Climate Change Data

OUE Commercial Real Estate Investment Trust (OUE C-REIT)

Climate Impact & Sustainability Data (2020, 2022)

Reporting Period: 2020

Environmental Metrics

Scope 1 Emissions:1,540.9 tCO2e
Scope 2 Emissions:26,736 tCO2e
Total Energy Consumption:61,139 MWh
Water Consumption:565,188 m3
Waste Generated:2,931 tonnes (non-hazardous), 0.2 tonnes (hazardous)

ESG Focus Areas

  • Climate Resilience
  • Water Efficiency
  • Waste Minimisation
  • Health & Safety
  • Fair Employment Practices
  • Creating Social Ecosystems
  • Innovation
  • Service Quality
  • Compliance
  • Ethical Business Practices
  • Cyber Security

Environmental Achievements

  • Commercial: Energy intensity reduced by 28.7%
  • Hospitality: Energy intensity reduced by 9.7%
  • Scope 2 GHG emissions intensity reduced by 18.1%
  • Commercial: Water use intensity reduced by 37.9%
  • Commercial: Non-hazardous waste intensity reduced by 41.4%
  • Hospitality: Reduced paper waste by 61.9%
  • Hospitality: Reduced plastic waste by 41.7%

Social Achievements

  • Implemented Safe Management policies to ensure employee health and well-being
  • Provided various relief measures to tenants (S$18.3 million rental rebates)
  • Maintained zero incidents resulting in employee fatality or permanent disability
  • 75% of employees in senior management are women
  • Achieved 92.2% tenant satisfaction rate (four commercial properties)
  • Organised several community outreach initiatives (#SeeItBlue campaign, Stars of Christmas, etc.)

Governance Achievements

  • Maintained zero incidents of non-compliance with laws and/or regulations
  • Zero confirmed incidents of corruption
  • Zero cyber incidents and data breaches
  • All company policies including Code of Business Conduct and Ethics were acknowledged by all employees of the Manager in FY 2020.

Climate Goals & Targets

Medium-term Goals:
  • Commercial: Reduce energy intensity by 25% by FY 2030
  • Hospitality: Reduce energy intensity by 25% by FY 2030
  • Reduce scope 2 GHG emissions intensity by 25% by FY 2030
  • Commercial: Reduce water use intensity by 25% by FY 2030
  • Hospitality: Reduce water use intensity by 25% by FY 2030
  • Commercial: Reduce non-hazardous waste intensity by 15% by FY 2030
  • Commercial: Increase recycling rate to 12.5% by FY 2030
  • Hospitality: Reduce paper waste by 50% by FY 2030
  • Hospitality: Reduce plastic waste by 50% by FY 2030

Environmental Challenges

  • COVID-19 pandemic caused unprecedented economic disruption impacting all businesses
  • Weakened office demand and leasing momentum in Singapore and Shanghai due to occupiers' focus on cost efficiency
  • Significant decline in shopper traffic at Mandarin Gallery due to border closures and remote working
  • Significant loss of accommodation demand at hotels due to travel restrictions
  • Intense leasing competition in Shanghai office market due to significant new office supply
  • Evolving office demand due to increased work-from-home arrangements
Mitigation Strategies
  • Adopted proactive asset management strategies, seeking alternatives to boost accommodation demand and prioritising cost management
  • Embarked on the transformational re-branding of Mandarin Orchard Singapore to Hilton Singapore Orchard
  • Rolled out various rental relief measures to tenants (rental rebates, flexible payment schemes)
  • Implemented various safety measures to ensure health and well-being of employees, tenants, and guests
  • Prioritised completion of AEIs to deliver cost savings and support marketability of properties
  • Established a S$2.0 billion multicurrency debt issuance programme and secured S$900.0 million of bank facilities for refinancing

Supply Chain Management

Responsible Procurement
  • Green Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (floods, heatwaves, rising sea levels)
Transition Risks
  • Stringent regulatory compliance
Opportunities
  • Rising customer demand for energy and resource-efficient buildings

Reporting Standards

Frameworks Used: GRI Standards: Core option

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

OUE C-REIT's initiatives contribute to these goals through energy efficiency measures, waste reduction, and responsible resource management.

