5 The BCA Green Mark SLE is awarded to the best-in-class energy performing Green Mark buildings that achieve at least 60% energy savings above Singapore’s Green Mark 2005 building codes for Green Mark energy savings. in-depth assessments, predict potential consequences of the Company's activities and make informed decisions backed by data. Accelerating Super Low Carbon, Smart and Sustainable Buildings In line with the Singapore Green Building Masterplan’s "8080-80" goals, the Company has committed to enhancing its existing assets and achieving Super Low Energy Buildings (SLEB) for 80% of its owned and managed buildings by 2030. In 2023, the Company achieved three BCA Green Mark Platinum Super Low Energy (SLE)5 awards for its corporate headquarters, Republic Plaza, and residential developments, Tembusu Grand and Lumina Grand, and one BCA Green Mark GoldPLUS award for The Myst. Additionally, Tembusu Grand and Lumina Grand each earned a BCA Whole Life Carbon Badge, further recognising their sustainability achievements beyond their Platinum status. The Company is also proud to be a leading developer with a pioneering commitment to green buildings in Singapore, with 123 BCA Green Mark-certified developments since the Green Mark scheme became mandatory in 2008. Going forward, the Company remains steadfast in its decarbonisation journey with continual improvements in energy efficiency. Disclosures – Robust Sustainability Reporting to Unlock Financial Value to Grow, Enhance and Transform CDL’s Strategic Sustainability Reporting and Pioneering A Two-Pillar Approach Integrating climate and nature conservation has long been an important aspect of the Company’s business and green building strategy. What gets measured gets managed. Since 2008, the Company has consistently built upon its robust sustainability reporting framework to review and improve its strategy systematically. In June 2023, the ISSB issued its inaugural standards – International Financial Reporting Standards (IFRS) S1 and S2, to provide companies with a baseline reporting standard – a common language – to disclose climate-related risks and opportunities in global capital markets. Complementing the global launch, Singapore set up the Sustainability Reporting Advisory Committee (SRAC) to compile robust recommendations that prepare listed and large non-listed companies to report climate-related disclosures aligned with ISSB Standards from 2025 and 2027 respectively. Riding on 16 years of reporting experience, the Company pioneered the application of a two-pillar sustainability reporting framework in its previous ISR. The framework integrated ISSB Standards’ focus on financial and business value with GRI’s priority on impact on the planet and people. With the addition of the ISSB Standards into the Company’s reporting framework, financial materiality of ESG was an added consideration. This is a continuation of the Company's double materiality approach in assessing sustainability-related risks and opportunities in a holistic manner. As the Company aims to transition towards the adoption of IFRS S1 and S2 by FY2025, it has engaged an external consultant to conduct a comprehensive gap analysis and provide a roadmap to guide the Group towards full alignment. In addition, the Company has progressively expanded the scope of its ISR 2024 to include relevant and available Group ESG data towards a wider coverage of entities in alignment with CDL’s annual reports. CDL'S VALUE CREATION MODEL A TWO-PILLAR ESG DISCLOSURE & REPORTING FRAMEWORK, CAPTURING VALUE AND IMPACT Embracing Major ESG Standards & Frameworks and 15 UN SDGs 2005 Since 2016 2017 2018 2020 2021 2023 2010 2015 2013 + + IMPACT VALUE carbon reduction in new developments and compensation of all residual upfront emissions. In December 2021, the Company revised its Science Based Targets initiative (SBTi)- validated GHG emissions intensity reduction targets (Scope 1, 2 and 3) to be aligned with a 1.5°C warmer scenario, with additional targets to reduce Scope 3 emissions. In 2022, the Company stepped up on operationalising and tracking its carbon reduction performance for Scope 1, 2 and 3 carbon emissions against these SBTi-validated targets. As one of the first four companies in Singapore to adopt the TCFD Recommendations since 2017, the Company completed its third Climate Change Scenario Study in December 2022.2 This study focused on its readiness for physical and transitional risks. The scope and region included under the Group were expanded, given the rising urgency, scale and severity of climate change. The study considered the disruptions caused by the prolonged COVID-19 pandemic, which significantly impacted business operations and financial performance. The International Sustainability Standards Board (ISSB) Standards, S1 and S2, launched in June 2023, will require additional disclosures in Scope 3, along with Scopes 1 and 2. In anticipation of this, the Group has continued to raise the bar in tackling Scope 3 emissions through closer strategic alignment and integration with its wider global value chain, including key subsidiaries such as M&C and CBM Pte Ltd.3 The Group’s SBTi-validated targets aligned with 1.5°C emissions reduction target of 58.8% under Scope 3 (category 15) will extend to all major subsidiaries.4 In 2023, energy efficiency and adoption of renewables is the top material issue for the Group. It is crucial for businesses to manage their energy efficiency as it will have a significant impact on the bottom line