Sustainability
ESG Focus
Sustainability Approach
Board Statement
At CICT, we are committed to growing in a responsible manner, by delivering long-term economic value and contributing to the environmental and social well-being of our communities. The operations of CICT's properties are managed by the property managers (which mainly comprise subsidiaries of CLI), in accordance with the property management agreements. The material ESG factors have been identified with set targets for 2030, considering CICT's business focus and in alignment with the CLI 2030 SMP. Advancing towards a common set of goals, the CICTML Board has reviewed and endorsed the material ESG factors put up by the management team.
CICT's ESG factors aim to maximise impact through building portfolio resilience, optimising resources, enabling thriving and future-adaptive communities, and stewarding responsible business conduct and governance.
The CICTML Board is responsible for overseeing CICT's sustainability efforts and takes these ESG factors into consideration when determining its strategic direction and priorities. The CICTML Board also approves the executive compensation framework based on the principle of linking pay to performance. The Manager's business plans are translated to both quantitative and qualitative performance targets, including sustainable corporate practices.
CICT aligns its sustainability goals with CLI to achieve sustainable performance for its portfolio. Both CICTML and the property managers oversee CICT's business and operations, ensuring adherence to CLI's sustainability framework, policies, and guidelines, including its ethics and business conduct code. Guided by CLI's 2030 Sustainability Master Plan (SMP), CICT is committed to driving efforts to meet the SBTi-approved Scope 1 and 2 emissions reduction targets aligned with a 1.5°C trajectory1. CICT is also aligned with CLI's commitment to achieve Net Zero2 by 2050 for its Scope 1 and 2 emissions. Specific pathways are established for each ESG pillar and focus area, with strategies to evolve alongside advancements in technology and scientific research. Roadmaps and plans are developed to achieve CICT's sustainability objectives, which will enable the Trust to create a greater positive impact on both the environment and communities.
The CICTML Board endorses the material ESG issues that are most relevant and significant to CICT and its stakeholders, taking into consideration their relevance or impact to the business, strategy, financial planning, business model and key stakeholders. A double materiality approach is adopted, considering issues which are material from either the impact or financial perspectives1, or both. Potentially material ESG issues arising from activities across CICT and CLI's value chain (including immediate and longer term risks and opportunities) are identified primarily through ongoing engagement with the CICT team, CLI's business units and external stakeholders. In addition, we review various sources including investor questionnaires, and ESG surveys, benchmarks and frameworks such as GRESB and SASB to enhance our understanding of the industry's material ESG issues.
In addition, CICT has a regular process to review, assess and feedback in relation to ESG topics. The FY 2025 review affirmed the robustness of core material topics, while introducing refinements to align with evolving standards and investor priorities. Key updates include a stronger emphasis on Climate Resilience (Adaptation and Mitigation) to address specific investor focus on climate-related risks, expanding the Waste Management topic to include Circularity and encompassing upstream and lifecycle activities like usage of recycled materials, as well as introducing references to Natural Capital alongside Biodiversity to acknowledge the growing relevance of the Taskforce on Nature-related Financial Disclosures (TNFD) and anticipated IFRS S3 Disclosure Standards on Biodiversity, Ecosystems and Ecosystem Services.
Identified material issues are reported in a corporate risk register through the annual group-wide RCSA exercise2, which identifies, assesses and documents material risks and the corresponding internal controls to manage those risks. The material risks include fraud, bribery and corruption, climate-related, safety, health and well-being, and human capital which are ESG-relevant. Identified material ESG issues are then prioritised based on the likelihood and potential impact on CICT's business continuity. For external stakeholders, priority is given to issues important to the community and applicable to CICT and CLI.
Regular Review, Assessment and Feedback Process for Material ESG Factors
