Sustainability Report 2025 CapitaLand Ascendas REIT
Overview About This Report 01 Board Statement 02 Sustainability Strategy 03 Value Creation Model 04 Sustainability Governance 06 ESG Priorities and Performance Materiality Assessment and ESG Topics 07 Stakeholder Engagement 08 Appendix : GRI Content Index 50 Glossary 56 Contents Building Portfolio Resilience and Resource Efficiency 11 29 Enabling Thriving and Future-Adaptive Communities 45 Stewarding Responsible Business Conduct and Governance
About This Report About CapitaLand Ascendas REIT CapitaLand Ascendas REIT (CLAR) is Singapore’s first and largest listed business space and industrial real estate investment trust (REIT). It was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in 2002 and is headquartered in Singapore. As of 31 December 2025, CLAR’s portfolio is valued at S$18.2 billion, spanning properties across Singapore, Australia, the United States (US), the United Kingdom (UK), and Europe (EU). CLAR is a CapitaLand Investment (CLI)-sponsored REIT, operated through CLI’s wholly owned subsidiaries. These include CapitaLand Ascendas REIT Management Limited (the Manager), along with dedicated Asset and Property Managers1 who handle day-to-day operations. As CLAR does not employ staff directly, any references to employees in this report refer to personnel from the Manager. Reporting Scope This is CLAR’s 14th Sustainability Report (SR), having been published annually since FY 2013. The report covers CLAR’s initiatives supporting the CLI 2030 Sustainability Master Plan (SMP) for the financial year from 1 January 2025 to 31 December 2025 (FY 2025). The reporting period is consistent with CLAR’s Annual Report (AR). This SR encompasses 222 properties owned by CLAR (excluding four properties under development2 and two plots of land3 as of 31 December 20254), with a primary focus on 96 properties located in Singapore, Australia, the US, the UK, and EU, where CLAR has operational control5. Relevant Environmental, Social, and Governance (ESG) data - such as tenant environmental data and Scope 3 emissions, where available, are also included in the ESG data pack, accessible on CLAR’s website at https:// investor.capitaland-ascendasreit.com/sustainability_reports. html. As of 31 December 2025, approximately 54% of CLAR’s portfolio by Gross Floor Area (GFA) falls under the operational oversight of its Asset & Property Managers. 1 Properties located in Singapore are held directly by CLAR (except Galaxis, 1 Buroh Lane, 9 Tai Seng Drive and 9 Kallang Sector, which are held under wholly owned subsidiaries of CLAR) and are managed by Ascendas Services Pte Ltd (Property Manager). Properties located in Australia are held through wholly owned subsidiaries of CLAR and are managed by Ascendas Funds Management (Australia) Pty Ltd together with CapitaLand Australia Pty Ltd and third‑party managing agents. Properties located in the UK / Europe are held through wholly owned subsidiaries of CLAR and are managed by CapitaLand International Management (UK) Ltd together with third‑party managing agents. Properties located in the US are held through wholly owned subsidiaries of CLAR and managed by CapitaLand International (US) LLC, together with third‑party managing agents. 2 27 IBP and Logis Hub @ Clementi, Singapore, Welwyn Garden City, UK, and Summerville Logistics Center, US. 3 Manton Wood and Towcester, UK. 4 Data for 31 Ubi Road 1, 9 Changi South Street 3, 10 Toh Guan Road, 19 & 21 Pandan Avenue, 30 Tampines Industrial Avenue 3, Singapore, 95 Gilmore Road, Australia, Astmoor Road, UK, 8700-8770 Nimbus and Parkside, US were included up to the date of divestment and data for Logis Hub @ Clementi, Singapore was included up to the date of decommissioning. 5 Operational control is defined as having the full authority to introduce and implement its operating policies at the operation, based on the Greenhouse Gas (GHG) Protocol Corporate Standard. 6 CLI GSR 2025 will be published by 31 May 2026 on the CLI website. Rules, Standards and Guidelines The following listing rules, standards, and guidelines were taken into account and/or adopted in preparation of this report: • SGX-ST Listing Manual Rules 711A and 711B • International Financial Reporting Standards (IFRS) S2: Climate-related Disclosures and climate relevant provisions of IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information as outlined by SGX-ST Listing Rule 711B • Sustainability Accounting Standards Board (SASB) Real Estate Standards • Global Reporting Initiative (GRI) Standards 2021 • United Nations Sustainable Development Goals (UN SDGs) These standards were chosen for their global recognition and widespread adoption, reflecting the growing need for sustainability-related financial disclosures in general-purpose reporting. This report is aligned with IFRS S2 and the climaterelevant provisions of IFRS S1, which has replaced previous Task Force on Climate-related Financial Disclosures (TCFD) aligned disclosures in compliance with the SGX-ST Listing Rule 711 and Practice Note 7.6 on Sustainability Reporting. This report has been renamed Sustainability Report from Integrated Sustainability Report to reflect the integration of the IR Framework into the IFRS Sustainability Standards. Review and Assurance This report has undergone rigorous internal review. As a CLIsponsored REIT, CLAR’s data is consolidated as part of CLI’s Global Sustainability Report (GSR)6, which is externally assured in accordance with the International Standard on Assurance Engagements (ISAE) 3000. While this report itself has not been externally assured, an independent external review was conducted to ensure compliance with SGX-ST Listing Manual Rules 711A and 711B. CLAR will consider obtaining separate external assurance for its future reports. Feedback CLAR values your input and welcomes questions and feedback, which can be sent to clar@capitaland.com. Sustainability Report 2025 01
