SUSTAINABILITY & GOVERNANCE 124 SUSTAINABILITY REPORT Our FY 2025 GHG Emissions We account for consolidated GHG emissions data according to the operational control approach methodology under the Greenhouse Gas Protocol Standard as it is best aligned with our ability to exercise influence over emissions-related activities across the portfolio. Under this methodology, CDLHT holds direct operational control over The Lowry Hotel while the remaining properties operate under lease or management agreements where day-to-day operational decisions rest with lessees or property managers. Accordingly, emissions from energy use at 18 of the properties (excluding The Lowry Hotel) fall under Scope 3 Category 13: Downstream Leased Assets.(9) Notwithstanding this classification, CDLHT continues to engage with its lessees and property managers to encourage the adoption of energy efficiency measures and emissions reduction practices across the broader portfolio. Scope 1, 2 and the relevant Scope 3 category emissions are reported for the Managers’ office and The Lowry Hotel. Our Scope 1, 2, and 3 emissions are summarised in the table below. Further details, including a breakdown of each category, are provided in the Emissions Reduction section below. Scope 1 emissions (tCO2e) 497 Scope 2 emissions (tCO2e) 31 Scope 3 emissions (tCO2e) 35,604 Total (tCO2e) (10) 36,132 Emissions Reduction The hospitality industry remains a significant contributor to global GHG emissions. The World Sustainable Hospitality Alliance estimates that hotels contribute approximately 1% of global carbon emissions, with this share projected to grow over time(11). In response to the climate-related risks these trends present to its operations and long-term asset performance, CDLHT has prioritised emissions reduction as a key component of its sustainability strategy, supporting both business resilience and wider climate change mitigation efforts. Approach In accordance with the Singapore Hotel Sustainability Roadmap, CDLHT began the measurement and disclosure of Scope 1 and Scope 2 GHG emissions in FY 2022, which has been adopted as the baseline year for future performance comparisons. These emissions indicators provide important insights into our exposure to climate‑related risks, including our reliance on non‑renewable energy sources and carbon‑intensive inputs as the economy transitions towards lower‑carbon alternatives. In addition, Scope 1 and Scope 2 emissions serve as key operational metrics that reflect energy consumption levels and support compliance with the requirements of CDLHT’s sustainability‑linked financing arrangements. This year, we have achieved a more comprehensive understanding of our emissions baseline by enhancing our Scope 3 emissions reporting. To proactively align with upcoming regulatory requirements, we have taken the initiative to obtain external limited assurance for our To proactively align with upcoming regulatory requirements, we have obtained limited external assurance for our Scope 1 and 2 GHG emissions. By adopting this measure ahead of the mandate, we aim to enhance the credibility and transparency of our disclosures while reinforcing stakeholder confidence in our sustainability reporting. This early adoption also allows us to refine our assurance processes, address potential challenges, and ensure a seamless transition to full compliance when the requirement comes into effect. Leveraging our more extensive GHG emissions inventory, we will conduct further analysis of the collected data to identify carbon hotspots within our value chain. This will also be used to shape our emissions reduction strategy moving forward. We recognise the growing importance of GHG emissions reporting as a metric that our investors and other stakeholders are interested in, and we seek to continuously improve the underlying collection and reporting processes to build on the robustness of our disclosures. To further advance sustainability efforts across the portfolio, CDLHT has incorporated green clauses into selected operational agreements and aims to work towards broadening their adoption progressively for new agreements going forward. CDLHT also recognises the importance of a green and sustainable supply chain in driving decarbonisation efforts. Refer to the section on supply chain management ESG matters for more information. Performance In FY 2023, CDLHT reassessed the governance of operational processes and policies across our portfolio properties and determined that CDLHT holds operational control, according to the GHG Protocol Standard definition, only over The Lowry Hotel. Our Scope 1 and 2 emissions pertain to the use of natural gas and electricity, respectively, at the Managers’ office in Singapore and The Lowry Hotel in the United Kingdom(12). Our emissions arising from energy use include the use of fuel by properties across the different geographies. Diesel and LPG are mainly used by properties in the Maldives, while natural gas is the main fuel used at the remaining properties. (9) The 18 properties comprise of all the portfolio assets with the exception of The Lowry Hotel, voco Manchester and the two living assets (The Castings and Benson Yard). voco Manchester - City Centre in the United Kingdom has been excluded from FY 2025’s ESG reporting scope as it operates under a fixed-rent lease arrangement involving separate occupational lessee and hotel manager counterparties, which limits CDLHT’s access to operational data. The Castings and Benson Yard are excluded from FY 2025 environmental and social performance metrics as they were recently acquired and/or are at an early stage of operations. Data from these assets does not yet meet CDLHT’s internal thresholds for completeness, consistency, and comparability required for inclusion in reported metrics. (10) tCO2e represents tonnes of carbon dioxide equivalent, which expresses the combined climate impact of different greenhouse gases on a common basis. (11) Sustainable Hospitality Alliance: https://sustainablehospitalityalliance.org/our-work/climate-action/ (12) The Lowry Hotel uses 100% renewable energy. Hence, the hotel’s Scope 2 emissions are reported as zero.
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