disclosures in future Reports. Governance The Boards maintain overall responsibility for overseeing the integration of sustainability into CDLHT’s business goals and strategies, and approve the environment-related (including climate) policies and frameworks. The Boards monitor CDLHT’s material ESG factors and respective performance, which includes climate-related risks and opportunities pertaining to CDLHT’s emissions reductions and climate action and resilience. The Boards are updated on all relevant ESG issues and their progress on a quarterly basis. Within the Boards, the ARCs oversee CDLHT’s sustainability processes and related strategies, ensuring they are in line with CDLHT’s overall strategy and risk management. Management ensures the development and implementation of an environmental risk management framework and policy, as well as tools andmetrics tomonitor exposures to environmental risk. Management reports to the ARCs and the Boards on CDLHT’s sustainability efforts and performance progressively throughout the year at the quarterly meetings and at the end of each financial year end. With regard to specific material environmental or climate issues, Management updates the Boards at least once a quarter. CDLHT’s SWC which comprises key personnel from various business functions, is led by the CEO and overseen by the ARCs. At a more operational level, the SWC manages and monitors CDLHT’s overall sustainability performance and leads the development of strategies, including those at the individual function level that incorporate material ESG factors into daily operations. Further details of our sustainability governance structure and processes may be found in the Sustainability Governance subsection under Our Sustainability Approach. Strategy CDLHT identifies its material ESG topics, including those that pertain to our climate-related risks and opportunities, through a materiality assessment conducted on an annual basis. In FY 2021, we reviewed our material topics which identified climate-related issues as material topic which we have included under the topics of Climate Action and Resilience and Emissions Reduction within our Climate Resilience and Environmental Stewardship pillar. In FY 2022, the Managers conducted a scenario analysis exercise to determine the climate-related risks and opportunities that would be material to our operations. The risks were explored across the eight geographical markets in our portfolio using the following parameters: Scenario Parameters Assets and country coverage 100% coverage (18 properties in eight countries) Baseline year 2019 Scenarios explored 1.5°C warming (NGFS Net-Zero & RCP 2.6) > 3°C warming (NGFS Current Policies & RCP 8.5) Timeframes explored 2030 and 2050 100 SUSTAINABILITY REPORT ANNUAL REPORT 2022

Our analysis revealed a number of climate-related risks that may be financially material to our operations, which we table below. Each of the identified risks includes our preliminary, high-level mitigation and adaptation measures. Risk / Opportunity Type Geography Potential Impacts Risk Level 1.5°C Warming Risk Level > 3°C Warming Mitigation Measures Extreme and more frequent heatwaves Singapore, Maldives, New Zealand, United Kingdom Increase in cooling demand which may lead to higher utilities costs • Increase measures to prevent health risks of the staff and guests in the hotels due to heat stress Flooding Australia, Singapore, New Zealand, Japan, United Kingdom, Germany, Italy Loss of asset value and operational costs due to business disruptions • Performing specific site level climate risk assessments, especially for new investments • Considering mitigation and adaptation measures • Reviewing insurance coverage Wind storms Singapore, Japan, United Kingdom, Germany Loss of asset value and operational costs due to business disruptions • Performing specific site level climate risk assessments, especially for new investments • Considering mitigation and adaptation measures • Reviewing insurance coverage Rising sea levels Maldives, United Kingdom Loss of asset value (asset may become uninsurable) • Performing specific site level climate risk assessments, especially for new investments • Considering mitigation and adaptation measures for higher risk assets Carbon pricing All Increase in operational costs associated with carbon pricing • Developing a decarbonisation roadmap Technology adoption and market shifts All Potential regulatory obligations to adopt certain technologies – – • Assessing green/smart building technologies that can value add and improve building operation High Moderated Low CDLHT is in the midst of incorporating the prioritised climate-related risks and opportunities into our general decisionmaking process and investment strategy. Currently, we are exploring this in the shorter term (by 2030) and also in the longer term (by 2050). As we adjust our operations in the transition to a low-carbon economy, immediate impacts on our investment strategies include an avoidance of locations with significant physical risk, or the implementation of building mitigation and adaptation measures at specific sites. We would also consider low carbon and renewable energy features in the buildings when assessing potential acquisitions. In addition to the mitigation measures above, the key, overarching strategy to achieve Net Zero emissions by 2050 is currently being developed. We are exploring the associated steps necessary to establish our baseline emissions for Scope 3 Greenhouse Gas (“GHG”) emissions, as well as a potential decarbonisation strategy and trajectory following a sciencebased approach. We will update our progress in future reports. 