Climate-related Risks and Opportunities CLAR proactively identifies, assesses and manages risks as part of its business strategy. In FY 2024, CLAR began incorporating initial climate-related disclosures aligned with the IFRS sustainability disclosures. From FY 2025, CLAR is fully aligned with IFRS S2 and climate-relevant provisions of IFRS S1, in line with SGX-ST's mandatory requirements on climate-related disclosure. These disclosures build on CLAR’s past disclosures following the TCFD recommendations, which are now incorporated into IFRS S2 and overseen by the International Sustainability Standards Board (ISSB). Recognising the evolving landscape of climate-related disclosure standards as well as the demand by investors for sustainability-related financial disclosure, CLAR will continuously monitor and develop its reporting capabilities to align with emerging best practices and regulatory requirements. For identification of climate-related risks and opportunities, CLAR considers the short-term time frame to be within two to three years, medium-term time frame as until 2030, and long-term time frame to be beyond 2030. These timeframes align with CLAR’s business planning cycles. [IFRS S2 10(c), 10(d)] Building Portfolio Resilience and Resource Efficiency Climate Transition Plan - Governance The Board considers sustainability issues as part of its strategic formulation, determining the material ESG factors and overseeing the endorsement and monitoring of the material ESG factors. The Board approves CLAR’s risk appetite, which determines the nature and extent of material risks that CLAR is willing to take to achieve their strategic and business objectives. The Board oversees CLAR’s ERM Framework, and regularly reviews CLAR’s risk profile, material risks and mitigation strategies. [IFRS S2 6(a)(i)(iv)] The Board actively involves in discussions on climate-related initiatives. Taking the lead from CLI, the Board is updated on relevant climate-related topics including CLI 2030 SMP, green capital expenditure plans, performance metrics such as carbon emissions performance, progress on the reduction targets, as well as stakeholders’ expectations on climate change. [IFRS S2 6(a)(iii)(v)] Physical climate risks are also reported to the Board. EHS factors are incorporated into CLAR 's investment evaluation and strategy, and relevant considerations are presented to the Board. [IFRS S2 6(a)(iv) CLAR’s climate transition plan draws from CLI’s plan and is aligned with the CLI 2030 SMP. For more details on the climate transition plan, please refer to pages 12 to 17 of the CLI Global Sustainability Report 2024. More details on CLAR’s sustainability governance structure can be found on page 6. Climate Transition Plan - Strategy In line with CLI’s strategy, CLAR integrates climate-related considerations and decarbonisation plans throughout the entire real estate life cycle, from investment to operations, asset enhancements, developments, and redevelopment. CLAR’s portfolio went through a process of climate scenario analysis from FY 2022 to understand how the identified climate-related risks and opportunities could impact future operations. [IFRS S2 22(b)(ii)] The analysis considers scenarios based on the latest global and scientific developments (scenarios from 1.5°C to 3°C for current to long-term time frames), to draw conclusions on the financially material physical and transition risks and validate its current strategy. Together with CLI, CLAR will review the mitigation and adaptation plans, and identify opportunities, in alignment with CLI 2030 SMP. CLI 2030 SMP was designed to build resilience throughout CLI and CLAR’s operations and future-proof the real estate portfolio to guard against climate change risks. The same plan will also avoid premature obsolescence and adopt available opportunities. [IFRS S2 22(b)(i)] CapitaLand Ascendas REIT 20
RkJQdWJsaXNoZXIy NTM2MDQ5