Risk Management and Internal Controls

Severe disruption to the business caused by acts of humans or acts of nature may lead to adverse financial impacts.

• The Business Recovery Plan (“BRP”) for major incidents and other business compliance measures for specific scenarios, operational emergencies, health and safety is in place.
• Ensure properties in earthquake and hurricane zones are built to meet the relevant building codes and safety standards.
• Purchase insurance to the extent practicable to cover financial losses due to property damages, business interruption and third-party liability.

Changes in global and local political landscape and priorities may lead to significant impacts on the business environment.

• Closely monitor social media and government public affairs.
• Ensure compliance with applicable laws and regulations, including internal guidelines and policies.
• Maintain robust corporate governance practices through various oversight functions, including audits, risk management, company secretaries, legal counsel, independent non-executive directors and SD 2030 working groups.

The lack of compelling development projects and any business disruption may lead to a slowdown in business pipeline affecting financial performance.

• Continue to obtain suitable land reserves, reinforce existing portfolios and actively explore opportunities in emerging markets.
• Closely monitor the market development of disruptive business models and embed these into our operations as appropriate.
• Maintain competitiveness by enhancing efficiency and automation with the appropriate technology for customer-related and operational procedures.

The failure to maintain brand position and brand perception may lead to a reduced business profile and less competitive proposition.

• Ensure consistent, responsible and responsive communication in handling major incidents to safeguard the Company’s reputation, drawing reference from the BRP.
• Closely monitor social media to evaluate and provide responses to any negative social media content as appropriate.
• Conduct regular materiality analyses to identify and anticipate current and future economic, political, social or environmental issues that may lead to group-wide negative reputational impacts.

Delays in the completion of developments may cause substantial financial impacts on property sales and leasing.

• Closely monitor and manage construction progress and contractors in order to avoid delays in project development.
• Implement stringent prequalification assessments of contractors and approval mechanisms for design changes.
• Build in additional time during development planning to obtain statutory approvals and communicate with government authorities on a timely basis.

Extreme weather conditions and climate changes may increase the risks of physical damage to properties and adversely affect their valuations.

• A Climate Change Policy is in place.
• Conduct climate risk assessments for all portfolios.
• Science-based targets that aim to achieve long-term decarbonisation have been established.
• Monitor and reduce carbon emissions from construction activities and embodied carbon from major building and construction materials.