101 OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION

Greenhouse Gas Emissions (tCO2e) FY 2022 Total: 28,119 Scope 1 emissions: 5,672 Scope 2 emissions: 22,447 20.2% 79.8% SUSTAINABILITY REPORT Risk Management Risk management constitutes a key component of CDLHT’s ESG policy and takes into consideration the Guidelines on Environmental Risk Management for Asset Managers set by MAS. CDLHT’s ESG risk management process includes: • A risk identification checklist that guides the scoping of an ESG risk universe, shortlisting the most relevant ESG factors for CDLHT’s operations. • Procedural systems to monitor, assess and manage the ongoing risks of environmental impacts on individual investments and at a portfolio-level. Risk and return profiles of the investment portfolio are expected to be updated for material occurrences such as natural disasters or significant regulatory changes. • Alignment with the overall Enterprise Risk Management system, which subjects risks to three lines of defence mechanisms, prioritises and assesses them according to likelihood, degree of impact, and urgency vis-à-vis other risks via a risk matrix, and then assigns controls to each risk. • Maintenance of ESG risks in a risk register and develop appropriate treatments for each material risk, including avoiding, mitigating or transferring such risks. For FY 2022, the Managers held a climate risk workshop with senior management where the significant climate-related risks applicable to CDLHT’s portfolio were presented and discussed. These risks were further considered in the climate scenario analysis performed and their findings were subsequently communicated to the Boards, where high risk areas were further deliberated. Metrics And Targets The Managers track sustainability-related performance and seek to improve sustainability and climate-related metrics and targets via tracking and disclosure. In addition, the Managers maintain an internal corporate scorecard that includes ESG achievements and tracking of climate-related indicators against corporate objectives. The corporate scorecard performance is a material component of the Managers’ executives’ remuneration, aligning financial incentives partially to sustainability and climate-related performance. Greenhouse Gas (GHG) Emissions (FY 2022) FY 2022 was the first year in which we measured and calculated GHG emissions, which will serve as our emissions baseline. We are following the operational control approach to align our inventorisation methodology with the Greenhouse Gas Protocol and associated standards. Our emission factors are sourced from the Department of Environment, Food & Rural Affairs and the International Energy Agency. Our Scope 1 emissions are based on the usage of Diesel, Liquefied Petroleum Gas (LPG), and Natural Gas, and the majority of Scope 1 emissions come from fuel usage. Our Scope 2 emissions come from the use of purchased electricity. The breakdown of our Scope 1 and 2 emissions are presented under the Emissions Reduction material topic of our Sustainability Report and summarised in the following table: From FY 2023, CDLHT will begin to prioritise and prepare for Scope 3 emission measurements in response to the increasing requirements from the market and investors request for transparency regarding value chain emissions. This would also assist us in identifying the emission hotspots in our preparation of a decarbonisation roadmap, which would tackle the most carbon-intensive categories of our Scope 1, 2 and 3 emissions to meet our Net Zero target by year 2050. CDLHT is exploring setting targets for our Scope 1 and 2 emissions as a start and will report on our plans progressively. 102 SUSTAINABILITY REPORT ANNUAL REPORT 2022

