Sustainability

Environmental

Developing Better

Building Climate Resilience and Risk Management

Climate Scenario Analysis

In 2024, UOL conducted our first quantitative climate scenario analysis of our portfolio in Singapore, Australia and the United Kingdom. We worked with an independent third-party consultant to better understand the potential impact of climate-related risks and opportunities on our business activities. This assessment provided guidance on enhancing our climate resilience across different time horizons, while identifying and quantifying the potential impact of these risks and opportunities. Additionally, by considering recent advancements in technology and literature, it also helps in aligning with ISSB’s IFRS S2 requirements. The table below lists the key parameters of the climate scenario analysis.

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 scope¹	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	Potential Business and Financial Implications	Ongoing Resilience Measures²
Rising mean temperature and heatwaves	Increase in cooling demand may result in higher energy costs. Elevated outdoor temperatures could potentially lead to health concerns, such as heat exhaustion and heatstroke.	Continue to improve energy efficiency initiatives across properties, such as the installation of solar panels, LED lighting, upgrading chiller plants and optimising air handling units.
Urban, riverine and coastal flooding	Flooding might impact the structural integrity of buildings. Investments in flood mitigation and adaptation efforts may be necessary.	Conducted flood risk assessments considering asset type, location, time horizons and scenario pathways.
Water stress	Water stress could potentially lead to higher operational costs due to increased water prices and reduced availability for essential uses. Properties in areas with variable water availability may face higher risk of operational disruption.	Continue to implement water efficiency retrofitting measures across our properties. Continue to implement water conservation programmes 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 our hospitality properties, where feasible.

Risk Description	Potential Business and Financial Implications	Ongoing Resilience Measures²
Policy and regulation Carbon tax Green certifications	Increase in operational costs associated with carbon taxes and compliance with green building certification schemes.	All commercial properties in Singapore have attained at least Green Mark Gold certification. Aim to achieve Green Mark Gold^Plus or higher for all future redevelopments and new commercial properties in Singapore. Four out of eight hospitality properties in Singapore have achieved Green Mark certifications. Working progressively to obtain Green Mark certifications for all our remaining Singapore hospitality properties.
Technology Cost of reducing emissions	Increase in costs due to the accelerated pace and scale of technological innovation to reduce emissions.
Market Increase in energy prices	Increase in costs associated with transitioning to a greener economy and decarbonising energy channels.	First hospitality group to attain GSTC multi-site certification for all hospitality properties in Singapore and Australia. Continuous assessment of green building certifications for our properties and implementation of necessary asset enhancements to align with relevant and latest certification levels. Scope 1 and 2 GHG emissions reduction target for our Singapore properties. Continue to implement energy efficiency improvement initiatives at our properties, where feasible.

Risk Description

Potential Business and Financial Implications

Ongoing Resilience Measures²

Policy and regulation

Carbon tax
Green certifications

Increase in operational costs associated with carbon taxes and compliance with green building certification schemes.

All commercial properties in Singapore have attained at least Green Mark Gold certification. Aim to achieve Green Mark Gold^Plus or higher for all future redevelopments and new commercial properties in Singapore.
Four out of eight hospitality properties in Singapore have achieved Green Mark certifications. Working progressively to obtain Green Mark certifications for all our remaining Singapore hospitality properties.

Technology

Cost of reducing emissions

Increase in costs due to the accelerated pace and scale of technological innovation to reduce emissions.

Market

Increase in energy prices

Increase in costs associated with transitioning to a greener economy and decarbonising energy channels.

First hospitality group to attain GSTC multi-site certification for all hospitality properties in Singapore and Australia.
Continuous assessment of green building certifications for our properties and implementation of necessary asset enhancements to align with relevant and latest certification levels.
Scope 1 and 2 GHG emissions reduction target for our Singapore properties.
Continue to implement energy efficiency improvement initiatives at our properties, where feasible.

