STRATEGIC MANAGEMENT OF MATERIAL ESG ISSUES

Clean, renewable energy options are also limited in Singapore due to land and resource constraints. Despite this, we remain committed to be early adopters of green energy procurement to propel Singapore towards achieving its SG Green Plan targets.

On-site solar photovoltaic (PV) systems were also deployed across selected retail, office and industrial assets under a Solar Power Purchase Agreement (PPA) model in 2025. These PV systems supply renewable energy and are estimated to save approximately 1,000,000kWh per year, equivalent to about 200 4-room HDB flats per annum. The Solar PPA was implemented at City Square Mall, Quayside Isle, King’s Centre, Palais Renaissance and City Industrial Building.

Jungceylon Shopping Center in Phuket was a winner in the Thailand Energy Awards 2025, in recognition of its efforts in energy efficiency, renewable energy integration, and exemplary management of environmental impacts.

The Company first piloted the City Green Tenant Bonus (CGTB) Programme in 2024. In 2025, we recognised tenants who achieved at least a 10% reduction in their 2024 energy use at the inaugural CGTB Programme Awards Ceremony, encouraging broader behavioural change across our tenant community.

In 2025, we completed the installation of hybrid cooling fans at our corporate office in Republic Plaza, to balance occupant comfort and energy efficiency. This complements the raised indoor air-conditioning temperature of 25°C and is aligned with Singapore’s Go 25 movement, which promotes sustainable cooling practices.

Through dedicated tracking, monitoring and improvements in energy efficiency, the Company has achieved cost savings of approximately S$47.5 million from reduced energy expenses across all our locally managed buildings since 2012. Regular asset upgrading and enhancement efforts since 2004 have helped the Company to maintain good energy performance for our existing managed buildings.

M&C hotels began the removal of key card electricity control and installation of Room Control Units (RCUs) for all guest rooms in 2025. RCUs promote energy efficiency by using sensors to allow greater control over in-room electricity use.

Ensuring the security and resilience of the Group’s networks and information systems is critical. Strengthening our capabilities to protect ourselves and respond to cyber-attacks is vital in preventing data theft, financial loss, and disruption of operations.

Cybersecurity key risk indicators, including any cyber incidents, are reported quarterly to the CDL Risk Management Committee. In addition, IT Risk Reports are submitted to CDL’s Audit Risk Committee on an annual basis. In 2025, there were zero cyber-security related breaches. CDL adopts a robust Group-level Cybersecurity Framework to protect the confidentiality, integrity, and availability of our digital assets.

In 2025, the Company refined our “CDL Computer Security Policies & Standards” and established a comprehensive Artificial Intelligence (AI) Governance and Security Framework to govern the responsible use of GenAI technologies and to oversee AI-related risks.

Our employees’ IT security heightened awareness and vigilance are maintained through cybersecurity training courses, complemented by periodic phishing attack simulations. All M&C staff are also required to complete a multi-module course on Data Privacy and Cybersecurity annually.

Quality and sustainable spaces that embed green features and promote healthy lifestyles in our office buildings and residential developments are continually being created. Creative design and technology optimise overall well-being and create a shared sense of community.

As an asset owner and manager, the Group takes pride in ensuring a safe, green and healthy environment for our building users. We remain committed to delivering safe, high-quality products and services for our homebuyers and tenants with smart building and energy-efficient features.

To ensure compliance and prevent latent defects, the Company has a robust process guided by the Design for Safety Regulations to identify design risks and assess the severity of EHS impacts throughout the construction stages of our developments.

In 2025, homebuyers of Irwell Hill Residences, Copen Grand, and Tembusu Grand were engaged both in-person and virtually via our app, CityNexus-Home. 13 customer engagement events, from webinars and online contests to handover briefings were organised in the year. More than 1,700 homebuyers participated in these events.

Our key subsidiaries, M&C and CBM Pte Ltd, are dedicated to excellent customer service and experience. In 2025’s customer satisfaction surveys, both subsidiaries achieved higher-than-expected customer satisfaction rates.

In line with Singapore’s Workplace Safety and Health (WSH) 2028 Roadmap, we collaborate with appointed contractors to promote good WSH practices on-site and in our offices, contributing to a strong EHS culture.

