Sustainability

CICT is aligned with CapitaLand's charter and various policies which uphold fundamental principles of human and workplace rights. These policies outline principles to protect individual rights with a zero-tolerance stance towards child/forced labour, diversity, equity and inclusion across the organisation.

To find out more:

• CapitaLand Social Charter
• CapitaLand Diversity, Equity & Inclusion Policy
• CapitaLand Harassment Policy
• CapitaLand Supply Chain Code of Conduct
CLI Procurement Policy

CLI incorporated sustainable procurement principles in the CLI Procurement Policy. This is in alignment with the company's sustainability commitments as a signatory to the United Nations Global Compact (UNGC). CICT operates under the guidelines of the CLI Procurement Policy, ensuring that all supply chain providers are rigorously assessed during the admission and pre-qualification stages for their capability to align with our robust sustainability practices. Once onboarded, these suppliers are subject to regular evaluations to ensure ongoing adherence to our procurement standards. Instances of non-compliance are promptly identified for corrective action, with suppliers presenting high sustainability risks and performance discrepancies receiving intensified monitoring for improvements. Any supplier found to be in violation or attempting to violate anti-corruption laws will face immediate contract termination.

CICT continued to screen its supply chain to ensure that relevant business and ESG risks are being managed appropriately. CICT identifies critical suppliers as high-spend suppliers, non-substitutable suppliers or critical business component suppliers such as term contractors providing facility maintenance and property management services, IT service providers, and contractors for construction works. The sustainability performance of critical suppliers, especially in terms of workplace safety, are monitored and disclosed.

To further strengthen our supply chain management, CICT leverages CLI's subscription to an external platform that conducts ESG due diligence screening on suppliers based on publicly available information. Suppliers are screened and rated based on the risk and resilience of each ESG factor, which include corruption, human rights, politically exposed parties, sanctions, safety, environmental regulation breaches, etc. CLI had piloted the screening of close to 500 critical suppliers in Singapore, China and India in 2022. A total of 17 suppliers were rated with high ESG scores. This pilot enables CLI to monitor its suppliers' ESG performance and potentially establish a capacity building programme for improvement.

Human Rights

CLI has a Social Charter (see link to the extract above under CapitaLand Policies) which sets out commitments to support the preservation of human dignity and self-respect of every individual. It covers human rights, child labour, forced labour, human trafficking, code of conduct, diversity and inclusion, and healthy work-life balance. The Social Charter applies to all employees and guides the company towards ensuring a supportive and respectful environment for individuals across all aspects of the business and operations.

Anti-Child Labour And Anti-Forced Labour

CLI is a signatory of the UNGC. CICT is aligned with its commitment to the 10 principles in human rights, labour, environment and anti-corruption. These 10 Principles of the UNGC are derived from the Universal Declaration of Human Rights, the International Labour Organisation's Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention against Corruption. CapitaLand signed the Employers Pledge for Fair Employment Practices with the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP)¹ in Singapore and is committed to the five key principles of fair employment of:

• Recruit and select employees based on merit, such as skills, experience or ability to perform the job, and regardless of age, race, gender, religion, marital status and family responsibilities, or disability.
• Treat employees fairly and with respect and implement progressive human resource management systems.
• Provide employees with fair opportunity to be considered for training and development, based on their strengths and needs to help them achieve their full potential.
• Reward employees fairly based on their ability, performance, contribution and experience.
• Abide by labour laws and adopt the Tripartite Guidelines, which promote fair employment practices.

CICT adopts a zero-tolerance stance regarding child labour, forced labour and unlawful discrimination and ad no reported incidents of such in 2023. There were no employees below the age of 16.

Fair Remuneration

All employees have signed employment contracts with the key employment terms and conditions clearly defined. This allows employees to understand both their rights and obligations, as well as those of the company, thus minimising potential employment disputes in the future. Key employment terms specified in the employment contract include job title and description, duration of employment, working hours, salary and statutory contributions/ deductions, leave entitlements, probation and notice periods, and key insurance and medical benefits, etc.

To ensure that CICT remains competitive and continues to attract, motivate and retain the right talent, we leverage CLI's engagement of external independent remuneration consultants to benchmark compensation packages against the relevant talent markets. Salaries are reviewed against the benchmarks, taking into consideration the specific job scope and responsibilities of each employee. All employees will undergo an annual performance review with an open discussion on the employee's performance, areas for improvement, developmental needs and career plans.

