CapitaLand India Trust : Sustainability Report FY 2023

SUSTAINABILITY REPORT

ABOUT THIS REPORT

CapitaLand India Trust (CLINT) is pleased to present our eighth annual Sustainability Report. The report communicates CLINT's progress towards its commitment to generating long-term value for its stakeholders through sustainability in the real estate industry. CLINT is managed by CapitaLand India Trust Management Pte. Ltd. ("Trustee-Manager") and has the dual responsibility of safeguarding the interest of Unitholders, and managing the business conducted by CLINT. CLINT engages CapitaLand Services (India) Private Limited ("Property Manager") to manage the daily operations and maintenance of its properties.

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 has incorporated several elements of the Integrated Reporting (IR) Framework of the Value Reporting Foundation, and mapped CLINT's Environmental, Social, and Governance (ESG) performance against the United Nations Sustainable Development Goals (UN SDGs) and Sustainability Accounting Standards Board (SASB) Real Estate standard. This report also includes CLINT's enhanced Task Force on Climate-Related Financial Disclosures (TCFD) as part of CapitaLand Investment (CLI) and its listed funds ("the Group") strategy towards mitigating the impacts of climate change.

This year, CLINT has engaged an external party to review this report against the requirements of SGX- ST Listing Manual Rule 711(A) and 711(B). This SR has also undergone a comprehensive internal review. Additionally, CLI continues to externally assure its Global Sustainability Report (GSR) with reference to the International Standard on Assurance Engagements (ISAE) 3000 and covers the Group's global portfolio and employees, including those of the Trustee-Manager. CLI's GSR 2023 will be published by 31 May 2024 on the CLI website. The scope of the assurance will cover CLINT's portfolio.

Reporting Scope and Period

This report reflects upon CLINT's sustainability performance for the period from 1 January 2023 to 31 December 2023 ("2023"). The scope of this report covers the CLINT's business park portfolio1, comprising the nine IT parks listed below:

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	International Tech Park Pune
	- Hinjawadi (ITPP-H)
	aVance Pune

Feedback

CLINT's leadership strives for improvement to its policies and mechanisms to establish high market standards. Towards that end, CLINT continually seeks the valuable feedback of its stakeholders. Please share your suggestions to [e-mail].

1 The reporting scope has been expanded to include ITPH - Block A and ITPP-H and thus covers all CLINT's business parks as at 31 December 2023. This report excludes (i) the seven operating warehouses at Arshiya Free Trade Warehousing Zone in Panvel and Industrial Facility 1,2 & 3 in Mahindra World City, as CLINT is not involved in the operations of these properties and (ii) lands under development for the data centres.

62 CAPITALAND INDIA TRUST

CAPITALAND INDIA TRUST 2023 SUSTAINABILITY REPORT STRUCTURE

Overview

Leadership

• Effective Building Management Systems

• Green building rating,

benchmarks and
awards								ital
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• Employment and Workplace Diversity
• Employee Engagement and Wellbeing
• Occupational Health and Safety
• Human Rights

umanCa p i t a l

Strategy

• Energy consumption and GHG emissions
• Renewable Energy
• Water Management
• Waste Management
• Biodiversity

l a t i p a C t n e m

n o r

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ENVIRONMENT SOCIAL

GOVERNANCE

S

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a Cn

ad pR i te al l a t i o n s h pi

• Tenant Experience
• Community Engagement
• Supply Chain Management

Performance

Portfolio

F i n a n cialC

• Sustainable Financing

apital

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O

• Board Diversity
• Sustainability Governance

ESG Framework

ANNUAL REPORT 2023 63 

Financials

Other Information

SUSTAINABILITY REPORT

BOARD STATEMENT

At CLINT, sustainability is at the core of everything we do. We are committed to grow in a responsible manner, delivering long-term economic value, and contributing to the environmental and social well-being of our communities. In 2023, CLI refreshed its 2030 Sustainability Master Plan (SMP) to be aligned with its identified material ESG factors. As part of CLI, we welcome the changes made and have aligned ourselves to CLI's sustainability plans.

