LEADERSHIP COMMITMENT & TRACK RECORD

Group CEO's Statement

Dear Stakeholders,

With 2024 confirmed as the warmest year on record, the urgency for collective climate action is clear. As the natural world underpins half of the global economy, the collapse of these ecosystems could pose significant risks to businesses.⁷ A World Economic Forum study estimates that extreme heat and other climate hazards could cause up to US$610 billion in annual fixed asset losses for listed companies by 2035.⁸ The health of our planet is inextricably linked to the resilience of our people, economies and businesses.

Recent market changes and increased regulatory scrutiny highlight the importance of transparent and accurate sustainability reports to manage sustainability-related risks and opportunities. In September 2024, the Singapore Exchange Regulation (SGX RegCo) announced that beginning with financial year (FY) 2025, all listed issuers will be required to report their Scope 1 and Scope 2 greenhouse gases (GHG) emissions, incorporating the climate-related requirements aligned with the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB). Larger issuers by market capitalisation will likely need to report Scope 3 GHG emissions from FY2026.⁹ Therefore, businesses must take proactive steps to prepare for these changes.

Zero in on action for sustained value

2024 marks 30 years since CDL adopted our corporate ethos, ‘Conserving as We Construct’, in 1995. We have been pragmatically integrating sustainability solutions into our GET (Growth, Enhancement and Transformation) strategy, focusing on four key sustainability pillars – Integration, Innovation, Investment and Impact – with four key deliverables: “Decarbonisation”, “Digitalisation and Innovation”, “Disclosure and Communication”, and “Defence through mitigation and adaptation”. Sustainability has been consistently embraced to enhance our risk management resilience and add value through risk adaptation, innovation, partnerships and robust reporting.

Integration: Embracing sustainability into operations, partnerships and reporting

In 2024, we conducted a Group-wide assessment to identify sustainability-related risks and opportunities, along with their potential financial impact on our business in the short, medium and long term. This exercise aims to achieve greater alignment with ISSB, which issued its inaugural IFRS S1 and S2 in June 2023. Several jurisdictions, including Singapore, have adopted these standards using a phased approach.

We started our materiality assessments since 2014. The latest materiality assessment concluded that CDL’s top five issues, which rank highest on both impact and financial materiality, are “energy efficiency and adoption of renewables”, “cyber-readiness, security and data privacy”, “occupational health, safety and well-being”, “green and healthy buildings”, and “governance and business conduct”.

We recognise that thriving ecosystems are essential for resilient urban environments and we engage in initiatives that promote nature-positive development and biodiversity conservation. Our early adoption of Biodiversity Impact Assessments since 2010, as well as being the first corporate in Southeast Asia to publish a report aligned with the TNFD framework in 2024, reflect our dedication to preserving natural habitats while advancing our business objectives.

The TNFD framework complements CDL’s sustainability reporting on ‘impact’ and ‘value’, enabling us to address ESG risks better and explore growth opportunities. We are honoured that our Chief Sustainability Officer, Esther An, has been appointed as a member of the TNFD, representing Singapore and CDL as the only ASEAN company in the Taskforce, advocating nature and biodiversity conservation on a global scale.

Collaboration is key for advancing sustainability integration in our ecosystem of partners. Without collective action, the shared global goal of net-zero and nature-positivity is impossible. To address the growing need for a sustainability action hub, CDL opened the Singapore Sustainability Academy (SSA) Annex in July 2024, an extension of the SSA set up in 2017. The Annex will focus on capacity building, education and networking, and engaging partners in climate action. Since June 2017, the SSA and Annex have hosted some 1,200 events and training sessions, engaging over 43,000 visitors.

Innovation: Advancing towards greener and cooler urban spaces

Over the past year, CDL continued leveraging innovative green building technologies and decarbonisation solutions. At our Executive Condominium (EC) project, Copen Grand, we implemented a carbon sequestration and activation system for Ready Mixed Concrete for the clubhouse structures. The concrete has up to 80% cement replacement and uses carbon dioxide to enhance the properties of the concrete.

In 2022, we replaced diesel-powered generators at our Irwell Hill Residences project site with an energy storage system, reducing construction-related carbon emissions by up to 80%. This system has since expanded to five more ongoing residential projects.

To further reduce energy use and operational emissions, we have installed a smart lighting system in our corporate office at Republic Plaza and piloted a predictive machine-learning model for chiller systems and air handling units (AHUs) at City House. These efforts have resulted in about 12% reduction in air conditioning and mechanical ventilation (ACMV) energy consumption. Additionally, a trial using low-pressure drop filters for three AHUs improved air filtration efficiency and reduced energy consumption by about 15%.

The intersection of nature loss with climate change and human health has been increasingly acknowledged in the past year.¹⁰ We believe that innovative applications of nature-based solutions can accelerate the cooling of highdensity urban spaces. CDL has pioneered the first researchdriven regenerative tropical microforest at City Square Mall, our retail eco-mall in Singapore located in a high-density neighbourhood. This initiative embodies a forward-thinking approach to climate resilience and urban biodiversity. The CDL MicroForest serves as a living lab, demonstrating how nature-based solutions, such as naturalised landscapes, can significantly reduce urban heat, promote biodiversity and enrich our communities. At CDL, we aim to be a leader in shaping sustainable urban spaces while inspiring others to scale these transformative practices across developments.

