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 Emission Reduction Targets and Performance

In 2017, we adopted the Sectoral Decarbonisation Approach (SDA) to raise our carbon emissions intensity reduction target from 25% to 38% by 2030 against 2007 levels. The SDA is a climate science- based method for companies to set GHG reduction targets necessary to limit the rise of global temperatures to 2°C above pre-industrial levels. Companies are categorised into sectors and subsectors. Within each sector, companies derive their emission reduction targets based on their relative contribution to the total sector activity and their carbon intensity relative to the sector’s intensity in the base year. In 2017, we achieved a reduction in total carbon intensity emissions by 32.8%, exceeding the 19% interim reduction target we set for the year.

Total carbon emissions in 2017 were consistently lower compared to 2016 across all CDL’s Core business operations as shown in the chart for Total Carbon Emissions from CDL’s core business operations in Singapore. The largest source of emissions was electricity usage reported as Scope 2 emissions in the charts on the following pages. Scope 2 emissions accounted for close to 78% of the Company’s total carbon footprint for its Singapore operations.

Even though the reporting of Scope 3 emissions is voluntary, CDL monitors and discloses the emissions to better assess their impact across the entire value chain and identifies the most effective ways to reduce them. We identified upstream emissions, water treatment, hotel accommodation, air travel and commuting, amongst other emission sources in our monitoring.

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

^ Electricity upstream fugitive methane emissions of 2,854 tCO2e, previously included under Scope 2, has been moved to Scope 3
# Before 2014, Scope 1 and 2 emissions were reported collectively

Figures stated in charts in this chapter may not add up due to rounding of decimals.

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 Emissions reported are for activities in Singapore. Due to the lack of contractual instruments available in Singapore, location-based emissions and market-based emissions are the same. Includes indirect emissions due to purchased electricity consumed at CDL’s Corporate Office, commercial, and industrial buildings as well as construction sites.
Scope 3 Includes other indirect emissions arising from electricity transmission losses, local and international courier services, employee commuting, business air travel (excluding the influence of radiative forcing) and hotel accommodations, water supply and water treatment (excluding water treatment for property development sites).

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

* Before 2014, Scope 1 and 2 emissions were reported collectively.
Corporate Office CDL’s Corporate Office in Singapore occupies approximately 6,781 m2 across ten floors in City House and one floor in Republic Plaza. Measurement is applicable to all environmental performance reported in this section.
Commercial and Industrial Buildings In 2017, CDL managed 12 commercial buildings and three industrial buildings in Singapore, with an average monthly leased floor area of 242,847 m2 and 27,979 m2 respectively. Measurement is applicable to GHG calculations, with all other environmental performance reported using the total leased area. Data before 2014 includes two industrial buildings, Pantech 21 and New Tech Park which were divested in November 2013.
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 2017, CDL measured and monitored the environmental impact and performance of its nine construction sites in Singapore with a gross floor area of 64,589 m2 built for that year. Measurement is applicable to all environmental performance reported in this section.


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)

# CDLHT Scope 3 excluded emissions from waste disposed
* Data represents Le Grove Office only. Le Grove Serviced Apartments were closed for renovation from Dec 2016 to Jul 2018
^ Oct – Sep data. 2015 and 2016 data restated based on M&C Annual Report 2016. 2017 data provided by M&C excluded Middle East and North Africa


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 14064-14, 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 materials list from projects completed in 2017 and the Building and Construction Authority (BCA) Carbon Calculator5, the embodied carbon footprint for each of our projects was derived. We used this information to identify elements which are carbon- intensive and promote alternative options which reduce carbon emissions. This is in tandem with our 2030 target to increase the use of low-carbon construction materials found here.

Embodied Carbon Footprint (tCO2e/m2)

4 GHGs specified in ISO 14064-1 include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6)
5 The BCA Carbon Calculator uses a cradle-to-site system boundary.