Sustainability

Environmental

Developing Better

Building Climate Resilience and Risk Management

Climate Scenario Analysis

The Company engaged an independent third-party consultant to conduct our first quantitative climate scenario analysis¹ of our portfolio in Singapore, Australia and the United Kingdom in 2024. This assessment supports efforts towards building our climate resiliency across different time horizons and examines recent developments in technology and literature to identify and quantify the impact of these risks and opportunities.

Our subsidiary, SingLand, also conducted a similar quantitative climate scenario analysis in 2024 and the details can be found in their sustainability report. To strengthen our climate resilience and align with lSSB Standards, the Company plans to conduct an enhanced climate scenario analysis in 2026. This enhancement will focus on expanding the scope of the assessment and integrating existing and proposed adaptive capacity into the evaluation. The table on the right lists the parameters of the climate scenario analysis conducted in 2024.

Parameters
Climate scenarios	4°C (RCP 8.5) and Below 2°C (RCP 2.6)
Time horizons	Short-term (2030), medium-term (2050) and long-term (2100)
Types of climate risks	Physical and transition risks
Coverage scope^*	100% of owned commercial and hospitality properties (22 properties) in Singapore, Australia and the UK, 75% of residential development projects (3 projects) and 100% of commercial development projects (2 projects) in Singapore as of 31 December 2023
Property types	Development projects, commercial and hospitality properties
Baseline year	2019

The qualitative assessment identified a comprehensive list of risks and opportunities that could affect UOL’s business operations. Subsequently, the quantitative analysis measured the impact of key physical and transition risks, as well as opportunities, on our operations.

The key risks and opportunities, along with their potential implications, are presented in the tables below.

Risk description	Time horizon	Potential business impacts	Potential financial implications	Mitigation actions and plans
Rising mean temperature and heatwaves	Short-term	Elevated outdoor temperatures could potentially lead to health concerns, such as heat exhaustion and heatstroke that may result in operational disruptions Operational disruptions due to heatwaves could reduce tenant accessibility and guest occupancy, resulting in lower occupancy and revenue Heat stress and related consequences increase health, safety and operational compliance costs	Impact on operating expenditure and revenue	Continue regular workplace safety inspections, including heat stress monitoring, in compliance with local regulations and guidelines (e.g. Heat Stress Advisory) Continue to deploy energy-efficient cooling systems, upgrade chiller plants and optimise air handling units
Rising mean temperature and heatwaves	Medium- and long-term	Cooling demands increase, leading to higher utility and Heating, Ventilation and Air Conditioning (HVAC) system expenses Extreme heat could adversely affect comfort and travel intent, potentially reducing hospitality revenue	Impact on energy costs (i.e. operating expenditure) and revenue
Urban, riverine and coastal flooding	Short-term	Flooding could cause property damage, leading to additional repair, maintenance costs and insurance premiums	Impact on operating expenditure and insurance costs	Conduct flood risk assessments, where feasible Establish flood mitigation plans (e.g. standby flood sacks, modification of design plans to meet crest levels) for flood-prone properties
Urban, riverine and coastal flooding	Medium- and long-term	Additional investment may be needed to protect infrastructure from flooding, including flood defence and elevating equipment	Impact on capital expenditure
Water stress	Long-term	Water stress could potentially lead to higher operational costs due to increased water prices and reduced availability for essential users Limited or inconsistent water supply can disrupt property operations	Impact on operating expenditure due to higher water prices	Continue to implement water efficiency measures across our properties Continue to implement water conservation initiatives across our hospitality properties, such as promoting the reuse of linens and towels, and offering guests the option to opt out of daily housekeeping Install rainwater harvesting systems to collect runoff in some of our hospitality properties

