CDL: News Release and Integrated Sustainability Report 2024

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News Release

26 March 2024

CDL FIRST IN SINGAPORE TO PUBLISH TNFD-ALIGNED DISCLOSURES IN ITS

17TH INTEGRATED SUSTAINABILITY REPORT 2024 - ZEROS IN ON NATURE TO ENHANCE VALUE AND IMPACT

• − First in Singapore to publish Taskforce on Nature-related Financial Disclosures (TNFD); aligning with Target 15 of the Kunming-Montreal Global Biodiversity Framework1

• − Conducted International Sustainability Standards Board (ISSB) Standards gap analysis; expanded disclosures in CDL ISR 2024 to include Group data with the aim for full alignment by FY 2025

• − First corporate to secure the OCBC 1.5°C sustainability-linked loan, Singapore's first net zero-aligned loan

City Developments Limited (CDL) has released its Integrated Sustainability Report (ISR) 2024, marking its 17th sustainability report since 2008. Themed "Zero in on Nature", the digital report focuses on CDL's progress towards achieving its Environmental, Social and Governance (ESG) goals and targets under theCDL Future Value 2030 Sustainability Blueprint.The report aligns with global and local climate and nature goals and the UN Sustainable Development Goals (SDGs), and the blueprint is integral to CDL's business strategies and operations, helping CDL mitigate ESG risks and capture growth opportunities.

Complementing its pledge towards its first stage of Operational Net Zero by 2030, the Company achieved a 14% reduction in total operational carbon emissions across the Company's business operations in Singapore for the year under review (January to December 2023) compared to 2022. The Company has met its interim 2023 target and is committed to meeting its Science Based Targets Initiative (SBTi)-validated target of a 63% reduction by 2030. As part of its renewed SBTi-validated greenhouse gas (GHG) reduction targets set in 2021 to align with a 1.5°C warmer scenario, CDL stepped up on integrating and tracking its carbon reduction performance for Scope 1, 2 and 3 emissions.

Mr Sherman Kwek, CDL's Group Chief Executive Officer, said, "Our sustainability-centric business model is anchored on the four key pillars of Integration, Innovation, Investment, and Impact, which will enable us to achieve various deliverables such as decarbonisation and disclosure. This approach has enabled CDL to strengthen our triple bottom line to create long-term value while working towards our net zero ambitions and building nature-positive cities and solutions. CDL is committed to respecting nature, preserving biodiversity, advancing climate action and enhancing green building performance."

Commitment to nature and biodiversity preservation through TNFD framework

The Company has built up a unique blended sustainability reporting framework comprising the Global Reporting Initiative (GRI) Standards at its core since 2008, adding CDP since 2010, the Global Real Estate Sustainability Benchmark (GRESB) since 2013, Integrated Reporting Framework since 2015, SDG Reporting since 2016, Task Force on Climate-related Financial Disclosures (TCFD) framework since 2017, SBTi since 2018, and the Sustainability Accounting Standards Board (SASB) Standards

1 Adopted in December 2022 during COP15, this framework supports the achievement of the SDGs and aims to halt and reverse biodiversity loss by 2030. Target 15 focuses on having businesses and financial institutions assess, disclose and reduce biodiversity-related risks and negative impacts.

and the Climate Disclosure Standards Board (CDSB) Framework since 2020. This year, CDL adopted the Taskforce on Nature-related Financial Disclosures (TNFD) framework.

CDL is one of the pioneering Singapore companies amongst 320 companies worldwide to voluntarily report according to the TNFD Recommendations. CDL aims to assess, disclose and manage nature-related risks and opportunities and provide consistent and comparable reporting to its stakeholders. Adopting the TNFD Recommendations represents a natural progression and expansion of the Company's sustainability framework since embracing the TCFD Recommendations in 2017. To manage its biodiversity footprint, the Company is using a cloud-based AI platform that supports the measurement and management of biodiversity impact by relying on data-backed information.

Transition towards full compliance with ISSB's S1 and S2 requirements

In June 2023, ISSB launched the International Financial Reporting Standards (IFRS) S1 and S2 globally. In February 2024, Singapore announced mandatory Climate-Related Disclosures (CRDs) in a phased approach, in line with the recommendations from the Sustainability Reporting Advisory Committee (SRAC). Starting from FY 2025, listed issuers such as CDL will be required to report ISSB- aligned CRDs.

To prepare for the transition to the new standards, CDL worked with an external consultant to perform a comprehensive gap analysis evaluating its sustainability disclosures in ISR 2023, focusing on TCFD and SASB disclosures against the ISSB Standards' CRDs. The gap analysis revealed that CDL's disclosures are largely well-aligned with the ISSB Standards. CDL's ISR 2024 has been expanded, where applicable, with a view to transiting towards full compliance with ISSB Standards by FY 2025.

