SUSTAINABILITY BOARD STATEMENT Board of Directors Environment – Green Building, Decarbonisation and EHS Corporate Governance and Fair Operating Practices Labour Practices and Human Rights Stakeholder Engagement and Consumer Issues Community Involvement and Development CDL Group Subsidiaries including Hospitality and Building Management Board Sustainability Committee Chief Sustainability Officer Sustainability Committee across Business and Operational Units Advisory Panel (Management Executive Committee and Senior Management) CDL SUSTAINABILITY GOVERNANCE STRUCTURE Sustainability Effectively Integrated into Governance Structures The BSC has direct advisory supervision of the Group’s sustainability strategy and targets, including that of the CDL Group’s subsidiaries, namely Millenium & Copthorne Hotels Limited (M&C) and CBM Pte Ltd. The BSC also oversees CDL’s sustainability strategy and is apprised of initiatives to address climate and sustainability-related risks and opportunities, sustainable investment plans, as well as sustainability reporting on material ESG issues, work plans, performance targets setting, tracking and reporting. This oversight also includes the materiality assessments, climate change scenario analyses and supply chain risk management studies. The CSO reports directly to the BSC, which, as of 1 January 2026, comprises four independent directors as well as CDL’s Group CEO. Two meetings are held annually, for the management to update the BSC on the Group’s sustainability plans and performance. In addition, CDL engages its BSC members actively on ESG trends and practices via sustainability events and communication platforms such as the annual Hong leong-CDL Group Sustainability Forum, Quarterly Report and emails. The CDL Sustainability Quarterly Report posted online on www.cdlsustainability.com offers regular updates on CDL’s sustainability initiatives and interim Environment, Health and Safety (EHS) performance to the BSC, Sustainability Committee and external audience. For more details on the BSC’s roles and responsibilities for governance of climate-related risks and opportunities, please refer to page 33 under the Corporate Governance section of the annual report. Incorporating ESG issues into executive management goals and incentive schemes promotes greater recognition and accountability in CDL’s sustainability practices. Since 2015, the Company has established stronger linkages between executive remuneration and the Group’s ESG performance. Performance indicators that are aligned with global standards such as ISO 26000, ISO 14001, Global Reporting Initiative (GRI) Standards, UN Sustainable Development Goals (SDGs) and others have been incorporated in the individual goals-setting of all employees, including the Company’s Management Executive Committee (ExCo) and senior management. CDL links executive remuneration to sustainability through both the Short-Term Incentive (STI) and the Long-Term Incentive (LTI) frameworks to reinforce accountability for ESG outcomes alongside financial performance. Under the STI, ESG forms a defined component of the balanced scorecard for ExCo members, with 30% of ExCo remuneration contingent on ESG performance, comprising Environmental, Social, and Governance targets. The Environmental dimension focuses on sustainability initiatives linked to the Group’s Net Zero Carbon roadmap, the Social dimension covers staff engagement, retention, and talent outcomes, and the Governance dimension measures enterprise risk management effectiveness as well as compliance and audit performance. These ESG indicators are supported by measurable KPIs that are cascaded to Heads of Department (HODs) who report to the ExCo. This ensures clear ownership and accountability at every level of the organisation, with performance assessed against Board approved annual targets. From FY 2025, sustainability has also been embedded into the LTI, where the sustainability performance measure focuses on the progressive reduction of greenhouse gas emissions at Group level, aligned with the Net Zero Carbon roadmap. This ensures that LTI outcomes are directly linked to the Company’s ability to deliver measurable decarbonisation progress, strengthening alignment between executive rewards, sustainability performance, and long-term shareholder value. 76 | CITY DEVELOPMENTS LIMITED
RkJQdWJsaXNoZXIy ODIwNTc=