We recognise the importance of the SMP as it steers our efforts towards a common course in making meaningful impacts through building portfolio resilience and resource efficiency, enabling thriving and future- adaptive communities, and stewarding responsible business conduct and governance. Ambitious ESG targets have been set which include carbon emissions reduction targets validated by the Science Based Targets initiative (SBTi). In 2023, CLI revised its SMP targets to elevate its SBTi-approved targets in line with a 1.5°C scenario, incorporate its Net Zero commitment, and enhance its focus on social indicators.

The Trustee-Manager's Board of Directors ("the Board") is responsible for overseeing CLINT's sustainability efforts and takes ESG factors into consideration in determining its strategic direction and priorities. In spurring greater efficiency and accountability of our management in managing ESG topics, we approve the executive compensation framework based on

the principle of linking pay to performance. Key Performance Indicators based on CLINT's business and sustainability performances are set to assess the efficiency of the Management and thus determines its remuneration.

Our ESG performance is recognised in the 2023 Global Real Estate Sustainability Benchmark (GRESB) Real Estate Assessment, where CLINT obtained a 4-star rating in its inaugural year of submission. On the Singapore Governance and Transparency Index 2023 (REIT and Business Trust Category), CLINT is ranked 4th out of 43 REITs and Business Trusts, up from 6th place in the previous year.

We continue to identify and adopt meaningful ESG practices and enhance sustainability. In 2023, we further enhanced our solar energy generation with our rooftop solar panels collectively generating 4,840 megawatt-hours (MWh) of electricity. Additionally, our 21-megawatt (MW) captive solar plant in Tamil Nadu was commissioned in January 2024, which targets to generate over 30,000 MWh of electricity annually for usage in the common areas of CLINT's assets located in the state.

We continually engage our employees, tenants, and business partners across various facets of our sustainability agenda, demonstrating our dedication and resilience towards delivering sustainable economic growth and promoting environmental and social well- being.

64 CAPITALAND INDIA TRUST

STAKEHOLDER ENGAGEMENT AND MATERIALITY

Stakeholder Engagement

The Trustee-Manager actively seeks to build positive and long-lasting relationships with all stakeholders. These include the investment community, employees, tenants, suppliers, contractors, and the local community. CLINT leverages several channels for active communication and timely addressing of the concerns of its stakeholders.

	Key Stakeholder	Needs and Expectation of	Key Engagement Channels	Actions and Goals
	Groups	Stakeholder Groups
	Investment	• Strategic and	• CLINT's website, SGXNet,	We aim to provide timely and
	Community	sustainable growth,	email alerts, physical	transparent communications
			total returns	meetings and virtual calls are	to keep the investment
			• Accurate, timely	conducted throughout the	community apprised of
			and comprehensive	year	significant topics relating to
			information to make	• Annual General Meeting	corporate developments,
			sound judgements	• Annual Report and	portfolio performance, asset
			• Regular and clear	Sustainability Report	and capital management,
			communications	• Biennial investor perception	sustainability matters, and
			and updates	survey	acquisitions and divestments.
				• Regular non-deal roadshows
	Employees	• Active engagement	• Quarterly communication	We strive to create a cohesive
			• Career progression,	sessions with senior	and healthy workplace based
			job security and	management team	on trust, mutual respect
			stability	• Regular employee surveys	and active communication.
			• Competitive	• Induction programmes for all	With that, great emphasis
			remuneration and	new hires	is placed on employee
			employee benefits	• Communication and	empowerment and equal
			• Learning and	feedback channels on	opportunity for all employees.
			development	intranet portal	To maintain a committed
			opportunities	• Regular performance	and engaged workforce,
			• Workplace safety,	feedback and appraisals	employees are encouraged
			health and wellness	• Internal and external training	to share their concerns and
				and workshops	feedback through various
				• Wellness, sports and social	channels, including employee
				activities throughout the year	engagement surveys.
	Tenants	• Competitive rental	• Regular tenant engagement	We are committed to providing
			rates	surveys are conducted	premium quality solutions for
			• Quality of facilities		business infrastructure and
			• Safety and security	The following are conducted	services, as well as enhancing
			practices	throughout the year:	workspace experience to
			• Workplace	• Active communication	meet the needs of tenants. In
			engagement and	• Networking events	addition, securing properties
			environment	• Tenant engagement activities	from threats and ensuring the
					health and wellness of tenants
					and visitors is of paramount
					importance.

