The Board Chairman and the ExCo hold briefings with sellside analysts and the media to coincide with the release of the Group’s half-year and full year financial results. Presentation materials are also released on SGXNET and the Company’s corporate website. A live video webcast was available for investors at the full year 2023 analyst/media results briefing in February 2024. In addition, the ExCo and Senior Management actively participates in IR, regularly meeting fund managers and analysts, and participating in local and overseas investor roadshows and conferences. The Head of IR and Corporate Communications manages the Group’s IR function, including engagement with the financial community, research analysts and relevant stakeholders. Investor Relations (IR) Policy (Provisions 12.2 and 12.3) The Company is committed to building investor confidence and trust and values open communication with shareholders and the investment community. Its IR Policy, available on the Company’s corporate website (www.cdl.com.sg), outlines the process and mechanism to engage stakeholders, including the communication channel for queries. The IR Policy outlines the principles and framework in which the Company communicates and engages with investors, analysts and other IR stakeholders to provide balanced, clear and pertinent information. To provide investors with a better understanding of the Group’s business and growth drivers, regular updates on the Group’s strategies, operations and financial performance are provided across multiple platforms. Further information on the Company’s IR policy and activities can be found on pages 73 to 75 of this annual report. Principle 13: Engagement with Stakeholders Sustainability Since 2014, the Company started conducting materiality assessments annually, which is facilitated by a third party, to determine the key Economic, Environmental, Social and Governance (“EESG”) issues that are important to the Company’s stakeholders. These issues are foundational to the Company’s annual sustainability reporting. Corresponding EESG targets, metrics, initiatives, and progress are reviewed by the ExCo, Senior Management and Heads of Departments ("HODs"), reported to the BSC and the Board for approval, before they are published annually in the Company’s Integrated Sustainability Report (“ISR”). Learning from the unprecedented disruptions caused by the COVID-19 pandemic, the Company adopted a more dynamic approach to the assessment of key ESG issues from 2020 to 2023, addressing the fast-changing landscape and supply chain issues. The exercise determined the actual and potential impacts of these issues on CDL’s long-term value creation, and conversely, CDL’s impact on them. CDL has updated its materiality assessment to align qualitatively with the ISSB’s IFRS S1 and S2, launched globally in June 2023. Endorsed by MAS, SGX and ACRA, the ISSB Standards requires companies to assess the ESG issues that are considered material to the company, taking into account both financial and non-financial information, including the impact of climate-related risks and opportunities. To incorporate and understand financial materiality, CDL’s ExCo and key executives from CDL's key subsidiaries assessed the potential financial impact of each ESG matter. As part of the study, online surveys were circulated to key stakeholder groups, including the BSC. Through interviews with ExCo, Senior Management and HODs of headquarters and key subsidiaries, regulators, industry and sustainability experts, tenants and suppliers, the Company obtained additional insights into working towards its net zero carbon commitment and strategically addressing risks and opportunities for its businesses, while continuing to deliver long-term value for its internal and external stakeholders. The preliminary material issues were validated by the Company’s ExCo, Senior Management and HODs and approved by the BSC thereafter. With the ever-evolving business landscape and externalities, the annual assessment of CDL’s key material issues is critical to help the Company sharpen its sustainability strategy and focus resources on areas that are deemed most material to its business and future growth using a forward-looking lens. On a quarterly basis, CDL publishes an online Sustainability Report on its microsite at www.cdlsustainability.com. Since 2017, this voluntary initiative updates stakeholders of CDL’s progress towards key goals and targets set under its Future Value 2030 Sustainability Blueprint, and sets benchmarks for the transparency and timeliness of ESG disclosures to investors and stakeholders. The BSC assists the Board in the review and consideration of the Company’s sustainability issues and approach to sustainability reporting, complementing the Company’s corporate business strategy. The BSC comprises four Directors, with the Group CEO in the chair and three other IDs. The BSC’s terms of reference sets out, inter alia, the objectives, roles and responsibilities of the BSC. It also includes the BSC’s purview over matters relating to the Company’s ESG strategy, ESG targets, the sustainability reporting framework and also the Company’s policies, practices and performance on its material ESG factors which are significant and contribute to the Company’s performance, business activities and/or reputation as a global corporate citizen. The annual ISR is dedicated to reporting on CDL’s sustainability efforts and performance that addresses the