• Our core operations continued to be certified for the ISO 14001 and ISO 45001 Integrated Environmental and Occupational Health and Safety Management Systems
• First developer appointed by the WSH Council as a WSH Advocate to propagate WSH excellence and influence contractors and Small Medium Enterprises (SMEs) to adopt and uplift robust WSH practices
• Launched “EHS Matters” on CityNexus app to receive direct EHS feedback from staff
• Monthly site visits by the Company’s ExCo and senior management to further reinforce a culture of safety and collaboration
• Conducted an in-house Top Executive WSH Programme (TEWP) for CDL’s Board and senior management

In 2025, we were awarded the WSH Developer Award 2025 marking our 13th win of this award. CDL’s main contractors also achieved the Safety and Health Award Recognition for Projects (SHARP) for The Myst, Tembusu Grand, Newport Plaza, Lumina Grand Executive Condominium, and Irwell Hill Residences.

Similar practices are implemented at our subsidiary, CBM Pte Ltd, which developed and deployed the CBM Safety App to manage on-site safety through real-time reporting and monitoring. CBM also enhanced its e-Attendance system to allow tracking of individuals’ health status before and after their shifts, allowing for prompt management of health and safety risks.

The Group takes a firm stance on our zero-tolerance policy towards fraud, bribery and corruption. This leads to greater opportunities such as access to capital and mitigates risks associated with legal, financial and reputational damage.

Annually, all our full- and part-time employees are required to complete a compulsory online declaration to acknowledge that they are aware of, have read, and are in compliance with CDL’s corporate policies and guidelines before the start of the calendar year.

Mandatory training is provided to all new hires on key risk management-related topics (namely Anti Money Laundering, Counter Financing of Terrorism and Counter Proliferation Financing Policy, Data Privacy, and Incident Notification and Management). Anti Money Laundering refresher training is also conducted periodically for internal stakeholders.

Corporate and sustainability policies and guidelines by the Company are published on our corporate websites, sustainability microsite and staff intranet, CDL360.

The built sector contributes to 39% of global energy-related carbon emissions, and remains heavily reliant on natural resources. Heightened demand for clean energy, cost-efficient and market-ready circular economy solutions are both opportunities and risks to maintaining profitability and sustained growth in the short- to medium-term.

The Company committed to the WorldGBC Net Zero Carbon Commitment in February 2021. The Company’s decarbonisation roadmap aims to achieve a 63% reduction in Scope 1 and 2 emissions, alongside a Scope 3 emissions reduction of 41% in embodied carbon and 58.8% in investments. To achieve our SBTi-validated targets aligned with a 1.5°C future, decarbonisation efforts continue to involve multi-business unit collaborations facilitated by the Green Building, Decarbonisation and Safety department.

The Group strives to be ahead of the curve in ensuring employee satisfaction, productivity and well-being, and building a workforce with skill sets that future-proof our business.

The Company’s skills-based hiring approach emphasises specific competencies and transferable skills, enabling us to prioritise technical and soft skills over educational qualifications, while reducing unconscious bias. To maintain consistency and objectivity, we use an interview assessment form with standardised questions to evaluate each candidate’s suitability for the role.

To strengthen leadership continuity, the Company has implemented a structured leadership competency framework and succession planning process across key roles, enabling earlier identification, development, and readiness of future leaders.

Beyond external attraction, the Company places strong emphasis on internal mobility and career progression, supported by transparent role expectations, performance development conversations, and targeted stretch opportunities to retain and grow critical capabilities from within.

Through partnerships and collaborations, the Group has actively sourced for low-carbon and innovative solutions to test bed at our development projects and managed buildings. In-house solutions leveraging technology also add and deliver exceptional value to our customers and prospective homebuyers.

In 2025, we continued to leverage innovative green building technologies and decarbonisation solutions across the life stages of an asset. We piloted an Internet of Things (IoT)-based Optimisation and Energy Monitoring Platform at Jungceylon Shopping Center, Phuket, which enables real-time visibility, operational efficiency, and proactive fault detection. With further integration across other building systems, the platform is expected to deliver potential energy savings of up to 10%.

The Company installed advanced electronically commutated (EC) fans at Orchard Hotel’s level 1 Lobby & Bar Intermezzo. The EC fan can achieve up to 40% energy savings. Coupled with the IoT Optimisation system, this can potentially improve energy savings up to about 70-80% per year.

