102 CapitaLand Ascendas REIT Risk Management Material Risks Key Mitigating Actions Non-Financial Risks Climate-related • Physical risks include coastal and fluvial flooding, tropical cyclones, extreme cold, extreme heat and wildfire. Transition risks encompasses the potential impact of more stringent regulations, carbon price shifts, changes in electricity prices and increased expectations from customers and stakeholders. • Conduct an assessment of physical and transition risks and opportunities, and health and safety related risks in the evaluation of new investments / capital expenditure decisions. This includes implementing a shadow internal carbon price. • Review CLAR Group’s mitigation and adaptation efforts, which include future-proofing the portfolio, enhancing the operational efficiency of CLAR’s properties and implementing measures to drive decarbonisation across the CLAR Group’s value chain. Cybersecurity and Information Technology • Ongoing business digitalisation exposes the business to ITrelated threats, which may result in compromising the confidentiality, integrity, and availability of CLAR Group’s information assets and/ or systems. • The outsourced Information Technology (IT) team from CLI executes its Cybersecurity Strategy by continuously reviewing against threat landscapes, and institute measures to minimise vulnerability exposure and manage threat vectors, including enhanced protection controls for systems that hold personal data. • Conduct regular mandatory staff IT Security Awareness Training to minimise human-related risks in the information security chain. • Conduct IT Security Incident Management Procedure test, third party vulnerability test and annual Disaster Recovery Plan exercise to validate IT infrastructure / management system security resilience and ensure timely recoverability of business-critical IT systems. • Regular updates to the Board on the state of cybersecurity risk activities and key control improvements, with periodic review and updates of the Group-wide IT Security Policy. Fraud, Bribery and Corruption (FBC) • Any forms of fraud, bribery and corruption that could be perpetuated by employees, third parties or collusion between employees and third parties. • Foster a culture of ethics and integrity in the CLAR Group. • Adopt a zero-tolerance stance against FBC across the CLAR Group. • 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. • Conduct mandatory trainings to enhance awareness among employees.
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