Refer to Annex A for CDL's Value Creation Model and Annex B for more details on other sustainability highlights in 2023.

CDL's ISR 2024 can be found atwww.cdlsustainability.com

Follow CDL Sustainability on social media:

Instagram: @CDL_sustainability/instagram.com/cdl_sustainability/ Facebook: @CDLsustainability /facebook.com/CDLsustainability/ LinkedIn:linkedin.com/company/cdl-sustainability/ ____________________________________________________________________________

Issued by City Developments Limited (Co. Regn. No. 196300316Z)

For media enquiries, please contact CDL Corporate Communications:

Belinda Lee

Head, Investor Relations & Corporate Communications

[phone] / [phone]	[e-mail]
Eunice Yang	[phone] / [phone]	[e-mail]
Jill Tan	[phone] / [phone]	[e-mail]
Jane Sng	[phone] / [phone]	[e-mail]

Follow CDL on social media:

Instagram: @citydevelopments /instagram.com/citydevelopments

LinkedIn:linkedin.com/company/citydevelopments

Twitter: @CityDevLtd /twitter.com/citydevltd

ANNEX A

ANNEX B

OTHER SUSTAINABILITY HIGHLIGHTS IN 2023

Secured net zero-aligned loan to drive the transition to a low-carbon economy

CDL marked a new sustainable financing milestone in December 2023 as the first corporate to secure the OCBC 1.5°C loan, with interest rate incentives pegged to annual decarbonisation performance targets. The three-year £200 million (approximately S$338.2 million) sustainability-linked revolving credit facility (RCF) will be utilised for refinancing, general corporate funding and working capital purposes.

As part of the loan terms, CDL will enjoy interest rate reductions upon meeting the pre-agreed annual decarbonisation performance targets, in line with CDL's Science Based Targets initiative (SBTi)-validated targets of a reduction in GHG emissions intensity by 63% per square metre leased area (Scope 1 and 2), 41% per square metre gross floor area (Scope 3 GHG emissions from purchased goods and services) and 58.8% including hotels managed by CDL's wholly-owned hotel subsidiary, Millennium & Copthorne Hotels Limited (Scope 3 GHG emissions from investments), against its 2016 baseline, by 2030. With this latest 1.5°C loan, CDL has completed around S$6.3 billion of sustainable financing in the form of a green bond, various green loans, and sustainability-linked loans to date, starting with its launch of the first green bond by a Singapore company in 2017.

International recognition and accolades in sustainability

CDL's ESG integration and performance have been affirmed by14 leading global sustainabilityrankings and indices.The Company is ranked the world's most sustainable real estate management and development company, securing the 22nd spot on the 2024 Global 100 Most Sustainable Corporations in the World list by Corporate Knights, an improvement from the 28th position last year, and the only Singapore company listed for 15 consecutive years. CDL also maintained its "AAA" MSCI ESG rating since 2010 and was the only real estate company in Southeast Asia and the only Singapore company recognised as a 2023 CDP Supplier Engagement Leader for the fourth consecutive year, placing CDL amongst the top 2% of companies assessed by CDP for supplier engagement on climate change.

The Company started the external assurance of its sustainability report in 2009 and has continued to expand the scope. Since 2022, CDL has been verified by Lloyd's Register Quality Assurance (LRQA) for indirect GHG emissions from products used in construction projects in Singapore according to category 4 of the ISO14064-1:2018 standard, enabling CDL to enhance its Scope 3 emissions management.

EMBRACING NATURE TO ENHANCE VALUE AND IMPACT

ZERO

IN ON

N

INTEGRATED SUSTAINABILITY REPORT 2024

(17th Edition)

LEADERSHIP WITH	FEELING THE	THRIVING	STANDING ON	GROWING	TASKFORCE ON	TCFD, CDSB	REPORT PERIOD & SCOPE, KEY PERFORMANCE
POSITIVE IMPACT	PULSE OF NATURE	WITH NATURE	THE SIDE OF	WITH NATURE	NATURE-RELATED	& SASB	SUMMARY, ASSURANCE STATEMENTS,
INTEGRATING NATURE	CORPORATE	IMPACT ON	NATURE	IMPACT ON	FINANCIAL	DISCLOSURES	GRI CONTENT INDEX	2
INTO BUSINESS STRATEGY	GOVERNANCE	PROFIT	IMPACT ON PLANET	PEOPLE	DISCLOSURES REPORT

HEALTHY PLANET - PROSPERITY FOR PEOPLE AND BUSINESS

CDL SDG Value-Add CircleADDING PURPOSE TO CDL'S TRIPLE BOTTOM LINE

Embracing the SDGs for a healthy triple bottom line and circularity

Since 1995, City Developments Limited (CDL) has been committed to enhancing our triple bottom line through integrating sustainability into our business for economic prosperity, social well-being, and environmental stewardship. Founded on our ethos, 'Conserving as We Construct', for nearly three decades, CDL prioritises sustainable construction practices, incorporating low carbon and energy-efficient technologies in the way we design, build and manage, to achieve harmony with nature for our stakeholders and the community at large.

