SUSTAINABILITY & GOVERNANCE 122 SUSTAINABILITY REPORT Relevant opportunity lies in the growing market demand for green buildings: Amid the identified climate-related risks, a parallel opportunity arises from structural growth in Singapore’s green building sector. Under the Singapore Green Plan 2030, the Singapore Green Building Masterplan targets 80% of buildings to be certified green by 2030, with the Super Low Energy programme and Green Mark standards progressively tightened. Concurrently, the market has shown that greencertified commercial assets in Singapore have demonstrated rental and valuation premiums relative to non-certified peers, reflecting stronger tenant demand and investor preference for ESG-aligned properties. Similar trends are observed in CDLHT’s international markets. In the United Kingdom, increasingly stringent building performance regulations and the growing adoption of frameworks such as BREEAM and Minimum Energy Efficiency Standards are reinforcing demand for energyefficient and low-carbon properties, particularly among institutional investors and corporate tenants. In Italy, regulatory momentum under the EU Green Deal and the Energy Performance of Buildings Directive is accelerating the transition towards higher building energy performance standards, while sustainability considerations are becoming more prominent in hospitality asset upgrades and retrofitting initiatives. Within the hospitality segment, sustainability considerations are increasingly embedded in guest booking decisions, reinforcing demand for energy-efficient and low-carbon accommodation. Against this backdrop, CDLHT is positioned to capture value from the transition towards greener real estate, which in turn elevates green building from a compliance response to a strategic medium‑ to long‑term value‑creation lever. Strategy to Manage Climate-related Risks and Opportunities CDLHT will continue to monitor both the actual and potential impacts of climate‑related risks and opportunities, adopting relevant mitigation and adaptation measures to strengthen business resilience. Our insurance coverage includes environmental risks and is reviewed periodically to ensure that our assets remain appropriately protected. As we adapt our operations and investment approach for a low‑carbon economy, climate‑related considerations are increasingly integrated into decision‑making — including assessment of physical climate risks and implementation of targeted mitigation and adaptation measures where relevant. Climate factors are also assessed when evaluating new acquisitions. In addition to the climate-related risks and opportunities outlined above, CDLHT continues to advance the development of its strategy to achieve Net Zero emissions by 2050, with the objective of strengthening the resilience of its assets to both physical and transition climate risks. We have also established our baseline for Scope 3 GHG emissions in FY 2023 and completed our full inventory this year by disclosing seven material Scope 3 categories. Ongoing efforts focus on enhancing data quality and strengthening collection processes across Scope 1, Scope 2, and Scope 3 emissions. As part of this commitment, we will measure near-term and long-term performance, including addressing both physical and transition risks, through the decarbonisation strategy. We aim to solidify this strategy by analysing emissions data and developing an emissions-reduction trajectory using a science-based approach. We continue to provide updates on the progress in each sustainability report. Further details regarding our strategy and alignment with the SBTi are provided in the Emissions Reduction section within our Climate Resilience and Environmental Stewardship pillar. Sustainability-Linked Financing Continuing its sustainability-linked financing journey, CDLHT has structured facilities incorporating Sustainability Performance Targets (“SPTs”) aligned with key environmental metrics. These facilities provide interest rate incentives that support the Group’s efforts to enhance environmental performance and achieve its sustainability objectives. During the year, CDLHT refinanced 82% (S$427 million) of its maturing facilities into sustainability-linked facilities (“SLLs”), reinforcing its commitment to responsible financing. As at 31 December 2025, the total sustainability-linked facilities stood at approximately S$1.1 billion, accounting for approximately 59% of CDLHT’s total facilities. This represents a 65% yoy increase from the S$666 million SLLs reported as at 31 December 2024, reflecting meaningful progress in integrating sustainability considerations into its financing framework. Looking ahead, CDLHT will continue to explore various avenues to integrate and align environmental objectives into our financing decisions, upholding our commitment to environmental stewardship and long-term sustainable value creation for our stakeholders.
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