CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 SUSTAINABILITY 74 75 CDL’s Top Material ESG Issues Risks and Opportunities CDL’s Responses and Achievements 6. Occupational Health, Safety and Well-being Supporting SDGs: TCFD Pillars: S, RM, M&T The safety, health and wellness of CDL’s employees and contractors’ workers have always been amongst its top priorities. Aligned with Singapore’s Workplace Safety and Health (WSH) 2028 Roadmap, CDL works closely with the appointed contractors, where possible, to ensure workers on-site and in CDL’s offices observe good WSH practices and contribute to a strong EHSminded culture across the Company. CDL complies with ISO 45001 Occupational Health and Safety for its key operations in Singapore to effectively manage the safety, health and well-being of its employees and workers. Established since the early 2000s, CDL’s EHS Policy and CDL 5-Star EHS Assessment have been continually enhanced in standard and scope. Additionally, the CDL 5-Star EHS Assessment also recognises and awards contractor companies that are exemplary in EHS excellence and workers’ welfare. Exemplary workers who exhibit good safety behaviour are also recognised. All six projects contribute to the yearly mean score of above 90% under the EHS 5-Star Assessment audit conducted by an independent third-party consultant. CDL continues to be recognised as a long-serving bizSAFE Mentor. In 2022, the Company completed its surveillance audit and continued to be certified under the ISO 45001 occupational health and safety management system standard. CDL will continue to leverage industry best practices to ensure that occupational health and safety is maintained at their highest levels. 7. Product/ Service Quality and Responsibility Supporting SDGs: TCFD Pillars: S, RM As an asset owner and manager, CDL takes pride in ensuring a safe and healthy environment for its building users. CDL also remains committed to delivering safe and high-quality products and services for its homebuyers and tenants with smart building and energy-efficient features. To ensure compliance and prevent latent defects, CDL has a robust process guided by the Design for Safety Regulations to identify design risks and assess the severity of EHS impacts throughout the construction stages of its developments. CDL unveiled its new in-house proprietary electronic system in 2021 for expressions of interest, balloting and satellite sales bookings for the sales launch of Irwell Hill Residences and CanningHill Piers. In 2022, the enhanced electronic system was used for the sales launch of Piccadilly Grand and Copen Grand Executive Condominium. Potential homebuyers can access 3D virtual tours of CDL's new launches and online sales presentations from the comfort of their homes. The Virtual Unit Handover initiative, piloted in 2020, has continued to serve CDL well for future projects that obtain TOP. In 2021 and 2022, homebuyers of respective projects - The Tapestry and Whistler Grand - can opt for a virtual walkthrough, led by CDL’s Customer Service Officer. 8. Cyber-readiness, Security and Data Privacy Supporting SDGs: TCFD Pillars: G, RM With rising data privacy concerns, CDL remains mindful of compliance requirements for international and local data privacy protection laws. Strengthening CDL’s capabilities to protect itself and respond to cyber-attacks is vital in preventing data theft, financial loss, and disruption of operations. The shift to virtual working environments may increase vulnerability in business systems due to user behaviour or external factors such as malware and phishing attacks. CDL has established holistic IT governance structures and developed robust detection and mitigation measures to protect its critical business systems and data. CDL’s response plans are tested by internal auditors and an external professional firm and aligned with industry best practices. CDL established a Cybersecurity Framework in 2020 to detect, protect against and respond to cyber-attacks and crimes, and the CDL Computer Security Policies and Standards were updated in 2022 on cybersecurity compliance. In 2021 and 2022, CDL engaged a professional cyber security facilitator to run through various tabletop exercises with the Cyber Incident Response Team, to ensure preparedness in handling cyber security incidents. CDL also conducts online cybersecurity training and periodic phishing attack simulations to increase employees’ IT security awareness and vigilance. 9. Responsible Supply Chain Supporting SDGs: TCFD Pillars: G, S, RM, M&T CDL upholds its ESG performance and reputation with consistent engagement with its suppliers to procure sustainably sourced and safe building materials, ensure fair labour human rights practices for workers and healthy buildings for building occupiers. All suppliers must sign a Supplier Code of Conduct, which provides comprehensive guiding principles for compliance. CDL regularly engages its top-tier suppliers to stay updated on the latest regulatory updates and widen their exposure to industry best practices. In 2022, 60 management and operation staff of CDL Group attended a virtual Corporate Sustainability Workshop on “Climate Change and Carbon Management” by external consultants. CDL has long-established responsible sourcing guidelines for its supply chain. This includes the implementation of the Responsible Procurement Guidelines since 2008 and the Green Procurement Guidelines for property developments since 2009. In line with its corporate EHS Policy established in 2003, which is updated regularly, these guidelines encourage the use of eco-friendly and recycled materials that have been certified by approved local certification bodies, such as the Singapore Green Building Council (SGBC) and Singapore Environment Council (SEC). 