CDL Hospitality Trusts - Sustainability Report 2022

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