“In a continually evolving landscape, our steadfast commitment to sustainability keeps us grounded and strengthens our ability to anticipate risks, adapt swiftly, and build enduring resilience.” William Tay Wee Leong Chief Executive Officer Board Statement CLAR is committed to growing in a responsible manner, delivering long-term economic value, and contributing to the environmental and social well-being of its communities. The material ESG factors are embedded in CLAR’s sustainability strategy, aligned with CLI 2030 SMP. The CLI 2030 SMP steers CLAR’s Group (the Group) collective efforts towards the common objectives of maximising impact through building portfolio resilience and resource efficiency, enabling thriving and future-adaptive communities, and stewarding responsible business conduct and governance. The CLI 2030 SMP sets out ambitious ESG targets which include increasing the use of renewable energy, the commitment to achieve Net Zero carbon emissions by 2050, and Scope 1 & 2 carbon emission reductions by 2030. These ESG targets have been cascaded throughout the CLI Group, including CLAR. The Board of Directors of the Manager (Board) is responsible for overseeing CLAR’s sustainability efforts and takes material ESG factors into consideration when determining its strategic direction and priorities. The Board also sets the executive compensation framework based on the principle of linking pay to performance. The Manager’s business plans incorporate these ESG factors and targets, which are then translated into both quantitative and qualitative performance targets, including corporate practices and cascaded throughout the organisation. As an industry leader, CLAR continuously identifies and adopts meaningful ESG practices, supporting the development of sustainability practices across the real estate sector. CLAR’s sustainability performance has been highly rated by GRESB7 as well as globally recognised benchmarks and indices such as MSCI ESG Rating, FTSE4Good Developed Index and FTSE4Good Developed Minimum Variance Index. CLAR has also been included in the SGX Fast Track Programme which affirms listed issuers that have been publicly recognised for good corporate governance standards and compliance track record and accords prioritised clearance for selected corporate action submissions. 7 GRESB is a mission-driven, industry-led organisation that empowers the financial industry to advance environmental, operational, and financial sustainability across real assets in climate-critical industries. CapitaLand Ascendas REIT 02
Sustainability Strategy SOCIAL Strengthening Stakeholder Connections Strengthen relationships with both internal and external stakeholders to foster positive and collaborative connections that promote a harmonious working environment. Delivery of Communityaligned Programmes Deploy programmes, policies and systems tailored to the needs of the communities in which CLAR operates, reinforcing CLAR’s commitment to addressing societal needs and fostering inclusive growth. ENVIRONMENTAL Commitment to Sustainable Excellence Deliver environmental commitments with precision and efficiency, leveraging proactive strategies to achieve and surpass established environmental goals. Tailored Sustainability Initiatives Develop tailored environmental initiatives to address the unique opportunities and challenges in each market. “A-B-C” Investment Strategy Adopt the “A-B-C” investment approach of Acquire Green, Build Green and Convert to Green. GOVERNANCE Strengthening Sustainability Governance Enhance sustainability governance by incorporating relevant processes and frameworks through a risk-based approach. This ensures a strong foundation for sustainable practices and responsible business conduct. Driving Excellence in Governance Practices Maintain exceptional performance across all governance areas by upholding ethical principles and regulatory compliance. Continue striving for excellence to ensure robust and responsible governance practices. Sustainability Report 2025 03
Value Creation Model Our Vision To be a leading global real estate investment trust Our Mission To deliver predictable distributions and achieve long-term capital stability for Unitholders 8 Governance: Supports CLAR's capacity to generate sustainable value over the short, medium and long term by identifying pertinent risks and opportunities, coupled with strategic allocation of resources. 9 Business activities: The Manager employs a three-fold strategy - Proactive Portfolio Management, Disciplined Value-Adding Investments, Prudent Capital & Risk Management - to drive operational activities focusing on strategy execution, performance monitoring and stakeholder management. 10 Sustainability context: The Manager manages ESG material issues in its business activities. For FY 2025, 11 Critical and three Moderate and Emerging ESG material issues have been updated from FY 2024 (more details can be found on page 7). 3 Moderate and Emerging ESG material issues 11 Critical ESG material issues Vision & Mission Sustainability Context9 Strategy & Resource Allocation Risk & Opportunities Governance8 Disciplined ValueAdding Investments CLAR's Business Activities9 Prudent Capital & Risk Management Proactive Portfolio Management st i ilit t t10 Business Model 04 CapitaLand Ascendas REIT
