Investment: Continual mobilisation of sustainable finance to accelerate action Mobilising finance is critical to combat climate change and nature loss, as escalating insured and uninsured losses from extreme weather events highlight the growing economic risks and the pressing need to invest in mitigation, adaptation, and resilience efforts. According to the World Economic Forum, extreme heat will cause more than 70% of potential fixed asset losses over the next decade. With each dollar invested in climate resilience yielding $13 in savings, the business case for investing in climate resilience and adaptation has never been clearer.5 Sustainable finance is imperative to accelerate climate action, upgrade energy infrastructure, deploy technology and build resilience to mitigate and adapt to climate impacts. As a company headquartered in Southeast Asia, CDL is committed to driving its GET strategy with a focus on sustainability and aligning its business objectives with ambitious global climate goals. Its strong track record in sustainability enables it to leverage sustainable financing to advance action in Singapore and beyond. Recognising that sustainable finance is a key enabler to accelerating climate action, the Company has completed over $9 billion of sustainable finance, including various green loans, a green bond, a green revolving credit facility and sustainability-linked loans since 2017. The Company’s latest sustainable finance achievement was a $400 million landmark sustainability-linked loan provided by DBS Bank, successfully secured in June 2024. This first-of-its-kind loan aims to advance nature conservation and sustainable development in Singapore, with criteria guided by the targets set by CDL in its adoption of the 5 Business on the Edge: Building Industry Resilience to Climate Standards Insight Report, World Economic Forum, December 2024 What This Means for Our Corporate Strategy GET Strategy • Build development pipeline and recurring income streams • Enhance asset portfolio through asset enhancement initiatives, asset repositioning and redevelopment • Drive operational efficiency • Transform business via new platforms - Strategic investments - Fund management • Innovation and venture capital What This Means for Our Sustainability Strategy • Apply the CDL Sustainable Investment Principles to steward responsible capital allocation and investment decisions • Integrate nature and sustainable finance to capture growth opportunities • Align with UN Principles for Responsible Investment (PRI) • Accelerate development pipelines that prioritise ecosystem restoration, nature protection and biodiversity conservation • Enhance greening of buildings and sustainability performance of new developments and existing assets • Decarbonise new and retrofitted assets to achieve high green building standards and net-zero commitments including design, materials used and transition to renewable energy • Ensure best environmental, social and governance (ESG) practices to enhance portfolio performance and sustainability • Strengthen nature-related risk and opportunity assessments using TNFD guidance for assets, to align with nature-positive goals • Enhance and implement biodiversity and resilience plans for managed assets • Accelerate impact investing in Proptech funds, start-ups and scale-ups to uncover and testbed building innovations for our properties • Enhance alignment for key subsidiaries to achieve CDL Group’s sustainability and nature strategy, goals and action in a phased approach • Elevate stakeholder collaboration and partnerships to support low-carbon and nature-positive projects G GROWTH E T ENHANCEMENT TRANSFORMATION TNFD Recommendations. Beyond that, the Company has also successfully achieved a maximum discount on the interest rate for its OCBC 1.5°C loan secured in December 2023 after meeting all the Sustainability Performance Targets outlined in the loan. As carbon pricing becomes more mainstream in supporting investment and procurement decisions for a 1.5°C future, Singapore’s carbon tax is set to rise to $45/tCO2e in 2026 and 2027. In response, CDL completed an Internal Carbon Pricing (ICP) pilot study last year on Republic Plaza – its flagship commercial building in Singapore, assessing mitigation costs to estimate a current carbon price that would support Republic Plaza in reaching net-zero status. In 2025, CDL will continue to explore meaningful opportunities to test and validate the use of ICP to raise awareness of carbon costs and better integrate environmental impact into financial decision-making. Impact: Enhancing Sustainable Ecosystems CDL’s longstanding dedication to sustainability has earned recognition in top global ESG ratings and rankings for three decades. For a complete listing of its ESG leadership, please refer to Chapter 1 of the CDL Integrated Sustainability Report (ISR) 2025. Some of CDL’s achievements in the year under review include: • Global 100 Most Sustainable Corporations in the World by Corporate Knights: Ranked 22nd in 2024 and maintained ranking as the world’s most sustainable real estate management and development company for the sixth consecutive year, as well as the only Singapore company listed for 15 consecutive years. ANNUAL REPORT 2024 SUSTAINABILITY 49
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