Ascendas REIT - Annual Report 2021

Enterprise Risk Management ASCENDAS REIT GROUP’S MATERIAL RISKS AND OPPORTUNITIES A Risk and Control Self-Assessment (RCSA) exercise is conducted annually to identify the material risks, including new and emerging events, the mitigating measures and the opportunities that Ascendas Reit Group faces in delivering our strategic objectives. From the 2021 RCSA results, the measures taken to mitigate material risks and opportunities to capitalise on are set out below: Material Risks Key Mitigating Actions Opportunities Business Interruption / Pandemic • Exposure to business interruption risk arising from sudden and major disaster events such as fire, prolonged power outages or other major infrastructure failures which may significantly disrupt operations at our properties. • Business disruptions arising from the COVID-19 pandemic have resulted in potential structural disruptions to some of the real estate asset classes. • It also spurred stakeholders’ attention on the diversification and resilience in the Group’s supply chain. • Proactive facilities management such as routine inspections and scheduledmaintenance andhaving crisis management procedures. • Put in place business continuity planning with split team arrangements to ensure availability of essential personnel or critical shared services support during a disruption. • Continue to place the well-being of our tenants, visitors and customers as top priority by adopting contactless technologies and innovative technological solutions to enhance safety, cleanliness and hygiene at Ascendas Reit Group’s properties. • Future proof Ascendas Reit Group’s business through digitalisation of business operations and processes, innovation and flexibility in the Group’s product offerings such as: – accelerating omnichannel solutions, – optimising the use-of-space, and – providing flexible workspace • Build collaborative relationships and work closely with supply chain contractors, vendors and suppliers to achieve environmental and social goals through CLI’s Supply Chain Code of Conduct. • Ride on the digital adoption trend and ongoing business digitalisation to innovate and improve product offerings to our customers. • Opportunities to repositionor repurpose our assets to meet the new norms. Ascendas Reit 148