Opportunities	Potential Business and Financial Implications	Ongoing Resilience Measures²
Adoption of innovative technologies for resource optimisation and GHG emissions management	Reduce exposure to regulations and to increases in carbon taxes, electricity prices and water prices.	Continue to improve energy efficiency initiatives across properties, such as the installation of solar panels, LED lighting, upgrading chiller plants and optimising air handling units. Continue to implement water efficiency retrofitting measures across our properties.
Sustainable property management services	Enhance reputation and brand recognition as a green property and hospitality group. Increase asset value and revenue by offering sustainable property management services that appeal to environmentally conscious tenants and investors.	All commercial properties in Singapore have attained at least Green Mark Gold certification. Aim to achieve Green Mark Gold^Plus or higher for all future redevelopments and new commercial properties in Singapore. Four out of eight hospitality properties in Singapore have achieved Green Mark certifications. Working progressively to obtain Green Mark certifications for all our remaining Singapore hospitality properties. First hospitality group to attain GSTC multi-site certification for all hospitality properties in Singapore and Australia.

Disclaimer

The climate scenario analysis presents forward-looking statements about UOL’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.

UOL is not obligated to update or revise these forward-looking statements unless required by law. Users 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. UOL 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 UOL's business activities, please refer to the sections on climate scenario analysis and TCFD disclosures in this report.

Taskforce on Climate-related Financial Disclosures

In 2024, we completed our first quantitative climate scenario analysis and identified key climate-related risks and opportunities that may impact our business operations across Singapore, Australia and the United Kingdom.

As part of this, we have enhanced our climate-related disclosures to align with the TCFD recommendations, focusing on governance, strategy, risk management, and metrics and targets. This enhancement prepares us for the transition to the ISSB standards, which are the required standards for climate-related disclosures based on recommendations proposed by SRAC and the latest SGX RegCo’s sustainability reporting guide.

The table below outlines our progress in addressing these risks and key initiatives under each of the four TCFD pillars. This approach reflects our ongoing efforts to enhance our sustainability practices and adapt to evolving climate-related challenges.

Governance
Strategy
Risk Management
Metrics and Targets

TCFD Recommended Disclosure	UOL’s Approach
Describe the board’s oversight of climate-related risks and opportunities	The Board of Directors is responsible for overseeing and monitoring ESG issues for the Group, including climate-related risks and opportunities which are integrated into the Group’s strategic business plans. 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 twice yearly to discuss ESG updates, such as climate-related risks and opportunities, and to update the Board as necessary. All targets are approved by the Board with ARMSC support. Please refer to this page for more details on the UOL Sustainability Governance Structure and the Board’s roles and responsibilities.
Describe management’s role in assessing and managing climate-related risks and opportunities	The ARMSC is supported by the SSC, chaired by the Group Chief Executive and Chief Legal and Sustainability Officer/Company Secretary. The SSC prepares plans and makes key decisions on the implementation of the Group’s sustainability strategy. It also manages the Group’s decarbonisation efforts and climate-related risks and opportunities, such as physical risks on properties and development projects, improving energy efficiency, renewable energy opportunities, and regulatory and policy changes in countries where UOL operates. Additionally, the SSC addresses stakeholder expectations on climate-related topics. Supporting the SSC is the SWC, chaired by the General Manager of Corporate Communications, Investor Relations & Sustainability. The SWC assists in sustainability strategies, initiatives, disclosures, climate scenario analysis and materiality assessment. The SWC comprises representatives from across the Group’s business units. To further support the ARMSC, SSC and SWC in assessing climate impact and identifying potential risks and opportunities for the Group, UOL engaged a third-party consultant to conduct capacity-building trainings in 2024. We will continue to engage key internal stakeholders in climate and ESG-related training sessions. Sustainability factors have been considered in non-financial Strategic and Transformational key performance indicators (KPIs). This includes addressing GHG emissions in the medium and long-term. We will continue to review and monitor our non-financial KPIs.

TCFD Recommended Disclosure

UOL’s Approach

Describe the board’s oversight of climate-related risks and opportunities

The Board of Directors is responsible for overseeing and monitoring ESG issues for the Group, including climate-related risks and opportunities which are integrated into the Group’s strategic business plans.

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 twice yearly to discuss ESG updates, such as climate-related risks and opportunities, and to update the Board as necessary. All targets are approved by the Board with ARMSC support.

Please refer to this page for more details on the UOL Sustainability Governance Structure and the Board’s roles and responsibilities.

Describe management’s role in assessing and managing climate-related risks and opportunities

The ARMSC is supported by the SSC, chaired by the Group Chief Executive and Chief Legal and Sustainability Officer/Company Secretary. The SSC prepares plans and makes key decisions on the implementation of the Group’s sustainability strategy. It also manages the Group’s decarbonisation efforts and climate-related risks and opportunities, such as physical risks on properties and development projects, improving energy efficiency, renewable energy opportunities, and regulatory and policy changes in countries where UOL operates. Additionally, the SSC addresses stakeholder expectations on climate-related topics.

