ENVIRONMENTAL In addition to the risk assessment performed by the third-party platform, other transition risks and opportunities were also explored, and these are detailed in the two tables below. As some of these risks are seen as ‘indirect’ climaterelated risks, evaluating them and keeping them in view is of importance to CLAS’ climate transition journey. The perceived risk level is based on market trends, current developments and CLI and CLAS’ experience and expertise in the real estate market. The perceived risk level is seen through three scenarios – a 3°C scenario which is assumed to be a ‘business-as-usual’ scenario where there is not sufficient action taken by economies and businesses to transition to a lower carbon economy and 1.5°C and 2°C scenarios, where there are differing levels of potential action taken to tackle some of the risks of transitioning to a lower carbon economy. The opportunities were reviewed as potential actions which CLAS could take or incorporate into its climate strategy, and have not been evaluated using the risk level heatmapping criteria or reviewed by scenario (these opportunities would be relevant in all scenarios). The risks and opportunities were explored at a global portfolio level. The assigned risk level for each of the following risks and opportunities was determined primarily based on qualitative and some quantitative criteria. CLAS will continue to monitor these short-term and medium-term risks and opportunities. Risk Type Primary Risk Driver Potential Impacts CLAS’ Risk Level in 3 scenarios (2030) Mitigation Measures 1.5°C 2°C 3°C Transition Risk Changes in regulator expectations Regulators with more stringent polices and regulations around climate change for the buildings / real estate sector - More comprehensive disclosures expected on climate change actions and metrics • CLI’s group level carbon emissions target is validated by the Science Based Targets Initiative (SBTi). • CLI and CLAS’ Scope 1 and 2 carbon emissions have been externally assured since FY 2010 and FY 2022 respectively. • CLI and CLAS’ climate-related disclosures are aligned to international standards, and CLI and CLAS make on-going efforts to follow the latest developments around climate and emissions reporting standards. CLI and CLAS will incorporate such developments into their disclosures, to stay aligned with best practice disclosure standards on climate risk (e.g. exploring ISSB reporting recommendations and incorporating them into our disclosure). Changes in customer expectations Consumer preferences could shift towards greener buildings - Increased number of travellers seeking accommodation with green credentials • CLAS has green building certification and green lease targets for its portfolio. • CLAS does a continuous assessment of the green building certification for its properties and will implement necessary asset enhancements to align with relevant / latest certification levels. Risk level by third-party consultant None Negligible Moderate Significant Severe 23 CAPITALAND ASCOTT TRUST
RkJQdWJsaXNoZXIy NTkwNzg=