CDL Group's Top Material ESG Issues Risks and Opportunities CDL Group's Responses and Achievements 9. Green and Healthy Buildings Supporting SDGs: TCFD Pillars: G, S, RM, M&T TNFD Pillars: G, S, RM, M&T Green and healthy buildings positively impact the health and well-being of occupants. Investing in green buildings rewards businesses with improvements, such as occupant satisfaction and increased staff productivity. The Group creates quality and sustainable spaces that embed green features and promote healthy lifestyles in its office buildings and residential developments. Creative design and technology optimises overall well-being and creates a shared sense of community. The Group recognises that people are its greatest asset, and their health, safety and well-being are of utmost importance. Therefore, it is its responsibility to provide a safe and healthy environment for its employees, customers and workers. The Company has a dedicated Green Building Policy since 2020 that supplements its EHS policy established since 2003. In 2021, the Company updated its 3S Green Building Framework to align with the latest BCA Green Mark 2021. The Company also attained the Elite Level in Eco-Office Certification by the Singapore Environment Council in 2023. The Elite Level is awarded to businesses that demonstrate outstanding environmental efforts, maintain high-quality indoor environments for comfort and promote a culture of sustainability among their employees. Similarly, for its efforts in creating energy- and resource-efficient and healthier interior spaces, the Company received the BCA-HPB Green Mark for creating a Healthier Workplace. Eight Group properties also achieved the WELL Health-Safety Rating certification across different portfolio types. The certified assets were assessed based on their building performance in sustainability, health and well-being via a global rating system developed by the International WELL Building Institute (IWBI). 10. Stakeholder Impact and Partnerships Supporting SDGs: TCFD Pillars: G, S TNFD Pillars: G, S Building goodwill in the community provides the Group with a strong social license to operate. Through collaborations with like-minded partners, the Group has pioneered and developed partnerships that multiply its outreach and impact on climate action and UN SDGs. In June 2023, in partnership with National Parks Board (NParks) and Ocean Geographic, the Company launched the third instalment of the Climate Action Exhibition series, titled “Melting Ice, Sinking Cities: An Urgency to Change the Present and Save Humanity”. The exhibition highlighted the interconnectedness of climate change and the health of the ocean, people and the planet. It also commemorated the reopening of the refurbished CDL Green Gallery and the continuation of the major collaboration between the Company and NParks with a second 10-year Memorandum of Understanding (MOU). In 2023, the Company held more physical events to continue its engagement efforts. Key events included the continuation of its major initiatives Youth4Climate Festival, My Tree House “We Love Our Planet” Storytelling Contest, CDL-GCNS Young SDG Leaders Award and more. Read more about the Company's stakeholder engagement initiatives in Chapter 5 of CDL ISR 2024. 11. Ethical and Transparent Business Supporting SDGs: TCFD Pillars: G, RM An ethical and transparent business builds and maintains a company’s trust with its stakeholders and promotes investor confidence, customer loyalty and longterm sustainable business growth. The Group takes a firm stance on its zero-tolerance policy towards fraud, bribery and corruption. This leads to greater opportunities such as access to capital and mitigates risks associated with legal, financial and reputational damage. The Company benchmarks its practices with the voluntary SS ISO 37001 Anti-bribery Management Systems to minimise gaps. We operate according to industry standards. Anti-money laundering workshops are conducted annually for its employees. In 2022, the Company started to provide mandatory training for all new hires on key risk management-related topics (namely Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT), Data Privacy, and Incident Escalation). The Group implements clear and transparent policies, risk management systems, and ESG disclosures to continuously monitor and validate business processes. Within the Company’s robust EHS Management System, applicable legal requirements are regularly monitored and evaluated for compliance. Incentives and penalties are also implemented to strengthen contractors’ site management. Its corporate and sustainability policies and guidelines are published on its corporate websites, sustainability microsite and staff intranet, CDL360. 12. Water Management Supporting SDGs: TCFD Pillars: G, S, RM, M&T TNFD Pillars: G, S, RM, M&T In Singapore, it is increasingly more expensive to produce and supply water. Projected pricing hikes will be introduced in April 2024 and 2025. Due to climate change, more investment is also required in local water infrastructure to prepare Singapore for drier days ahead. The Company is proud to maintain its inclusion in the 2023 CDP A List for water security. This marks its fifth consecutive year of receiving an ‘A’ score. The Company’s developments are designed with a life cycle approach to water sustainability. It adopts technologies to raise water efficiency such as rainwater harvesting, which are implemented at many of its commercial and residential developments. The Company addresses Singapore’s water challenges through water conservation and rainwater harvesting, where feasible. The Company partners with PUB, Singapore’s national water agency, annually for Singapore World Water Day, by engaging its corporate staff, tenants and members of the public on the “Make Every Drop Count” water conservation campaign. 13. Human Rights and Labour Conditions Supporting SDGs: TCFD Pillars: G, S, RM TNFD Pillars: G 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. The Group is committed to respecting and promoting the rights and dignity of its employees, workers and communities. The Company engages its contractors and suppliers to abide by its 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. At its subsidiary, CBM Pte Ltd, EHS matters are discussed at Management and risk management committee meetings to ensure timely updates to all business units. The Company and CBM Pte Ltd conduct a biennial employee engagement survey to understand employees’ concerns and engagement levels, enabling the Group to perform as an employer of choice. 