11 This is the net increase in green-certified properties which includes 72 properties with new green building certification, recertification of a property whose green building certification expired in FY 2024 and one property with green building certification that was divested in FY 2025. 12 Excludes properties where CLAR have no right to the environmental attributes associated with the generated solar energy. 13 The Sustainability Corner is a physical installation displaying content to raise awareness on climate change and sustainability issues among tenants and visitors to CLAR’s properties. Advancing Sustainable Environmental Performance Value Created Fostering Positive Social Impact Strengthening Corporate Governance Excellence Delivering Strong Financial Performance 72 Properties achieved green building certification, bringing to a total of 156 certified properties11 24.8 hours of training hours per employee on average Real Estate Assessment 2025 4-Star Rating (3 consecutive years) Constituent of FTSE4Good Developed Index and FTSE4Good Developed Minimum Variance Index One of Top 50 Listed Entities in ASEAN Corporate Governance Scorecard (ACGS) MSCI ESG Rating "AA" Rating (3 consecutive years) Public Disclosure “A” Rating (6 consecutive years) Singapore Governance and Transparency Index (SGTI) 2nd (REITs and Business Trusts category) 15.005 Singapore cents of Distribution per Unit (DPU) 164 volunteering hours by employees 39.0% Healthy aggregate leverage ratio 75% Properties (by GFA) is greencertified 12 additional Sustainability Corners13 implemented to raise awareness on sustainability among tenants and visitors 75.4% Borrowings on fixed interest rates and maintained high levels of natural hedge for all overseas investments. A3 Moody's credit rating Zero validated cases of discrimination and occupational health and safety related accidents S$1 billion Raised in green loans and green bonds 30.3 GWh Solar energy generated from Singapore properties12 Sustainability Report 2025 05
Sustainability Governance The CLI Board, management, and staff operate within a robust governance framework that blends high-level oversight by CLI Board with active management and staff involvement. The Manager aligns with CLI Group’s sustainability governance structure, established to oversee and implement group-wide sustainability initiatives. Key elements of this framework include: CLI Board and Board Committees • The CLI Board and its Executive and Sustainability Committee (ESC) are responsible for overseeing sustainability strategies and goals across the CLI Group, including CLAR. This includes managing climate-related risks and opportunities, providing guidance and tracking progress towards sustainability objectives. • The ESC is supported by the CLI Group Sustainability Office and various work teams comprising representatives from CLI business units and corporate functions to drive the implementation of sustainability initiatives. The Board of the Manager Guided by the CLI Group, the Board is responsible for embedding sustainability into CLAR’s strategic planning and operations, while overseeing key aspects of ESG. The Board ensures effective management and monitoring of CLAR’s ESG impacts, which include: • Integrating sustainability risks and opportunities into the Enterprise Risk Management (ERM) Framework, and setting CLAR’s risk appetite • Monitoring evolving sustainability landscape and considering ESG factors in property investment evaluations and strategy • Overseeing sustainability initiatives and regularly reviewing CLAR’s ESG performance • Approving material ESG topics and the sustainability report • Ensuring appointed Directors possess or acquire relevant sustainability expertise and participate in mandatory sustainability training sessions as per SGX-ST’s Listing Rules. Sustainability Committee (SC) of the Manager The SC, chaired by the Manager’s Chief Executive Officer (CEO), drives CLAR’s sustainability agenda at the REIT level. Its responsibilities include: • Formulating, overseeing, and implementing CLAR’s sustainability objectives, strategies, and initiatives • Establishing sustainability targets for CLAR • Reviewing disclosures in the annual SR • Providing recommendations on ESG matters to the Board for approval Sustainability Working Committee (SWC) of the Manager The SWC, led by the Chief Financial Officer (CFO), plays a key role in supporting the SC by translating sustainability policies into operational actions. Comprising representatives from multiple functions, the SWC ensures best practices are consistently applied across CLAR’s portfolio while remaining aligned with CLI’s overall strategic direction. Its responsibilities include tracking the progress of operational teams towards achieving sustainability targets and providing regular updates on ESG performance to the SC. 14 Includes EHS Internal Audit Committee and Environment Tracking System (ETS) Committee. 15 Including climate-related risks and opportunities. 16 SWC includes representatives from the Manager's various departments, as well as the Singapore Property Manager, International Asset Managers, Capital Markets, Investor Relations and Group Sustainability functions from the Sponsor. Staff Sustainability work teams include BU representatives Chairman: CEO Serves as sustainability champion, and is accountable for CLAR’s ESG performance Sustainability Working Committee (SWC)16 Representatives from Various Functions (Headed by the Chief Financial Officer) Committee Members: Management Team Members • Portfolio Management • Investment • Finance, Risk, & Sustainability Board of the Manager The Manager’s Sustainability Committee (SC) (Established in 2020) Provide Boardlevel strategic oversight of ESG policies and integration Provide senior management oversight of ESG implementation15 Drive implementation of initiatives under ESG pillars15 CLI Board of Directors Executive and Sustainability Committee (Board Committee) CLI Leadership Council (Comprising Senior Management) Various Sustainability Work Teams/ Committees comprising Business units and corporate departments covering Environment, Health and Safety14 Investment, Asset Management Enterprise Risk Management Stakeholder Engagement Innovation Human Resource, Group Procurement, others CapitaLand Ascendas REIT 06
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
