CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 SUSTAINABILITY 76 77 CDL’s Top Material ESG Issues Risks and Opportunities CDL’s Responses and Achievements 16. Biodiversity Conservation Supporting SDGs: TCFD Pillars: G, S, RM The real estate sector plays a key role in the ongoing green transition. Heightened awareness of biodiversity loss and changing lifestyle habits during the pandemic have created more opportunities for the built environment to realise positive asset value from biodiversity conservation practices. Since 2008, Singapore has adopted a systematic Environmental Impact Assessment (EIA) Framework to determine and mitigate the impact of any new developments, especially those located close to an area of ecological significance, such as nature reserves. CDL’s development projects are within the land allocated by the Urban Redevelopment Authority (URA) for home and commercial use, and hence, none are located within protected areas. Since 2010, CDL has made it a standard practice to conduct a Biodiversity Impact Assessment (BIA) at new development sites, where applicable. In 2016, CDL piloted an EIA study for its Forest Woods residential development project, expanding the usual scope on biodiversity impact to cover the development’s potential impact on traffic, public health, heritage, and the environment. Based on this learning experience, CDL is exploring possibilities of applying it for future developments. In 2020, a Biodiversity Policy, expanding on its BIA practices, was established. In 2021, it was further strengthened by aligning with Singapore’s “City in Nature” vision encapsulated in the Singapore Green Plan 2030. 17. Sustainable Finance Supporting SDGs: TCFD Pillars: G, S The rise of ESG investing and responsible banking has unlocked alternative financing streams and granted CDL access to a wider pool of ESG-centric investors and lenders. Companies which lag in their ESG performance could be penalised through higher cost of debt financing and face divestment from shareholders. As of 31 December 2021, CDL has secured more than $3 billion of sustainable financing, including a green bond, several green loans and a sustainability-linked loan. In October 2022, CDL renewed its $250 million SDG Innovation Loan, which was secured in 2019. In 2021, CDL and its joint venture partner jointly secured green loans of $847 million to finance the development of two Government Land Sales (GLS) sites at Piccadilly Grand & Galleria and Copen Grand. South Beach Consortium, a CDL joint venture, obtained a $1.22 billion green loan for the refinancing of South Beach—a double BCA Green Mark Platinum mixed-use development. As an investor, CDL is a signatory to the UN PRI. The Company has developed the CDL Sustainable Investment Principles to steward responsible capital allocation and decisionmaking for investments. A Two-Pillar ESG Disclosure & Reporting Framework, Capturing Value and Impact Embracing Major ESG Standards & Frameworks and 14 UN SDGs FINANCIAL CAPITAL MANUFACTURED CAPITAL ORGANISATIONAL CAPITAL SOCIAL & RELATIONSHIP CAPITAL HUMAN CAPITAL NATURAL CAPITAL CONSERVING AS WE CONSTRUCT SINCE 1995 INTEGRATED APPROACH SINCE 2015 CDL FUTURE VALUE 2030 GOALS, TARGETS AND PROGRESS Legend: Progress Tracking Falling short of interim target for more than two years, review and revise targets (if necessary). Meeting interim targets, maintain performance towards meeting 2030 targets. Falling short of interim target for one year, review current practices. Future Value 2030 Goals 2030 Targets7 Interim 2022 Annual Targets7 FY2022 Performance Goal 1: Building Sustainable Cities and Communities Achieve Green Mark certification for 100% of CDL owned and/or managed buildings8 ≥85% 98% achieved Maintain 100% retail and office tenant participation in CDL Green Lease Partnership Programme Achieve 100% 100% maintained Maintain high level of commitment to adopt innovations and technology of green buildings Average of two innovation and technology applications per year 1. Smart Energy Storage System to replace diesel-powered generators 2. Cool paint solution Maintain high level of sustainability engagements and advocacy activities Average of ≥36 engagement and advocacy initiatives and activities per quarter Average of 75 engagement and advocacy initiatives and activities per quarter NEW: Obtain GSTC Certification for all M&C Hotels based in Singapore by 2025 Not applicable Not applicable Goal 2: Reducing Environmental Impact Achieve science-based target of reducing carbon emissions intensity by 63% from 2016 levels9 19% reduction 24% reduction Asset Management (AM) - Office & Industrial9: Reduce energy use intensity by 55.7% from 2016 levels Reduce water use intensity by 9.5% from 2016 levels10 Reduce waste intensity by 8% from 2016 levels10,11 Energy use intensity: 9% reduction Water use intensity: 1% reduction Waste intensity: Limit increase to less than 20% Energy use intensity: 18.1% reduction Water use intensity: 28.7% reduction Waste intensity: 9.4% increase Asset Management (AM)- Retail9: Reduce energy use intensity by 55.7% from 2016 levels Reduce water use intensity by 10.8% from 2016 levels Reduce waste intensity by 5% from 2016 levels11 Energy use intensity: 10% reduction Water use intensity: 9% reduction Waste intensity: Limit increase to less than 10% Energy use intensity: 23.5% reduction Water use intensity: 48.3% reduction Waste intensity: 0.2% reduction12 Corporate Office: Reduce energy use intensity by 63% from 2016 levels Energy use intensity: 9% reduction Energy use intensity: 13% reduction Notes: 7 The 2030 targets and interim 2022 annual targets were reviewed in Q2 2022 and reflected in the table above. 8 Calculated based on % of total gross floor area (aligned with BCA’s calculation of green buildings). 9 Intensity figures were calculated based on per unit net lettable floor area. 10 Water use and waste intensities include water use and waste disposed of by CDL Corporate Office. 11 Waste intensity figures are for non-recyclable waste. 12 Waste intensity performance for retail assets does not factor in footfall during the COVID-19 pandemic due to exceptional fluctuations in footfall in the retail sector. There was increased waste as the result of full tenancy rate in Quayside Isle and influx of larger food retailers in City Square Mall alongside start of endemic phase of COVID-19. Build Sustainable Profitability while Conserving the Environment Build Quality, Green and Innovative Spaces Build Organisational Resilience and Employee Commitment Build Partnerships and Bonds with the Community ESG INTEGRATION SINCE 1995 FUTURE PROOFING BUSINESS SUSTAINABILITY BLUEPRINT: CDL FUTURE VALUE 2030 COMMITMENT TOWARDS NET ZERO CARBON 2005 Since 2016 2017 2018 + Since 2008 2020 2021 2010 2015 2013 SUSTAINABILITY BOARD STATEMENT
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