The Group is committed to respecting and promoting the rights and dignity of our employees, workers and communities.

To promote EHS awareness and employee well-being, we offer mental health and mindfulness workshops, counselling support, on-site health screenings, and weekly fruit distributions. In 2025, CDL implemented targeted competency training on Well-being Responder: Psychological First Aid. 37 selected employees, including leaders, were equipped with practical skills to support employee well-being and manage psychosocial risks.

The Company’s contractors and suppliers abide by our principles and policies such as the Supplier Code of Conduct, Human Rights Policy, and Universal Design Policy. Since 2001, the CDL 5-Star EHS Assessment – an independent audit tool to assess, measure, and improve our main contractors’ EHS management and performance – has been in place to ensure a comprehensive, audited, and appraised approach.

At CBM Pte Ltd, EHS matters are discussed at management and risk management committee meetings to ensure timely updates to all business units.

The CDL EcoTrain, launched in March 2025, welcomed over 70,000 visitors since its opening in March in 2025 and is slated for a revamp in April 2026.

In 2025, more than 220 events covering climate and nature advocacy were held at the Singapore Sustainability Academy and Annex, engaging over 11,500 participants. Key events, including major initiatives such as the Youth4Climate Festival, My Tree House “We Love Our Planet” Storytelling Contest, and the CDL-GCNS Young SDG Leaders Award, continued to be held. Read more about our stakeholder engagement initiatives in Chapter 5 of the CDL ISR 2026.

In 2025, CDL Group continued to support Assisi Hospice’s fundraising efforts at its annual Assisi Fun Day. Collectively, close to S$40,000 of proceeds were raised while M&C also contributed donations-in-kind, including F&B and hotel vouchers towards the event’s lucky draw. S$150,000 was raised through the CDL Challenge – a special charity segment led by CDL’s Group CEO that rallied donations from stakeholders, staff and business partners.

Our Group’s ESG performance and reputation is upheld through established processes and regular engagement with our suppliers to procure sustainably sourced and safe building materials, ensure fair labour human rights practices for workers and provide healthy buildings for building occupiers.

In line with the Company’s corporate EHS Policy established in 2003, regularly updated guidelines encourage the use of eco-friendly and recycled materials certified by approved local certification bodies, such as the Singapore Green Building Council and Singapore Environment Council.

The Company supports our main contractors in the tabulation of carbon emission data associated with building materials outlined in ISO 14064 greenhouse gases standards, contributing to their sustainability proficiency.

In October 2025, we marked a major milestone in our SME Supplier Decarbonisation Queen Bee Programme by celebrating the graduation of the first 42 local SMEs. For more information, please refer to Chapters 3 and 4 of the CDL ISR 2026.

Addressing Singapore’s water challenges through conservation and rainwater harvesting, where feasible, has been a priority for the Company. We partner with PUB – Singapore’s national water agency – annually for Singapore World Water Day, by engaging our corporate staff, tenants and members of the public.

Companies that lag in their ESG performance could be penalised through higher cost of debt financing or face divestment from shareholders.

The Company is a signatory to the UN Principles for Responsible Investment (PRI). We have also developed the CDL Sustainable Investment Principles to steward responsible capital allocation and decision-making for investments.

To instill a ‘waste-less’ mindset amongst employees, training is conducted for our Group employees to raise awareness on topics like circularity and waste management through workshops, learning trips, and seminars.

As a leading green, nature-positive developer, the Company embraces biophilic design across our assets and incorporates nature-based solutions (where applicable) via green roofs and walls or active green spaces.

In 2024, the Company updated our Biodiversity Policy, first established in 2020, to include more details of our Biodiversity Management System and the interconnectivity of land ecosystems with marine biodiversity and ecosystems.

Socially responsible businesses should embed diversity and inclusion principles into recruitment practices, opportunities for advancement and remuneration policies.

Reflecting our commitment to meritocracy, our compensation and rewards policies are performance-based, promoting a culture of fairness and motivation. We monitor and address gender pay gaps, ensuring equitable remuneration across various staff levels.

Our workforce diversity is further enriched by our inclusive workplace culture, with employees hailing from a variety of ethnic backgrounds. Since 2023, the Group has introduced a DEI Policy to ensure a dignity-centred workplace where all employees are mutually respected.