CDL Hospitality Trusts - Sustainability Report 2022

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