CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 SUSTAINABILITY 66 67 Singapore Sustainability Academy - A Hub for Sustainable Development Advocacy Building a sustainable future requires the collaboration of a larger ecosystem. CDL’s topmaterial issues in 2021 spotlight stakeholder impact and partnerships. With COP26 and the push for game-changing policies and multilateral collaboration, engaging, educating and empowering people has become pivotal for a more climate-resilient future. Designed and built by CDL with industry partners, the Singapore Sustainability Academy (SSA) is the first ground-up initiative and zeroenergy facility in Singapore dedicated to capacity building and thought leadership for climate action. Since its opening on 5 June 2017 to end2021, the SSAhas reached out to over 100 partners, including government agencies, industries, businesses and NGOs, and hosted more than 630 sustainabilityrelated training programmes and advocacy events, involving close to 22,300 attendees. Due to COVID-19, the SSA has gone virtual since April 2020 but has continued promoting sustainable SUSTAINABILITY BOARD STATEMENT practices and lifestyles, reaching out through various workshops and forums in Singapore and beyond. In 2021, both hybrid and Virtual SSA platforms reached out to thousands of local and international participants through post-event views on CDL’s YouTube channel. LONGSTANDING & UNWAVERING LEADERSHIP COMMITMENT CDL has established the longest history of having a dedicated Sustainability portfolio amongst Singapore companies, headed by the Chief Sustainability Officer (CSO) since 2014. The CSO reports directly to the Board Sustainability Committee (BSC), which comprises three independent directors and CDL’s Group CEO. The BSC has direct advisory supervision on CDL’s sustainability strategy, material ESG issues, work plans, performance targets and sustainability reporting. It convenes meetings at least twice annually to discuss CDL’s sustainability plans and review its performance. Throughout the year, the CSO updates the BSC on CDL’s ESG performance and initiatives, as well as global and local ESG trends through quarterly sustainability reports and emails, with additional meetings when necessary. CDL’s sustainability governance structure, practices and disclosures, which have been in place for years, are in line with SGX’s mandate on climate and board diversity disclosures. To achieve effective integration of sustainability throughout the Company, the CSO chai rs the Sustainabi l i ty C omm i t t e e , wh i c h c omp r i s e s members across al l departments and operat i ona l uni ts . Heads of Departments (HODs) and their l ine managers are held accountable for their ESG performances, which are captured in their annual performance appraisal that is linked to their remuneration and promotion. In addition to the annual sustainability reporting, CDL publishes an online quarterly sustainability report at www.cdlsustainabi l ity.com. This voluntary disclosure, since July 2017, has set benchmarks for the transparency and timeliness of ESG disclosures to investors and stakeholders. Board of Directors Environment Corporate Governance and Fair Operating Practices Labour Practices and Human Rights Stakeholder Engagement and Consumer Issues Community Involvement and Development Board Sustainability Committee Chief Sustainability Officer Sustainability Committee Across Business and Operational Units Advisory Panel (Senior Management) SUSTAINABILITY GOVERNANCE STRUCTURE STRATEGIC MANAGEMENT OF TOP 17 MATERIAL ESG ISSUES To address changing stakeholder expectations and to future-proof its business, CDL started conduct ing materiality assessments since 2014. In 2021, CDL conducted a comprehensive materiality assessment with key internal and external stakeholders. Anchored on double materiality and multi-stakeholder approaches, the assessment aims to achieve greater alignment between CDL’s pursuit of sustainable growth and its stakeholders’ needs. The table out l ines CDL’s act ions in addressing r isks and captur ing opportunities related to CDL’s top 17 material ESG issues. It is mapped to 14 relevant SDGs and the four pillars of the Task Force on Climate-related Financial Disclosures (TCFD) framework. CDL’s disclosures on the Sustainability Accounting Standards Board (SASB) Real Estate Sector Standards, TCFD recommendations, and Climate Disclosure Standards Board (CDSB) framework can be found in CDL’s Integrated Sustainability Report 2022. Legend for TCFD Pillars: Governance (G) | Strategy (S) | Risk Management (RM) | Metrics & Targets (M&T) CDL’s Top Material ESG Issues Risks and Opportunities CDL’s Responses and Achievements 1. Climate Resilience Supporting SDGs: TCFD Pillars: G, S, RM, M&T The built sector contributes to some 40% of global energy-related carbon emissions and is heavily reliant on natural resources for operations. Regulatory transition risks such as carbon tax, water pricing, electricity tariffs and potentially stricter building design requirements will pose challenges to maintain profitability and sustain growth. Extreme weather patterns can lead to stranded assets and affect the well-being of building occupants. Climate-proofing of