CEO MESSAGE

Dear Stakeholders,

I am pleased to share CICT's Sustainability Report 2022, which provides an overview of our progressive strategic approach and achievements in integrating sustainability into the way we do business.

We are committed to continually improve reporting standards in line with recommendations by the Global Reporting Initiative and the Task Force on Climate-Related Financial Disclosures. We focus on eight key United Nations Sustainable Development Goals most aligned with CapitaLand’s 2030 Sustainability Master Plan (SMP).

Commitment To Net Zero

One of the key focus areas of the SMP is building the resilience of assets through decarbonisation efforts to mitigate climate change.

CICT is aligned with CapitaLand Investment’s (CLI) science-based targets set out in the 2030 SMP that is in line with a 1.5°C scenario¹, which will translate to Net Zero by 2050, and enhance its focus on social indicators.

Our commitment to Net Zero is a group-wide initiative, from Board to management and employees. This means that the remuneration of management and employees is tied to sustainability performance targets in addition to financial targets.

We will continue to innovate and leverage technologies to accelerate our transition to Net Zero. We strive to achieve this by improving operational efficiency, resource allocation and, where possible, using renewable energy in our properties.

Forging Towards 2030 Targets

We adopt a holistic approach to identify and mitigate our carbon footprint across the real estate life cycle, including investment and operations, which is in line with the CapitaLand Sustainable Building Guidelines.

For example, each property’s green journey will be evaluated for all new investments. CICT also adopts CLI's internal carbon price, which was implemented in 2021, to quantify climate-related risks and opportunities.

In addition, we look to achieve a 100% green-rated portfolio for our operational properties by 2030. As we plan for green capital expenditure in asset plans, we will strive to achieve a balance between greening assets and revenue generation.

In our drive to achieve Net Zero, we leveraged CapitaLand Sustainability X Challenge (CSXC), which was inaugurated in 2020. This global sustainability-focused initiative welcomes emerging and innovative technological solutions globally to address environmental challenges and drive decarbonisation. We have since initiated two pilot projects in selected properties from CSXC 2021, where testing is still ongoing. In CSXC 2022, we identified two other winning innovations relating to water leak detection and optimisation of water meter accuracy which will be tested at our properties.

In addition, we have expanded our recycling efforts to food waste management and implemented trials for food waste treatment to produce bio-organic fertiliser and grey water at Tampines Mall and Funan.

Operationally, we are exploring more renewable sources of energy. As part of our efforts to implement the photovoltaic system at IMM Building, 3,633 solar panels (11,960 sq m) have been installed on the roof of IMM Building in December 2022. Another 672 solar panels (1,760 sq m) will be installed in the second phase of this project in 1H 2023. Together, the estimated annual renewable energy to be generated is approximately 2.9 GWh.

We established a Green Finance Framework in February 2022 that outlines the criteria and guidelines which underpin CICT's green financing transactions. As of 31 December 2022, about 30% of CICT's group borrowings are sustainability-linked or green financing.

Building An Inclusive And Safe Environment

At CICT, we embrace fairness, diversity and inclusivity. Aligned with CLI, we are committed to the 10 principles of the United Nations Global Compact, which underpin the way we do business.

CICT adopts the CapitaLand Supply Chain Code of Conduct, which sets out the requirements for business integrity and ethics, such as anti-bribery and corruption, labour laws and human rights, health and safety, and environmental management. In 2022, 100% of our contractors and vendors had committed to abide by CapitaLand’s Supply Chain Code of Conduct.

Diverse talents power our workplace, and we were ranked in the Top 10 in Singapore for Gender Equality in 2022 by Equileap. In 2022, 57% of our employees are female and 62% of our management team are female. Employees between the 30 and 50 age group accounted for 65% of the workforce.

Employee training and development are key to building a future-ready workforce. Our employees achieved more than 13,430 training hours in 2022, a win-win for CICT and employees.

Enhancing the occupational health and safety of our stakeholders is integral to our business. Health and safety continue to be a key part of our sustainability initiatives and community activities that ensures our stakeholders and communities benefit from the use of our properties.

To encourage greener transportation modes, we have allocated around 1,000 bicycle bays and green parking lots with charging stations across our properties. In addition, we have rolled out 75 electric vehicle charging stations in our portfolio in collaboration with Singapore Power Mobility and Bluecharge. End-of-trip facilities are also provided for tenants who cycle to work in some properties where they can enjoy the convenience of bicycle parking, basic bicycle maintenance and shower facilities.

Sustainability Stewardship

Sustainability is at the core of everything we do. We are committed to growing responsibly, delivering long-term economic value, and contributing to environmental and social well-being.

As we forge ahead, dealing with climate change remains an essential component of our work, whether in strategy development, decision making or enterprise risk management.

We will continually strengthen sustainability stewardship with our Sustainability Committee, which comprises senior management and diverse representatives in the organisation. As sustainability requirements evolve, we will regularly review and adapt our strategies to ensure we stay nimble and progress towards our targets.

The milestones that we have achieved in our sustainability efforts would not have been possible without all our stakeholders, who have been supporting us in our ambition.

Thank you.

TONY TAN TEE HIEONG
Chief Executive Officer