Waste (4) (metric tonnes) FY 2022 Total waste: 1,859.10 Recycling: 195.21 Landfill: 1,595.50 Others: 68.39 10.5% 85.8% 3.7% FY 2021 FY 2022 Total Water Consumption (m3) 600,000 500,000 400,000 300,000 200,000 100,000 0 516,965 696,060 700,000 FY 2021 FY 2022 Total Water Intensity (m3/m2) 2.0 1.5 1.0 0.5 0 1.41 1.90 FY 2021 FY 2022 Total Electricity Consumption (MWh) 60,000 50,000 40,000 30,000 20,000 10,000 0 59,809 66,198 70,000 Electrical Consumption Intensity (MWh/m2) FY 2021 FY 2022 0.20 0.15 0.10 0.05 0 0.17 0.18 Fuel Consumption (MJ) FY 2021 FY 2022 120,000 100,000 80,000 60,000 40,000 20,000 0 101,374 100,860 (‘000) (2) Further information can be found under our material topic on Energy Efficiency. (3) Further information can be found under our material topic on Water Stewardship. (4) Further information can be found under our material topic on Waste. (5) CDL pledges net zero operations by 2030 – first Singapore real estate developer signatory of WorldGBC Commitment - CDL website, 3 February 2021 Targets Within the Sponsor group, City Development Limited has pledged in 2021 to achieve Net Zero operations by 2030 (5), becoming Singapore’s first real estate developer signatory of the WorldGBC Commitment. CDLHT is working to do its part in the Sponsor group decarbonisation journey by exploring our own decarbonisation roadmap and we aim to be Net Zero by 2050. As we have begun to measure and report our GHG inventory this year, we will also start considering the attainable and ambitious short, medium and long-term targets when it comes to decarbonisation. Our other environmental performance targets are presented in their respective sections of the Report. Energy Consumption (2) Water Consumption (3) 103 OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION

Asset Management Acquisition Capital Recycling Capital and Risk Management 1 2 3 4 SUSTAINABILITY REPORT RESPONSIBLE INVESTMENT AND SUSTAINABLE VALUE At CDLHT we are driving the shift towards responsible investing by ensuring transparent, sustainable, and ethical investments. As our hotels operate across numerous geographies, we track, as far as possible, our environmental and social impacts, risks and opportunities across our business value chain and operations. We create sustainable value by incorporating our ESG material topics within our economic performance, investments decisions, and business efforts, and strategically adopting a holistic business approach that contributes to the betterment of the communities in which we have a presence. We aim to deploy our capital to positively impact society and the environment towards a sustainable future. Economic Performance As one of the leading hospitality trusts, ensuring economic growth is paramount to the longevity of our business. Our primary economic objectives are to maximise the rate of return of Stapled Security Holders and to make regular distributions. The financial summary of FY 2022’s operations, revenues and costs are highlighted on pages 155 to 275, in our annual report. Our management aims to achieve these economic objectives through the following means: Acquisition Growth Strategy • Pursue quality assets with growth potential • Pursue asset class diversification within the lodging space and promote income stability • Adopt a medium to long term perspective to ride through market cycles • Partner with or tap on potential pipeline from M&C / CDL Asset Management Strategy • Work closely with master lessees, hotel/property managers and/or operators to implement active revenue and cost management • Implement asset enhancement initiatives to optimise asset potential • Operate and invest in alignment with relevant ESG standards Capital Recycling Strategy • Evaluate divestment opportunities periodically to recycle capital for better returns, rebalance portfolio and/or unlock underlying asset values • Continually improve quality of portfolio Capital and Risk Management Strategy • Maintain a healthy balance sheet • Enhance financial flexibility by maintaining diversified sources of funding • Manage exposure arising from interest rates and foreign exchange through appropriate hedging strategies 1 2 3 4 104 SUSTAINABILITY REPORT ANNUAL REPORT 2022

Ethical and Transparent Business Zero cases of corruption, bribery and misconduct in FY 2022 Social and Environmental Compliance Zero cases of non-compliance with social, environmental laws in FY 2022 Data Privacy and Protection Zero data privacy and protection breaches in FY 2022 Responsible Investment As the world adapts to operating in a post pandemic environment, many businesses have begun including broader corporate objectives, including notions of profitwith-purpose. This is also evident from the rapidly increasing value of global assets under management that fall under ESG investing, or asset managers that have committed themselves to sustainable or net-zero portfolio investments. As we progress towards a more sustainable world, CDLHT will build ESG considerations into its investment decisions as part of our responsible investment approach. Our Approach As part of our investment due diligence process, we aim to assess the sustainability performance and risks of potential acquisitions by conducting ESG due diligence. This due diligence process allows us to identify potential ESG and carbon risks and opportunities for improving energy and carbon performance of a targeted