Scenario Analysis on Future Climate-related Risks and Opportunities In 2022, CLAS commenced a climate scenario analysis to understand how climate-related risks and opportunities could impact its portfolio. The analysis considers the latest global scientific developments, and 1.5°C to 3°C scenarios for current to long-term time frames. Together with CLI, CLAS will then review its strategies, mitigation and adaptation plans, and identify opportunities, in alignment with the CLI 2030 SMP. The SMP was designed to build resilience throughout CLI’s operations and futureproof its real estate portfolio, to guard against climate change risks, avoid premature obsolescence and leverage on available opportunities. The climate scenario analysis for CLI’s global portfolio (including CLAS) considered the parameters listed below: Physical risk scenarios NGFSi | 1.5°C | Orderly, 2100 NGFS | 2°C | Orderly, 2100 NGFS | 3°C | Hot House World (NDCii), 2100 Outcome of analysis Most severe physical risk impacts and costs at 3°C and in the longer term Transition risk scenarios CRREMiii | 1.5°C, 2050 NGFS | 2°C | Orderly, 2100iv NGFS | 3°C | SSP2v | Hot House World, 2100 Outcome of analysis Most severe transition risk impacts and costs at 1.5°C and in the shorter term Geographical coverage All assets within CLAS’ operating regions as at 31 December 2022: - Australia - Belgium - China - France - Germany - Indonesia - Japan - Malaysia - Philippines - Singapore - South Korea - Spain - United Kingdom - United States - Vietnam i The Network of Central Banks and Supervisors for Greening the Financial System (NGFS). ii Nationally Determined Contributions (NDC). iii Carbon Risk Real Estate Monitor (CRREM). iv The CRREM 2°C, 2050 transition risk scenario was chosen at the beginning of this climate scenario analysis. However, the platform updated its models and this option was removed during the analysis. The NGFS 2°C, 2100 Orderly scenario was then identified to replace the removed CRREM 2°C, 2050 scenario. v Shared Socioeconomic Pathways (SSP). 1.5°C 2°C 3°C SUSTAINABILITY REPORT 2023 20
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