Investment Community Objectives • Deliver sustainable distributions and achieve capital stability Key Concerns / Interests • Growth strategy • Financial and operational performance • Business outlook • Corporate governance • Management of climate-related risks Engagement Methods and Frequency • Annual General Meetings (AGMs), Extraordinary General Meetings (EGMs), investor luncheons, roadshows and conferences • One-on-one / group meetings or conference calls • Media and analysts’ briefings • Media releases, presentations and announcements issued on SGXNet • Corporate website and email alert service • Property visits CLAR’s Response • Proactive communications, timely and transparent disclosures • Proactive portfolio and asset management • Effective capital management • Disciplined approach to acquisitions and divestments for value creation Employees Objectives • Create a great work environment Key Concerns / Interests • Career development and progression • Business and organisational updates • Health and well-being Engagement Methods and Frequency • Employee engagement survey • Ongoing consultations through various feedback channels • Regular performance reviews • One-on-one meetings and networking events CLAR’s Response • Ongoing internal communications (e.g. employee engagement survey) • Learning and development programmes covering areas such as digital fluency, sustainability, personal and professional development, culture and leadership • CapitaLand’s Well-being Programme • Events organised by the Manager’s recreation committee Understanding and addressing the needs of its key stakeholders is integral to CLAR’s long‑term success. The Manager, Asset and Property Managers engage with stakeholders regularly to gather meaningful feedback. These insights were reviewed to enhance operational performance, manage risks more effectively, and uncover potential opportunities for value creation. Stakeholder Engagement CapitaLand Ascendas REIT 08
Suppliers and Contractors Objectives • Develop good partnerships Key Concerns / Interests • Fair competition and compliance with procurement policy • Adherence to safety requirements Engagement Methods and Frequency • Environmental, Health and Safety (EHS) policy, contractor management guidelines, house rules and Standard Operating Procedures (SOPs) • Annual HOST21 awards • Feedback channels throughout the year CLAR’s Response • Price quality method evaluation criteria • Performance feedback • Supplier performance evaluation Tenants and Potential Customers Objectives • Deepen relationship through engagement and networking events and programmes Key Concerns / Interests • Property management and service-related gaps, a safe working environment, and customer experience Engagement Methods and Frequency • Tenant engagement surveys • Engagement programmes and activities • Monthly e-newsletter • Social media platforms, digital screens and CapitaStar@ Work application • Post-event feedback • Bi-annual email message from the CEO, CLI Commercial Management • Tenant appreciation event CLAR’s Response • Use data analytics to identify and rectify issues promptly • Train employees on issue resolution and provide recognition for good service • Active portfolio management and commitment to maintain / increase green building certification • Consider adoption of sustainability elements for events organised 21 The HOST (Hassle-free; Operational excellence; Serve with passion; and Trustworthy) framework was developed by CapitaLand to create a serviceoriented culture. The annual HOST awards aim to recognise service staff who have gone above and beyond the service excellence standards. Sustainability Report 2025 09
Stakeholder Engagement Community Objectives • Establish strong relationships and be a socially responsible corporate citizen Key Concerns / Interests • Best practice adoption • Contribution to community • Growing awareness of sustainability issues Engagement Methods and Frequency • Media releases / announcements throughout the year • One-on-one meetings and dialogue with Non-Governmental Organisations (NGOs) as necessary • CLAR’s Sustainability Corner CLAR’s Response • Compliance monitoring • Policies and practices review • Public communications • Three days of Volunteer Service Leave (VSL) for each employee per annum • Employee and tenant participation in community engagement events • Monitoring of environmental performance and commitment to maintain / increase green building certifications Regulators Objectives • Adhere to compliance and sustainability sensitive implementation Key Concerns / Interests • Compliance with laws and regulations • Transparency and accuracy in information presented • Management of climate-related risks Engagement Methods and Frequency • CLI and industry associations’ public consultation papers • Industry standards and guidelines developed through public-private partnerships between CLI Group and agencies • On-site meetings and / or email correspondences • Sustainability Reports CLAR’s Response • Public communications • One-on-one meetings and dialogues with the government, national agencies • Full cooperation on data / information sharing request • Provide open and truthful feedback on discussion / consultation CapitaLand Ascendas REIT 10
Building Portfolio Resilience and Resource Efficiency Climate change presents unparalleled systemic risks to businesses, encompassing both physical risks – such as damages and disruptions due to extreme weather events and transition risks arising from evolving regulations and adaptation efforts, fundamental shifts in industry norms, technology, and stakeholder demands. Recognising these challenges, CLAR prioritises building a climate-resilient property portfolio and championing environmental stewardship. Environmental considerations are integrated into property investment and management activities to minimise the environmental footprint. CLAR’s Approach CLAR aligns its sustainability objectives, initiatives, and efforts with CLI’s commitment to minimising environmental footprint and delivering positive environmental outcomes. This environmental strategy and sustainability approach reflects its objectives of creating enduring stakeholder value while contributing to environmental protection. Embedding sustainable practices throughout the real estate life cycle strengthens the climate resilience and competitiveness of its portfolio, demonstrating that responsible growth and environmental stewardship can be achieved together. Through the adoption of green features, CLAR properties promote energy efficiency and improved sustainability performance. These efforts are further supported by rigorous environmental monitoring and the proactive management of resources like energy, water, and waste. Sustainability Report 2025 11
