LEADERSHIP COMMITMENT & TRACK RECORD

EXECUTIVE CHAIRMAN'S STATEMENT

Amidst ongoing global uncertainties, challenges and shifting priorities, CDL remains steadfast in integrating sustainability principles into our business model and future-ready strategy.

Dear Stakeholders,

In 2024, the world experienced its hottest year, with a global mean temperature over 1.5°C above pre-industrial levels.¹ Over the past two decades, extreme weather events have killed over half a million people,² and one million animal and plant species are at risk of extinction due to urban growth and human activities.³

According to the World Economic Forum, businesses that ignore climate risks today may face steep financial losses, potentially losing up to 7% of annual earnings by 2035. Conversely, companies that have invested in adaptation, decarbonisation and resilience see up to US$19 in avoided losses for every US dollar spent.⁴ As ecosystems decline, companies face significant operational challenges, including supply chain disruptions that can severely impact profitability and sustainability.

Sustainability reporting has become mandatory for companies listed on major stock exchanges. In June 2024, the International Sustainability Standards Board (ISSB) announced plans to harmonise the sustainability reporting standards and framework, enhancing interoperability among key global reporting benchmarks like GRI Standards, CDP and Taskforce on Nature-related Financial Disclosures (TNFD) to focus on action. Our management aims to fully align our sustainability reporting by FY2025. As the first company in Singapore to publish a dedicated sustainability report since 2008, CDL is proud to be the first in Southeast Asia to voluntarily publish a TNFD-aligned report last year, laying the groundwork for our future reports.

Leadership Commitment Towards Climate and Nature-Positive Action

The growing severity of climate, nature and business challenges calls for urgent global collective action. At COP29 in Baku, Singapore reaffirmed its commitment to climate goals by advancing greater action, including strengthening regional collaboration and enabling climate finance.⁵ Regulators, investors, insurers and banks are progressively using sustainability criteria alongside financial performance to evaluate companies’ long-term resilience and prospects. Companies that excel in sustainability performance are better positioned to access sustainable finance. Global ESG assets are on track to surpass US$40 trillion by 2030 – over 25% of projected US$140 trillion assets under management.⁶

Since 2017, CDL has built a strong track record for mobilising capital through the effective adoption of sustainable finance. In June 2024, CDL secured a first-of-its-kind TNFD targetsaligned sustainability-linked loan. This five-year loan of S$400 million aims to advance nature and biodiversity conservation and sustainable development in Singapore. Additionally, we are also pleased to report that in FY2023, we achieved a maximum interest rate discount on our OCBC 1.5°C sustainability-linked loan of £200 million. To date, CDL has secured around S$9 billion in sustainable finance.

Thanks to our management’s dedication and proactive strategy to corporate sustainability, CDL continues to be recognised on major global ESG indices and received multiple accolades in 2024. We maintained our position on 14 international benchmarks and achieved double ‘A’s in the 2024 CDP A List for corporate climate action and water security. CDL was ranked 39^th in the Corporate Knights 2025 Global 100 Most Sustainable Corporations in the World, maintaining our position as the top real estate management and development company for the seventh consecutive year.

Maintaining Supply Chain and Operational Resilience

Amidst ongoing global uncertainties, challenges and shifting priorities, CDL remains steadfast in integrating sustainability principles into our business model and future-ready strategy. As markets evolve, achieving strong sustainability outcomes is no longer a competitive advantage but a prerogative. Our track record as a sustainability pioneer has strengthened our ability to address sustainability-related risks, seize growth opportunities and drive meaningful impact.

In 2024, the CDL Group achieved net profit after tax and noncontrolling interest (PATMI) of S$201.3 million for the full year ended 31 December 2024 FY2024. The Group saw strong Singapore residential sales with 1,489 units sold at a sales value of S$2.97 billion. The investment properties segment saw an 11.1% increase in revenue, driven by acquisitions, asset enhancement initiatives and organic growth. Our hospitality portfolio continues with a steady momentum, boosted by the strategic additions of the Hilton Paris Opéra and the Sofitel Brisbane Central hotels.

United in Action: Paving the Way Towards a Future-Ready Business Model

Businesses play a crucial role in the global endeavour to achieve net-zero emissions and protect nature. Since 1995, our ethos of ‘Conserving as We Construct’ has been integral to our business and sustainability strategy. Through collaboration with our stakeholders, we have aligned our practices with regulatory frameworks, increased scrutiny on sustainability performance, and made substantial progress in taking actions that positively impact the planet, people and business.

On behalf of the Board, I extend my gratitude to all our stakeholders for your unwavering support in CDL’s sustainability journey spanning over three decades. Special thanks to our management and staff for their relentless dedication to enhancing our sustainability performance. As we navigate this critical decade of urgent action towards global climate and sustainable development goals, let us unite to build a more resilient business and contribute to a nature-positive future for all.

Kwek Leng Beng
Executive Chairman