186 STRATEGICALLY ADVANCING SUSTAINABILITY REPORT APPENDIX E: QUALITATIVE CLIMATE RISK ASSESSMENT Country Risks identified Singapore Transition risk • Regulatory Changes (Medium and Long Term): Singapore’s Green Building Masterplan (“SGBMP”) “80-80-80” target by 2030 mandates 80% of buildings by GFA will have Green Building Certifications. There will be increased mandatory environmental sustainability standards for new buildings and existing buildings to undergo a major retrofit to raise minimum energy performance and align with mandatory sustainable construction practices. The rising carbon tax (projected to reach $50-$80/tCO2e by 2030) will directly impact operational expenditure. These factors necessitate substantial capital expenditure for upgrades to meet stricter energy performance standards and sustainable construction practices for both new and existing buildings. By 2050, further regulatory tightening and evolving stakeholder expectations are anticipated, requiring ongoing adaptation and investment. • Evolving Stakeholder Expectations (Medium and Long Term): Growing stakeholder pressure for enhanced sustainability performance will influence tenant selection criteria, potentially impacting lease agreements and rental rates. We aim to capitalise of these opportunities by proactively pursuing of green building opportunities. Physical Risks • Rising Temperatures (Long Term): Increased frequency of extreme heat events will lead to higher cooling loads, resulting in increased energy consumption and operational costs for air conditioning systems. This risk requires long-term planning for energy efficiency upgrades and potentially alternative cooling solutions. • Flooding (Medium and Long Term): The increased risk of flooding, due to rising sea levels and more intense rainfall, poses an acute threat to coastal assets. Disruptions to transportation networks and asset accessibility could lead to significant short-term financial losses (rental income reduction) and potential long-term damage to asset value. This requires immediate and ongoing investment in flood mitigation measures. • Water Stress (Long Term): As a chronic long-term risk, water scarcity could impact operational efficiency and increase costs. Addressing this requires implementation of water management strategies.
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