Building Portfolio Resilience and Resource Efficiency CLAR’s Contribution CLAR demonstrates its commitment to the United Nations (UN) Sustainable Development Goals (SDGs) through various environmental sustainability initiatives. Its sustainable property management is informed by a comprehensive carbon mitigation strategy, through levers including low-consumption design, energy efficiency to green power procurement. These ongoing initiatives include optimisation of air-conditioning and mechanical ventilation (ACMV) systems, LED lighting upgrades, and renewable energy deployment. Resource management remains a priority, supported by innovative efforts such as tenant waste digitalisation and e-waste recycling programmes. These actions align with the Singapore Green Plan 2030 and reinforce CLAR’s contribution to the CLI 2030 SMP. Relevant SDG SDG Target SDG 7 Affordable and Clean Energy SDG 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix SDG 7.3: By 2030, double the global rate of improvement in energy efficiency SDG 9 Industry Innovation and Infrastructure SDG 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities SDG 12 Responsible Consumption and Production SDG 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse SDG 13 Climate Action SDG 13.2: Integrate climate change measures into national policies, strategies and planning SDG 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning Contributions to UN SDGs CapitaLand Ascendas REIT 12
Policy • CLI Environmental, Health and Safety (EHS) Policy • CLI Sustainable Building Guidelines (SBG) Accountability • The CEO holds ultimate oversight and responsibility for EHS management at CLAR • The ISO 14001-certified CLI EHSMS establishes clear accountability for relevant managers and all CLI staff • CLI EHS Policy was established to underscore its commitment to environmental stewardship and the occupational health and safety of all personnel within its operational environment • To effectively manage sustainability, performance targets linked to non-financial ESG key performance indicators were incorporated into employees’ remuneration • Energy and water usage, waste generation, and carbon emissions performance were monitored on a regular basis through the Environmental Tracking System (ETS) A pproach and Implementation Adopting a Risk Management Approach CLAR’s systematic approach to identify and manage significant potential environmental impacts on its business operations such as climate change, energy and water, is guided by the CLI EHSMS. In addition, an annual Risk and Control Self-Assessment (RCSA) is conducted to assess, document and mitigate all material risks, including ESG-related risks. Complying with Local Standards and Established Systems CLAR ensures compliance with applicable environmental laws and regulations. • All CLAR-owned and managed properties in Singapore, as well as main contractors, are required to comply with ISO 14001 Environmental Management System (EMS). These properties undergo annual audits conducted by both internal EHSMS auditors and accredited third-party external auditors to ensure compliance. As a listed REIT in Singapore, CLAR is subject to stringent environmental regulatory requirements and expectations. The EHSMS supports the monitoring of transition risks related to climate regulations through maintenance of regulatory registers, compliance evaluation,and ongoing stakeholder engagement. CLAR adheres to CLI's SBG, an inhouse guide that aims to future-proof developments and strengthen EHS and supply chain standards. It addresses risks and opportunities related to climate change and EHS across all stages of the building life cycle. The SBG is structured around four key objectives, which are also closely aligned with CLAR’s identified material topics: − Reduce carbon footprint and energy consumption − Enhance water management − Minimise waste generation − Promote biodiversity M anaging CLAR’s Environmental Footprint and Driving Positive Environmental Impact The Property Manager adheres to CLI’s Environmental, Health and Safety Management System (EHSMS) in managing CLAR’s Singapore properties, ensuring a consistent approach for environmental stewardship and minimising environmental impact. The EHSMS further directs systematic identification and management of notable environmental impacts associated with CLAR's business operations, encompassing aspects such as climate change, energy, and water. Environmental, Health and Safety Management System (EHSMS) Sustainability Report 2025 13
