CDL FUTURE VALUE 2030 GOALS, TARGETS AND PROGRESS Legend: Progress Tracking Falling short of interim target for more than two years, review and revise targets (if necessary). Meeting interim targets, maintain performance towards meeting 2030 targets. Falling short of interim target for one year, review current practices. Future Value 2030 Goals 2030 Targets(1) Interim 2023 Annual Targets(1) FY2021-FY2023 Performance Goal 1: Building Sustainable Cities and Communities Achieve Green Mark certification for 100% of CDL owned and/or managed buildings(2) ≥90% 2021: 85% achieved 2022: 98% achieved 2023: 100% achieved Maintain 100% retail and office tenant participation in CDL Green Lease Partnership Programme Achieve 100% 2021: 100% maintained 2022: 100% maintained 2023: 100% maintained Maintain high level of commitment to adopt innovations and technology of green buildings Average of two innovation and technology applications per year 2021: Average of two innovation and technology applications per year 2022: Average of two innovation and technology applications per year 2023: Average of two innovation and technology applications per year 1. Optimiser to improve AHU energy efficiency 2. Smart water valve to optimise water consumption Maintain a high level of sustainability engagements and advocacy activities Average of ≥36 engagements and advocacy initiatives and activities per quarter 2021: Average of 75 engagement and advocacy initiatives and activities per quarter 2022: Average of 75 engagement and advocacy initiatives and activities per quarter 2023: Average of 71 engagement and advocacy initiatives and activities per quarter Obtain GSTC Certification for all M&C Hotels based in Singapore by 2025 2021 and 2022: Not applicable (This goal was introduced in FY2022) 2023: Not applicable as M&C is in its initial phases of the GSTC certification process 2021: Not applicable 2022: Not applicable 2023: Not applicable Goal 2: Reducing Environmental Impact 2021: Achieve science-based target of reducing carbon emissions intensity by 59% from 2007 levels(3) 2022: Achieve science-based target of reducing carbon emissions intensity by 63% from 2016 levels(3) 2023: Achieve science-based target of reducing carbon emissions intensity by 63% from 2016 levels(3) 2021: 42% reduction 2022: 19% reduction 2023: 27% reduction 2021: 42% reduction 2022: 24% reduction 2023: 33% (4) reduction(5) Asset Management (AM) – Office & Industrial(3),(6): 2021: Reduce energy use intensity by 45% from 2007 levels 2022: Reduce energy use intensity by 55.7% from 2007 levels 2023: Reduce energy use intensity by 55.7% from 2016 levels 2021: Reduce water use intensity by 50% from 2007 levels 2022: Reduce water use intensity by 9.5% from 2016 levels 2023: Reduce water use intensity by 9.5% from 2016 levels 2021: Reduce waste intensity by 16% from 2016 levels(7) 2022: Reduce waste intensity by 8% from 2016 levels(7) 2023: Reduce waste intensity by 8% from 2016 levels(7) 2021: Energy use intensity: 37% reduction 2022: Energy use intensity: 9% reduction 2023: Energy use intensity: 21% reduction 2021: Water use intensity: 43.5% reduction 2022: Water use intensity: 1% reduction 2023: Water use intensity: 2% reduction 2021: Waste intensity: 14% reduction 2022: Waste intensity: Limit increase to less than 20% 2023: Waste intensity: Limit increase to less than 17% 2021: Energy use intensity: 48% reduction 2022: Energy use intensity: 18.1% reduction 2023: Energy use intensity: 24.8% reduction 2021: Water use intensity: 56.9% reduction 2022: Water use intensity: 28.7% reduction 2023: Water use intensity: 20.3% reduction 2021: Waste intensity: 29% reduction 2022: Waste intensity: 9.4% increase 2023: Waste intensity: 22% reduction The CDL Future Value 2030 Sustainability Blueprint, established in 2017, outlines the Company’s ESG goals, including near and long-term net-zero targets in line with the SBTi. The Company’s key 2030 and interim annual goals, targets and progress are tracked and reported quarterly and annually. All target years are fiscal year-end. All reporting data is through fiscal year 2023 (31 December 2023), unless otherwise stated.10 The scope of the Company’s operations in the Future Value 2030 table below covers corporate office, managed buildings and construction sites in Singapore, and exclude hotel properties, unless otherwise stated. 10 For the purposes of the CDL Future Value 2030 Sustainability Blueprint, footnotes for FY2021-2022 data points are not included. Please refer to CDL's past ISRs for detailed information. CDL Group's Top Material ESG Issues Risks and Opportunities CDL Group's Responses and Achievements 14. Waste Management and Circularity Supporting SDGs: TNFD Pillars: G, S, RM, M&T With increased regulation, changing consumer behaviour and shifting corporate practices, accelerated momentum into greener water and waste practices are expected in the short-to medium-term. The Singapore Government has implemented a Zero Waste Masterplan since 2019 with specific targets to improve national recycling, reuse and reduction rates as it transits towards a circular economy. This includes 2030 targets to increase non-domestic recycling rates to 80% and domestic recycling rates to 30%. At the Company’s commercial and retail properties, recycling bins and facilities are provided to encourage the recycling of paper, plastic and metal by shoppers and tenants. The Company also sources for circular solutions through innovation partnerships and startup competitions. In 2023, the Company’s Incubator For SDGs onboarded Moonbeam, a local startup, into its sustainability ecosystem. Moonbeam reduces waste by upcycling spent grains from breweries to make sustainable granola products. At the Company’s corporate office, trainings are conducted to raise awareness amongst employees on circularity and various waste management including construction waste. These initiatives include workshops, learning trips and seminars that aim to instil a 'waste-less' mindset amongst all employees. 