The management of climate-related risks and opportunities is an integral part of the CDL Future Value 2030 sustainability blueprint launched in 2017. Under the strategic goal of ‘Reducing Environmental Impact’, we have established a set of robust targets to reduce our carbon emissions, energy and water consumption and waste generation, as well as sustainable material use. More details on the blueprint and our progress on each target are here.

Starting from 2015, CDL has been incorporating Environmental, Social and Governance (ESG) performance into executives and senior management’s individual key performance indicators. The initiative was extended to all employees in 2016. Today, all CDL employees have incentivised performance indicators linked to sustainability performance as part of their annual performance assessment. With the implementation of Balanced Scorecard System for company-wide performance appraisal in 2017, annual targets for carbon emissions and energy use reduction are shared between the Sustainability and operational departments to cultivate a strong sense of co-ownership and cross-function collaboration in achieving CDL’s environmental targets.

Carbon Emissions Reduction Target and Performance

To align with levels of decarbonisation required to limit global warming as outlined by the IPCC, we adopted a science-based approach in setting our carbon emissions reduction targets and validated them in July 2018 under the expert panel of the SBTi. The SBTi is a collaboration between CDP, the UNGC, World Resources Institute and World Wide Fund for Nature. It is also one of the We Mean Business Coalition initiatives. Adhering to the stringent criteria set out by SBTi ensures that adopted targets guide our organisation towards clear science-based actions that contribute towards the world’s low-carbon goals.

Based on our validated science-based targets, CDL commits to reduce its Scope 1 and 2 GHG emissions intensity across its Singapore operations (corporate office, commercial and industrial buildings) by 59% from baseline year 2007 by 2030. For our development projects, CDL also commits to using sustainable building materials, instead of their conventional equivalents, to reduce embodied carbon by 24% by 2030. In addition, the initiative has included inputs from Millennium & Copthorne Hotels plc (M&C), the major listed subsidiary of the CDL Group, which has committed to set science-based targets by 2025.

Total carbon emissions in 2018 were consistently lower compared to 2017 across all CDL’s core business operations as shown in the chart for Total Carbon Emissions from CDL’s Core Operations in Singapore. The largest source of emissions was electricity usage reported as Scope 2 emission in the charts. Scope 2 emission accounted for close to 74% of the total Company’s carbon footprint in Singapore operations.

Total Carbon Emissions from CDL’s Core Business Operations in Singapore: Corporate Office, Managed Properties, Development Projects (Tonnes CO2e)

Scope 1 Includes direct emissions from fuel used in power generators, petrol for company vehicles, loss of refrigerant in air-conditioning systems and loss of insulating and arc quenching media in switchgear systems.
Scope 2 Includes indirect emissions from purchased electricity consumed by the operational activities of CDL at the Corporate Office, commercial and industrial buildings, reported using the market-based method to include the reduction in emissions as a result of the purchase of renewable energy certificates.
Scope 3 Includes emissions arising from property development activities (fuel used in power generators, purchased electricity, electricity upstream emissions and transmission losses and water usage), and other indirect emissions from electricity upstream emissions and transmission losses, local and international courier services, employee commuting, business air travel (excluding the influence of radiative forcing) and hotel accommodations, water supply and wastewater treatment at corporate office, commercial and industrial buildings.
Note:
Figures stated in charts may not add up due to rounding of decimals.
Carbon emissions arising from the construction activity carried out by builders have been restated under Scope 3 carbon emissions to align with sector classification of GRI Business Activity Group Descriptions as recommended by the SBTi.
In addition to using a location-based method for reporting GHG emissions, the figure shown in brackets is calculated using a market-based method. It includes the reduction in emissions from the purchase of renewable energy certificates.