Environmental, Health and Safety Management System (EHSMS) Contd. A pproach and Implementation • Environmental and Social Impact Assessment (ESIA) is a mandatory procedure for all new investments and development projects. The findings of the ESIA are incorporated into investment approval papers and project plans, ensuring that environmental and social considerations are integrated into such projects to demonstrate positive community impact and strengthen investor confidence. The significance of cases of non-compliance with local EHS laws and regulations are determined by financial and non-financial factors. In FY 2025, eight cases of non-compliance with local EHS laws and regulations were reported22. Corrective actions were implemented promptly to remediate the issues. Training and Awareness Programmes CLAR’s commitment to transitioning to a low-carbon business and building a resilient, resource-efficient portfolio is underpinned by effective EHSMS implementation. • There is a focus on continuous training and professional development for the asset and property management teams to ensure successful integration of environmental considerations into all aspects of CLAR’s operations • To enhance employee capacity in climate-related risk and opportunity management, the CapitaLand Institute of Management & Business (CLIMB) organises comprehensive sustainability training programmes, such as workshops facilitated by industry experts and senior business leaders. Newly appointed Directors are also required to undergo sustainability training courses prescribed by the SGX-ST Building Portfolio Resilience and Resource Efficiency 22 Despite efforts to ensure compliance, Singapore operations incurred eight non-compliance incidents relating to environmental, health and safety. Corrective actions were taken immediately to address the incidents. CapitaLand Ascendas REIT 14
Acquire Green In FY 2025, CLAR completed the acquisitions of: Build Green In FY 2025, CLAR has the following developments: 9 Tai Seng Drive, Singapore • Property Type: Tier III colocation data centre • Green certification: − BCA-IMDA Green Mark Platinum − SS 564 Green Data Centre Ongoing Development at Summerville Logistics Center, the US • Property Type: Two single-storey logistics distribution property • Green certification: Targeted to achieve full EDGE Certification once it is operational 5 Science Park Drive, Singapore • Property Type: Premium business space property • Green Certification: Building and Construction Authority (BCA) Green Mark Platinum • Green Features: Upcoming solar photovoltaic (PV) system of 415 kWp23 to be installed, carpark has been retrofitted with energy-efficient light fittings. Completed the Redevelopment of 5 Toh Guan Road East, Singapore • Property Type: Six-storey ramp-up warehouse • Green certification: BCA Green Mark GoldPLUS • Green features: Upcoming solar PV system of 543 kWp, energy-efficient lighting, and outdoor thermal modelling Embracing Green Solutions Green Buildings Green buildings are pivotal in global carbon reduction efforts. CLAR adopts an "A-B-C" investment strategy—Acquire Green, Build Green, and Convert to Green—to prioritise integration of green building principles across the entire real estate life cycle. This commitment is evidenced by the various green building certifications and ratings achieved, which independently validate CLAR's focus on environmental performance throughout its acquisitions, developments, redevelopments and operations. 75% of CLAR properties (by GFA) are green certified 23 kWp stands for kilowatt-peak, representing the maximum power output a solar panel or system can produce under ideal conditions. Sustainability Report 2025 15
Building Portfolio Resilience and Resource Efficiency Green Financing CLAR launched a Green Finance Framework (GFF) in FY 2020, which was updated in FY 2024 to align with the International Capital Market Association's Green Bond Principles (2021) as well as the Loan Market Association and Loan Syndications & Trading Association's Green Loan Principles (2023). This sets out CLAR’s approach to Green Finance Transactions (GFTs) and how proceeds from green bonds or green loans will be used to fund eligible projects that achieve CLAR’s environmental and social objectives, such as those related to green buildings, renewable energy, energy efficiency, waste management, sustainable water management and clean transportation. As of 31 December 2025, CLAR has approximately S$3.3 billion of green bonds, green loans, and green perpetual securities. All proceeds from these instruments have been fully utilised to partially refinance eligible properties in accordance with GFF’s Eligibility Criteria. 24 Net Lettable Area (NLA) is the total usable floor space in a building available for lease to tenants. Certify Green CLAR explored green certification for its logistics portfolio in the UK and the US. The IREM certification was attained for 18 properties in the US, while 33 assets in the UK achieved BREEAM In-Use certification. CLAR collaborated with and appreciated the support of its tenants and service providers in advancing the certification process, including implementation of sustainability initiatives, solutions and adoption of green fit-out guidelines. BREEAM In-Use certified property - 1 Sun Street, UK IREM-certified Sustainable Property - 3950 Sussex Avenue, US Green Leasing CLAR incorporates green lease clauses to promote sustainable practices among tenants through mutually agreed responsibilities or obligations. CLAR aims to increase green lease coverage through ongoing engagement with tenants and diligent implementation of green lease agreements for all new and renewed leases. S$1 billion New green financing secured in FY 2025 >S$3.3 billion Worth of green financing as of 31 December 2025 Green Lease Coverage by NLA24 as of 31 December 2025 60% CapitaLand Ascendas REIT 16