in the long run. The Company has achieved approximately $42 million in energy savings from energy-efficient retrofitting and initiatives across all its locally managed buildings from 2012 to 2023. In anticipation of Singapore’s carbon tax being raised to $25/tCO2e from January 2024, the Company kickstarted an Internal Carbon Pricing (ICP) study in 2023. Piloted at the Company’s headquarters, Republic Plaza, a successful implementation of ICP will help the Company financially internalise the cost of environmental impacts by factoring such costs into its financial and investment decisions. The Company believes in eventually scaling and implementing ICP across its wider portfolio to help it to achieve its SBTi targets and net-zero ambitions. In 2023, the Company successfully secured blue carbon credits for the first time. Purchased through an auction by Climate Impact X, the credits are generated from Pakistan's Delta Blue Carbon Project, the world's largest mangrove restoration project that protects and restores 350,000 hectares of mangrove forests in Pakistan’s Indus River Delta area. It is also expected to improve the well-being and livelihoods of over 42,000 people in the local communities, of which 70% live below the poverty line. To gain better insight into its decarbonisation efforts using a life cycle approach, the Company conducted its first Whole Life Carbon Assessment (WLCA) in Singapore using five Group assets across different typologies – residential, retail, hotel and mixed development in 2H 2023. The WLCA provided valuable insights on the carbon emissions of its buildings during construction, maintenance and operation stages. By providing a useful breakdown of the carbon footprint of building components and life cycle stages, the Group can better identify challenges and opportunities for future projects of similar scale and building typologies, and work towards reduction of both embodied and operational carbon. In 2023, eight of the Group’s properties in Singapore – Republic Plaza, City Square Mall, King’s Centre, Palais Renaissance, Quayside Isle, Grand Copthorne Waterfront, M Hotel, and JW Marriott South Beach – also successfully attained the internationally recognised WELL Health-Safety Rating.^ The benefits of leasing a space in WELL HealthSafety Rating certified buildings include assurance of constant air and water quality monitoring and optimisation, access to integral health benefits and services, and frequent health and safety stakeholder engagements. The Group is committed to paving the way for more health and wellness designs and provisions in its buildings. Digitalisation & Innovation – Building with Nature Integrating its developments with nature has long been an important aspect of the Company’s pioneering efforts in greening skylines in Singapore. More than a decade ago, the Company built the Tree House condominium with 77% of its site area dedicated to landscaping and communal facilities. The Tree House condominium achieved a Guinness World Record in 2014 for having the world’s largest vertical garden. Since then, the Company has embarked on several other notable projects that exemplify its efforts to build with nature, such as Amber Park, where 65% of its site area is dedicated to facilities, lifestyle space and landscaping with native plant species. In the pipeline, the Company’s Newport Residences (part of the former Fuji Xerox Towers) incorporates green features for higher energy efficiency that translates to annual cost savings of about $450,000. Construction of the Newport Plaza development has started and is expected to complete in 2027. In the past year, the Company intensified its use of innovative and viable green building technology and decarbonisation solutions. At the new Irwell Hill Residences, it initiated the CarbonCure Concrete pilot, which embeds recycled carbon dioxide in fresh concrete to create sustainable concrete without compromising performance. Other decarbonisation solutions include a gradual replacement of belt-driven fans with electrically commutative (EC) fans for its local assets to improve energy efficiency. With growing global emphasis on nature-positive solutions, managing the Company’s biodiversity footprint has become more important than ever. As such, it has become the first and only Singaporean company to subscribe to Xylo Systems, a cloud-based AI platform that supports efforts to measure and manage biodiversity impact, conduct 2 Based on the latest research and scenario analysis from global climate benchmarks such as the Intergovernmental Panel on Climate Change, International Energy Agency, the Network for Greening the Financial System and the World Bank. 3 In 2019, M&C announced its SBTi-validated 2oC target for absolute emissions reduction by 27% for owned and managed hotels under Scopes 1 and 2. 4 Based on publicly disclosed data from 2016 to 2020. ^ WELL is an evidence-based, third-party verified rating that empowers owners and operators to prioritise the health and safety of building users. 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 FINANCIAL CAPITAL MANUFACTURED CAPITAL INTELLECTUAL CAPITAL SOCIAL & RELATIONSHIP CAPITAL HUMAN CAPITAL NATURAL CAPITAL CONSERVING AS WE CONSTRUCT SINCE 1995 INTEGRATED APPROACH SINCE 2015 SUSTAINABILITY BLUEPRINT: CDL FUTURE VALUE 2030 COMMITMENT TOWARDS NET-ZERO CARBON Since 2008 SUSTAINABILITY 79 78 SUSTAINABILITY ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED
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