CapitaLand India Trust : Sustainability Report FY 2022

Sustainability

Report

ABOUT THE REPORT

Feedback

CapitaLand India Trust (CLINT) is pleased to present its seventh annual Sustainability Report. The report communicates CLINT's progress towards its commitment to generating long-term value for its stakeholders and is a testimonial of its sustainability leadership in the real estate industry.

CLINT leadership strives to continuously strengthen its policies and mechanisms as part of the Trust's endeavours to establish high market standards. Towards that end, CLINT seeks the valuable feedback of its stakeholders. Please share your suggestions to [e-mail].

International Standards and Guidelines

This report is in accordance with the requirements of SGX-ST Listing Manual Rule 711(A) and 711(B), and Global Reporting Initiative (GRI) Standards 2021. The GRI Standards have been selected as it is an internationally recognised reporting framework covering a comprehensive range of sustainability disclosures relevant to CLINT. Additionally, the report incorporates several elements of the Integrated Reporting (IR) Framework of the Value Reporting Foundation and maps the Trust's Environmental, Social, and Governance (ESG) performances along United Nations Sustainable Development Goals (SDGs). This year, CLINT is presenting enhanced disclosures and integrating the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in this report.

Reporting Scope and Period

This report reflects upon CLINT's sustainability performance for the period 1 January to 31 December 2022 (FY 2022), with relevant prior data for the comparable period from 1 January to 31 December 2021. The scope of this report covers CLINT's portfolio1, comprising the eight IT parks listed in Figure 1 below.

Figure 1: Portfolio in Reporting Scope for FY 2022

City	Portfolio
Bangalore	International Tech Park
	Bangalore (ITPB)
Chennai	International Tech Park Chennai
	(ITPC)
	CyberVale
Hyderabad	International Tech Park
	Hyderabad (ITPH)
	CyberPearl
	aVance Hyderabad
Mumbai	Building Q1, Aurum Q Parc
Pune	aVance Pune

CLINT BOARD STATEMENT

At CLINT, the ethos of sustainability lies at the core of our business operations. We are firmly committed to sustainable business growth that ensures long-term economic value whilst ensuring our communities enhanced environmental and social well-being.

This commitment was articulated in 2020 when CapitaLand launched its 2030 Sustainability Master Plan (SMP), which identified relevant material matters for reporting on its environmental, social and governance (ESG) aspects. The SMP is reviewed every two years by the CapitaLand Board of Directors and senior management, with sustainability targets updated accordingly. The SMP has laid out ambitious commitments to reducing carbon emissions, including working toward a target in line with keeping temperature rises to 1.5°C or below, based on the Science Based Targets initiative (SBTi). In addition, CapitaLand has committed to Net Zero emissions by 2050 and enhanced its social commitments. These commitments guide CLINT's sustainability vision: to be a global leader in building a resilient and resource-efficient real estate portfolio with adaptive and innovative features at its heart.

The Board oversees CLINT's sustainability efforts and considers ESG factors a priority in determining its strategic direction. The Board is further responsible for structuring the executive compensation framework based on performance, formulating performance targets based on approved business plans, and developing sustainable corporate practices that cascade throughout the organisation.

1 The report excludes (i) the seven operating warehouses at Arshiya Free Trade Warehousing Zone in Panvel, as the Trust is not involved in the operations of the logistics park, (ii) 6.6-acre land in Airoli, Navi Mumbai which is to be developed into a new data centre (iii) Industrial Facility, Mahindra World City as it was only acquired in May 2022 and (iv) 4.0-acre land in Ambattur, Chennai which is to be developed into a new data centre and acquired in December 2022.

66 CapitaLand India Trust

SUSTAINABILITY COMMITMENT

As a CapitaLand Investment (CLI) sponsored business trust, CLINT is aligned with CapitaLand's 2030 Sustainability Master Plan (SMP) unveiled in 2020 to elevate the Group's commitment to global sustainability in the built environment. The SMP drives CapitaLand's sustainability efforts in the environment, social and governance (ESG) pillars, enabling the Group to create a larger positive impact for the environment and society.

CapitaLand's 2030 SMP is regularly reviewed where necessary to complement the Group's business strategy and align with climate science. The first scheduled review in 2022 is in progress and the outcome will be published before end May 2023.

As part of CLI's roadmap to Net Zero, CLINT will prioritise the decarbonisation levers below, and in particular, continue to source globally for new ideas and technologies to achieve higher energy efficiency and intensify its renewable energy integration efforts.