Climate Resilience (Adaptation and Mitigation) CLAR’s Impact CLAR understands the substantial environmental footprint associated with real estate assets and is committed to playing an active role in global climate action. By prioritising energyefficient assets and employing sustainable building practices, CLAR aims to curtail energy use, lower operational expenses, and elevate the environmental performance of its portfolio. How CLAR Manages its Impact CLAR manages its impact through a balanced approach of adaptation and mitigation efforts to strengthen its portfolio’s resilience. CLAR adapts to climate change by identifying, assessing and managing climate-related risks and opportunities and mitigates environmental footprint through initiatives such as deployment of innovative solutions and technologies that enhance energy efficiency and increase the use of renewable energy. Low Consumption Design Chillers in one of the halls at The Chess Building, UK were replaced with free coolingcapable chillers, which utilises ambient air when sufficiently cold to assist or replace mechanical cooling for data centre operations. Avoid On-site Renewables 2x100 kWp rooftop solar installations were completed at two sites in Australia. Green Power Procurement Co-location data centres in the UK/EU were 100% powered by renewable electricity. Renewable Energy Certificates (RECs) Renewable energy was generated by solar panels installed at CLAR’s properties in Singapore, and associated RECs were retired against landlord's electricity consumption. Replace Carbon Offsets Carbon offsets will be deployed as a last resort for hard-to-abate emissions after other carbon reduction measures have been explored. Stringent quality control and effective project governance are essential for the environmental integrity of this approach. Compensate Control, Metering and Monitoring As of FY 2025, smart meters were installed at 30 logistics properties in the UK to support and automate data collection and monitoring processes for tenants' energy consumption. Reduce High Energy Efficiency Air-conditioning optimisation was carried out at 10 properties in Singapore focused on fine-tuning of Air Handling Units (AHU) and chiller plant systems to reduce energy use. Carbon Mitigation Strategy Sustainability Report 2025 17
Commitment and Progress CLAR is committed to supporting CLI’s ambition to achieve Net Zero emissions by 2050. CLAR has tracked and disclosed its Scope 1 and Scope 2 emissions since FY 2014. Recognising that electricity consumption is the biggest source of its emissions, various strategies have been implemented to maximise energy efficiency in its electricity use. Apart from Scope 1 and 2 emissions, Scope 3 emissions constitute a substantial portion of the overall environmental footprint of its portfolio. Since FY 2023, CLAR commenced and expanded its disclosures on Scope 3 emissions, disclosing emissions associated with Category 3 (Fuel- and Energy-related Activities), Category 5 (Waste Generated in Own Operations), Category 6 (Business Travel), and Category 13 (Downstream Leased Assets). CLAR continues to expand its Scope 3 data coverage, enhance data quality, and collaborate with its value chain to drive decarbonisation. From FY 2025 onwards, CLAR expanded its Scope 3 emissions disclosure by covering Category 1 (Purchased Goods and Services), Category 2 (Capital Goods), Category 4 (Upstream Transportation and Distribution) and Category 15 (Investment). CLAR is also aligning its use of emission factors with CLI, sourcing emission factors from the International Energy Agency (IEA)25 2025 for FY 2025 reporting. IEA factors are increasingly regarded as a market standard in global ESG reporting and provides global coverage for more than 150 countries / regions. Standardising emission factors, instead of adopting country / region-specific emission factors offers comparability across regions / peers and within CLI Group. In FY 2025, CLI undertook a benchmarking study to review and assess industry best practices for accounting for energy and carbon emissions for data centre assets based on the operational control approach under the GHG Protocol. The new approach for allocating emissions for data centre assets is currently under review and will be updated accordingly. 25 IEA is an intergovernmental organisation that provides authoritative global energy data, analysis, and policy guidance to enhance the reliability, affordability, and sustainability of energy systems across more than 30 member countries and associated regions. 26 Refers to CLI 2030 SMP for more details: https://www.capitaland.com/content/dam/capitaland-sites/international/about-capitaland/sustainability/ revisedsmp/SMP_FINAL.pdf 27 Galaxis, Neuros & Immunos, Nexus @one-north, LogisTech, Nucleos, Cintech I, Cintech II and Rutherford and Oasis, Singapore. 28 Refers to CLAR owned and managed properties. Towards a Low Carbon Future 2020 CLI 2030 SMP was launched Secured first green financing (S$100 million Green Bond) 2023 CLI 2030 SMP26 targets were reviewed and revised 2024 Progressive upgrades of automatic meters for properties in Australia and the UK/EU Increased coverage of solar deployment and Electric Vehicle (EV) charging across regions 2025 Power the common facilities’ electricity usage with renewable energy at properties located at Singapore Science Park 1, in addition to existing Singapore properties powered with renewable energy27 2030 Achieve green certifications for all existing properties28 Support CLI’s goal in achieving CLI 2030 SMP 2050 Support CLI’s goal to achieve Net Zero Building Portfolio Resilience and Resource Efficiency CapitaLand Ascendas REIT 18
29 Emission factors used for the computation of the 2025 emissions were from International Energy Agency (IEA) 2025 v1.1 (AR6 Applied). Singapore Total Scope 1 and 2 emissions at Singapore properties saw a decrease of 16.7% in FY 2025, at 31,048 tonnes CO2e. Emissions intensity declined 18.5% to 14.6 kgCO2e/sq m. The reduction was primarily due to the allocation of electricity consumption to tenants for after-hours air-conditioning requests. The alignment with carbon emission factors adopted by CLI Group, which were lower as compared to emission factor published by the Energy Market Authority in Singapore also contributed to the decrease. Australia Total Scope 1 and 2 emissions at CLAR’s Australia properties was 3,826 tonnes CO2e in FY 2025, representing a 26.1% reduction. Carbon emissions intensity also declined by 27.8% to 41.1 kgCO2e/sq m. As the energy consumption was relatively stable with 3.4% reduction, the