 
Carbon Emissions Intensity from CDL’s Core Business Operations in Singapore (kgCO2e/m2)

Corporate Office CDL’s Corporate Office in Singapore occupied approximately 6,781 m2 across ten floors in City House and one floor in Republic Plaza from January to March 2018. From April 2018, CDL’s Corporate Office relocated to Republic Plaza, occupying approximately 5,013 m2 across four floors in Republic Plaza. Measurement is applicable to all environmental performance reported in this section.
Commercial and Industrial Buildings In 2018, CDL managed 12 commercial buildings and three industrial buildings in Singapore, with an average monthly leased floor area of 226,654 m2 and 27,572 m2 respectively. Measurement is applicable to all environmental performance reported in this section.
Construction Sites While carbon emissions due to construction activities at CDL’s construction sites are a result of contractors’ direct and indirect emissions, CDL recognises the significant environmental impact of these construction activities. In 2018, CDL measured and monitored the environmental impact and performance of its four construction sites in Singapore with a gross floor area of 44,473 m2 built for that year. Measurement is applicable to all environmental performance reported in this section.
Note:
Carbon emissions arising from the construction activity carried out by builders have been restated under Scope 3 carbon emissions to align with sector classification of GRI Business Activity Group Descriptions as recommended by the SBTi.
In addition to using a location-based method for reporting GHG emissions, the figure shown in brackets are calculated using a market-based method. It includes the reduction in emissions from the purchase of renewable energy certificates.

 

Subsidiaries’ Carbon Emissions Data

Since 2014, CDL has been reporting the carbon emissions of our key subsidiaries to ensure greater disclosure and accountability of the Group’s carbon footprint. The following table shows carbon emissions from Millennium & Copthorne plc (M&C), CDL Hospitality Trusts (CDLHT), CBM Pte Ltd (CBM), City Serviced Offices (CSO), Le Grove Serviced Apartments (Le Grove) and Tower Club Singapore (Tower Club).

GHG Emissions from CDL and Six Key Subsidiaries (Tonnes CO2e)

For CDL, carbon emissions arising from the construction activity carried out by builders have been restated under Scope 3 carbon emissions to align with sector classification of GRI Business Activity Group Descriptions as recommended by the SBTi.
# CDLHT Scope 3 exclude emissions from waste disposed.
* Data represents Le Grove Office only. Le Grove Serviced Residences was closed for renovation from December 2016 to July 2018.

 

GHG Quantification and Reporting

To better manage our carbon reduction efforts, we have implemented a GHG management system in accordance with the requirements of ISO 14064-11, and have externally audited and validated our emissions computations since 2015. ISO 14064-1 is an international standard that specifies organisational-level principles and requirements for quantification and reporting of GHG emissions and removals.

Carbon Neutral

Since 2009, CDL has voluntarily reduced our annual carbon emissions to net zero for our Corporate Office operations including our data centre and 11 Tampines Concourse – the first CarbonNeutral® development in Singapore and Asia Pacific. Besides carbon neutralising the construction phase of 11 Tampines Concourse, we also annually offset emissions from the buildings’ operations, including that of our tenants’.

Embodied Carbon

Going beyond measuring and monitoring the GHG emissions of existing buildings in use, CDL began tracking the embodied carbon present in the construction materials used in our property development in 2016.

Embodied carbon refers to the carbon emissions associated with the non- operational phase of a building. This includes emissions caused by extraction, manufacture, transportation, assembly, maintenance, replacement, deconstruction, disposal and end of life aspects of the materials and systems that make up of a building. We recognise that, unlike operational carbon emissions, the embodied carbon cannot be reversed once they have been released. Understanding the relationship between ‘embodied’ carbon and ‘operational’ carbon has helped us to determine the optimum overall carbon footprint reduction of the building from a lifecycle perspective.

Based on the type and quantity of construction materials used in projects completed in 2018 and Building and Construction Authority (BCA)’s Carbon Calculator, the embodied carbon intensity for these projects have been derived and reported below.

Embodied Carbon Footprint (tCO2e/m2)

1 GHGs specified in ISO 14064-1 include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydroflourocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF5).