Annual Report 2025

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED) 94 China Merchants China Direct Investments Limited Annual Report 2025 ENVIRONMENTAL PROTECTION (CONTINUED) Climate-related Disclosure (continued) Risk Management (continued) During the Reporting period, we continue to consider the electricity conservation policy in place for selection of new rental offices to attain Target 3. Target 4 To consider the ESG performance of potential investments during the investment evaluation process, as a regular practice. The Investment Manager is responsible for adopting the following measure to realise the goals: ‧ incorporating ESG performance as one of the key performance indicators (KPIs) when making any investment decisions; and ‧ requiring the investment team to consider whether there are significant non-compliance ESG issues happened with the proposed investment projects and to report such issues in the investment proposals. During the Reporting Period, all the new investment proposals indicated that no significant non-compliances ESG issues have been identified. Therefore, we consider that we have achieved Target 4 during the Reporting Period. Target 5 To consider the water conservation policy and measures adopted by the buildings as one of the selection criteria for new rental offices by 2025. We would consider a number of factors when selecting new rental offices; for example, whether the landlord has been: ‧ implementing efficient water system design with a smart function of leakage detection; ‧ collecting used water for cooling purposes, floor cleaning and yard washing; and ‧ turning off the water supply system at night and on holidays. During the Reporting period, we continue to consider the water conservation policy in place for selection of new rental offices to attain Target 5. The Company will review its existing climate-related targets in FY2026 to ensure they better reflect current business and operational realities, while remaining aligned with our long-term sustainability commitment.