primary driver of the reduction was due to the adoption of carbon emission factors in alignment with CLI Group, which were lower than National Greenhouse Accounts Factors. United States At CLAR’s US properties, total Scope 1 and 2 emissions increased by 24.2%, reaching 5,654 tonnes CO2e. Carbon emissions intensity increased 29.5% to 44.5 kgCO2e/sq m. While energy consumption and intensity was relatively stable, the increase in emissions was mostly attributed to the alignment with the emission factors adopted by CLI Group, most of which were higher than emission factors used in FY 2024. United Kingdom and Europe Emissions at UK and EU properties fell 14.7%, at 2,337 tonnes CO2e, while emissions intensity similarly fell 14.5% to 66.3 kgCO2e/sq m. As UK and EU properties were fully powered by renewable energy, the reduction in emissions were due to lower refrigerant emissions factors adopted in alignment with CLI Group. Singapore United States United Kingdom / Europe Australia Total 49,449 49,720 42,865 5,963 5,174 3,826 5,825 4,554 5,654 2,740 2,337 17 37,645 37,252 31,048 Scope 1 & 2 Carbon Emissions (tonnes CO2e) Carbon Emissions Intensity (kgCO2e/sq m) 2025 2023 2024 20.7 17.9 21.2 2025 2023 2024 71.4 57.0 41.1 2025 2023 2024 37.9 34.3 44.5 77.5 66.3 2025 2023 2024 2025 2023 2024 17.8 17.9 14.6 0.5 Carbon Emissions and Intensity In FY 2025, market-based Scope 1 and 2 emissions decreased 13.8% to 42,865 tonnes CO2e, while emissions intensity decreased 15.4% to 17.9 tonnes CO2e/sq m as compared to FY 2024. The reduction was mainly due to higher renewable energy consumption in Singapore and alignment with carbon emission factors adopted by CLI Group29, which were generally lower as compared to emission factors published and used by individual countries, except for the US. Standardising emission factors, instead of adopting country / region-specific emission factors offers comparability across regions and peers. Sustainability Report 2025 19
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
Based on identified climate-related risks and opportunities in the latest climate scenario analysis, no changes were required for CLAR’s underlying business model. [IFRS S2 14(a)(i), 22(a)(i)] Potential impacts of climate-related risks and opportunities assessed across the portfolio were identified under the different scenarios. CLAR faces more exposure to physical risks under the 3°C scenario in the long term relative to transition risks as minimal transition policies are expected to be in place and the development of low-carbon technology or related market changes may be slow. Conversely, under the 1.5°C and 2°C scenarios, CLAR faces higher levels of transition risks as more stringent climate-related policies are expected to be introduced and implemented. [IFRS S2 22(b)(i)] While CLAR has identified its climate-related risks and opportunities and associated risk ratings as part of the latest climate scenario analysis, the detailed quantitative information relating to these risks are not currently disclosed as the financial effects of each identified risk and opportunity are not separately identifiable at present, and contains an inherent level of measurement uncertainty. The insights on both quantitative and qualitative assessments of the risks identified provide a basis for the next steps in understanding the severity of risk impacts across time horizons30. The outcomes of the FY 2022 climate scenario analysis for CLAR’s portfolio and the mitigating measures which are both applicable to CLAR in FY 2025 can be found in CLAR’s Sustainability Report 2023 and on CLAR’s website. For FY 2025, CLAR has affirmed that the outcomes of the FY 2022 climate scenario analysis remain relevant to CLAR portfolio. As an ongoing process, CLAR, alongside CLI, will review and update, if appropriate, the processes associated with risk management in order to account for the identified material environmental and climate-related risks. Climate Transition Plan - Risk Management CLAR’s assessment of climate resilience is integrated into the annual, group-wide RCSA exercise, which informs its strategic planning process. The RCSA adopts a structured risk matrix, which prescribes criteria for how each identified risk can be categorised based on the potential impact and likelihood [IFRS S2 25(a)(iii)] . These criteria, which are communicated groupwide, differ depending on the type of risk. Whilst scenario analysis serves as a helpful tool to inform decision-making and test business resilience against plausible futures, it is not a precise predictor of future performance and outcomes. CLAR acknowledges the inherent limitations and uncertainties in this modelling, particularly regarding future policy, market, and technological shifts, and recognise that these strategic insights remain subject to the evolving nature of global climate trajectories. The CLI ERM framework and the ISO 14001-certified EMS continuously supports the proper management and mitigation of the identified climate-related risks and opportunities. Transition risks associated with evolving local and global climaterelated regulations as well as changing market and stakeholder expectations will continue to be closely monitored by CLAR to ensure compliance. Physical risks, such as floods, rising temperatures, and other extreme weather events are on the radar and its potential impacts on the portfolio are currently being managed. CLAR’s risk management processes to address its key risks and uncertainties, including those related to climate change, are discussed further in its AR 2025, Risk Management section on pages 98 to 103. 30 Time horizons are defined in alignment with our business planning cycles for assessing climate-related risks and opportunities: short-term (2-3 years), medium-term (until 2030), and long-term (beyond 2030). Sustainability Report 2025 21
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