Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Water conservation
• Waste management
• Healthy and safe buildings
• Supply chain management
• Diversity & Inclusion
• Human rights
• Community development
• Corporate governance
• Business ethics

Environmental Achievements

• 54.8% reduction in carbon emissions intensity since 2008 (data to September 2020)
• 36 green building ratings for new development projects and existing buildings
• S$265 million in utilities cost avoidance since 2009, arising from 38.9% and 53.4% energy and water reduction (per m² from base year 2008) respectively

Social Achievements

• Launched CapitaLand Sustainability X Challenge
• More than 2,600 staff contributed over 24,600 volunteer hours in community support activities
• Pledged more than S$6 million to support over 160,000 people impacted by COVID-19 pandemic globally
• Average of 83% of survey participants accorded Ratings 4 and 5 in global pulse survey on employee well-being

Governance Achievements

• Launched 2030 Sustainability Master Plan
• Established a Sustainability Council
• Carbon emissions reduction targets approved by the Science Based Targets initiative (SBTi)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting retail, lodging, and residential businesses
• Supply chain disruptions
• Climate change related physical and transition risks
• Competition in the real estate market
• Economic downturns and regulatory changes
• Financial risks (liquidity, foreign currency, interest rates)
• Fraud, bribery, and corruption
• Information technology and cyber security risks
• Project management challenges
• Regulatory and compliance issues
• Safety, health, and well-being concerns

Mitigation Strategies

• Rental rebates and marketing support for tenants (S$340 million)
• Financial and healthcare assistance to the community
• Cost savings initiatives (S$250 million)
• Digitalisation of business operations and processes
• Diversification of portfolio across asset classes and geographies
• Scenario analysis and Value-at-Risk modelling
• Hedging and limiting financial risk exposures
• Ethical culture promotion and zero-tolerance policy on fraud, bribery, and corruption
• Cyber security strategy implementation and staff training
• Stringent vendor pre-qualification procedures
• Compliance framework and regular reporting
• Group environmental and health and safety management systems (ISO 14001 and ISO 45001 certified)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CapitaLand’s Supply Chain Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Violent storms
• Long intense heat waves
• Flash floods
• Fresh water depletion

Transition Risks

• Stringent regulations
• Increased stakeholder expectations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option, International Integrated Reporting Framework, ISO 26000:2010, UN Sustainable Development Goals, TCFD, SASB

Certifications: ISO 14001, ISO 45001

Third-party Assurance: AA1000 Assurance Standard

UN Sustainable Development Goals

• SDG 1, 2, 3, 4, 7, 8, 9, 11, 12, 13, 17

See Creating Value and Alignment to United Nations Sustainable Development Goals (UN SDGs) section

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• See Our Awards & Accolades section

Environmental Metrics

ESG Focus Areas

• Low Carbon Transition
• Water Conservation and Resilience
• Waste Management and Circular Economy
• Dynamic Human Capital
• Healthy and Safe Buildings
• Proactive Customer Relationship Management
• Robust Supply Chain Management
• Sustainable Operational Excellence
• Sustainable Finance
• Sustainability Innovation and Technology

Environmental Achievements

• 48% of CLI’s global portfolio achieved green building certification
• 54% reduction in carbon emissions intensity since 2008
• 43% reduction in energy consumption intensity since 2008
• 52% reduction in water consumption intensity since 2008
• S$320 million in utilities cost avoidance since 2008
• 8.1% recycling rate in day-to-day operations

Social Achievements

• 40% of senior management were women
• >410,000 training hours for staff
• >88% of staff attended a new e-learning course on fraud, bribery and corruption
• 100% contractors & vendors committed to abide by Supply Chain Code of Conduct
• Zero contractor work-related fatality and permanent disability
• No reported incident relating to discrimination, child labour or forced labour

Governance Achievements

• Implemented an internal carbon price for new investments and acquisitions
• S$50 million CapitaLand Innovation Fund to support sustainability and high-tech innovations
• S$7 billion raised in sustainable finance by CLI & its listed REITs & business trusts
• Elevated the stewardship of sustainability to a full board committee (Strategy Committee)

