Ascendas REIT - Annual Report 2021

Enterprise Risk Management Material Risks Key Mitigating Actions Opportunities Climate Change • Physical risks such as rising sea levels, violent storms, long intense heat waves, flash floods and fresh water depletion. • Transitional risks including potentially more stringent regulations and increased expectations from stakeholders. • Assessment of the detailed physical risks in the evaluation of any new acquisitions. • Incorporate shadow internal carbon price and compute a Return on Sustainability (ROS) in the evaluation of new investment / capital expenditure decisions. This helps to price in climate-related costs andopportunities, support low-carbon investments, prepare for stringent climate legislation, and avoid stranded assets. • Regularly reviewAscendas Reit Group’s mitigation and adaptation efforts, which include: – future proofing the portfolio against changing climatic conditions from the design stage and – improving the operational efficiency of our properties, setting targets for carbon emissions, water, energy and waste efficiency. • CLI has a well-established Group environmental management system which is externally certified to ISO 14001. • For more information, please refer to: • Ascendas Reit’s Integrated Sustainability Report 2021 (https://ir.ascendas-reit.com/sustainability_ reports.html). • CapitaLand’s Global Sustainability Report 2021 (https://www.capitalandinvest.com/sustainability. html), to be published by 31 May 2022. • Enhance our positive reputation and strong track record in sustainability efforts as a competitive advantage for the Ascendas Reit Group tobuild a resilient portfolioof assets and achieve resources efficiency. • Accelerate sustainability innovation and collaboration with tenants, supply chain contractors, vendors and suppliers. • Access to an enlarged pool of funding and capital from increased exposure to green assets. Fraud, Bribery & Corruption (FBC) • Any forms of fraud, bribery and corruption that could be perpetuated by employees, third parties or collusion between employees and third parties. • Promote an ethical culture at all levels of CLI. • Adopt a zero-tolerance stance against FBC in the conduct of business and reinforce the importance of integrity – one of the CLI’s core values. • Communicate the commitment to integrity from the top through policies and practices, such as FBC Risk Management Policy, Whistle-blowing Policy, Ethics and Code of Business Conduct Policies and Anti-Money Laundering and Countering the Financing of Terrorism Policy and mandatory FBC e-Learning. Annual Report 2021 149