Materiality Assessment and ESG Topics 17 Includes green leases and tenant engagement on ESG matters. 18 Includes products and services promoting customer health and safety, and green-certified buildings. 19 Relates to our zero tolerance stance regarding child/forced labour and covers employees and supply chain. 20 Includes consideration of compliance, economic performance and cybersecurity. The material ESG topics were identified and assessed through a double materiality approach that considered both environmental and social impacts alongside financial materiality to prioritise the ESG factors that were deemed relevant and important to CLAR and its stakeholders. These topics were then organised into Build (Environmental), Enable (Social) and Steward (Governance) pillars in alignment with the CLI 2030 SMP. In FY 2025, CLI and its listed funds, including CLAR, undertook a comprehensive review of the ESG material factors, benchmarking against global standards and emerging frameworks. While the core material topics remain robust, refinements were introduced to reflect evolving priorities and stakeholder focus, such as emphasis on climate resilience (adaptation and mitigation) in response to heightened investor attention on climate-related risks; circularity, which encompasses upstream activities; and natural capital, where interest and awareness are emerging. Following the review, the Manager adopted the material ESG topics after considering its relevance and appropriateness to CLAR’s business and stakeholders. Material ESG factors were further managed using CLI’s annual Risk and Control Self-Assessment (RCSA) process, which supports the identification and management of potential risks. Material risks, including those related to climate change, fraud and corruption, health and safety, and human capital, were documented in the corporate risk register. Internal controls were put in place to ensure that these identified material risks were appropriately managed. Critical • Climate Resilience (Adaptation and Mitigation) • Energy Efficiency • Water Management Moderate and Emerging • Waste Management / Circularity • Biodiversity / Natural Capital Environmental Critical • Occupational Health and Safety • Human Capital • Stakeholder Engagement17 • Products and Services18 • Supply Chain Management • Diversity (Board and Staff) Moderate and Emerging • Human Rights19 Social Prioritisation of ESG Material Issues Critical • Risk Management20 • Business Ethics Governance Sustainability Report 2025 07
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