Supporting the SSC is the SWC, chaired by the General Manager of Corporate Communications, Investor Relations & Sustainability. The SWC assists in sustainability strategies, initiatives, disclosures, climate scenario analysis and materiality assessment. The SWC comprises representatives from across the Group’s business units.

To further support the ARMSC, SSC and SWC in assessing climate impact and identifying potential risks and opportunities for the Group, UOL engaged a third-party consultant to conduct capacity-building trainings in 2024. We will continue to engage key internal stakeholders in climate and ESG-related training sessions.

Sustainability factors have been considered in non-financial Strategic and Transformational key performance indicators (KPIs). This includes addressing GHG emissions in the medium and long-term. We will continue to review and monitor our non-financial KPIs.

TCFD Recommended Disclosure	UOL’s Approach
Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term	In 2024, UOL conducted our first quantitative climate scenario analysis to identify climate-related risks and opportunities across our portfolio in Singapore, Australia and the United Kingdom. This analysis, conducted with a third-party consultant, assessed the potential impact of these risks and opportunities on our business operations, costs and strategic objectives. Please refer to the climate scenario analysis section within this page for the disclosures on our key climate-related risks and opportunities identified over the short-term (2030), medium-term (2050) and long-term (2100).
Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning	Please refer to the climate scenario analysis section within this page for disclosures on the potential impact of our key climate-related risks and opportunities.
Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario	UOL’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. The scenario analysis was conducted for 27 assets across Singapore, Australia and the United Kingdom over three time horizons: 2030 (short-term), 2050 (medium-term) and 2100 (long-term). It utilised two scenario pathways: 4°C (RCP 8.5) and below 2°C (RCP 2.6), in line with the TCFD recommendations. The assets included commercial and hospitality properties, as well as development projects 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 within this page. Progress on mitigation and adaptation measures taken towards these risks and opportunities will be updated in our annual sustainability reports. UOL recognises the importance of a mitigative action plan to improve climate resiliency. We regularly review our climate-related and GHG targets against global and national standards and best practices. We have set a 2030 target for a 46% reduction in Scope 1 and 2 GHG emissions for our commercial and hospitality properties (base year: 2019). Various green initiatives have been introduced to meet these targets and improve energy efficiency, such as installing solar panels where feasible, installing LED lighting, upgrading HVAC systems in our buildings and adopting a robust climate governance framework. We are in the process of aligning with the ISSB requirements to include our global assets in our sustainability reporting scope. Additionally, we are expanding our Scope 3 GHG emissions inventory to better manage carbon efficiency across our value chain.

TCFD Recommended Disclosure

UOL’s Approach

Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term

In 2024, UOL conducted our first quantitative climate scenario analysis to identify climate-related risks and opportunities across our portfolio in Singapore, Australia and the United Kingdom. This analysis, conducted with a third-party consultant, assessed the potential impact of these risks and opportunities on our business operations, costs and strategic objectives.

Please refer to the climate scenario analysis section within this page for the disclosures on our key climate-related risks and opportunities identified over the short-term (2030), medium-term (2050) and long-term (2100).

Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning

Please refer to the climate scenario analysis section within this page for disclosures on the potential impact of our key climate-related risks and opportunities.

Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario

UOL’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.

The scenario analysis was conducted for 27 assets across Singapore, Australia and the United Kingdom over three time horizons: 2030 (short-term), 2050 (medium-term) and 2100 (long-term). It utilised two scenario pathways: 4°C (RCP 8.5) and below 2°C (RCP 2.6), in line with the TCFD recommendations. The assets included commercial and hospitality properties, as well as development projects

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 within this page. Progress on mitigation and adaptation measures taken towards these risks and opportunities will be updated in our annual sustainability reports.

UOL recognises the importance of a mitigative action plan to improve climate resiliency. We regularly review our climate-related and GHG targets against global and national standards and best practices. We have set a 2030 target for a 46% reduction in Scope 1 and 2 GHG emissions for our commercial and hospitality properties (base year: 2019). Various green initiatives have been introduced to meet these targets and improve energy efficiency, such as installing solar panels where feasible, installing LED lighting, upgrading HVAC systems in our buildings and adopting a robust climate governance framework.