8 Renamed from Green Procurement Guidelines in 2020. CDL Group's Top Material ESG Issues Risks and Opportunities CDL Group's Responses and Achievements 5. Occupational Health, Safety and Well-being Supporting SDGs: TCFD Pillars: S, RM, M&T TNFD Pillars: S, RM The safety, health and wellness of the Group’s employees and contractors’ workers are consistently ranked amongst the Group’s top priorities. In line with Singapore’s Workplace Safety and Health (WSH) 2028 Roadmap, the Group collaborates with appointed contractors, where possible, to promote good WSH practices onsite and in the Company’s offices, contributing to a strong EHS culture. The Company complies with ISO 14001 and ISO 45001 Integrated Environmental and Occupational Health and Safety Management System 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, the Company’s Environment, Health and Safety (EHS) Policy and CDL 5-Star EHS Assessment have been continually enhanced in standard and scope. The CDL 5-Star EHS Assessment also recognises and awards contractor companies that are exemplary in EHS excellence and workers’ welfare, and workers who exhibit good safety behaviour. All seven project sites are averaging above 90% of the total score for their EHS performance. One of its main contractors achieved the Safety and Health Award Recognition for Projects (SHARP) for Amber Park. In 2023, representatives from the Company's ExCo, Senior Management representatives and relevant key executives visited workers and employees across its project sites, managed buildings and corporate office to dialogue on WSH, aligned with Singapore’s Ministry of Manpower (MOM) recommendations for WSH standards. The Company also tailored a WSH leadership programme for the ExCo, Board of Directors, representatives from the ExCo, and key executives from business units to enhance their WSH knowledge. At its subsidiary, CBM Pte Ltd, the CEO and management conducted regular site visits to ensure occupational health and safety awareness. To promote employee wellness, the Company adopted an employee wellness app offering resources and benefits designed to boost mental health, increase productivity, and cultivate a positive workplace environment. The Company continues to be recognised as a long-serving bizSAFE Mentor. In 2023, it completed its recertification audit and continued to be certified under the ISO 14001/ ISO 45001 Integrated Environmental and Occupational Health and Safety Management System. 6. Responsible Supply Chain Supporting SDGs: TCFD Pillars: G, S, RM, M&T TNFD Pillars: G, S, RM, M&T With future mandatory reporting on Scope 3 emissions required by the ISSB Standards, businesses must act responsibly by building capacity within their supply and value chains to contribute to the Race to Zero. The Group upholds its ESG performance and reputation with established processes and regular engagement with its suppliers to procure sustainably sourced and safe building materials, ensure fair labour human rights practices for workers and provide healthy buildings for building occupiers. The Company has long-established responsible sourcing guidelines8 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 the Company’s 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 and Singapore Environment Council. In 2023, the Company’s Supplier Code of Conduct was updated to reflect its commitment towards aligning with international best practices. All suppliers are required to agree to the terms under the Code of Conduct, which provides comprehensive guiding principles for EHS compliance. The Company continues to engage its main contractors and consultants of active project sites to share up-to-date industry knowledge at quarterly CDL EHS 5-Star seminars while the Company’s annual EHS Sports Challenge was organised for contractors and workers to enhance EHS awareness through sports and other interactive activities. In 2023, monthly ExCo and senior management engagements with representatives from the ExCo, Senior Management and relevant key executives were also conducted across active project sites, managed buildings, and the Company’s corporate office to assess site conditions, workers' and employees' well-being, as well as address WSH concerns. The Company also supports the main contractors of project sites in the tabulation of carbon emission data associated with building materials requirement outlined in ISO 14064 greenhouse gases standards, contributing to the sustainability proficiency of its contractors. 7. Future-ready Workforce and Talent Retention & Attraction Supporting SDGs: TCFD Pillars: S, RM Successfully attracting and retaining talent allows companies to have a strong competitive advantage in corporate performance. The Group strives to be ahead of the curve in ensuring employee satisfaction, productivity and well-being, and building a workforce with skill sets that future-proof the Group’s business. The Group has championed a culture of continuous learning and development, prioritising ongoing training and development programmes, which is key to building a future-ready workforce. The Company enhanced its in-person training programs, covering diverse topics from sustainability to health and wellness. These initiatives have led to significant improvements in employee engagement and experience, resulting in lower-than-industry turnover rates. The Company’s commitment to holistic employee development has been recognised industry-wide. In 2023, it was recognised with awards including the TIME World’s Best Companies 2023; the Singapore HR Awards 2023 for employee experience and wellbeing, and workplace culture and engagement; and the HR Asia Awards 2023 for Best Company to Work For In Asia. The Group’s subsidiary, CBM Pte Ltd was also recognised as one of The Straits Time's Singapore’s Top 30 Best Employers in 2023. 8. Product/ Service Quality and Responsibility Supporting SDGs: TCFD Pillars: S, RM TNFD Pillars: S, RM As an asset owner and manager, the Group takes pride in ensuring a safe, green and healthy environment for its building users. The Group 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 to Design for Safety Regulations, the Company has a robust process guided by the regulations to identify design risks and assess the severity of EHS impacts throughout the construction stages of its developments. The Virtual Unit Handover initiative, piloted in 2020, continues to serve the Company well for future projects that obtain TOP. In 2023, many homebuyers of the Company’s projects, Piermont Grand and Sengkang Grand Residences, experienced a virtual handover. The Company engages homebuyers in other aspects as well. In 2023, the Company's Customer Experience team engaged homebuyers of Sengkang Grand and Amber Park via webinars to prepare them for the handover of their property. To further engage homebuyers, five webinars on home renovation, interior design/furnishing and health and well-being were also organised. Three lifestyle events tied up with exclusive brands and three online contests were organised as well. CBM Pte Ltd adopts a pro-active approach in developing rapport with its clients and customers to ensure effective communication and feedback management. An annual customer satisfaction survey is conducted, with a target of achieving a score above 80%. SUSTAINABILITY 83 82 SUSTAINABILITY ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED
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