ANNUAL REPORT 2023 65 

Overview

Leadership

Strategy

Performance

Portfolio

ESG Framework

Financials

Other Information

SUSTAINABILITY

REPORT

Key Stakeholder	Needs and Expectation of	Key Engagement Channels	Actions and Goals
Groups	Stakeholder Groups
Suppliers and	• Fair and reasonable	The following are conducted	We work closely with
Contractors	treatment	throughout the year:	contractors and suppliers to
		• Share industry best	• Standard operating	have a shared commitment to
		practices	procedures, guidelines, and	high quality EHS standards.
			house rules for compliance
			• Share CLI's Environmental,
			Health and Safety (EHS)
			Policy with suppliers.
			• Share CLI's Supply Chain
			Code of Conduct with
			suppliers.
			• Collaborate with suppliers to
			manage EHS challenges

Local	• Creation of	• Ad-hoc corporate social
Communities	employment	responsibility (CSR) activities
		opportunities	through CapitaLand Hope
		• Operate in a	Foundation (CHF)
		responsible manner	• Formalise three days
		• Support social	of Volunteer Service
		development and	Leave (VSL) for its staff
		community activities	to participate in activities
			related to the needy and
			underprivileged in Singapore
			and overseas, and green
			volunteerism related to
			resource conservation, waste
			minimisation and recycling,
			pollution control and nature
			conservation

We advocate the spirit of caring and sharing for the communities they operate in. Carefully managing and minimising the societal and environmental impacts of its operations is critical in fulfilling its duties as a responsible corporate citizen.

66 CAPITALAND INDIA TRUST

Materiality

CLINT is guided by CLI's materiality assessment process, which identifies and prioritises the management of material ESG issues that are most relevant and significant to CLINT and its stakeholders. The material topics are reviewed and approved by the CLI's Board of Directors ("CLI Board") at the Group level. A double materiality approach is adopted, considering issues which are material from either the impact perspective or financial perspective2 or both. Potentially material ESG issues arising from activities across CLINT and CLI's value chain (including potential risks and opportunities in the immediate and longer term) are primarily identified via ongoing engagement with CLINT's management, CLI's business units and external stakeholders, and review of resources including investor questionnaires, ESG surveys, sustainability benchmarks and frameworks such as GRESB and SASB.

In addition, CLINT conducts regular review, assessment, and feedback in relation to ESG topics. The key to this is an annual Group-wide Risk and Control Self- Assessment exercise which entails the identification, assessment and documentation of material risks and

Prioritisation of Material ESG Issues

corresponding internal controls. These material risks include fraud and corruption, environmental (e.g., climate change), health and safety, and human capital risks which are important elements in our sustainability agenda.

In elevating our commitment towards global sustainability, we are guided by CLI's 2030 SMP as well as our commitment towards long-term value creation. We have identified and reviewed material issues that are most relevant and significant to CLINT and our stakeholders. These ESG material issues are assessed and prioritised based on the likelihood and potential impact of issues affecting our business continuity. These identified ESG issues are then categorised into six capitals - Environmental, Manufactured, Human, Social and Relationship, Organisational, and Financial, which contribute to our sustainability agenda. In 2023, a review of our material ESG issues was conducted to ensure the relevance of the material topics against the backdrop of a recovering economy. These identified ESG issues have been approved by the Board and are deemed to be material to CLINT.