We are in the process of aligning with the ISSB requirements to include our global assets in our sustainability reporting scope. Additionally, we are expanding our Scope 3 GHG emissions inventory to better manage carbon efficiency across our value chain.

TCFD Recommended Disclosure	UOL’s Approach
Describe the organisation’s processes for identifying and assessing climate-related risks	UOL manages climate risks through a comprehensive risk management process, which involves three key steps: Identify relevant risks: Identify the location of our assets, relevant climate risks (e.g., chronic increase in mean air temperature, heatwaves, etc.) specific to each asset type and location and assess these risks across different time horizons to understand potential impact on various assets. Assess impact: Analyse the identified physical and transition risks and categorise them based on their impact on our business and operations. Determine most critical risks: Establish materiality thresholds for each climate indicator and associated risks by considering three factors: impact (size of exposure based on geographical location), time horizons — short-term (2030), medium-term (2050) and long-term (2100) — and likelihood of the risks occurring. This structured approach enables UOL to effectively manage and address climate-related risks across our portfolio. UOL also has an Enterprise Risk Management (ERM) Framework, which aims to increase confidence in the Group’s strategies, businesses and operations through assurance that key risks are properly and systematically addressed. UOL will progressively phase in climate-related risks in the short, medium and long-term as part of the overall ERM framework in line with the TCFD recommendations. Please refer to this page for detailed information on: Governance structure for managing risk Risk identification and assessment
Describe the organisation’s processes for managing climate-related risks	In addition to our ERM Framework, UOL has developed a strategy, supported by our Group Environmental Policy and GHG reduction plans, to transition to a lower-carbon economy in line with the Singapore Green Plan 2030 through: Invest in low carbon and energy-efficient technologies and building retrofits Generate renewable energy onsite and procure renewable energy Adopt innovative technologies and low-carbon materials for our development projects Establish measurable KPIs and targets Partner with tenants and guests to reduce resource consumption and decarbonise Conduct our first quantitative climate scenario analysis to identify climate-related risks that could impact our business operations and developing measures to mitigate these risks
Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management	UOL has an ERM framework in place and will progressively phase in climate-related risks across different time horizons as part of the overall ERM framework.

TCFD Recommended Disclosure

UOL’s Approach

Describe the organisation’s processes for identifying and assessing climate-related risks

UOL manages climate risks through a comprehensive risk management process, which involves three key steps:

Identify relevant risks:
Identify the location of our assets, relevant climate risks (e.g., chronic increase in mean air temperature, heatwaves, etc.) specific to each asset type and location and assess these risks across different time horizons to understand potential impact on various assets.
Assess impact:
Analyse the identified physical and transition risks and categorise them based on their impact on our business and operations.
Determine most critical risks:
Establish materiality thresholds for each climate indicator and associated risks by considering three factors: impact (size of exposure based on geographical location), time horizons — short-term (2030), medium-term (2050) and long-term (2100) — and likelihood of the risks occurring.

This structured approach enables UOL to effectively manage and address climate-related risks across our portfolio.

UOL also has an Enterprise Risk Management (ERM) Framework, which aims to increase confidence in the Group’s strategies, businesses and operations through assurance that key risks are properly and systematically addressed.

UOL will progressively phase in climate-related risks in the short, medium and long-term as part of the overall ERM framework in line with the TCFD recommendations.

Please refer to this page for detailed information on:

Governance structure for managing risk
Risk identification and assessment

Describe the organisation’s processes for managing climate-related risks

In addition to our ERM Framework, UOL has developed a strategy, supported by our Group Environmental Policy and GHG reduction plans, to transition to a lower-carbon economy in line with the Singapore Green Plan 2030 through:

Invest in low carbon and energy-efficient technologies and building retrofits
Generate renewable energy onsite and procure renewable energy
Adopt innovative technologies and low-carbon materials for our development projects
Establish measurable KPIs and targets
Partner with tenants and guests to reduce resource consumption and decarbonise
Conduct our first quantitative climate scenario analysis to identify climate-related risks that could impact our business operations and developing measures to mitigate these risks

Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management

UOL has an ERM framework in place and will progressively phase in climate-related risks across different time horizons as part of the overall ERM framework.