Climate Goals & Targets

Environmental Challenges

• Limited rooftop spaces at CLI properties for optimal renewable energy generation
• Limited availability of green power in various markets
• Data limitations in certain countries and properties for waste management
• Supply chain disruptions due to COVID-19
• Global Gender Gap
• Great Resignation

Mitigation Strategies

• Exploring renewable energy options, including green power purchase agreements and feasibility studies for solar panels
• Implementing initiatives to improve tracking of waste data
• Diversification of supply chain, with close to 70% of providers located within core markets
• Proactive measures to support staff during the COVID-19 pandemic (online wellness programs, etc.)
• Implementing policies and schemes to support staff during the COVID-19 pandemic
• Closely monitoring global staff turnover trends and implementing retention policies

Supply Chain Management

Supplier Audits: 100% contractors & vendors committed to abide by Supply Chain Code of Conduct

Responsible Procurement

• CapitaLand Supply Chain Code of Conduct
• CLI Procurement Policy
• Preference given to ISO 14001 and ISO 45001 certified companies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, storms)
• Rising temperatures
• Rising sea levels
• Freshwater depletion

Transition Risks

• Policy and legal changes
• Carbon pricing
• Market and technology shifts

Opportunities

• Development of energy-efficient products
• Investment in renewable energy projects

Reporting Standards

Frameworks Used: GRI Standards: Core option, International Integrated Reporting Framework, ISO 26000:2010, UN Sustainable Development Goals, SASB real estate sector-specific standards, UN Global Compact, Greenhouse Gas (GHG) Protocol, TCFD

Certifications: ISO 14001, ISO 45001, EDGE

Third-party Assurance: Ere-S Pte Ltd

UN Sustainable Development Goals

• 3, 7, 8, 9, 11, 12, 13, 17

Aligned with CapitaLand’s 2030 Sustainability Master Plan targets.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Global 100 Most Sustainable Corporations in the World (10th year)
• Dow Jones Sustainability World Index (10th consecutive year)
• Global Sector Leader in Diversified sector for GRESB (4th year)
• AAA leader rating by MSCI ESG Research

Environmental Metrics

ESG Focus Areas

• Sustainable Tourism
• Sustainability Training

Environmental Achievements

• Two properties (lyf one-north Singapore and Somerset Greenways Chennai) are now GSTC-Certified.
• Over 95% of accommodation units across Ascott’s managed properties in Singapore are slated to be GSTC-Certified by 2024.

Social Achievements

• Partnership with GSTC to provide over 700 training hours in sustainability.
• Ascott Centre for Excellence (ACE) trained almost 20,000 hospitality professionals.

Governance Achievements

• Ascott is one of the first hospitality groups to be conferred the GSTC-Recognised Standard status.

Climate Goals & Targets

Environmental Challenges

• Challenges that the industry is facing around sustainability.

Mitigation Strategies

• Empowering future leaders with the right skills and capabilities in an evolving sustainability landscape in line with the GSTC framework.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GSTC

Certifications: GSTC-Certified

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Resilient Communities
• Sustainability Culture
• Climate Change
• Social Well-being
• Governance

Environmental Achievements

• Reached GRESB Global Listed Sector (Diversified) Leader
• Included in Dow Jones Sustainability World and APAC Indices
• 20% reduction in carbon emissions intensity since 2019
• 19% reduction in water intensity from 2019
• 60% of global portfolio achieved green building certification
• Installed rooftop solar panels in six new economy assets, bringing the total to 23

Social Achievements

• Launched CapitaLand Wellness Fund (C-WELL)
• 84% employee engagement score
• Over 360,000 hours of learning opportunities delivered
• CapitaLand #GivingAsOne global campaign with over 1,400 volunteers contributing over 9,800 volunteer hours
• CHF donated over S$3.5 million globally in 2023

Governance Achievements

• Refreshed 2030 Sustainability Master Plan (SMP)
• Executive compensation linked to ESG performance
• Best Risk Management Award at the 2023 Singapore Corporate Awards
• Best Annual Report – Bronze award at the 2023 Singapore Corporate Awards
• Multiple awards from Institutional Investor in the Asia (ex-Japan) Executive Team Awards