			• Natural ventilation to reduce cooling demands
			• Use of sun shades and cool paints to reduce heat gain
AVOID	Low Consumption Design		• Use of daylight/light shelves to reduce need for
	artificial lighting
			• Use of low embodied carbon material in construction
			and fit-outs
		• More energy efficient Heating, Ventilation, and Air
	High Energy Efficiency		Conditioning (HVAC) and lighting equipment
	•	Zoning of air-conditioning systems; zoned lighting systems
		• High-efficiency boilers and heat pumps
		•	District Cooling Systems in selected properties where
			feasible

REDUCE

Control, Metering

and Monitoring

• Intelligent Building Platform (cloud-based; IOT driven) that enables centralised monitoring and data analytics-based insights towards optimising equipment performance
• Sub-meteringand motion sensors for centralised monitoring, control and predictive analysis
• Regular energy audits at properties to improve energy efficiency

	On-site
	Renewables
REPLACE	Green Power
	Procurement
	Renewable
	Energy
	Certificates

• • • Solar PVs on building rooftops wherever feasible for on-site renewable energy generation
    • Explore and pilot new technologies and innovations like micro-wind turbines, waste-to-energy solutions, BIPV etc.
  • Power Purchase Agreements with offsite solar and wind farms in geographies where it is technically and regulatory-wise feasible
• Lower priority solution only in cases where no further on-site renewable or offsite green power procurement is feasible

COMPENSATE	Carbon	•	Last-mile option to address any residual carbon after all direct carbon-
	abatement initiatives have been exhausted; Quality and governance
Offsets
		control of projects to be extremely critical

Annual Report 2022 67

Sustainability

Report

Measured against Global Benchmarks

CapitaLand was one of the first companies in Singapore to voluntarily publish an annual Global Sustainability Report since FY 2009 and has had the entire report externally assured since FY 2010. Benchmarking against an international standard and framework that is externally validated helps CapitaLand to overcome the challenges in sustainability reporting that may arise from our portfolio of diverse asset types and geographical presence globally.

CapitaLand has been a signatory to the United Nations (UN) Global Compact since 2015 and its Communication on Progress for FY 2022 will be made available at www.unglobalcompact.org when published. In February 2023, CLI also became

1. signatory of the UN-supported Principles for Responsible Investment (UN PRI), as part of our commitment to investing responsibly.

CLI is listed on the Global 100 Most Sustainable Corporations Index, Dow Jones Sustainability World Index and Asia-Pacific Index, GRESB, FTSE4Good Index Series, MSCI Global Sustainability Indexes and

The Sustainability Yearbook. CLI Global Sustainability Report 2022 will be published by 31 May 2023.

CLI's sustainability reporting has evolved into a uniquely hybrid model using the Global Reporting Initiative (GRI) Standards and GHG Protocol (operational control method) since 2009, CDP since 2010, GRESB since 2013, Value Reporting Foundation's Integrated Reporting Framework since 2015, UN SDG Reporting since 2016, Taskforce for Climate-related Financial Disclosure TCFD framework since 2017, and Sustainability Accounting Standards Board (SASB) Standards since 2020.

CLI will continue to enhance its disclosures in accordance with these standards and will be reporting in accordance with the updated GRI Universal Standards 2021 which came into effect for reports published on or after 1 January 2023. The report will continue to be externally assured to AA1000 Assurance Standard, and will cover the Group's global portfolio and employees, including its listed real estate investment trusts (REITs) and business trusts. The scope of the assurance will cover CLINT's portfolio.

POST-PANDEMIC EFFORTS WITH STAKEHOLDERS

Under the Board's guidance and active involvement of the Trustee-Manager and Property Manager (the Managers), effective actions were taken across the properties to safeguard the health, safety, and wellness of its tenant and suppliers. With normalcy returning following the pandemic, many initiatives were undertaken to enhance interactions with stakeholders and support our communities.

Employees

• Inaugurated in 2022, the Listed Funds Symposium provided a platform for different key stakeholders involved in each REIT/Trust to come together to share their knowledge and experiences, exchange ideas, and showcase their achievements.
• Three Knowledge Exchange sessions were conducted in 2022, which served as a networking and information-sharing platform to explore topics relating to CLI's business.
• The Ambassador Programme was launched in 2022 for employees to share their thoughts and feedback about their work or challenges faced.
• Coffee and Learn was also launched in 2022, and the initiative allowed employees to connect with mentors working in different functions to seek personal and professional advice, helping them to navigate their career paths and gain valuable knowledge and skills.
• The CapitaLand StaffAppreciation Dinner was held for the first time in three years to celebrate employees' achievements and showcase appreciation for their efforts.

Tenants

• Supported the logistics for tenant organised vaccination drives.
• Celebrated Republic Day across multiple parks.
• Live-screenedthe FIFA World Cup in ITPB.
• Organised LiveWire 2022 across multiple cities two-year hiatus.

68 CapitaLand India Trust

Suppliers (Service Provider Staff)

• COVID-19Booster dose vaccination camp was organized across CLINT parks and ensured that the service provider staff (approximately 3,300) were 100% vaccinated.
• Rewards and Recognition events carried out for the service provider staff across cities.