Thriving ecosystems are pivotal in fostering resilient built environments. In recognition of this, CDL strives towards a nature-positive future1 by actively monitoring our processes and mitigating nature-related risks. We also advocate social inclusivity by engaging the communities we operate in and nurturing youth sustainability champions. CDL's sustainability excellence builds investor and stakeholder confidence to create enduring economic value, ensuring that we strive towards a purpose-driven future.

1

The Nature-Positive Cities initiative is embedded within the World Economic Forum's Centre for Nature and Climate and Centre for Urban Transformation. It aims to help cities and businesses coalesce around common principles to reconcile their relationship with nature and provide guidance on the implementation and delivery of nature-based interventions supported by lighthouse projects that can be scaled and replicated across the globe for increased resilience, transformative revitalisation and responsible expansion.

LEADERSHIP WITH	FEELING THE	THRIVING	STANDING ON	GROWING	TASKFORCE ON	TCFD, CDSB	REPORT PERIOD & SCOPE, KEY PERFORMANCE
POSITIVE IMPACT	PULSE OF NATURE	WITH NATURE	THE SIDE OF	WITH NATURE	NATURE-RELATED	& SASB	SUMMARY, ASSURANCE STATEMENTS,
INTEGRATING NATURE	CORPORATE	IMPACT ON	NATURE	IMPACT ON	FINANCIAL	DISCLOSURES	GRI CONTENT INDEX
INTO BUSINESS STRATEGY	GOVERNANCE	PROFIT	IMPACT ON PLANET	PEOPLE	DISCLOSURES REPORT

INTEGRATING SUSTAINABILITY FOR SUSTAINED GROWTH AND VALUE

Aligning CDL's GET Strategy with Our Sustainability Strategy

In 2018, the CDL Group embarked on the GET strategy - focusing on Growth, Enhancement and Transformation, to renew and reposition our business, sharpen our value proposition and expand our asset portfolio to deliver performance improvements and superior outcomes. Our sustainability efforts are complementary and integrated within the GET strategy, achieving steady growth, without compromising the planet and our people.

GROWTH

ENHANCEMENT

TRANSFORMATION

• • 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

• • Apply the CDL Sustainable Investment Principles to steward responsible capital allocation and decision-making in investments

  • • Enhance the building and corporate sustainability performance of existing assets

• • Align with UN Principles for Responsible Investment (PRI) as an investor committed to the six principles

• E.g., Energy-saving retrofitting works and technologies to improve energy efficiency; improving indoor air quality and facilities management performance

  • • Accelerate impact investing in PropTech funds, start-ups and scale-ups to uncover and testbed building innovations for our properties

• • Decarbonise new and retrofitted assets to complement net-zero commitment

  • • Strengthen alignment with key subsidiaries on the Group's ESG strategy, goals, and actions via a phased approach

• E.g., Stepping up new developments and existing assets to be BCA Green Mark Super Low Energy (SLE), using the CDL 3S Green Building Framework2 to accelerate the adoption of carbon-friendly designs and materials, and transition to renewable energy

  • • Advance ESG-focused fund management initiatives

• • Ensure best Environmental, Social, and Governance (ESG) practices to tap fast-growing ESG investments and sustainable finance for further growth

2

Introduced in 2020, the CDL Smart, Sustainable and Super Low Carbon (3S) Green Building Framework is a key enabler founded on two critical drivers - innovation and digitalisation - to support the Company's business growth and transition to net-zero operation. This holistic framework is aligned with the BCA SLE buildings requirements, as well as international standards for advancing health and well-being in buildings. In 2021, the 3S Green Building Framework was updated to include embodied carbon management. This aims to align with the World Green Building Council's (WorldGBC) whole life carbon vision in the expanded Net Zero Carbon Commitment

LEADERSHIP WITH	FEELING THE	THRIVING	STANDING ON	GROWING	TASKFORCE ON	TCFD, CDSB	REPORT PERIOD & SCOPE, KEY PERFORMANCE
POSITIVE IMPACT	PULSE OF NATURE	WITH NATURE	THE SIDE OF	WITH NATURE	NATURE-RELATED	& SASB	SUMMARY, ASSURANCE STATEMENTS,
INTEGRATING NATURE	CORPORATE	IMPACT ON	NATURE	IMPACT ON	FINANCIAL	DISCLOSURES	GRI CONTENT INDEX
INTO BUSINESS STRATEGY	GOVERNANCE	PROFIT	IMPACT ON PLANET	PEOPLE	DISCLOSURES REPORT

CONTENTS

1.