asset. The risks assessed may include climate and environmental risks (such as energy efficiency, renewable energies, water utilisation, waste and pollution etc.), social risks (such as accessibility, health and well-being of stakeholders etc.) and governance risks (such as sustainability labelling, ESG strategy, etc.) of the asset. The carbon due diligence will identify the asset’s carbon footprint, energy consumption and GHG emissions. The responsible investment approach also extends to management of ESG-related practices in our existing managed assets. In the respective material topics, we detail how we build sustainable infrastructure into our hotels, such as EV charging stations, eco-digesters to reduce food waste, and water-saving showerheads. On an ongoing basis, CDLHT looks out for capital expenditure investment opportunities to further green our buildings, especially in improving operational and energy efficiency. Our Performance In FY 2022, we acquired Hotel Brooklyn which has achieved an EPC ‘B’ rating and ‘Very Good’ BREEAM certification rating. We are in the midst of asset enhancement works such as the installation of solar panels at Raffles Maldives Meradhoo and Angsana Velavaru, which are scheduled to be completed progressively in 2023 with a significant part of the commissioning by 1H 2023, as well as solar films that reduce the high level of sun rays, of which works are ongoing at The Lowry Hotel and across our Singapore portfolio. GOOD GOVERNANCE AND ETHICAL BUSINESS Fair, responsible, compliant, and transparent business conduct is key tobuilding trust and loyalty toall stakeholders. Our strong commitment to corporate governance, ethical business practices and compliance to all applicable regulations, ensures CDLHT’s long-term sustainability while safeguarding the interests of our stakeholders. Throughout FY 2022, the Managers have complied with the principles of corporate governance laid down by the Code of Corporate Governance 2018 (Code), and also complied, substantially with the provisions underlying the principles of the Code. In addition, the REIT Manager is a member of the Financial Industry Disputes Resolution Centre Ltd (FIDReC) and a member of REIT Association of Singapore (REITAS). 105 OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION

SUSTAINABILITY REPORT Board Diversity Our Approach The Boards of the Managers recognise that a diverse Board of Directors is an important element which will better support CDLHT’s achievement of its strategic objectives for sustainable development by enhancing the decisionmaking process of the Boards through the perspectives derived from the various skills, business experience, industry discipline, gender, age, ethnicity and culture, geographical background and nationalities, tenure of service and other distinguishing qualities of the directors. The final decision on selection of directors will be based on merit against an objective criteria that complements and expands the skills and experience of the Board as a whole, and after giving due regard to the overall balance and effectiveness of diverse Boards. The Nominating and Remuneration Committees of the Managers will review the Board Diversity Policy from time to time, as appropriate, for an assessment of its relevance and effectiveness and will recommend changes as appropriate, to the Boards. Our Performance The Managers strive to maintain a board size of six, with two out of three or more members being independent over a 4-year period. The Boards would appoint directors with relevant expertise and experience that would complement those already on the Boards and for succession planning by FY 2025. Presently, four out of six directors are independent. Mr Kwek Eik Sheng, who is the Group Chief Operating Officer of CDL and Executive Director of the Sponsor was appointed to the Board on 20 October 2022. Mr Kwek’s experience in the real estate and hospitality industries, as well as in strategic planning will further complement and strengthen the core competencies and diversity of the Boards. For FY 2022, one out of the six Board members are in age group of 50 years or below. The Managers target to improve age diversity over a 4-year period by appointing younger directors aged 50 or below by FY 2025. The female representation on the Boards is currently 16.7%. The Boards will strive to increase its female representation to at least 25% by FY 2025. Ethical And Transparent Business At CDLHT, we are committed to upholding the highest level of integrity and ethical standards across all our business functions through robust corporate governance, responsible business practices, accountability, and transparent management systems. This is key to preventing incidents of misconduct, corruption, and non-compliance across our organisational processes. Through this, we can position ourselves as a trustworthy partner to the public and our stakeholders, forming the foundation