Community

• Launch of Hope School 2 in Bangalore and special programmes were organised at the school to celebrate World Environment Day and India's Independence Day 2022.
• As part of the annual #GivingAsOne Campaign, 600 school kits were distributed to students at Hope School, Mahadevapura and 450 school kits to Government school students.
• For Children's Day 2022, an art contest for kids was organised at Hope School Mahadevapura, Bangalore and five other Government schools.

BOARD, TOP MANAGEMENT AND STAFF COMMITMENT AND INVOLVEMENT

Strategic Sustainability Management Structure

The CLI Board recognises the importance of sustainability as a business imperative and plays a role in ensuring that sustainability considerations are factored into CLI strategy development, which also apply to CLINT.

On a regular basis, the CLI Board is updated through the Strategy and Sustainability Committee2 (SSC) on the sustainability management performance of the Group, key material issues identified by stakeholders, and the planned follow-up measures. Additionally, through the Risk Committee and Audit Committee, the Board is typically updated at least once a year and at ad hoc Board meetings on matters related to sustainability risks, and relevant performance metrics, including carbon emissions performance, progress on achieving the reduction targets, green certification, human capital development, as well as stakeholders' expectations on climate change and/ or other social matters. They are also informed of any work-related safety incidents, business malpractice incidents and environmental incidents, which may include climate-related damages or disruptions.

The SSC, a Board Committee that is chaired by a Lead Independent Director (ID) is responsible for overseeing CLI's sustainability strategies and goals, including providing guidance to management and monitoring

progress against achieving the goals of sustainability initiatives. The SSC typically meet twice a year, with additional meetings convened as necessary. The sustainability work teams comprise representatives from CLI business units and corporate functions. Each business unit also has its own Environmental, Health and Safety (EHS) Committee to drive initiatives in countries where it operates with support from various departments.

At CLINT, the Board of Directors are actively engaged on the Trust's sustainability efforts and the sustainability report is reviewed by the Board before publishing. In FY 2022, the directors' training and professional development programmes included taking sustainability training courses prescribed by the SGX-ST.

In addition, a Sustainability Committee (SC) was formed in 2022 to further enhance CLINT's responses and processes related to ESG matters. The SC comprises the SustainabilityManagement Committee (SMC) and is supported by the Sustainability Working Committee (SWC). The Chief Executive Officer chairs the SMC, and its members include the Chief Financial Officer, Head of Investments, and Head of Portfolio Management. The SC's duties and responsibilities include developing, overseeing and ensuring the effective implementation of CLINT's sustainability objectives and strategies. The SC is also responsible for reviewing and approving sustainability targets for CLINT and reviewing and approving the annual integrated sustainability report. The SC will meet at least twice a year, and more frequently if required.

2 With effect from 1 Jan 2023, the CapitaLand Investment Board Committee, Strategy Committee, was renamed to Strategy and Sustainability Committee.

Annual Report 2022 69

Sustainability

Report

CLI AND CLINT SUSTAINABILITY MANAGEMENT

CLI

Sustainability Management Structure

CLI Board of Directors

Strategy and Sustainability Committee

Strategic oversight of ESG policies and integration

CLI Senior Leadership Council

CLI Sustainability Management Committee

CLINT

Sustainability Management Structure

CLINT Board of Directors

CLINT Sustainability Management

Committee

Chaired by CEO of CLINT's Trustee-Manager and comprising Chief Financial Officer, Head of Investments and Head of Portfolio Management

Management oversight of ESG implementation

Various Sustainability Work

Teams/Committees

Driving implementation of initiatives

under ESG pilots

Business units and corporate departments covering: Environment, health and safety

Investments, asset management

Enterprise risk management

Stakeholder engagement

Innovation

Human resource, group procurement, others

>

Management and implementation of CLINT's

sustainability objectives and strategies

CLINT Sustainability Working

Committee

Co-chaired by Chief Financial Officer and Head of Portfolio Management, and comprises members of various functions

Staff

Maintaining Diversity on the CLINT Board

The CLI Board embraces diversity and has formally adopted a Board Diversity Policy, which provides for the Board to comprise talented and dedicated Directors with a broad mix of expertise, experience, perspectives, skills and backgrounds, with due consideration given to diversity, including but not limited to, business or professional experience, age and gender, ethnicity and culture, geographical backgrounds and nationalities. With respect to

female representation, the Nominating Committee (NC) notes the Council for Board Diversity's target of women making up 30% of the boards of SGX-ST listed companies by 2030. In its annual review of the Board's composition, the NC expressly considers and includes a commentary to the Board about diversity in the composition of the Board.

In alignment with CLI, at CLINT, the Board embraces diversity and has formally adopted the Board Diversity Policy.

70 CapitaLand India Trust