Investment: Continual mobilisation of sustainable finance to accelerate action

Mobilising finance is critical to combat climate change and nature loss, as escalating insured and uninsured losses from extreme weather events highlight the growing economic risks and the pressing need to invest in mitigation, adaptation, and resilience efforts. According to the World Economic Forum, extreme heat will cause more than 70% of potential fixed asset losses over the next decade. With each dollar invested in climate resilience yielding $13 in savings, the business case for investing in climate resilience and adaptation has never been clearer.¹¹ Sustainable finance is necessary for developing regions like Southeast Asia and is a key enabler in accelerating climate action, upgrading energy infrastructure and building resilience to mitigate climate impacts.

As a company headquartered in Southeast Asia, CDL is committed to driving our GET strategy with a focus on sustainability and aligning our business objectives with ambitious global climate goals. Our strong track record in sustainability enables us to leverage sustainable financing to advance action in Singapore and beyond.

Recognising that sustainable finance is a key enabler to accelerating climate action, we have completed over S$9 billion of sustainable finance, including various green loans, a green bond, a green revolving credit facility, and sustainability-linked loans since 2017. Our latest sustainable finance achievement was a S$400 million landmark sustainability-linked loan provided by DBS Bank, successfully secured in June 2024. This first-of-its-kind loan aims to advance nature conservation and sustainable development in Singapore, with criteria guided by the targets set by CDL in our adoption of the TNFD Recommendations. Beyond that, we have also successfully achieved a maximum discount on the interest rate for our OCBC 1.5°C loan secured in December 2023 after meeting all the Sustainability Performance Targets outlined in the loan.

As carbon pricing becomes more mainstream in supporting investment and procurement decisions for a 1.5°C future, Singapore’s carbon tax is set to rise to S$45/tCO₂>e in 2026 and 2027. In response, CDL completed an Internal Carbon Pricing (ICP) pilot study last year on Republic Plaza – our flagship commercial building in Singapore, assessing mitigation costs to estimate a current carbon price that would support Republic Plaza in reaching net-zero status. In 2025, CDL will continue to explore meaningful opportunities to test and validate the use of ICP to raise awareness of carbon costs and better integrate environmental impact into financial decision-making.

Impact: Enhancing sustainable ecosystems

CDL’s longstanding dedication to sustainability has earned recognition in top global ESG ratings and rankings for three decades. For a complete listing of our ESG leadership, please refer to pages 9-10 in this report.

Some of our achievements in the year under review include:

• Global 100 Most Sustainable Corporations in the World by Corporate Knights: Ranked 39^th in 2025 and maintained ranking as the world’s most sustainable real estate management and development company for the seventh consecutive year, as well as the only Singapore company listed for 16 consecutive years.
• CDP: The only company in Southeast Asia and Hong Kong to remain on the CDP A List for seven consecutive years; only Singapore company to score double ‘A’s for climate change (since 2018) and water security (since 2019).
• MSCI ESG Ratings: Maintained ‘AAA’ leader rating since 2010
• Sustainalytics: 2025 Regional and Industry top-rated companies
• TIME World’s Most Sustainable Companies 2024
• Environmental Finance Sustainable Company Awards 2024: Sustainability Reporting of the Year – APAC
• The Edge Singapore Billion Dollar Club: Best ESG Risk Ratings award for the second consecutive year
• BT-UOB Sustainability Impact Awards 2024: Impact Enterprise of the Year (Large Enterprise Category) and Impact Leader of the Year (Esther An, CDL CSO)
• Singapore Corporate Awards 2024: Distinction in Sustainability Reporting (Market Capitalisation >S$1 billion) and Best Risk Management Award (Bronze)
• The Asset Triple A Sustainable Finance Awards 2025: Conferred Best Sustainability-Linked Loan – Real Estate

As a pioneering green developer in Singapore, we have constructed 129 BCA Green Mark certified developments since the scheme’s launch in 2005. In 2024, CDL achieved five BCA Green Mark Platinum Super Low Energy (SLE) awards for our commercial properties (City House and Palais Renaissance) and residential developments (The Orie, Norwood Grand and Union Square Residences). All three residential developments also received the BCA Whole Life Carbon Badge and Maintainability Badge, and The Orie earned an additional Health and Wellbeing Badge. Our longstanding green building efforts have saved over S$44 million in energy savings from energy-efficient retrofitting and initiatives in our locally managed buildings from 2012 to 2024.

In 2024, nine CDL properties in Singapore maintained the WELL Health-Safety Rating, a globally recognised evidence-based, third-party verified rating that prioritises the health and safety of building users. We are committed to enhancing health and wellness design in our buildings.

Building on our 3^rd study completed in 2022, we began our fourth climate change scenario analysis, facilitated by an independent consultant. This analysis expanded our coverage and methodologies to better assess CDL’s readiness for physical and transitional risks, with expanded timeframes to include short-, medium- and long-term impacts of up to 2050. Japan, another key market of the Group, was also added to better assess the risks and opportunities across the Group’s overseas markets.