of our success. Our Approach We ensure good corporate governance by conducting mandatory compliance training for our employees tailored to each business function. Our hotel employees are required to practice the highest level of integrity across all our operations. The Managers and the hotel portfolio have adopted numerous policies to promote a strong risk management culture by addressing various issues targeting ethical business practices, such as Anti-Bribery Policy, AntiCorruption Compliance Guide, Business Hospitality and Gifts Policy and Whistleblowing Policy. We also have established policies on Corporate Communications, Global Data Protection and Related Party Transactions. Across the portfolio, the implementation of these policies is managed through the following processes: • Regular screening and implementation of any changes to applicable laws and regulations • Reporting of any suspected violations to the established line manager • Oversight and monitoring of non-compliance issues • Documentation of incidents by way of an incident report that will be filed with the Security department Our Performance In FY 2022, we had zero cases of misconduct and noncompliance across the portfolio. As a result, CDLHT did not incur any related fines or sanctions. 106 SUSTAINABILITY REPORT ANNUAL REPORT 2022

Whistle Blowing Policy Our Approach The Managers have in place a whistle blowing policy setting out the procedure where staff and directors of the Managers as well as any other third parties can raise concerns in confidence as well as good faith on possible improprieties without fear of reprisals. The whistle blowing policy is made known to all new employees of the Managers as part of their orientation training and is publicly disclosed on CDLHT’s website. For concerns raised, it will be independently investigated and appropriate actions will be taken. There is also an open-door policy at the hotel level maintained by the respective human resource departments for staff to have an open channel to report any incidences of non-compliance or violations. The Managers’ ARCs maintain oversight and review of whistle blowing incidents at its scheduled meetings Our Performance There were no whistle blowing complaints received via CDLHT’s whistle blowing channels. Anti-bribery And Code of Conduct Our Approach CDLHT has zero tolerance for bribery, corruption or fraud. The Managers are committed to conducting business with integrity and in compliance with all applicable laws. Consistent with this commitment, various policies and guidelines are in place to guide all employees of the Managers to maintain the highest standards of integrity in their work and business dealings. There is an Internal Code of Business and Ethical Conduct and a Business Hospitality and Gifts Policy for all employees of the Managers which serve as frameworks for the handling of gifts (monetary or in kind), entertainment or concessionary offerings. All employees also undergo refresher training periodically to re-acquaint themselves with anti-corruption policies and procedures. Our Performance The Managers strive to maintain zero incidences of corruption, bribery and misconduct resulting in significant fines and sanctions. For FY 2022, there were no such incidences reported. We continuously conduct training on relevant policies as part of the orientation for new hires, and keep our employees informed of new related policies and regulations. Compliance With Social And Environmental Regulations As an organisation with a global portfolio, CDLHT is conscious of remaining compliant with all the social and environmental regulations applicable within the countries in which we operate. Our Approach We ensure compliance by continually monitoring changes to requirements through monthly interaction with our hotel operating partners in each country. This process allows each asset to adhere to local and national regulations. Our Performance In FY 2022, CDLHT had zero incidences of non-compliance with social and environmental laws, and no significant fines and sanctions. CDLHT aims to maintain zero incidences of non-compliance with social and environmental laws and regulations which could result in significant fines and sanctions. Data Privacy And Protection Our Approach The Managers have a Data Protection Handbook in place to ensure that personal data processed is subject to certain legal safeguards and restrictions, in line with the Personal Data Protection Act and the Securities and Futures Act in Singapore. At the portfolio level, relevant lessees/hotel managers will also comply with local data and privacy laws in the respective jurisdictions. Our Performance In FY 2022, there were no complaints received by the Data Protection Officer on data privacy breaches for H-REIT Manager and HBT-Trustee Manager. The portfolio properties will continue to ensure upkeep of best practice in data protection measures, both in our Singapore and overseas operations. 107 OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION

SUSTAINABILITY REPORT CLIMATE RESILIENCE AND ENVIRONMENTAL STEWARDSHIP CDLHT acknowledges the importance of addressing climate change and its affiliated risks to ensure alignment to best practice within the industry. For example, in March 2022, the Singapore Hotel Association and Singapore Tourism Board announced the launch of the Hotel Sustainability Roadmap, which included key focus areas in water conservation, waste management, recycling and the circular economy, sustainable procurement and energy conservation. As a key player in the hospitality industry, we are committed to reducing the environmental impact of our operations, whilst also nurturing and creating positive change in the industry. We endeavour to conserve natural resources, including energy and water, as well as to reduce carbon emissions and waste generation across our portfolio of properties. Climate Action And Resilience Climate change poses both physical and transition risks to CDLHT’s assets and operations around the world, making our commitment to climate action a vital factor to our business strategies and engagement with stakeholders to ensure the sustainability and resilience of our business. Our hotel operations traverse multiple continents and hence it is critical for us to take stock of regional factors, from changing energy costs in the world’s transition to a lowcarbon economy to the risks of flooding or natural disasters. Our Approach The TCFD framework recommends a set of disclosures to companies on pertinent climate-related aspects. CDLHT has utilised the framework as guidance on how we approach climate resilience. Climate Action And Resilience First TCFD disclosure in FY 2022, two years ahead of SGX requirements Emissions Reduction Reporting Scope 1 and Scope 2 emissions from FY 2022 Water 33% reduction in overall water consumption since FY 2019 Waste Target to remove or partially remove single-use plastics from 50% of our hotel portfolio by 2023 Energy Target to reduce energy consumption by 7% by 2026 In FY 2022, we disclosed in alignment with the TCFD recommendations for the first time, reporting on CDLHT’s financially material climate-related aspects. In particular, the Strategy and Resilience pillars of disclosure outlines our key policies and actions towards ensuring a climateresilient portfolio. We intend to continue strengthening our capabilities and experience in this arena and will report on our progress in future years. Climate-related Risk Management Climate-related risks may be viewed as either physical risks or transition risks. Physical risks include chronic risks that occur over a longer period of time, such as rising sea levels, as well as acute risks that refer to hazards such as wildfires, heat waves or floods. Transition risks encompass increased costs of carbon-intensive energy sources due to rising carbon tax, or increased compliance costs due to the need for green certification of buildings. Notably, some of these risks may be viewed as opportunities to position CDLHT positively and gain a competitive edge via an effective climate strategy. We are beginning on our journey of formalising our climate risk management policies and systems, and strive to minimise our exposure to material climate risks through the integration and analysis into investment policy or consideration of a divestment strategy. For further details, please refer to our Risk Management disclosures under our TCFD Report above. Scenario Analysis By conducting a scenario analysis against different global decarbonisation pathways, we are better informed of the sufficiency of the actions we take with regards to CDLHT’s climate resilience. Our scenarios are science-based and informed by the Network for Greening the Financial System (“NGFS”). For further details, please refer to our Strategy disclosures under our TCFD Report above. Emissions Reduction The hospitality industry remains a significant contributor to global GHG emissions. Research by the Sustainable Hospitality Alliance in 2022 showed that the hotel sector accounts for around 1%of global carbon emissions, with this amount expected to increase over time. CDLHT recognises the significant risks posed to business operations as a result of a changing climate. We are committed to our emission reduction journey to ensure the sustainability of our business and to play our part in mitigating climate change. Our Approach In line with the Singapore Hotel Sustainability Roadmap’s targets, CDLHT began tracking and reporting on its Scope 1 and 2 GHG emissions in FY 2022. In FY 2023, we will gain a more complete picture of our emissions baseline as we explore the methodology of estimating our Scope 3 emissions and use it to inform our emission reduction strategy by targeting the carbon hotspots within our value chain. 108 SUSTAINABILITY REPORT ANNUAL REPORT 2022