CICT has a comprehensive and competitive compensation package to reward and motivate employees. The company has a pay-for-performance philosophy that rewards for superior performance and aligns employee interests with those of unitholders. The overall annual variable bonus pool for employees is determined based on the Trust's achievement against a holistic set of quantitative and qualitative targets in the Balanced Scorecard dimensions of Financials, Execution, Future Growth, Talent Management and Sustainability (including ESG factors). The bonus amount awarded to individual employees are determined based on their relative contributions and individual performance during the year. The bonus awarded to eligible managerial grade employees will be a combination of cash and deferred equity which will be vested over three equal annual tranches. Additionally, the employees in senior management grades are granted contingent awards comprising CICT units; these awards are subject to a three-year performance period and will be vested if the predetermined performance conditions are achieved. The performance conditions include measures and targets on total unitholder return and ESG.

Maternity/Paternity Leave

Eligible employees are entitled to maternity and parental leave, in line with the leave eligibility and entitlement set by Ministry of Manpower Singapore. CICT also provides family event leave to eligible Singapore employees to attend to family related activities. This is over and above the legal requirement.

Retirement and Rehiring

CICT is committed to providing meaningful jobs and talent mobility where employees are given opportunities to rotate across different job functions, subject to skills/ competency requirements and business needs. This is in line with the various Tripartite Guidelines and Advisories issued by the Singapore Ministry of Manpower together with its tripartite partners, Singapore National Employers Federation and the National Trades Union Congress. The Singapore government implemented the retirement and re-employment legislation in 2012 to enable more people to work beyond the current statutory retirement age of 63, up to 68 years old. CICT has a re-employment policy of extending employment to staff who have reached the mandatory retirement age but are still able and willing to continue contributing to the REIT. This policy is applicable to all staff globally.

Talent Management

At CICT, we seek innovative, dynamic and talented employees to take the company into its next phase of growth and adopt a multi-pronged approach to workforce planning. To that end, we continuously build our management bench strength by identifying high-potential talent as part of its regular succession planning process. The Board's Nominating and Remuneration Committee regularly reviews the succession plans for the key positions in the Manager of the Trust, including the Chief Executive Officer and other key management personnel in CICT. Annually, CICT identifies and reviews suitably qualified candidates from within and outside the Group who could be considered for key positions when the immediate, medium, and long-term need arises.

Our Aim

To understand our shoppers' needs, enhance their experiences and improve the appeal of our malls

Response

• Maintain efficient, green-rated properties
• Curate and optimise tenant mix and reconstitute portfolio proactively
• Leverage technology and digital platforms such as CapitaStar's ecosystem to build loyalty
• Co-create concepts with tenants

Our Aim

To contribute to the communities and be a responsible corporate citizen

Response

• Pursue green rating for all properties in the portfolio
• Grant three days of volunteer leave per employee
• Participate actively in community programmes with social/charity objectives
• Partner with government/national agencies and tenants to promote sustainability and healthy living

Our Aim

To be the landlord of choice by understanding our tenants' needs and concerns

Response

• Maintain efficient, green-rated properties
• Curate and optimise tenant mix and reconstitute portfolio proactively
• Leverage technology and digital platforms such as CapitaStar's ecosystem, including its mobile application CapitaStar@Work, to extract synergies and cross-selling opportunities
• Regular engagement with tenants to build relationships and ensure prompt responses to their needs

Our Aim

To provide timely and consistent communication to investors and be a choice investment

Response

• Reconstitute portfolio proactively
• Manage assets and portfolio proactively
• Manage capital prudently
• Uphold strong corporate governance
• Create value via a disciplined approach to acquisitions and divestments
• Seek and evaluate investor feedback
• Commit to annual sustainability reporting
• Participate in GRESB real estate assessment annually
• Build win-win partnerships

Our Aim

To develop a high-performance work culture that embraces diversity and teamwork

Response

• Host quarterly staff communication sessions to communicate financial performance, strategy, target performance indicators
• Conduct annual performance review and identify training and development goals
• Monitor occupational health and safety issues
• Identify action plans to improve employee welfare and well-being
• Conduct training on Fraud, Bribery & Corruption (FBC) awareness annually.

Our Aim

To be a fair and reasonable buyer of goods and services and share industry best practices

Response

• Recognise supply chain partners for exceeding standards in service quality via the CapitaLand HOST Programme
• Collaborate to manage EHS challenges such as an epidemic outbreak
• Monitor and report EHS performance quarterly
• Evaluate term contractors and vendors half-yearly and engage in feedback sessions for continuous improvement
• Share CapitaLand's Supply Chain Code of Conduct with suppliers which sets out the requirements in the areas of legal, compliance, anti-corruption, human rights, health and safety, as well as environmental management.
• Build win-win partnerships