Looking ahead: Expanding partnership to restore and revitalise ecosystems

CDL will continue to step up our sustainability strategy to tackle rising heat and enhance health and harmony with nature through mitigation and adaptation.

To drive decarbonisation, we must engage and empower small and medium-sized enterprises (SMEs) in our supply chain. In Singapore, SMEs contribute about 47% of GDP and 72% of employment.¹² With the upcoming SGX RegCo mandatory requirement for larger listed companies to report on Scope 3 emissions, engaging and managing our suppliers and the SMEs in our value chain have become critical. In May 2024, we were the first real estate company to launch our own SME Supplier Queen Bee Decarbonisation Programme, bolstering efforts in public-private partnerships to accelerate decarbonisation. Supported by EnterpriseSG in collaboration with Global Green Connect, DBS, CDP, and Singapore Business Federation, the programme aims to empower CDL’s selected 100 local SME suppliers to embark on their decarbonisation journey. At the end of 2024, we achieved close to 50% of our target and will continue working with our partners to advance these efforts.

Collective effort is key to driving impact and sustainability outcomes. In 2024, CDL further advanced our UN Sustainable Development Goals (SDGs)-aligned climate and nature-positivity advocacy through the SSA and the SSA Annex. In 2024, over 170 events with 8,680 attendees were hosted in total. These ranged from panel discussions to training events with Singapore Government representatives and esteemed institutions such as the World Wide Fund for Nature (WWF), Corporate Knights, Singapore Green Building Council and People’s Association.

In line with CDL’s commitment to cultivate a sustainable mindset in our communities, we hosted some key initiatives, including the fifth “We Love Our Planet” Storytelling Contest, the 14th CDL-GCNS Young SDG Leaders Award and the eighth edition of our flagship Youth4Climate Festival. This was supported by an expanded network of eco-partners and the Ministry of Sustainability and the Environment’s Go Green SG initiative.

We were also honoured to turn a dream that started in 2020 into reality. CDL hosted and lead-managed the “Hope and Harmony” event on 8 December 2024 in Singapore, bringing together two world-renowned conservation icons, Dr Jane Goodall and Dr Sylvia Earle, for their first joint dialogue in Asia. Attended by some 1,400 guests, the event raised greater awareness of their inspiring journeys for over six decades in conserving biodiversity on land and below water. Over S$150,000 was raised to support the conservation efforts of Ocean Geographic and the Jane Goodall Institute (Singapore) (JGIS), CDL’s long-time partners since 2018 and 2019, respectively.

Staged from 23 June 2023 to 30 March 2024, our “Melting Ice, Sinking Cities: An Urgent Call to Change the Present and Save Humanity” exhibition¹³ showcased at our zeroenergy CDL Green Gallery at the Singapore Botanic Gardens attracted around 30,000 local and overseas visitors. Building on this momentum, CDL launched the ‘We Love Our Planet’ exhibition on 9 December 2024 in partnership with 24 international and local organisations, including the NUS Centre for Nature-based Climate Solutions, JGIS, Ocean Geographic and Animal Concerns Research and Education Society. This exhibition highlighted the indispensable role of nature and biodiversity in supporting ecosystem resilience and addressing the climate crisis.

By 2060, the use of resources is projected to increase by 60%, according to the UN Environment Programme, driving a triple planetary crisis – climate change, biodiversity loss and pollution – which impact economic prosperity, peace and security. Embracing nature-based solutions will be the way forward for a sustainable future.

In April 2023, we initiated the retrofitting of a decommissioned SMRT train cabin into Singapore’s first netzero operational energy climate education hub. On 10 March 2025, we launched the CDL EcoTrain at City Square Mall, featuring innovative elements such as solar-powered energy monitoring, eco-friendly coatings and sustainable materials. This educational platform seeks to inspire children aged four and above to become young eco-champions through immersive exhibits, workshops and activities.

Thought leadership and advocacy are key to building a larger community for action. CDL actively participated in over 105 local and international platforms to share our ESG integration journey, practices and solutions. For the third consecutive year, CDL was honoured to share our experiences at the Singapore Pavilion at COP29, led by the Singapore Government.

Nature-based solutions are integral for achieving a net-zero future. Building on CDL’s investments in green landscaping, we will strive to apply more nature-based and green solutions to address rising heat levels and worsening air quality, which affect the health of our workers. Our focus on ‘Cooling by Greening’ complements our four ‘I’ strategic sustainability pillars and provides a defence against severe consequences of climate change like extreme heatwaves and ecosystem disruptions.

CDL remains steadfast in respecting the planet and people while greening the built environment and fostering ecosystems that thrive alongside human progress. Guided by our Future Value 2030 sustainability blueprint (established in 2017), we aim to create positive environmental and social impacts while maintaining a balanced triple bottom line. To meet the UN SDGs and climate goals, collaboration across sectors is the engine of transformative action. With support from our Board, partners and stakeholders, we aim to deliver business growth while nurturing sustainable ecosystems and communities for future generations.

Sherman Kwek
Group Chief Executive Officer