Climate Goals & Targets

Environmental Challenges

• Global macroeconomic and geopolitical challenges (rising interest rates, China's growth slowdown, US banking sector disruptions, Israel-Hamas conflict, Russia-Ukraine tensions)
• Subdued deal activity impacting property demand and valuations
• Higher interest expense
• Lower contribution from China
• Lower event-driven fees from funds
• Weaker rents and market outlook in China
• Expansion of capitalization rates in the USA and UK impacting property valuations

Mitigation Strategies

• Disciplined capital management (proactive interest cost management, capital recycling, balanced fixed and variable debt)
• Pursued higher-yielding strategies (value-add and opportunistic)
• Geographic diversification (Southeast Asia and India)
• Focus on new economy and lodging assets
• Asset enhancement and redevelopment opportunities
• Strategic acquisitions
• Capital recycling of at least S$3 billion of gross asset divestments annually

Supply Chain Management

Responsible Procurement

• CLI’s Supply Chain Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Violent storms
• Intense heat waves
• Flash floods
• Freshwater depletion

Transition Risks

• Stringent regulations
• Increased stakeholder expectations

Opportunities

• Low-carbon investments
• Enhanced portfolio resilience

Reporting Standards

Frameworks Used: GRI Standards, GHG Protocol, GRESB, Value Reporting Foundation’s Integrated Reporting Framework, UN SDGs, TCFD, SASB Standards, UN Global Compact, UN PRI

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Externally assured with reference to ISAE 3000

Awards & Recognition

• Best Risk Management Award (2023 Singapore Corporate Awards)
• Best Annual Report – Bronze (2023 Singapore Corporate Awards)
• Multiple awards from Institutional Investor

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Community Impact
• New ESG Products
• Organisational Core

Environmental Achievements

• >30% overall energy consumption reduction expected at Raffles City Singapore, Plaza Singapura & The Cooling-as-a-Service (CaaS)
• ~118,680 tonnes of CO2 emissions savings expected over 15-year operating period
• CLI’s 1st captive 21MW solar power plant commissioned in Tamil Nadu
• Expected to generate >30 million kilowatt-hour (kWh)/year of electricity & est. to meet power supply needs of 2 million sq ft equivalent of office space from 2024
• Increases CLINT’s green energy usage by >70%, reduces its CO2 emissions by >17,000 tonnes, & reduce need to purchase power

Social Achievements

• Incorporate social integration design features in properties
• Implement wellness related initiatives & certifications for physical assets
• Amplify the social impact of our contribution to the communities through CapitaLand Hope Foundation
• Build a culture of volunteerism

Governance Achievements

• Ensure sustainability targets integrated into CLI Performance Share Plan & Balanced Scorecard framework to determine executive remuneration & KPIs
• At least 85% staff to attend 1 compliance related training
• 25% ESG reporting aligned & externally assured to international standards
• ISSB* alignment
• Conducting gap analysis exercise for alignment to ISSB IFRS S1 & IFRS S2 and prepare for its ISSB-aligned report

Climate Goals & Targets

Environmental Challenges

• Achieving net-zero emissions by 2050
• Reducing Scope 3 emissions
• Managing climate-related physical and transition risks

Mitigation Strategies

• Accelerating technology innovation pilots, scaling up green asset enhancements, expanding renewable procurement, deploying green capex based on portfolio data analytics
• Enhancing tracking & disclosure of material Scope 3 categories
• Influencing decarbonisation of value chain through green leases, collaboration within the ecosystem, and exploring sustainable financing

Supply Chain Management

Responsible Procurement

• Contractors & vendors to abide by CLI’s Supply Chain Code of Conduct
• Zero tolerance to child labour/ forced labour

Climate-Related Risks & Opportunities

Physical Risks

• Fluvial (River) flooding
• Coastal flooding
• Tropical cyclones
• Wildfire
• Extreme heat
• Extreme cold

Transition Risks

• Changes in regulator expectations
• Changes in customer expectations
• Electricity price shifts

Reporting Standards

Frameworks Used: GRESB