6 There are no major changes to the material topics, except for the renaming of two material topics (“Decarbonisation – Energy Efficiency and Adoption of Renewables” and “Innovations and Solutions”) and the merging of “Product/Service Quality and Responsibility” into “Green and Healthy Buildings – Product/Service Quality and Responsibility”. ADVANCING GREEN BUILDING, DECARBONISATION AND ENVIRONMENTAL PERFORMANCE As part of its net-zero commitment, the Company has implemented a comprehensive framework to minimise its environmental footprint. It has a Sustainability Committee which oversees environmental stewardship and an Environment Sub-Committee which focuses on identifying and mitigating significant environmental impacts across corporate operations, property development, asset management, and subsidiaries including hotels and facilities management. Key environmental metrics such as carbon emissions, energy consumption, water usage, waste management, and resource utilisation are closely monitored to ensure accountability and drive continuous improvement toward net-zero goals. Please refer to CDL ISR 2026 for the relevant charts that detail the Company’s environmental performance. As a pioneering green developer in Singapore, CDL has achieved 130 BCA Green Mark certifications for its developments and office interiors since the scheme’s launch in 2005. In 2025, CDL together with Mitsui Fudosan launched the luxury 706-unit Zyon Grand, a JV project near the prime River Valley enclave; which received the BCA Green Mark Platinum Super Low Energy (SLE) award as well as the BCA Health and Wellbeing, Maintainability, and Whole Life Carbon badges. Zyon Grand is CDL’s 12th Green Mark SLE certification. The Group’s longstanding green building efforts have saved approximately $47.5 million in energy savings from energy-efficient retrofits and other initiatives in its locally managed buildings from 2012 to 2025. In 2025, nine CDL properties in Singapore maintained the WELL Health-Safety Rating, a globally recognised evidence-based, third-party verified rating that assesses building performance relating to the health and safety of building users. Additionally, in December 2025, CDL completed its fourth climate change scenario study, facilitated by an independent consultant. This study expanded the Group’s coverage and methodologies to better assess its readiness for physical and transitional risks, with expanded timeframes to include short-, medium- and long-term impacts until 2050. Japan, one of the Group’s key markets, was also added to provide a more comprehensive assessment of the risks and opportunities across the Group’s overseas portfolio. More information can be found in Chapter 3 of CDL ISR 2026. STRATEGIC MANAGEMENT OF TOP MATERIAL ESG ISSUES In 2025, CDL embarked on a Group-wide study to conduct a quantitative assessment of its current and anticipated financial effects from its climate-related risks and opportunities that were identified last year. This exercise has helped CDL move towards greater alignment with IFRS S1 and S2 and allowed the Company to understand its ESG-related business risks and opportunities through a financial lens. CDL started conducting its ESG materiality assessments in 2014 and has continued to review and prioritise the ESG issues annually that matter most to its business and stakeholders. The top five issues that are ranked highest on both impact and financial materiality this year are: “Decarbonisation – Energy Efficiency & Adoption of Renewables”, “Cyber-readiness, Security and Data Privacy”, “Green and Healthy Buildings – Product/Service Quality and Responsibility”, “Occupational Health, Safety and Well-being”, and “Governance and Business Conduct”. The findings will guide CDL in reviewing and finetuning its sustainability strategy and priorities. 2025 Material ESG Issues All material topics have been categorised either as Moderate, Critical or Highly Critical, signalling that CDL views sustainability as a critical subject across its business and operations.6 1. Decarbonisation – Energy Efficiency and Adoption of Renewables 2. Cyber-readiness, Security and Data Privacy 3. Green and Healthy Buildings – Product/Service Quality and Responsibility 4. Occupational Health, Safety and Well-being 5. Governance and Business Conduct 6. Climate Resilience and Adaptation 7. Future-ready Workforce and Talent Retention & Attraction 8. Innovation and Solutions 9. Human Rights and Labour Conditions 10. Stakeholder Impact and Partnerships 11. Responsible Supply Chain 12. Water Management 13. Sustainable Finance 14. Waste Management and Circularity 15. Nature and Biodiversity Conservation 16. Diversity, Equity and Inclusion Note: Ranking increased significantly from the previous year’s materiality study ANNUAL REPORT 2025 | 77
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