Risk description	Time horizon	Potential business impacts	Potential financial implications	Mitigation actions and plans
Policy and regulation – Green certifications	Short-term	Increase in operating costs due to compliance with green building certification schemes as buildings/assets transition to low-carbon standards	Impact on operating expenditure	Continuous assessment of green building certifications for our properties and implementation of necessary asset enhancements to align with relevant and latest certification levels All commercial properties in Singapore attained at least Green Mark Gold certification and aim to achieve Green Mark GoldPlus or higher for all future redevelopments and new commercial properties in Singapore Six out of eight hospitality properties in Singapore achieved Green Mark certifications and work towards progressively obtaining green building certifications for all our remaining Singapore hospitality properties Attained GSTC certification for all hospitality properties in Singapore, Australia, The United Kingdom and Indonesia Set Scope 1 and 2 GHG emissions intensity-based reduction target at the Group level Implement energy efficiency measures and adopt renewable and cleaner energy sources, including through power purchase agreements, where feasible
Policy and regulation – Carbon tax	Medium- and long-term	Increase in operating costs because of higher utility prices associated with carbon taxes Lack of investor interests in assets exposed to climate risks	Impact on operating expenditure and potential impact on investments
Technology – Rising costs from low-carbon innovation	Medium- and long-term	Increase in costs due to the accelerated pace and scale of technological innovation to reduce emissions Shifting corporate consumer preferences to less carbon-intensive assets	Impact on operating expenditure and asset value
Market – Increasing energy price	Medium- and long-term	Increase in costs associated with transitioning to a greener economy and decarbonising energy channels Upgrading assets to meet certification requirements may temporarily disrupt operations and reduce revenue during retrofit periods Decarbonisation measures and abatement technologies require capital investment over time Renewable energy integration, automation and advanced controls increase technology-related capital expenditure	Impact on operating expenditure, capital expenditure and revenue

Opportunities	Potential business impacts	Potential financial implications	Mitigation plans (Refer to relevant section on UOL's response)
Adoption of innovative technologies for resource optimisation and GHG emissions management	Reduces exposure to regulatory changes and resource-price volatility, enabling more stable and predictable business planning Stabilises operating costs and helps preserve margins by limiting the impact of rising carbon taxes, electricity prices and water prices	Impact on operating expenditure	Energy efficiency measures (Refer to the Energy page) Renewable energy (Refer to the Energy page)
Sustainable property management services	Enhances UOL’s reputation as a green property and hospitality group, strengthening brand value and attracting environmentally conscious tenants and investors Stronger tenant satisfaction and retention support higher revenue and may lead to upward property revaluations on the balance sheet	Impact on asset value and revenue	Green building certification (Refer to the Energy page) GSTC certification (Refer to Transition Risks section)
Sustainable financing	Strengthens relationships with environmentally conscious investors, enhancing UOL’s positioning and attractiveness as an ESG-aligned organisation Improves access to capital through sustainability-linked financing with potential cost saving via lower interest rates	Improve access to capital and financing	Sustainable financing (Refer to Sustainable Financing section)

Disclaimer

The climate scenario analysis presents forward-looking statements about the Company's expectations, forecasts, strategies and potential outcomes related to climate risks and opportunities. These statements, based on information available at the report's date, are subject to known and unknown uncertainties that could cause actual results to differ materially from those anticipated. While prepared in good faith, these statements carry inherent limitations due to the predictive nature of the analysis and its assumptions. Changes in policies, market dynamics, technology and unforeseen events could impact outcomes. The Company is not obligated to update or revise these forward-looking statements unless required by law. Readers are advised to exercise caution and not rely solely on these statements.

Non-financial metrics referenced, such as GHG emissions and energy use, may involve measurement uncertainties and could be subject to revision. The Company reserves the right to amend or restate this data as necessary.

For a comprehensive understanding of the potential impacts of climate-related risks and opportunities on the Company's business activities, please refer to the sections on climate scenario analysis and climate-related disclosures in this report.

Climate-related Disclosures

Following the issuance of the ISSB Standards, the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) have been fully integrated into these standards. The Group recognises that IFRS S2 builds on the TCFD framework while consolidating other investor-focused initiatives to enhance the consistency, comparability and decision-usefulness of climate-related disclosures.

In line with the Singapore Exchange Regulation (SGX RegCo) roadmap which mandates ISSB-aligned climate disclosures for listed issuers, the Group is progressively aligning our reporting with IFRS S2. The Group has commenced preparations for this transition, including plans to undertake an enhanced climate scenario analysis in 2026, and has referenced IFRS S2 requirements where relevant and practicable for the current reporting year. Through these efforts, UOL continues to strengthen our climate-related reporting by enhancing transparency, governance and data quality, in alignment with ISSB standards and other relevant frameworks.