CDL’s buildings in line with a low-carbon future is key to its growth strategy. Climate change is a material strategic risk under CDL’s enterprise risk assessment framework. CDL is committed to implementing mitigation and adaptation measures to combat the effects of climate change on its portfolio of assets. For close to a decade, CDL has been achieving its voluntary target of at least BCA Green Mark GoldPLUS certification for all new developments, two tiers above the previous mandatory requirement.1 To date, 85% of CDL’s portfolio of owned and managed buildings, based on gross floor area, have achieved the BCA Green Mark certification. In February 2021, CDL pledged support to the WorldGBC’s Net Zero Carbon Buildings Commitment to achieve net zero operational carbon by 2030 for its new and existing wholly-owned assets and developments under its direct operational and management control. In November 2021, this commitment expanded to include maximum reduction in embodied carbon and compensation of all residual upfront emissions via offsetting for new developments by 2030 and for all buildings to be net zero carbon by 2050. To align with a 1.5°C warmer scenario, CDL revised its SBTi-validated GHG emissions intensity reduction targets (Scope 1, 2 and 3) in December 2021; with additional targets to reduce Scope 3 emissions. To better understand physical and transition risks from COP26 negotiation outcomes and impact from COVID-19, CDL commenced its third climate change scenario analysis in December 2021. In November 2021, CDL was the only Singapore company amongst 19 pioneering companies to participate and secure carbon credits in Climate Impact X’s pilot auction featuring a curated portfolio of verified Natural Climate Solutions projects. 2. Energy Efficiency and Adoption of Renewables Supporting SDGs: TCFD Pillars: G, S, RM, M&T The global green energy transition following COP26 agreements entails the phasing down of fossil fuels in favour of renewables and rapidly decreasing carbon emissions. More stringent regulations on the energy performance of buildings and rising carbon tax are expected, with the launch of the Singapore Green Plan 2030 and BCA Green Mark 2021. With energy consumption contributing to a large portion of CDL’s carbon footprint, CDL implements robust low-carbon strategies for its managed buildings to maintain its leadership as a green developer. Through robust resource management and regular asset upgrading and enhancement efforts, CDL has been maintaining good energy performance for its existing commercial properties. Since 2004, CDL has retrofitted all its existing managed buildings. From 2012 to 2021, CDL achieved savings of more than $34 million in energy expenses across all managed properties. CDL achieved its first BCA Green Mark Super Low Energy (SLE) award for residential developments as well as for serviced apartments, office and retail ahead of its 2023 goal, for 80 Anson Road (former Fuji Xerox Towers). 3. Innovation Supporting SDGs: TCFD Pillars: S, RM Innovation is a key enabler to achieve CDL’s ESG goals and targets, while also creating value for the Company’s bottom line. By investing in green, smart and healthy building technologies, CDL ensures that its products and services operate at the highest quality for building users, and remain resilient against disruptions. Partnerships with research institutions, innovators and start-ups allow CDL to tap on emerging PropTech innovations for large-scale implementations. Innovation is a top priority in CDL’s growth and investment strategy. CDL’s pipeline of innovation projects in green buildings and digitalisation continues to grow, generating environmental, social and economic benefits. CDL piloted several technologies including autonomous UVC disinfection robots, automated thermal scanners, indoor air quality sensors, and anti-microbial disposable films, to create safer and healthier environments for its building users. CDL continues to monitor the progress and results of these innovation testbeds with its R&D partners, such as Solar Energy Research Institute of Singapore (SERIS), NUS-CDL Smart Green Home, NUS-CDL Tropical Technologies Lab and Singapore University of Technology and Design (SUTD). CDL also piloted DigiHUB, an in-house digital platform that offers predictive and integrated facilities management solutions, developed by CBM Pte Ltd, a wholly owned subsidiary of CDL. In partnership with Seven Clean Seas, a Singapore-based ocean cleanup organisation, 11 Tampines Concourse was certified with a first-of-its-kind plastic neutrality certification for a building, under the Ocean-Bound Plastic’s Plastic Producer Standard. Note: 1 In 2021, the new BCA Green Mark 2021 was launched, where new and existing buildings are recognised for building performance that is “above mandatory, regulated standards, that include robust levels of energy efficiency, indoor air quality, greenery provision, active mobility considerations, materials and waste management and water efficiency.” There are now two tiers under the Green Mark Series – GoldPLUS and Platinum. Green Mark 2021 Certification Standard. Building and Construction Authority, 2021.
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