10. Stakeholder Impact and Partnerships Supporting SDGs: TCFD Pillars: G, S Building goodwill in the community provides CDL with a strong social license to operate. Through collaborations with like-minded partners, CDL has pioneered and developed partnerships that multiply its outreach and impact on climate action and the UN SDGs. In April 2022, in partnership with National Parks Board (NParks) and Ocean Geographic, CDL launched an exhibition themed “Change the Present, Save the Ocean." The exhibition amplifies the call for action to support global and national climate efforts. The two-day launch event kick-started on 10 April 2022 with a “Keep Calm and Love our Planet: Save our Ocean” edition, along with the launch of CDL’s E-Generation Challenge 2022. In 2022, CDL held more physical events to continue its engagement efforts. Key events included the launch of Sustainability Connect, World Cities Summit, Youth4Climate Festival, My Tree House “We Love Our Planet” Storytelling Contest, CDL-GCNS Young SDG Leaders Award, and more. Read more about CDL’s stakeholder engagement initiatives in Chapter 5 of CDL's ISR 2023. Note: 6 Renamed from Green Procurement Guidelines in 2020. CDL’s Top Material ESG Issues Risks and Opportunities CDL’s Responses and Achievements 11. Diversity, Equity and and Inclusion (DEI) Supporting SDGs: TCFD Pillars: G, S Post-COVID-19, Diversity, Equity and Inclusion (DEI) has risen in importance. Employees are increasingly demanding a workplace culture that embraces diversity, inclusion and a sense of social justice. Workplace diversity encompasses a wide spectrum, such as gender, race, age, and employees with accessibility needs. Socially responsible businesses should embed diversity and inclusion principles into recruitment practices, opportunities for advancement and remuneration policies. CDL’s recruitment process adheres to strict guidelines on non-discrimination and fairness, regardless of gender, ethnicity, religion, or age. As a Company committed to meritocracy, CDL’s compensation and rewards policies are performance-based. Women represent close to 70% of CDL’s workforce and half of the Heads of Departments at its Singapore headquarters. CDL is committed to providing equal remuneration and actively monitors gender pay gaps across various staff levels. CDL embraces an inclusive workplace. Its multiracial workforce hails from diverse backgrounds. Due to Singapore’s predominantly Chinese population, its workforce comprises a larger percentage of Chinese employees. In 2022, CDL's CSO became an advocate for the G20 Alliance for Empowerment and Progression of Women’s Economic Representation. The G20 Empower aims to accelerate women’s leadership and empowerment in the private sector. 12. Human Rights and Labour Conditions Supporting SDGs: TCFD Pillars: G, S, RM Respecting and promoting the rights and dignity of employees, workers and communities help to build a more resilient supply chain. Creating a workplace that provides a decent work environment, fair remuneration, security in the workplace, freedom of expression, work-life balance and career growth, is critical to building a sustainable workforce. CDL engages its contractors and suppliers to abide by its fundamental principles and policies such as the Supplier Code of Conduct, Human Rights Policy, and Universal Design Policy. Since 2001, the CDL 5-Star EHS Assessment – an independent audit tool to assess, measure, and improve the main contractors’ EHS management and performance – has been in place to ensure a comprehensive, audited, and appraised approach. CDL conducts a biennial employee engagement survey to understand its employees’ concerns and engagement levels, enabling CDL to be an employer of choice. 13. Healthy Buildings Supporting SDGs: TCFD Pillars: G, S, RM, M&T Through conscious design and construction practices, buildings can be the first line of defence and mitigation factor against climate change and its related health impacts. Climate change can affect the air we breathe indoors. Extreme weather patterns can also contribute to higher levels of indoor particulate matter, dampness and humidity leading to other issues like mould. CDL recognises that people are its greatest asset, and their health, safety and well-being are of utmost importance. Therefore, the Company is responsible for providing a safe and healthy environment for its employees, customers, and workers. To this effect, CDL has a dedicated Green Building Policy since 2020 that supplements the Company's EHS policy established since 2003. In 2021, CDL updated its 3S Green Building Framework to align with the latest BCA Green Mark 2021. This is an internationally recognised green building certification scheme consisting of six sections including “Health and Wellbeing”. 14. Future-ready Workforce Supporting SDGs: TCFD Pillars: S, RM Companies need to remain nimble to adapt to changing work conditions and arrangements (e.g. flexi-work and hybrid work models). A workforce that fails to keep up with industry developments, knowledge and technological trends will have a negative impact on human capital, operational efficiency, and business continuity. Building a workforce with skill sets that future-proof CDL’s business in a fast-evolving global economy is a priority. CDL actively fosters a culture of continuous learning, enabling employees to acquire holistic skills and competencies to stay relevant and adapt to changing job demands. With the shift back to working from the office in 2022, CDL stepped up in-person learning and development opportunities. Topics covered included project management, mindfulness, big data and data analytics, sustainability, occupational health and safety, and the cultivation of healthy lifestyles. 15. Economic Contribution to Society Supporting SDGs: TCFD Pillars: G, S CDL’s financial performance impacts the vested interests of its employees, shareholders, investors and supply chain. The generation of employment contributes to the economic growth of the markets that CDL operates in and the livelihoods in its supply chain. Direct donations to the community are part of CDL’s community investments strategy to give back to the community. As CDL remains resilient against the prolonged impacts of the pandemic, it continues to uphold high standards of ethical business practices. It maintains strong branding and delivers quality products to return profits and provide optimum returns for investors in its fiduciary duty as stewards of capital. From 2020 to 2021, CDL has committed more than $40 million in property tax rebates and rental relief to its Singapore and global retail and commercial tenants. This includes passing on the full quantum of property tax rebates from the Singapore government to local tenants. Rent restructuring was extended to selected tenants whose businesses were badly affected, as well as rental payment flexibility for those facing severe cash flow issues. Rental, operational and marketing support was provided to tenants adversely impacted by the stricter measures. Close to 90% of CDL’s retail tenants have received rental assistance. A long-standing partner of Assisi Hospice since 1999, CDL continued to support the hospice's fundraising efforts using virtual platforms in 2022, together with M&C, providing donations-in-kind, including shopping, F&B and hotel vouchers towards the event’s lucky draw and game prizes. Through The CDL Challenge, an in-house fundraising campaign that rallied donations from stakeholders (namely staff and business partners), and our support of Assisi e-Fun Day activities and its Gala Dinner, close to $28,000 was raised. SUSTAINABILITY BOARD STATEMENT
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