Overview

Leadership

Strategy

Performance

Environment	Social	Governance
Critical
• Climate change and carbon	• Occupational health and safety	• Risk managementiii
emissions reduction	• Human capital	• Business ethics
• Energy efficiency	• Stakeholder engagementi
• Water management	• Product and servicesii
	• Supply chain management
	• Diversity (Board and employees)
Moderate and Emerging
• Waste management	• Human rightsiv

• Biodiversity

1. This includes green leases and tenant engagement on ESG matters.
2. This includes products and services promoting customer health and safety, and green certified buildings.
3. This includes consideration of compliance, economic performance, and cyber-security.
4. This refers to CLI's zero tolerance stance towards child/forced labour.

2 To identify ESG issues which are potentially financially material, CLI takes reference from the SASB Standards for Real Estate and Real Estate Services, which identify sustainability factors that are material to short, medium, and long-term enterprise value for the industry.

ANNUAL REPORT 2023 67 

Portfolio

ESG Framework

Financials

Other Information

SUSTAINABILITY

REPORT

SUSTAINABILITY JOURNEY HIGHLIGHTS

With the implementation of CLI's 2030 SMP, we have set down firm commitments towards this masterplan and is progressing beyond ad hoc sustainability initiatives and programmes to integrating sustainability into our business operations. The refreshed 2030 SMP put together CLI's commitments to achieve Net Zero carbon emissions by 2050 and reduce 46% of its Scope 1 and 2 GHG emissions by 2030. CLI has also committed to increasing its usage of renewable energy from 35% to 45% by 2030 and added a new target to reduce waste intensity in daily operations by 20%. New social targets focused on social impact, human capital development, and employee wellness were added, such as having at least 40% female representation in senior management, with an increased emphasis on governance. CLI's refreshed 2030 SMP provides greater clarity to achieve its sustainability goals. CLINT is fully committed to attaining these goals.

• 2016
  Progressively installed Electronically Commutated (EC) fans across all our business parks and signed our first power purchase agreement (PPA) for renewable energy at ITPB.
• 2017
  Commenced the installation of onsite rooftop solar panels across our parks.
• 2019
  Adopted an automatic waste segregator and implemented an intelligent building platform for our Heating, ventilation, and air conditioning (HVAC) systems at ITPB. Currently, 31 buildings across CLINT's business park portfolio are connected to the intelligent building platform, with the remaining buildings being implemented progressively.

• 2021
  Secured our maiden S$100 million Sustainability- Linked Loan (SLL).
• 2022
  Implemented our first Virtual District Cooling System (VDCS) at ITPB.
• 2023
  Increased our SLL to $810 million (58% of total loan books).
• 2024
  Commissioned our first 21 MW captive solar power plant in Tamil Nadu.

• 2020
  Implemented the Environmental Tracking System (ETS) system for sustainability performance tracking and installed our Ultraviolet Germicidal Irradiation (UVGI) and demand-based ventilation at all parks.
  Looking ahead, we are committed to pursuing more sustainability initiatives in our business operations.

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CLI's 2030 SMP was reviewed and approved by the CLI Board in 2023 to ensure that the Group's business strategy is aligned with climate science. The SMP drives CLI's sustainability efforts in the ESG pillars, enabling the Group to create a larger positive impact for the environment and society. As a CLI-sponsored Business Trust, we are aligned with CLI's 2030 SMP to elevate the Group's commitment to global sustainability in the built environment.

CLINT'S COMMITMENT TOWARDS CLI'S 2030 SUSTAINABILITY MASTERPLAN (SMP)

Overview

Leadership

BUILD

(Portfolio Resilience and

Resource Efficiency)

Transit to low-carbon business and reduce energy consumption through improved energy efficiency and increase use of renewable energy.

Reduce water consumption, reuse water, and prevent water pollution.

Green the operational portfolio by 2030.