The table below summarises our progress in addressing climate-related risks and outlines key initiatives across the four pillars of IFRS S2.

Governance
Strategy
Risk Management
Metrics and Targets

IFRS S2 Disclosure	UOL’s Approach
Disclose information about the governance body(s) (which can include a board, committee or equivalent body charged with governance) or individual(s) responsible for oversight of climate-related risks and opportunities	The Board of Directors provides oversight of ESG matters across the Group, including climate-related risks and opportunities, which are integrated into the Group’s strategic planning and business decisions. Delegated by the Board, the ARMSC reviews and advises on the Group’s overall sustainability strategy, targets, policies, roadmap, reports and disclosures. The ARMSC meets at least semi-annually to assess key ESG developments, including climate-related risks and opportunities, and updates the Board where appropriate. The ARMSC also oversees and reviews the Group's Enterprise Risk Management Framework and the adequacy and effectiveness of the Group's internal controls and risk management systems including climate-related risk and opportunities. All sustainability targets are approved by the Board with support from the ARMSC. Further details on the Group’s sustainability governance structure and the roles and responsibilities of the Board are set out in the Group Sustainability Governance Structure page, and Enterprise Risk Management page.
Disclose information about the management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and opportunities	The ARMSC is supported by management through the Group SCC and Group SWC. The two committees, together with the Group ERM function, facilitate the comprehensive risk identification process of climate-related risks and opportunities (both physical and transition) as part of the wider integrated Group ERM framework. In 2025, the Group continued to invest in capacity-building trainings and engaged a third party consultant to conduct additional sharing sessions with key risk owners to deepen understanding of climate-related risks and opportunities and to further enhance the Group’s management of sustainability-related risks. Sustainability considerations are also embedded in the Group’s non-financial key performance indicators (KPIs), including medium- and long-term targets related to greenhouse gas emissions. These KPIs are regularly reviewed and monitored to ensure continued alignment with the Group’s sustainability objectives.

IFRS S2 Disclosure

UOL’s Approach

Disclose information about the governance body(s) (which can include a board, committee or equivalent body charged with governance) or individual(s) responsible for oversight of climate-related risks and opportunities

The Board of Directors provides oversight of ESG matters across the Group, including climate-related risks and opportunities, which are integrated into the Group’s strategic planning and business decisions.

Delegated by the Board, the ARMSC reviews and advises on the Group’s overall sustainability strategy, targets, policies, roadmap, reports and disclosures. The ARMSC meets at least semi-annually to assess key ESG developments, including climate-related risks and opportunities, and updates the Board where appropriate. The ARMSC also oversees and reviews the Group's Enterprise Risk Management Framework and the adequacy and effectiveness of the Group's internal controls and risk management systems including climate-related risk and opportunities. All sustainability targets are approved by the Board with support from the ARMSC.

Further details on the Group’s sustainability governance structure and the roles and responsibilities of the Board are set out in the Group Sustainability Governance Structure page, and Enterprise Risk Management page.

Disclose information about the management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and opportunities

The ARMSC is supported by management through the Group SCC and Group SWC. The two committees, together with the Group ERM function, facilitate the comprehensive risk identification process of climate-related risks and opportunities (both physical and transition) as part of the wider integrated Group ERM framework. In 2025, the Group continued to invest in capacity-building trainings and engaged a third party consultant to conduct additional sharing sessions with key risk owners to deepen understanding of climate-related risks and opportunities and to further enhance the Group’s management of sustainability-related risks.

Sustainability considerations are also embedded in the Group’s non-financial key performance indicators (KPIs), including medium- and long-term targets related to greenhouse gas emissions. These KPIs are regularly reviewed and monitored to ensure continued alignment with the Group’s sustainability objectives.

