STRATEGIC MANAGEMENT OF MATERIAL ESG ISSUES

DYNAMIC APPROACH TO MATERIALITY ASSESSMENT

Since 2014, we have been conducting comprehensive materiality studies biennially with the validation of key ESG issues in between two studies. While the last comprehensive study was conducted in 2019, we recognised the need to conduct a special assessment with a more extensive scope and depth to identify the shifting priorities and expectations of our stakeholders in the “new normal”. To review CDL’s business strategy for sustained growth, we engaged an independent external consultant to identify key Economic, Environmental, Social and Governance (EESG) issues that were deemed material by our key stakeholders.

We conducted an extensive macro scanning exercise to determine the list of material risks and opportunities relevant to CDL’s business. We sent out online surveys and received responses from more than 250 stakeholders. Through interviews with selected senior-level stakeholders, we gained more insight into how COVID-19 impacted them, their perspectives on the relevance of sustainability to business resilience, and how CDL can remain competitive and sustainable in a post-COVID environment. The preliminary material issues were validated by CDL’s Senior Management, followed by the approval of the BSC.

The findings reflect a shift in the rankings of the key material issues. In line with global concerns about the widespread and prolonged impact of the pandemic, “Occupational Health, Safety and Well-being” was the top ESG issue. This material issue refers to the physical and mental well-being of our employees and on-site workers, including measures taken to prevent the spread of the pandemic in our managed spaces. A new material issue on “Healthy Buildings” underscores the rising awareness of wellness and comfort (e.g. indoor air quality and natural lighting) for our building users. The ranking of “Stakeholder Impact and Partnerships” has shifted up, reflecting the higher expectations for CDL to provide support to the communities that we operate in and establish stakeholder partnerships to drive climate action and sustainable practices. Since 2014, “Innovation” has remained high on the list and took second place in 2020. Issues on “Product/Service Quality and Responsibility” and “Energy Efficiency and Adoption of Renewables“ are ranked amongst the top five, reflecting stakeholders‘ concerns about our continual commitment to sustainability performance.