CDL Hospitality Trusts - Sustainability Report 2022

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

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