OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 141 CDL HOSPITALITY TRUSTS Annual Report 2025 Green Supply Chain Management CDLHT recognises that building a green and sustainable supply chain is an important lever in advancing its decarbonisation efforts. Although CDLHT does not exercise direct operational control over supplier and vendor selection at the property level, we acknowledge the influence of sustainable procurement in reducing environmental impacts within the value chain. In line with our commitment to responsible business conduct, CDLHT will continue to explore opportunities to encourage the adoption of greener supply chain standards through engagement with operators and business partners. Human Rights CDLHT is committed to upholding human rights principles across its portfolio and expects its operators, lessees, and business counter-parties to adhere to applicable employment laws and maintain ethical recruitment and employment practices within their respective operations. Operators and lessees are expected to establish appropriate HR policies that ensure a safe, healthy, and respectful working environment for employees, in compliance with relevant legal and regulatory requirements in each jurisdiction. CDLHT recognises that procurement decisions made across its portfolio have environmental and social implications, and that sustainable sourcing can contribute meaningfully to impact reduction. In this regard, CDLHT encourages its operators and lessees to adopt a selective and responsible approach to supplier appointment, including screening processes designed to assess credibility and alignment with responsible business conduct expectations. CDLHT continues to explore opportunities to promote the adoption of greener supply chain standards across its portfolio through engagement with its operators and lessees. This approach supports both environmental sustainability and the protection of labour and human rights across CDLHT’s portfolio and business relationships. By integrating environmental and social considerations into supplier selection and engagement processes, CDLHT seeks to strengthen the foundation of a responsible, ethical, and resilient supply chain. Green Clauses To further advance sustainability across its portfolio, CDLHT has begun incorporating green clauses into selected operational agreements, with the aim of progressively broadening their adoption over time. These contractual provisions are intended to better align the sustainability objectives of CDLHT, operators, and tenants, complementing ongoing collaboration with portfolio properties on environmental initiatives and formalising a shared commitment to sustainable practices. Green clauses support CDLHT’s broader sustainability strategy by enhancing resource efficiency, reducing carbon emissions, and encouraging responsible business conduct among operators and tenants. Through these arrangements, operators and tenants are encouraged to participate in initiatives such as meeting minimum equipment efficiency requirements, adhering to lighting power budgets in line with BCA Green Mark standards, and adopting other sustainability‑related practices. Proactive engagement and shared accountability foster a strong culture of sustainability that delivers benefits for operators and tenants, the wider community, and the environment. In addition, operators and/or tenants also provide relevant data and reports to support regulatory compliance and sustainability monitoring, enabling greater transparency and accountability in tracking environmental performance and progress towards CDLHT’s sustainability goals. As a recent example of this approach in practice, green clauses have been incorporated into the new lease agreement for the Grand Millennium Auckland. Performance In FY 2025, we had zero cases of forced or labour violations throughout our operations and suppliers. Case Study Effective supply chain screening underpins our responsible sourcing practices. At Hotel Indigo Exeter, prospective suppliers are subject to a due diligence and qualification process prior to engagement to ensure alignment with commercial, ethical, and ESG requirements. Environmental screening includes the review of sustainability credentials such as EcoVadis assessments, environmental policies, carbon reduction planning, and recognised certifications including ISO 14001 and B Corp. Social and ethical criteria cover compliance with Modern Slavery legislation, labour and health and safety standards, and anti‑bribery and corruption requirements. All suppliers are also required to comply with the Sodexo Supplier Code of Conduct, supporting ongoing alignment with legal, ethical, and sustainability expectations.
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