CLIMATE CHANGE AND EMISSIONS REDUCTION

CDL’S JOURNEY TO NET ZERO

To address the climate crisis, reducing 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 2024, the Company remained on the CDP A List for the 7^th consecutive year for climate change, and the 6^th year for water security.

Since 2018, CDL has been the only company in Southeast Asia and Hong Kong to remain on the CDP A List and is the only Singaporean company to achieve double ‘A’s for corporate climate action and water security on the 2024 CDP A List. This reaffirms our climate-focused strategies in strengthening our resource-efficient portfolio towards a climate-resilient future.

Operational Carbon Emissions Performance

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. Details can be found under “Energy Reduction Strategy and Performance”. In 2024, the Company achieved a carbon emissions intensity reduction of 25%, 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. Details can be found under the CDL GHG Inventory/Report 2024, page 185.

Carbon emissions reduction initiatives at M&C

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.

M&C introduced a multi-pronged approach to strengthen its sustainability commitment:

• Expanded the purchase of sustainable products such as purchasing a greater share of 100% biodegradable chemical products
• Increased sourcing of sustainably-certified products from the Marine Stewardship Council and Aquatic Stewardship Council
• Introduced Origin Green-certified products, accredited by the Irish Food Board
• Eliminated single-use plastics in 2024 by replacing PET single-use water bottles with in-room water dispensers and switching wet amenities (shampoos, bath gels, conditioners) to multi-use dispensers. From 2025, M&C will be replacing dry amenities with non-plastic alternatives in all our hotels, starting with Singapore

M&C Green Awards and Certifications

• Global Sustainable Tourism Certificate (GSTC): Attained Group certification, including their corporate office at King’s Centre
• Singapore Food Agency (SFA) Farm-to-Table Certificate: Received this certificate by sourcing a significant portion of ingredients from local farms, encouraging sustainability and food resilience in Singapore

Green Building Certifications

SUSTAINABILITY-RELATED INNOVATION AT M&C

Installation of Room Control Unit (RCU) and sensors for hotels in Singapore and Asia
The RCU reduces energy wastage from using key cards as electricity switches, and turns off 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 over S$66,500 per year.

Solar film installation on room windows for M Hotel
Solar film installation on room windows for 415 rooms in M Hotel reduces energy required for cooling, resulting in an estimated energy savings of approximately 1.2%, amounting to around S$25,700 in cost savings.