Strengthen climate resilience of CLINT's portfolio by addressing climate related risks and opportunities throughout the real estate lifecycle.

ENABLE

(Thriving and Future-

Adaptive Communities

CLINT believes that regardless of ethnicity, age or gender, employees can make a significant contribution based on their talent, expertise, and experience. CLINT adopts consistent, equitable, and fair labour policies and practices in rewarding as well as developing employees.

CLI is a signatory to the UN Global Compact. As a CLI-sponsored Business Trust, CLINT's practices are aligned with CLI's.

CLINT aims to provide a work environment that is safe and contributes to the general well-being of the employees, tenants, contractors, suppliers, and the communities that use its properties.

CLI's Supply Chain Code of Conduct influences CLINT's supply chain to operate responsibly in the areas

of anti-corruption, human rights, health and safety, as well as environmental management.

CLINT is committed to activities that are aligned with its focus on community investment.

Promote sustainability within the tenant community.

STEWARD

(Responsible Business

Conduct and Governance)

Maintain safe, accessible, vibrant and quality real estate developments to enhance the lives of its tenants and members of the community.

Integrate ESG performance with financial metrics.

Requires third-party service providers and vendors to adhere to anti-bribery and anti- corruption provisions.

Actively embrace innovation to ensure commercial viability without compromising the environment for future generations.

Strategy

Performance

Portfolio

ESG Framework

Financials

ANNUAL REPORT 2023 69 

Other Information

SUSTAINABILITY

REPORT

As part of CLI's roadmap to Net Zero, CLINT will prioritise the decarbonisation levers below and 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
AVOID		gain
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

High Energy Efficiency

REDUCE

Control, Metering

and Monitoring

• • More energy efficient Heating, Ventilation, and Air Conditioning (HVAC) and lighting equipment
  • Zoning of air-conditioning systems; zoned lighting systems
  • High-efficiencyboilers and heat pumps
  • District Cooling Systems in selected properties where feasible
• 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

Aside from mitigating the external impact of our business against the environment, CLINT is aware of our stakeholders' concerns about the potential impact of climate change on our industry and business. Thus, we have started our climate-related disclosures that are aligned with TCFD recommendations since 2021 to share our strategy in mitigating and adapting to these impacts as a result of a changing climate. This year, we enhanced our climate related disclosures and reporting in line with TCFD recommendations. For more details, please refer to pages 93 to 103 of this report.

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KEY PERFORMANCE HIGHLIGHTS OF 2023

ESG IS AT THE CORE OF EVERYTHING WE DO

Overview

Leadership

4,840 MWh

Electricity generated

by rooftop solar panels

in 2023

3rd CapitaLand

Hope School

Providing over 500 underserved children with access to quality education in Pune

70 volunteers

across the CapitaLand

Group from

six countries

3-day International Volunteer

Expedition (IVE) in India

Strategy

Zero58%

cases of material non-compliance	of total loan books are SLLs
with laws and regulations

AWARDS AND ACCOLADES

4 Star Rating	Grade A	4th place
GRESB Real Estate	GRESB Public Disclosure 2023	Singapore Governance and
Assessment 2023		Transparency Index 2023 (REIT
(first time submission)		and Business Trust Category),
		up from 6th place in 2022
A MSCI	B Score	Rated 12.6
ESG Rating	CDP Climate Change 2023	- Low Risk
upgraded from BBB to A		Sustainalytics ESG Risk
rating in 2023		Rating

Performance

Portfolio

ESG Framework

Best Health and

Well-Being

Programme

Award

at the 6th Annual Health and Safety strategy India Summit & Awards 2023

Economic Times

Real Estate

Awards 2024

ITPH has been recognised as a leading hub for businesses and technology firms at the national level

BEE 5 Star

Rating

Certification

Awarded to ITPP-H from

the Ministry of Power, India,

for our energy efficiency

performance

ANNUAL REPORT 2023 71 

Financials

Other Information