social and environmental impacts pertinent to the Company’s stakeholders and business. Over the years, CORPORATE GOVERNANCE CDL’s robust sustainability reporting has evolved into a unique blended model using the Global Reporting Initiative (“GRI”) Standards as its core since 2008. To address the diverse expectations of stakeholders, CDL embraced CDP since 2010, Global Real Estate Sustainability Benchmark since 2013, the Integrated Reporting Framework since 2015, Sustainable Development Goals (“SDG”) Reporting since 2016, Task Force on Climate-related Financial Disclosures (“TCFD”) framework since 2017, Sustainability Accounting Standards Board (“SASB”) Standards for Real Estate Sector and the Climate Disclosure Standards Board (“CDSA”) Framework since 2020. In September 2023, the Taskforce on Nature-related Financial Disclosures ("TNFD") released its final recommendations, providing a framework for how organisations can address nature-related risks and opportunities. As biodiversity loss has been highlighted as an existential global threat, CDL has stepped up on its management of nature loss and is one of the pioneering companies in Singapore to report in alignment with the TNFD standards. CDL supports the formation of the International Sustainability Standards Board (ISSB) in providing a unified sustainability reporting framework that aims to fulfil the needs of investors and various stakeholders for credible, consistent and comparable data. The Company combined the 10 components of its CDL blended reporting framework into two pillars – capturing the ‘value’ and the ‘impact’ its business creates. With the launch of the IFRS S1 and S2 in June 2023, CDL has worked with an external consultant on a comprehensive gap analysis to identify the areas for alignment for reporting against S1 and S2. Moving forward, this will allow the Company to work towards full alignment with the IFRS’ standards, for eventual compliance. CDL’s ISRs are available on both its corporate website and the dedicated sustainability microsite. To enhance data credibility and instill confidence in readers, external assurance of its report started since 2009. ISR 2022, 2023 and ISR 2024’s external audit has been further elevated in its scope against the GRI Standards, SASB Standards, as well as the TCFD and CDSB frameworks. Rights of Creditors The rights of the CDL Group’s creditors, comprising inter alia lending banks, contractors, service providers and vendors, are protected with an effective cash and liquidity management system. This includes processes to maintain an adequate level of cash and cash equivalents and available credit facilities, monitor debt maturity and financial metrics including gearing and interest cover ratios. Regular internal reviews are also conducted to ensure that the various capital management metrics and loan covenants are complied with. Further information on the Company’s approach to stakeholder engagement and its materiality assessment can be found on pages 76 to 92 of this annual report. CORPORATE VALUES AND CONDUCT OF BUSINESS The Board and Management are committed to conducting business with integrity and consistent with high standards of business ethics, and in compliance with all applicable laws and regulatory requirements. The Company has in place an Internal Code of Business Conduct and Ethics crystallising the Company’s business principles and practices with respect to matters which may have ethical implications. The code, which provides a communicable and understandable framework for employees to observe the Company’s principles such as honesty, integrity, responsibility and accountability at all levels of the organisation and in the conduct of the Company’s business in their relationships with customers, suppliers and amongst employees, is available on the Company’s intranet and is easily accessible by all employees. The code provides guidance on issues such as: • conflicts of interest and the appropriate disclosures to be made; • the Company’s zero-tolerance stance against corruption and bribery; • compliance with applicable laws and regulations including those relating to the protection of the environment and the conservation of energy and natural resources; • compliance with the Company’s policies and procedures, including those on internal controls and accounting; • safeguarding and proper use of the Company’s assets, confidential information and intellectual property rights, including the respect of the intellectual property rights of third parties; and • competition and fair dealing in the conduct of the Company’s business, in its relationships with customers, suppliers, competitors and towards its employees. In line with the Board’s commitment to maintain high ethical standards which are integral to its corporate identity and business, the Company has the following three key corporate policies in place: (i) Anti-Corruption Policy & Guidelines which sets out the responsibilities of the Group companies and of each employee in observing and upholding CDL’s ‘zero- tolerance’ position against all forms of corruption, bribery and extortion and provides information and guidance to employees on how to recognise, address, resolve, avoid and prevent instances of corruption, bribery and extortion which may arise in the course of their work. CORPORATE GOVERNANCE 61 60 CORPORATE GOVERNANCE ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED
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