15. Sustainable Finance Supporting SDGs: TCFD Pillars: G, S TNFD Pillars: G, S, RM The rise of ESG investing and responsible banking has unlocked alternative financing streams and granted the Group access to a wider pool of ESG-centric investors and lenders. Companies that lag in their ESG performance could be penalised through higher cost of debt financing and face divestment from shareholders. As of 31 December 2023, the Company has completed over $6.3 billion of sustainable financing, including green bonds, green loans and sustainability-linked loans. At the end of 2023, $4.6 billion of the Company’s sustainable finance amassed has been deployed to finance its existing investments and/or assets. In December 2023, the Company secured £200 million (approximately $338.2 million9) from the OCBC 1.5°C loan, Singapore’s first net-zero-aligned loan for corporates to drive transition to a low carbon economy. In October 2022, the Company renewed its $250 million SDG Innovation Loan which was first secured in 2019. In 2021, the Company and its joint venture (JV) partner jointly secured green loans of $847 million to finance the development of two Government Land Sales sites at Piccadilly Grand & Galleria and Copen Grand. South Beach Consortium, a CDL JV, obtained a $1.22 billion green loan for the refinancing of South Beach — a double BCA Green Mark Platinum mixed development. As an investor, the Company is a signatory to the UN Principles for Responsible Investment. It has also developed the CDL Sustainable Investment Principles to steward responsible capital allocation and decision-making for investments. 16. Diversity, Equity and Inclusion (DEI) Supporting SDGs: TCFD Pillars: G, S Embracing diversity, equity and inclusion contributes to a positive work culture and improved productivity, as employees feel valued and respected regardless of their gender, age, race and accessibility needs. Socially responsible businesses should embed diversity and inclusion principles into recruitment practices, opportunities for advancement and remuneration policies. The Group has established a robust recruitment process grounded in non-discrimination and fairness, ensuring equal opportunity for all candidates regardless of gender, ethnicity, religion, or age. Reflecting its commitment to meritocracy, its compensation and rewards policies are performance-based, promoting a culture of fairness and motivation. It monitors and addresses gender pay gaps, ensuring equitable remuneration across various staff levels. The Group’s workforce diversity is further enriched by its inclusive workplace culture, with employees hailing from a variety of ethnic backgrounds. In 2022, its commitment to advancing DEI was strengthened when the Company’s CSO became an advocate for the G20 Alliance for Empowerment and Progression of Women’s Economic Representation. 17. Economic Contribution to Society Supporting SDGs: TCFD Pillars: G, S The Group’s financial performance impacts the vested interests of its employees, shareholders, investors and supply chain. The generation of employment contributes to the economic growth of the markets that the Group operates in and the livelihoods in its supply chain. Direct donations to the community are part of the Group’s strategy to give back to the community. As the Group remains resilient against the prolonged impacts of the pandemic, it continues to uphold high standards of ethical business practices. It maintains strong branding and delivers quality products to return profits and provides optimum returns for investors in its fiduciary duty as stewards of capital. A long-standing partner of Assisi Hospice since 1999, the Company continued to support the hospice’s fundraising efforts using virtual platforms in 2023. Together with M&C, they provided donations-in-kind, including shopping, F&B and hotel vouchers towards the event’s lucky draw and game prizes. Through the CDL Challenge, an inhouse fundraising campaign that rallied donations from stakeholders (namely staff and business partners), and its support of Assisi e-Fun Day activities and its Gala Dinner, over $170,000 was raised. 18. Biodiversity Conservation Supporting SDGs: TCFD Pillars: G, S, RM TNFD Pillars: G, S, RM, M&T The Global Biodiversity Framework's Target 15 calls for businesses to assess and disclose biodiversity dependencies, impacts and risks, and reduce negative impacts. As a leading green developer, the Company embraces biophilic design across its assets and incorporates NbS (where applicable) via green roofs and walls or active green spaces. Land bids are done in compliance with regulatory requirements with BIA conducted when activities are taking place in both protected areas and areas of high biodiversity value outside protected areas. In 2023, the Company updated its Biodiversity Policy, first established in 2020, to include more details on its Biodiversity Management System and the interconnectivity of land ecosystems with marine biodiversity and ecosystems. Aligned with Singapore’s “City in Nature” vision encapsulated in the Singapore Green Plan 2030, the Company’s development projects incorporate a significant amount of greenery, including conservation of heritage trees if found onsite during development. Since 2010, the Company has made it a standard practice to conduct a BIA at greenfield sites located within or adjacent to natural habitats before construction. In 2016, the Company piloted an EIA study for its Forest Woods residential development project, expanding the usual scope on biodiversity impact to cover the development’s potential impact on traffic, public health, heritage and the environment. Based on this learning experience, the Company is exploring possibilities of applying it for future developments. 9 Based on an exchange rate of £1 = $1.6909 SUSTAINABILITY 85 84 SUSTAINABILITY ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED
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