2024 Material ESG Issues All material topics have been categorised as “Critical” and “Highly Critical”, signalling that CDL views sustainability as a high-priority across its business and operations.6 Highly Critical Critical 1. Energy Efficiency and Adoption of Renewables 2. Cyber-readiness, Security and Data Privacy 3. Occupational Health, Safety and Well-being 4. Green and Healthy Buildings 5. Governance and Business Conduct 6. Climate Resilience and Adaptation 7. Product/Service Quality and Responsibility 8. Future-ready Workforce and Talent Retention & Attraction 9. Innovation 10. Waste Management and Circularity 11. Nature and Biodiversity Conservation 12. Water Management 13. Human Rights and Labour Conditions 14. Responsible Supply Chain 15. Stakeholder Impact and Partnerships 16. Sustainable Finance 17. Diversity, Equity and Inclusion Notes: Ranking increased significantly from the previous year’s materiality study Identification and Assessment of Sustainabilityrelated Risks and Opportunities (SROs) Despite the recent backlash against ESG, the business case for sustainability remains clear and enduring. Businesses will not thrive on an unhealthy planet that is gripped by severe climate and related risks. Capturing opportunities is key to catalysing action towards achieving global climate goals. Taking reference from ISSB, GRI, TCFD, SASB and CDSB frameworks, an independent consultant was engaged to conduct a study involving internal and external key stakeholders across the Group’s value chain to identify sustainability-related risks and opportunities (SROs), mapping to the sustainability issues identified from the latest materiality assessment. To ensure comprehensiveness, the study extensively mapped and brainstormed all possible risks and opportunities that could affect the Group’s operations or value chain. External factors such as extreme weather events or carbon pricing policies, along with customer-driven shifts in demand, were considered over varying time horizons. The likelihood and magnitude of impact were quantified on a scale of 1 to 5 to gauge the relative materiality of each risk and opportunity. Considering the complex dependencies, all pathways and stakeholders impacted by a risk or opportunity were evaluated. To ensure objectivity to the quantification process, all relevant stakeholders were asked to provide feedback on the scores, before they were aggregated to provide an overall score. There were a total of 470 possible discrete impacts aggregated into 40 SROs. As climate change-related risks and opportunities were deemed to warrant significant attention, the climate-related SROs were extracted and included in this report to focus on mitigation and adaptation. More information can be found in Chapter 1 of the CDL ISR 2025. For more information outlining the Group’s actions in addressing risks and opportunities that are related to its top 17 material ESG issues, please refer to Chapter 2 of the CDL ISR 2025. SUSTAINABILITY BOARD STATEMENT 6 There are no major changes to the material topics, except for the renaming of 2 material topics “Nature and Biodiversity Conservation” and “Governance and Business Conduct” and the rolling up of "Economic Contribution to Society” into “Stakeholder Impact and Partnerships”. SUSTAINABILITY CITY DEVELOPMENTS LIMITED 52
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