TCFD Recommended Disclosure	UOL’s Approach
Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process	UOL monitors and manages climate-related risks associated with GHG emissions, energy, water and waste. This report includes up to five years of historical data for trend analysis, with previous years’ data available in past sustainability reports. Aligned with our Sustainability Framework, UOL evaluates the following metrics across our asset classes, including commercial and hospitality properties, as well as ongoing development projects. Please refer to pages 24 to 25 of the report for detailed information on key environmental metrics. For UOL’s environmental performance metrics, please refer to pages 26 to 30 and 54 to 59 of this report.
Disclose Scope 1, Scope 2 and if appropriate, Scope 3 greenhouse gas emissions and the related risks	UOL has been disclosing Scope 1 and 2 GHG emissions for all Singapore commercial properties and hospitality properties, and Scope 3 for development projects, in line with the GHG Protocol. Since our FY2022 Sustainability Report, UOL has reported the following Scope 3 categories: Fuel- and energy-related activities Waste generated in operations Business travel Downstream leased assets Recognising the importance of embodied carbon in building decarbonisation, we are working towards collecting, reviewing and evaluating the feasibility of estimating emissions resulting from embodied carbon in our development projects. In 2024, UOL conducted a materiality assessment of all 15 Scope 3 GHG emissions categories, taking guidance from the GHG Protocol, to determine their relevance against our business operations. We will continue to develop our Scope 3 GHG inventory and aim to include more categories in future sustainability reports. For UOL’s performance data on Scope 1, 2 and 3 GHG emissions, please refer to this page.
Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets	UOL has developed targets to manage climate-related risks. Energy: 8% reduction in energy consumption for commercial and hospitality properties by 2025 (base year: 2019) 2030 GHG targets: 46% reduction in Scope 1 and 2 GHG emissions for our commercial and hospitality properties by 2030 (base year: 2019) Annual GHG targets: 8% reduction in GHG emissions for commercial and hospitality properties by 2025 (base year: 2019) Water: 5% reduction in water consumption for commercial and hospitality properties by 2025 (base year: 2019) Waste: Replace single-use bathroom amenities packaging with recyclable packaging in all Singapore hospitality properties by 2025

TCFD Recommended Disclosure

UOL’s Approach

Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process

UOL monitors and manages climate-related risks associated with GHG emissions, energy, water and waste. This report includes up to five years of historical data for trend analysis, with previous years’ data available in past sustainability reports.

Aligned with our Sustainability Framework, UOL evaluates the following metrics across our asset classes, including commercial and hospitality properties, as well as ongoing development projects.

Please refer to pages 24 to 25 of the report for detailed information on key environmental metrics.

For UOL’s environmental performance metrics, please refer to pages 26 to 30 and 54 to 59 of this report.

Disclose Scope 1, Scope 2 and if appropriate, Scope 3 greenhouse gas emissions and the related risks

UOL has been disclosing Scope 1 and 2 GHG emissions for all Singapore commercial properties and hospitality properties, and Scope 3 for development projects, in line with the GHG Protocol.

Since our FY2022 Sustainability Report, UOL has reported the following Scope 3 categories:

Fuel- and energy-related activities
Waste generated in operations
Business travel
Downstream leased assets

Recognising the importance of embodied carbon in building decarbonisation, we are working towards collecting, reviewing and evaluating the feasibility of estimating emissions resulting from embodied carbon in our development projects.

In 2024, UOL conducted a materiality assessment of all 15 Scope 3 GHG emissions categories, taking guidance from the GHG Protocol, to determine their relevance against our business operations. We will continue to develop our Scope 3 GHG inventory and aim to include more categories in future sustainability reports.

For UOL’s performance data on Scope 1, 2 and 3 GHG emissions, please refer to this page.

Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets

UOL has developed targets to manage climate-related risks.

Energy:

8% reduction in energy consumption for commercial and hospitality properties by 2025 (base year: 2019)

2030 GHG targets:

46% reduction in Scope 1 and 2 GHG emissions for our commercial and hospitality properties by 2030 (base year: 2019)

Annual GHG targets:

8% reduction in GHG emissions for commercial and hospitality properties by 2025 (base year: 2019)

Water:

5% reduction in water consumption for commercial and hospitality properties by 2025 (base year: 2019)

Waste:

Replace single-use bathroom amenities packaging with recyclable packaging in all Singapore hospitality properties by 2025

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.
The ongoing resilience measures cover only owned commercial and hospitality properties in Singapore.

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