IFRS S2 Disclosure	UOL’s Approach
Disclose information about the climate-related risks and opportunities that could reasonably be expected to affect the entity’s prospects	Please refer to the climate scenario analysis section.
Disclose information about the current and anticipated effects of those climate-related risks and opportunities on the entity’s business model and value chain	Please refer to the climate scenario analysis section.
Disclose information about the effects of those climate-related risks and opportunities on the entity’s strategy and decision-making, including information about its climate-related transition plan	The Group has applied structural relief under SGX Practice Note 7.6 Sustainability Reporting Guide for FY2025, given that reliable estimates of the financial effects of climate-related risks and opportunities are not yet feasible without undue cost or effort. We are enhancing our Climate Scenario Analysis to enable more robust, decision-useful disclosures aligned with ISSB standards in the following year. The Group is committed to strengthening climate resilience and achieving net-zero GHG emissions across the value chain by 2050. During the year, we formalised a climate transition plan to guide our emissions reduction initiatives and support wider decarbonisation goals. Please refer to this page for detailed information.
Disclose information about the effects of those climate-related risks and opportunities on the entity’s financial position, financial performance and cash flows for the reporting period, and their anticipated effects on the entity’s financial position, financial performance and cash flows over the short, medium and long term, taking into consideration how those climate-related risks and opportunities have been factored into the entity’s financial planning	Please refer to the climate scenario analysis section.
Disclose information about the climate resilience of the entity’s strategy and its business model to climate-related changes, developments and uncertainties, taking into consideration the entity’s identified climate-related risks and opportunities	The Company's first quantitative climate scenario analysis aims to understand the potential implications of climate-related risks and opportunities on our business operations and strengthen our climate resiliency. Please refer to the climate scenario analysis section Details about the potential impact of the identified climate-related risks and opportunities, along with the measures undertaken, can be found in the climate scenario analysis section. Progress on mitigation and adaptation measures taken towards these risks and opportunities will be updated in our annual sustainability reports. During the year, we have formalised a climate transition plan to guide our emissions reduction initiatives and support wider decarbonisation goals. Please refer to this page for detailed information.

IFRS S2 Disclosure	UOL’s Approach
Disclose information about the processes and related policies the entity uses to identify, assess, prioritise and monitor climate-related risks	Please refer to this page for detailed information
Disclose information about the processes the entity uses to identify, assess, prioritise and monitor climate-related opportunities, including information about whether and how the entity uses climate-related scenario analysis to inform its identification of climate-related opportunities	Please refer to this page for detailed information
Disclose information about the extent to which, and how, the processes for identifying, assessing, prioritising and monitoring climate-related risks and opportunities are integrated into and inform the entity’s overall risk management process	Climate-related risk management is fully embedded in the Group's ERM Framework. Business owners and line managers are accountable for identifying, assessing, prioritising and monitoring all risks and opportunities within their respective areas including climate-related risk and opportunities. Through the ERM framework, business functions conduct regular self-assessments of key risks and mitigating measures which are consolidated and reviewed by the Group Risk Management Committee (GRMC) and informed to the ARMSC. Please refer to Enterprise Risk Management page for detailed information. Please refer to pages 59 to 63 of the Annual Report 2025 for detailed information on: Governance structure for managing risk Risk identification and assessment

IFRS S2 Disclosure

UOL’s Approach

Disclose information about the processes and related policies the entity uses to identify, assess, prioritise and monitor climate-related risks

Please refer to this page for detailed information

Disclose information about the processes the entity uses to identify, assess, prioritise and monitor climate-related opportunities, including information about whether and how the entity uses climate-related scenario analysis to inform its identification of climate-related opportunities

Please refer to this page for detailed information

Disclose information about the extent to which, and how, the processes for identifying, assessing, prioritising and monitoring climate-related risks and opportunities are integrated into and inform the entity’s overall risk management process

Climate-related risk management is fully embedded in the Group's ERM Framework. Business owners and line managers are accountable for identifying, assessing, prioritising and monitoring all risks and opportunities within their respective areas including climate-related risk and opportunities. Through the ERM framework, business functions conduct regular self-assessments of key risks and mitigating measures which are consolidated and reviewed by the Group Risk Management Committee (GRMC) and informed to the ARMSC. Please refer to Enterprise Risk Management page for detailed information.

