SUSTAINABILITY & GOVERNANCE 118 SUSTAINABILITY REPORT Climate Action and Energy Management Climate change introduces both physical and transition risks to CDLHT’s global portfolio and operations, reinforcing the importance of our commitment to climate action and its influence on our business strategies and stakeholder engagement. With operations spanning multiple regions, it is essential for us to understand the specific climate related factors affecting each geographic location. These range from shifting energy costs associated with the transition to a low carbon economy to physical threats such as flooding and other extreme weather events. By proactively identifying and managing these risks, we strengthen the sustainability and resilience of our business, ensuring continued alignment with evolving climate conditions. Approach Since FY 2022, CDLHT has adopted the TCFD recommendations as a guiding framework for identifying and disclosing climate‑related risks and opportunities. In FY 2025, CDLHT commenced its transition towards alignment with the ISSB’s IFRS S1 and S2 climate‑related disclosures. This ongoing effort is intended to progressively enhance the consistency, comparability and decision‑usefulness of CDLHT’s climate‑related disclosures as it continues to strengthen its approach to climate resilience across its global portfolio. Targets The individual targets set out for each category of resource usage are detailed in their respective sections within our material topics below. As CDLHT continues to make progress in tracking and reporting its full GHG emissions footprint, we will also align attainable and ambitious shortterm, medium-term, and long-term resource usage targets with those for decarbonisation, including becoming SBTialigned in the future, with the view to achieving Net Zero by 2050. Case Study CDLHT embodies this through energy management data collection and monitoring across properties to identify trends and further improve operations efficiently and effectively. One instance where this is demonstrated is through Copthorne King’s Hotel in Singapore, where energy management was enhanced by integrating the Energy Management System (“EMS”) with the Building Management System (“BMS”), allowing energy usage to be correlated with occupancy patterns and guest behaviour for more precise, data‑driven adjustments. Key initiatives supporting this include installing LED lighting to significantly reduce energy consumption; optimising Heating, Ventilation, and Air Conditioning operations through smart thermostats and automated room control units that adjust temperatures based on real‑time occupancy; and promoting staff engagement through regular training, incentives, and ongoing feedback on sustainability. Together, these measures strengthen operational efficiency while fostering a culture committed to long‑term energy sustainability. Our Climate-related Disclosures Climate change poses significant risks to CDLHT, including potential asset damage, rising insurance costs, and challenges in revenue generation. At the same time, it creates opportunities to leverage sustainability-linked financing, improve energy efficiency, and reduce operating costs. CDLHT recognises the importance of building resilience and has adopted the recommendations of TCFD and ISSB’s IFRS S1 and S2 climate‑related disclosures to guide our climate risk management and disclosure approach. To prepare for evolving regulatory and reporting expectations, we conducted a climate‑related gap analysis and developed a structured roadmap to strengthen the quality, consistency, and transparency of climate‑related disclosures. In FY 2022, the first climate scenario analysis based on IPCC (8)‑aligned climate scenarios were undertaken, providing valuable insights into the implications of climate risks and opportunities across different time horizons. These efforts help us refine adaptation and mitigation strategies, ensuring our business remains aligned with evolving climate realities. The climate related disclosures in this report are also prepared in accordance with MAS’ Guidelines on Environmental Risk Management for Asset Managers, effective since June 2022. We express support for MAS’ initiative and expect to apply the guidelines to improve the direction and clarity of our climate resilience, mitigation and adaptation measures. Governance Oversight of climate‑related risks and opportunities is embedded within CDLHT’s overall governance framework. The Boards maintain overall responsibility for integrating sustainability considerations into CDLHT’s business objectives and strategy, and for approving key environment‑related policies and frameworks (including climate). The Boards monitor CDLHT’s material ESG factors, including climate‑related risks and opportunities associated with emissions reduction and climate action, and receive quarterly updates on ESG performance and key developments. The BSCs provide strategic oversight of CDLHT’s sustainability agenda, including the identification and management of climate‑related risks and opportunities. They oversee the setting of climate‑related targets and review management’s progress through regular reporting to ensure accountability and effective implementation. The roles and responsibilities of the BSCs are formalised in the TOR and include oversight of sustainability strategies and alignment with CDLHT’s overall risk management framework. (8) IPCC refers to the Intergovernmental Panel on Climate Change, the United Nations body responsible for assessing the scientific basis of climate change, its impacts and risks, and options for mitigation and adaptation
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