SUSTAINABILITY BOARD STATEMENT Integration: Advancing ESG Governance and Strategic Resilience CDL is committed to the triple bottom line, focusing on financial performance while mitigating the environmental impact of its business operations on the planet and people. The Company has integrated environmental and social responsibility into its operations, working closely with stakeholders to build resilience and create shared values amid climate, economic and social transitions. With the International Sustainability Standards Board (ISSB)’s International Financial Reporting Standards (IFRS) S1 and S2 taking effect for STI constituents in 20253, CDL has been taking steps towards adoption of this global baseline standard. This includes enhanced internal reporting and expanded Environmental, Social and Governance (ESG) data coverage to reflect CDL’s value chain. To foster industry collaboration, CDL co-hosted the “In Conversation with ISSB” dialogue with the Singapore Institute of Directors, engaging with senior ISSB representatives, financiers and sustainability practitioners. These efforts exemplify CDL’s commitment to Singapore’s evolving sustainability reporting landscape to transform into a green economy, in line with the Singapore Green Plan 2030. In 2025, CDL embarked on a Group-wide quantitative study to assess its current and anticipated financial impacts from its climate-related risks and opportunities. This exercise has helped the Group advance its alignment with IFRS S1 and S2 and enhanced understanding of the Group’s ESG-related business risks and opportunities through a financial lens. Innovation: Utilising Technology and Championing Nature-based Solutions to Cool Urban Spaces To meet its 2021 pledge to WorldGBC’S Net Zero Carbon Buildings Commitment, CDL has made progress in decarbonising its buildings and operations through various innovations. In 2025, the Group implemented an IoT-based Optimisation and Energy Monitoring Platform at the Group’s Jungceylon Shopping Center in Phuket, enhancing operational efficiency and enabling real-time, proactive fault detection. With further integration across other building systems, the platform is expected to achieve energy savings of 5% to 10%. Onsite solar photovoltaic (PV) systems were also deployed across selected retail, office and industrial assets under a Solar Power Purchase Agreement (PPA) model in 2025. These PV systems supply renewable energy and are estimated to save approximately 1,000,000 kWh, equivalent to about 200 4-room HDB flats per annum. The Solar PPA was implemented at City Square Mall, Quayside Isle, King’s Centre, Palais Renaissance and City Industrial Building in 2025. Heat is a "silent killer", causing more fatalities than all other extreme weather events combined. The urban heat island effect can cause temperature differences of up to 7°C between densely built urban areas and less developed rural areas. In fact, Singapore is heating up twice as fast as the global average. Aligned with CDL’s commitment to nature-positive development, the Company has scaled up the use of naturebased solutions and greenery across our properties. It actively engaged in discussions on heat, health and the importance of nature-based and biophilic solutions for cooling urban spaces. In March 2025, CDL launched the research-driven CDL MicroForest, in partnership with the National University of Singapore (NUS) and National Parks Board (NParks), to ascertain that cooling through greening is viable. The data collected from the CDL MicroForest will be analysed to understand its impact on mitigating rising temperatures, reducing surface heat absorption, enhancing biodiversity and strengthening ecological resilience. Building on the success of the CDL MicroForest, the Company has expanded it by adding another 2,800 square feet (sq ft) of regenerative tropical plants, with over 80% of the plants native to the region. This expansion will provide many benefits including improved air quality, enhanced biodiversity and better wellness for building users. At CDL’s corporate office, Republic Plaza, the Group completed the installation of hybrid cooling fans, to balance occupant comfort and energy efficiency. This complements the raised indoor air-conditioning temperature of 25°C and is aligned with Singapore’s Go 25 movement, which promotes sustainable cooling practices. These initiatives are part of a broader Future Value 2030 Sustainability Blueprint, which guides CDL in shaping a future where business growth aligns with positive environmental and social impacts. By harnessing cross-sector partnerships, the Group aims to accelerate progress toward the UN Sustainable Development Goals (SDGs) and global climate goals. 3 Extended timelines for most climate reporting requirements to support companies - SGX Group, 25 Aug 2025 74 | CITY DEVELOPMENTS LIMITED
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