CLIMATE CHANGE AND EMISSIONS REDUCTION

CDL’S JOURNEY TO NET ZERO

To address the climate crisis, reduction in carbon emissions is crucial. The Company has been measuring, tracking and reducing our impact on the environment with robust environmental impact data transparency through CDP disclosures since 2010. In 2025, the Company remained on the CDP A List for the 8^th consecutive year for climate change, and the 7th year for water security.

The Company’s largest source of emissions is electricity usage, reported under Scope 2 emissions. Therefore, the key focus of our carbon mitigation strategy is to reduce Scope 2 emissions. In 2025, the Company achieved a carbon emissions intensity reduction of 29%, as compared to the baseline year of 2016.¹

The Group recognises the importance of addressing Scope 3 emissions, which are indicators of exposure to climate risks in our supply chain or use of products. We monitor and report Scope 3 emissions to enhance our carbon reduction efforts by identifying large emission sources along our value chain. In line with the six GHG inventory categories as described by ISO14064-1:2018, Scope 1 emissions as per GHG protocol will correspond to Category 1, Scope 2 will correspond to Category 2 and Scope 3 will correspond to Category 3 to 6 of ISO14064-1:2018.

Scope 3 Ghg Emissions From Investments

The Group attained a reduction of 59.6% absolute carbon emissions in 2025 and aligned our SBTi-validated target to reduce absolute Scope 3 GHG emissions from investments by 58.8%, including hotels managed by our key subsidiary, M&C Hotels. We will continue to reduce M&C’s carbon footprint, as it is a major contributor to our carbon emissions.

Carbon Emissions Reduction Initiatives at M&C Hotels

Building on our commitment to integrate sustainability across our value chain, the Group has further strengthened our global alignment with M&C, our largest subsidiary by GHG emissions. As part of our ongoing efforts to meet our SBTi-validated targets which are aligned with a 1.5°C scenario, we continue to drive progress towards the 58.8% Scope 3 (Category 15: Investments) emissions reduction target, which impacts M&C and five other key subsidiaries.

As part of our efforts to integrate sustainability into our value chain, the Group has stepped up global alignment with M&C, our largest subsidiary by GHG emissions contribution. As part of the Group’s renewed SBTi-validated targets aligned with a 1.5°C warmer scenario, an emissions reduction target of 58.8% under Scope 3 (Category 15: Investments) was introduced, impacting six key subsidiaries, including M&C. As our key subsidiary and major contributor of total Group Scope 3 emissions,² we have worked closely with M&C to identify further opportunities to reduce absolute emissions.³ M&C also established a target for all six Singapore-based hotels to be Global Sustainable Tourism Council (GSTC)⁴ certified by 2025, which was achieved ahead of schedule in 2024. See M&C’s carbon reduction initiatives in 2025:

• Installation on Room Control Unit (RCU) and sensors for Singapore and Asia Hotels
  The RCU reduces energy wastage from using key cards as electricity switch and unused lighting and air-conditioning when the room is vacant. This results in an estimated electricity savings per room of 17.7 kWh per week and cost savings of S$66,575 per year.
• Solar film installation on Room Windows for M hotel
  Solar film installation on room windows for 415 rooms in M Hotel which reduces the energy required to cool the room, resulting in an estimated energy savings of approximately 1.2%, amounting to S$25,700 in cost savings.
  

M&C Awards And Certifications

• GSTC obtained for all six Singapore hotels – Grand Copthorne Waterfront (GCW), M Social, Copthorne King’s Hotel (CKH), Studio M, M Hotel, Orchard Hotel Singapore (OHS), including M&C’s corporate headquarters at King’s Centre.
• Singapore Food Agency (SFA) Farm-to-Table Recognition Programme Awards awarded to all food and beverage outlets at our M&C Hotels for purchasing from local farms – Food Capital and SanSara (GCW), Beast & Butterflies (M Social), Princess Terrace and Tien Court (CKH), Memo Café (Studio M), Café 2000 (M Hotel), Orchard Café, and Bar Intermezzo (OHS).