Please refer to pages 59 to 63 of the Annual Report 2025 for detailed information on:

Governance structure for managing risk
Risk identification and assessment

IFRS S2 Disclosure	UOL’s Approach
Disclose information relevant to the cross-industry metric categories of: greenhouse gases climate-related transition risks climate-related physical risks climate-related opportunities capital deployment internal carbon prices remuneration	Please refer to the GHG Emissions section for metrics on greenhouse gases. The Group has applied structural relief under SGX Practice Note 7.6 Sustainability Reporting Guide for FY2025, given that reliable estimates of the financial effects of climate-related risks and opportunities are not yet feasible without undue cost or effort. We are enhancing our Climate Scenario Analysis to enable more robust, decision-useful disclosures aligned with ISSB standards in the following year. Please refer to Sustainable Financing section under Economic Performance for metrics on capital deployment. UOL does not apply Internal Carbon Price in decision-making currently but will actively explore its implementation in the future. Climate‑related considerations are incorporated into executive remuneration through non-financial KPIs included within the balanced scorecard used to assess executive performance. The Group does not currently disclose the portion of executive remuneration linked to climate‑related considerations, which will be reviewed in future updates to our remuneration and sustainability reporting.
Disclose information about industry-based metrics that are associated with particular business models, activities or other common features that characterise participation in an industry	Please refer to the Appendix C: ISSB Content Index section on pages 75 to 82 of the report for detailed information on industry-based metrics.
Disclose information about targets set by the entity, and any targets it is required to meet by law or regulation, to mitigate or adapt to climate-related risks or take advantage of climate-related opportunities, including metrics used by the governance body or management to measure progress towards these targets	The Group has refreshed our environmental targets this year to strengthen our management of climate-related risks and opportunities. The change from absolute emissions targets to intensity-based targets considers the adaptability to portfolio growth or changes, comparison of performance across diverse assets and efficiency improvements relative to gross floor area (GFA). GHG Emissions: Reduce Group Scope 1 and 2 emission intensity by 76.8% per m² GFA by 2035 from a 2024 base year Achieving net-zero GHG emissions across the value chain by 2050 Energy: Reduce Group energy intensity by 10% per m² GFA by 2035 from a 2024 base year Water: Maintain Group water intensity of 1.7m³ per m² GFA from 2024 base year

IFRS S2 Disclosure

UOL’s Approach

Disclose information relevant to the cross-industry metric categories of:

greenhouse gases
climate-related transition risks
climate-related physical risks
climate-related opportunities
capital deployment
internal carbon prices
remuneration

Please refer to the GHG Emissions section for metrics on greenhouse gases.

The Group has applied structural relief under SGX Practice Note 7.6 Sustainability Reporting Guide for FY2025, given that reliable estimates of the financial effects of climate-related risks and opportunities are not yet feasible without undue cost or effort. We are enhancing our Climate Scenario Analysis to enable more robust, decision-useful disclosures aligned with ISSB standards in the following year.

Please refer to Sustainable Financing section under Economic Performance for metrics on capital deployment.

UOL does not apply Internal Carbon Price in decision-making currently but will actively explore its implementation in the future.

Climate‑related considerations are incorporated into executive remuneration through non-financial KPIs included within the balanced scorecard used to assess executive performance. The Group does not currently disclose the portion of executive remuneration linked to climate‑related considerations, which will be reviewed in future updates to our remuneration and sustainability reporting.

Disclose information about industry-based metrics that are associated with particular business models, activities or other common features that characterise participation in an industry

Please refer to the Appendix C: ISSB Content Index section on pages 75 to 82 of the report for detailed information on industry-based metrics.

Disclose information about targets set by the entity, and any targets it is required to meet by law or regulation, to mitigate or adapt to climate-related risks or take advantage of climate-related opportunities, including metrics used by the governance body or management to measure progress towards these targets

The Group has refreshed our environmental targets this year to strengthen our management of climate-related risks and opportunities. The change from absolute emissions targets to intensity-based targets considers the adaptability to portfolio growth or changes, comparison of performance across diverse assets and efficiency improvements relative to gross floor area (GFA).

GHG Emissions:

Reduce Group Scope 1 and 2 emission intensity by 76.8% per m² GFA by 2035 from a 2024 base year
Achieving net-zero GHG emissions across the value chain by 2050

Energy:

Reduce Group energy intensity by 10% per m² GFA by 2035 from a 2024 base year

Water:

Maintain Group water intensity of 1.7m³ per m² GFA from 2024 base year

*The scope of climate scenario analysis excludes the properties owned by SingLand. SingLand conducts its climate scenario analysis, which is detailed in its sustainability report.

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