OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 119 CDL HOSPITALITY TRUSTS Annual Report 2025 In FY 2025, we reassessed the time horizons used for its climate‑related targets and planning: For Transition Risk: Singapore, United Kingdom (“UK”) and Italy These time horizons align with CDLHT’s strategic planning horizon, to support strategic decision making and resilience planning for the business. Physical risks are categorised as acute or chronic. Acute risks are event-driven, such as extreme weather events like floods, wildfires, or hurricanes. Chronic risks involve long-term climate shifts, including sustained temperature increases that may lead to sealevel rise or prolonged heat waves. RCP 2.6 Represents a Net Zero by 2050 scenario where warming is limited to 1.3-2.2°C above preindustrial levels SHORT‑TERM (2030) MID‑TERM (2050) LONG‑TERM (2085) RCP 8.5 Represents a high emissions scenario to where warming exceeds 3.0°C above preindustrial levels. The shift toward a low-carbon or netzero economy introduces transition risks for CDLHT’s portfolio. These risks arise from major policy, regulatory, and technological changes designed to meet climate mitigation and adaptation goals. Climate Risk Assessment - Parameters RISKS TIME HORIZON GEOGRAPHICAL COVERAGE SCENARIOS For Physical Risk: All 22 properties across all locations Management has developed and implemented an environmental risk management framework and policy, as well as tools and metrics to monitor exposures to climate-related risks and opportunities. Management provides updates to the BSCs and the Boards on sustainability performance and material climate-related matters at least quarterly and at year-end meetings. CDLHT’s SWC, which comprises key personnel from various business functions, is led by the CEO and overseen by the BSCs. At the operational level, the SWC manages and monitors CDLHT’s overall sustainability performance and formulates strategies, including individual function-level strategies that incorporate material ESG factors into daily operations. Further details of our climate and overall sustainability governance structure and processes may be found in the Sustainability Governance section under Our Sustainability Approach. Strategy CDLHT regularly monitors and assesses its exposure to climate‑related risks and opportunities. In FY 2025, these risks and opportunities were identified and evaluated through an integrated Climate Risk Assessment, which included the use of climate scenario analysis to assess potential impacts on CDLHT’s operations. Climate‑related issues are managed under the Climate Action and Resilience theme within the Climate Resilience and Environmental Stewardship pillar. The assessment incorporated the analysis of climate‑related risks and opportunities that could be financially material to CDLHT, considering both physical and transition risk drivers. The scenario analysis evaluated exposures across the eight geographical markets in CDLHT’s portfolio using defined climate parameters. PHYSICAL RISK TRANSITION RISK
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