LEADERSHIP WITH POSITIVE IMPACT - INTEGRATING NATURE INTO BUSINESS STRATEGY

• 7 2023 Sustainability Highlights

• 8 About CDL Group

• 9 Sustainability Best Practices - Accolades and Awards

• 11 Executive Chairman Statement

• 13 Group CEO Statement

• 17 Longstanding and Unwavering Leadership Commitment

• 19 Enhancing Value and Impact on CDL's Established Triple Bottom Line

• 22 Gap Analysis for Transition from TCFD to the IFRS Sustainability Disclosure Standards

• 24 Taskforce on Nature-related Financial Disclosures (TNFD) - Putting Priority and Value on Nature

• 26 Dynamic Approach to Materiality Assessment

• 34 Integrating Sustainability into our Value Chain

• 35 CDL's Climate Transition Plan

2.

FEELING THE PULSE OF NATURE - CORPORATE GOVERNANCE

• 41 On Track to Achieving Future Value 2030 Goals and Annual Targets

• 47 Turning Risks to Opportunities for Sustainability

• 58 Best Practices and ESG Commitments

• 61 Corporate Governance and Risk Management

• 62 Corporate Policies and Guidelines

4.

STANDING ON THE SIDE OF NATURE - IMPACT ON PLANET

• 76 Decarbonisation - Achieving Net-Zero in Phases

• by 2030 and 2050

• 78 Whole Life Carbon Assessment

• 79 3rd Climate Change Scenario Analysis

• 81 Digitalisation and Innovation - A Key Enabler in CDL's Decarbonisation Journey

• 83 Investing in R&D through Partnerships

• 84 Ensuring Supply Chain Resilience and Sustainable Sourcing

• 86 CDL's Journey to Net-Zero

• 87 Carbon Reduction Strategy and Performance

• 93 Energy Reduction Strategy and Performance

• 96 Water Reduction Strategy and Performance

• 99 Waste Management Strategy and Performance

• 101 Minimising Environmental Impact on our Communities

• 103 Strategic Adoption of the Recommendations of the TNFD

• 104 Protecting Biodiversity and Natural Habitats

5.

GROWING WITH NATURE - IMPACT ON PEOPLE

• 5.1 Health & Safety

• 108 Dedication to Occupational Health, Safety and Well-Being

  • 134 International and Local 3P Partnerships and Thought Leadership Initiatives

  • 142 City Sunshine Club - CDL's Vibrant Employee Volunteerism

  • 143 Reinventing Customer and Tenant Experience through Digital Engagement

  • 147 Trade, Industry Associations and NGOs

  • 149 Looking Ahead

  • 6. TNFD REPORT

  • 7. TCFD, CDSB & SASB DISCLOSURE

  • 171 TCFD Disclosure

  • 178 CDSB Disclosure

  • 179 SASB Real Estate Sector Disclosure

  8.

  ANNEXES

  • 184 Report Period and Scope

  • 186 Key Performance Summary

  • 195 Breakdown of Environmental Performance in 2023

  • 196 ISO 14064 Reasonable Assurance Statement

  • 199 Independent Reasonable Assurance Statement (GRI, SASB)

  • 213 Independent Limited Assurance Statement (CDSB, TCFD)

  • 217 GRI Content Index

  3.

  THRIVING WITH NATURE - IMPACT ON PROFIT AND VALUE

  • 67 Market Review and CDL Group's Performance

  • 68 Channeling Capital to Green and Sustainable Development

  • 70 CDL's Internal Carbon Pricing Pilot

  • 71 Creating Business and Financial Value with Green and Healthy Buildings

  • 73 Delivering Quality Buildings and High Safety Standards to Consumers

• 5.2 Internal (Employees)

• 115 Human Capital

• 120 Diversity, Equity and Inclusion

• 125 Training and Development

• 5.3 External (Sustainable Communities)

• 128 Investing into our Community to Drive Social Impact

• 129 Building Sustainable Communities with a People-Centered Approach - The Company's Flagship Platforms

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CDL ISR 2024