Awards & Recognition

  • BCA Green Mark Gold (OUE Bayfront, One Raffles Place Tower 1, OUE Downtown Office, Mandarin Gallery, Mandarin Orchard Singapore)
  • BCA Green Mark Platinum (One Raffles Place Tower 2)
  • Green Hotel Award (CPCA)
  • LEED® Gold (Lippo Plaza)
  • SG Clean (MOS, CPCA)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:28,569.8 kgCO2e/m2 (Scope 2)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:28,569.8 kgCO2e/m2
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:86,861 MWh/year
Water Consumption:450,603 m3/year
Waste Generated:3,357 tons/year (non-hazardous)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Stewarding the Environment
  • Strengthening Social Fabric
  • Building Trust

Environmental Achievements

  • Obtained the largest sustainability-linked loan among Singapore REITs in FY 2022
  • Inaugural submission to the Global Real Estate Sustainability Benchmark (GRESB) assessment
  • Commercial segment energy intensity reduced by 24.5% compared to base year FY 2017
  • Scope 2 GHG emissions intensity reduced by 15.3% compared to FY 2017
  • Commercial segment water intensity reduced by 40.5% compared to base year FY 2017
  • Commercial segment non-hazardous waste intensity reduced by 26.9% compared to FY 2017
  • Hotel paper waste reduced by 33.3% compared to base year FY 2017
  • Hotel plastic waste reduced by 68.4% compared to base year FY 2017

Social Achievements

  • Maintained zero incidents resulting in employee fatality or permanent disability
  • 50.0% of employees in senior management are women
  • Average 39.6 training hours per employee
  • Achieved 89.4% tenant satisfaction rate for all five commercial properties
  • Zero incidents of discrimination

Governance Achievements

  • 57.7% of OUE C-REIT’s total debt accounted for by SLLs as of 31 December 2022
  • Commitment to participate in GRESB annually
  • Strengthening OUE C-REIT’s management approach, governance, and disclosures in relation to climate risks and opportunities
  • Zero incidents of non-compliance with laws and/or regulations

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce commercial segment energy intensity per m2 by 25% by FY 2030
  • Reduce hospitality segment energy intensity per occupied room by 25% by FY 2030
  • Reduce Scope 2 GHG emissions intensity per m2 by 25% by FY 2030
  • Reduce commercial segment water intensity per m2 by 25% by FY 2030
  • Reduce hospitality segment water intensity per occupied room by 25% by FY 2030
  • Reduce hospitality segment paper and plastic waste by 50% by FY 2030
  • Reduce commercial segment non-hazardous waste intensity per m2 by 15% by FY 2030
  • Increase commercial segment recycling rate to 12.5% by FY 2030
  • Achieve at least 80% tenant satisfaction rate in relation to commercial properties
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Climate change related physical risks (droughts, floods, heatwaves, rising sea levels) and transition risks (stringent regulatory compliance)
  • Water scarcity in Singapore and Shanghai
  • Potential damage to infrastructure or natural capital due to climate change
  • Rising expectations on health & safety practices and service quality from tenants, guests and visitors
  • High employee turnover rate (55.2% vs national industry average of 24.0%)
  • Evolving regulations in the building sector
Mitigation Strategies
  • Improving energy efficiency of OUE C-REIT’s portfolio
  • Leveraging technology, improving operational planning and engaging tenants
  • Implementing prudent water management
  • Close collaboration with stakeholders to advocate water efficiency
  • Implementing HR policies to create an inclusive, safe and conducive work environment
  • Formal grievance procedure for employees
  • Implementing an ESG Investment Due Diligence Checklist for new acquisitions
  • Integrating environmental risks into OUE C-REIT’s existing Enterprise Risk Management (ERM) Framework
  • Developing appropriate internal controls to manage climate-related risks
  • Monitoring process for external suppliers and service providers (planned for FY 2023)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Green Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts, floods, heatwaves, rising sea levels
Transition Risks
  • More stringent regulatory compliance
Opportunities
  • Shifting consumer preferences and improvements to operational efficiency

Reporting Standards

Frameworks Used: GRI 2021 Standards

Certifications: BCA Green Mark Gold (multiple properties), LEED Gold (Lippo Plaza)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Water filtration and bottling system at Hilton Singapore Orchard

Awards & Recognition

  • Not disclosed