OUE Real Estate Investment Trust
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:28,569.8 kgCO2e/m2 (Scope 2)
Scope 1 Emissions:1,164.2 tCO2e
Scope 2 Emissions:119.8 tCO2e
Total Energy Consumption:86,861 MWh
Water Consumption:450,603 m3
Waste Generated:3,357 tonnes (non-hazardous), 1.2 tonnes (hazardous)
ESG Focus Areas
- Stewarding the Environment
- Strengthening Social Fabric
- Building Trust
Environmental Achievements
- All Singapore commercial properties and Hilton Singapore Orchard attained BCA Green Mark Gold certification or higher.
- Lippo Plaza in Shanghai is LEED Gold certified.
- 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.
- Reduced paper waste at hotels by 33.3% and plastic waste by 68.4% compared to base year FY 2017.
- Commercial segment non-hazardous waste intensity reduced by 26.9%.
Social Achievements
- Successfully re-branded and opened Hilton Singapore Orchard.
- Achieved 89.4% tenant satisfaction rate for all five commercial properties.
- 50.0% of employees in senior management are women.
- Zero high-consequence work-related injuries in FY 2022.
- First employee engagement survey conducted with 91.4% overall satisfaction score.
- Average 39.6 training hours per employee.
Governance Achievements
- Obtained the largest sustainability-linked loan among Singapore REITs in FY 2022.
- Inaugural submission to the Global Real Estate Sustainability Benchmark (GRESB) assessment.
- Improved in the 2022 Singapore Governance and Transparency Index.
Climate Goals & Targets
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
Environmental Challenges
- Deconsolidation of OUE Bayfront's performance post-divestment.
- Lower rental rebates and higher interest expense.
- Weakened leasing sentiment in Shanghai due to COVID-19 lockdowns and competition.
- Muted GDP growth outlook impacting consumer sentiment.
- Rising interest rates and macroeconomic uncertainties.
- Manpower shortages in the retail sector.
- Potential global recession in 2023.
Mitigation Strategies
- Successful issuance of fixed rate notes and sustainability-linked loan to strengthen capital structure.
- Proactive asset management to optimise portfolio value and performance.
- Focus on sustaining occupancy at Lippo Plaza.
- Proactive leasing strategy to optimise rents and occupancy in Singapore.
- Flexibility in lease terms and negotiations in Shanghai.
- Adoption of energy-efficient equipment and technology to mitigate rising costs.
- Service charge increase to mitigate rising costs.
- Asset enhancement initiatives to drive value creation.
Supply Chain Management
Responsible Procurement
- Green Procurement Policy
Climate-Related Risks & Opportunities
Physical Risks
- Droughts, floods, heatwaves, rising sea levels
Transition Risks
- Stringent regulatory compliance
Opportunities
- Shifting consumer preferences
- Improvements to operational efficiency
Reporting Standards
Frameworks Used: GRI 2021 Standards
Certifications: BCA Green Mark Gold (Singapore properties), LEED Gold (Lippo Plaza, Shanghai)
UN Sustainable Development Goals
- Climate Resilience
- Water Efficiency
- Waste Minimisation
- Health & Safety
- Employee Engagement
- Creating Social Ecosystems
- Innovation
- Service Quality
- Compliance
- Ethical Business Practices
- Cyber Security
OUE C-REIT’s sustainability efforts echo the UN SDGs.
Sustainable Products & Innovation
- Water filtration and bottling system at Hilton Singapore Orchard
Awards & Recognition
- Best New Meetings Hotel (Asia) M&C Asia Stella Awards 2022
- Asia Suite Design Winner (Presidential Suite) 2022 AHEAD Awards
- World’s Best Airport Hotel Skytrax World Airport Awards 2023
- Best Airport Hotel in Asia Pacific 2022 Business Traveller Asia-Pacific Awards
Reporting Period: 2023
Environmental Metrics
Scope 2 Emissions:29,704.8 tCO2e/year
Total Energy Consumption:95,881 MWh/year
Water Consumption:550,588 m3/year
Waste Generated:3,830 tons/year
ESG Focus Areas
- Stewarding the Environment
- Strengthening Social Fabric
- Building Trust
Environmental Achievements
- 95.7% of portfolio is green certified
- Commercial segment energy intensity reduced by 20.9%
- Commercial segment water intensity reduced by 26.1%
- Hospitality segment water intensity reduced by 16.9%
- Reduced paper waste by 4.9% in hospitality segment
- Reduced plastic waste by 58.0% in hospitality segment
- Crowne Plaza Changi Airport attained BCA Green Mark Gold Certification
Social Achievements
- Average tenant satisfaction rate of 89.4% across all five commercial properties
- Zero incidents resulting in employee fatality or permanent disability
- Zero incidents of discrimination
- Average training hours per employee: 45.0
- 50.0% of employees in senior management are women
Governance Achievements
- Established Green Financing Framework
- Assigned investment grade credit rating of BBB- with a stable outlook by S&P Global Ratings
- 69.5% of total debt are Sustainability-Linked Loans
- Zero confirmed incidents of corruption
Climate Goals & Targets
Long-term Goals:
- Net zero emissions
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
- 25% female representation on the Board by FY 2030
Environmental Challenges
- Elevated interest rate environment and inflationary pressures
- Flexible/hybrid working arrangements and office decentralisation
- Changing consumption patterns
- Sustainability and climate change
- Manpower shortages
- Competition from e-commerce
- Higher operating costs
- Challenging macroeconomic environment and a tightened credit market
- Softening global leasing demand and some new supply
- Intensified leasing competition and a slower-than-expected economic recovery in Shanghai
Mitigation Strategies
- Prudent capital management strategy in mitigating the impact of higher interest expenses on distributions
- Disciplined investment approach and maintaining a strong balance sheet
- Optimising and repurposing underutilised spaces into new and flexible meeting facilities
- Proactive leasing strategy to optimise rents and occupancy
- Developing competitive leasing strategies to attract and retain tenants
- Improving NPI by focusing on cost efficiency and capital expenditure management
- Proactively managing lease expiries through early tenant engagement
- Transforming existing spaces into future-ready workspaces
- Enhancing the environmental sustainability of its assets through green building initiatives, energy efficiency improvements, and the adoption of renewable energy sources
- Active tenant engagement
Supply Chain Management
Responsible Procurement
- Green Procurement Policy
Climate-Related Risks & Opportunities
Physical Risks
- Droughts, floods, heatwaves, rising sea levels
Transition Risks
- Stringent regulatory compliance
Opportunities
- Shifting consumer preferences
- Improvements to operational efficiency
Reporting Standards
Frameworks Used: GRI
UN Sustainable Development Goals
- Goal 7
- Goal 13
Sustainable Products & Innovation
- In-house custom-built water filtration and glass bottling system at Hilton Singapore Orchard
Awards & Recognition
- Three-Star Rating in the 2023 Global Real Estate Sustainability Benchmark assessment