CDL Renews SBTi-validated GHG Emissions Reduction Targets to Align with COP26 1.5°C Warmer Scenario

  • Sets more stringent and aspirational goals through shifting baseline year from 2007 to 2016; reduction of Scope 1 and 2 greenhouse gas emissions 63% by 2030 with renewed baseline year
  • Widens commitment to reduce Scope 3 GHG emissions from purchased goods and services and from investments
  • Commenced third climate analysis study, taking into account COP26 outcomes and prolonged impact of COVID-19

Singapore, 22 December 2021 – With the conclusion of COP26 in November 2021 which heavily emphasised a 1.5°C warmer scenario, City Developments Limited (CDL) has aligned itself with even more ambitious carbon emissions reduction targets that have been assessed and validated by the Science Based Targets initiative (SBTi).[1] The revised targets will help accelerate climate action to limit global warming to 1.5°C and also support CDL’s World Green Building Council’s (WorldGBC) Net Zero Carbon Buildings Commitment.

Earlier in February this year, CDL was the first estate conglomerate in Southeast Asia to sign the Net Zero Carbon Buildings Commitment by the World Green Building Council (WorldGBC). CDL was also the first real estate company in Singapore to set SBTi-validated GHG reduction targets based on the 2°C warmer scenario in 2018.

Under its renewed SBTi-validated targets, CDL aims to decarbonise its operations in three ways. First, it strives to reduce its Scope 1 and 2 GHG emissions 63% per square meter leased area by 2030 from a 2016 base year. Compared to CDL’s earlier 2018 carbon emissions intensity target of reducing 59% of its Scope 1 and 2 emissions from base year 2007 by 2030, the new baseline year of 2016 presents a more stringent and aspirational goal. Second, the company will reduce its Scope 3[2] GHG emissions from purchased goods and services 41% per square meter Gross Floor Area (GFA) by 2030 from 2016. Lastly, it will reduce absolute Scope 3 GHG emissions from investments[3] 58.8% by 2030 from 2016, that covers hotels managed by CDL’s wholly-owned hotel subsidiary, Millennium & Copthorne Hotels Limited (M&C).

To fulfil these green building commitments, CDL will strengthen its emissions pathways and carbon reduction efforts. It will also continue to leverage emerging and newly-improved active technologies to reduce building energy consumption. The company will build upon its existing innovation and digitalisation efforts to scale up the upgrading and development of existing assets to be BCA Green Mark Super Low Energy (SLE) certified. In alignment with its WorldGBC net zero pledge, it will push ahead with proactive adoption of low carbon building materials and retrofitting of buildings under its management to further enhance energy efficiency with the eventual goal of accelerating its transition to 100% renewable energy use.

Ms Esther An, CDL Chief Sustainability Officer, said, “To tackle the climate emergency, businesses must set ambitious science-based targets and clear decarbonisation pathways. In recognition of rising climate risks and stakeholder expectations, CDL has integrated sustainability into our business for the past two decades, future-proofing our business which has given us a strong competitive edge. Having set our net zero carbon goals under the WorldGBC Net Zero Carbon Buildings Commitment and having strengthened our SBTi targets, we will remain committed in driving green building innovations in the urgent pursuit of a low-carbon future, while creating value for our business and stakeholders.”

Mr Alberto Carrillo Pineda, Managing Director, Science Based Targets at CDP and one of the Science Based Targets initiative partners, said, “We congratulate CDL on setting science-based targets consistent with limiting warming to 1.5°C, the most ambitious goal of the Paris Agreement. By setting ambitious science-based targets grounded in climate science, CDL is taking action to prevent the most damaging effects of climate change.”

With COP26 outcomes and the continued impact of COVID-19, CDL has commenced its third climate analysis study this month taking these recent developments into consideration. The company completed its first climate change scenario planning in 2018 to identify the risks, opportunities and strategies associated with 4°C and 2°C warmer scenarios and its second study in 2020 for a 1.5°C warmer scenario to align with the IPCC 1.5°C Special Report.

CDL’s renewed science-based targets complement its pledge of support to the Business Ambition for 1.5°C led by UN Global Compact, SBTi and We Mean Business coalition, of which CDL was one of the pioneering 87 signatories of the campaign in September 2019.

This November, CDL has also extended its pledge towards a net zero whole life carbon-built environment as the first real estate conglomerate in Southeast Asia to sign on to the WorldGBC Net Zero Carbon Buildings Commitment. Through this expanded commitment, CDL’s new and existing wholly-owned assets under its direct management and operational control will operate at net zero carbon and achieve maximum reduction of embodied carbon in new developments, compensating for any remaining residual operational and upfront embodied emissions by 2030.

As a firm believer in disclosure being the first step to managing emissions, CDL has participated in the CDP since 2010. Widely recognised as the gold standard of corporate environmental transparency, CDP scores companies against science-based targets to assess companies’ actions to mitigate climate-related risk, providing investors with data to compare corporate performance. CDL maintained double ‘A’s in the 2021 CDP Global A List for corporate climate action and water security. This marks the fourth consecutive year CDL has received an ‘A’ score for climate change strategy, and the third year that the company has received an ‘A’ score for water security.

[1] The  SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature (WWF). The SBTi call to action is one of the We Mean Business Coalition commitments
[2] SBTi only requires companies’ scope 3 targets to cover 66% of their scope 3 emissions. For CDL, category 1 (purchased goods and services) and category 15 (investments) have reduction targets as these categories cover more than 80% of its scope 3 emissions
[3] Investment refers to CDL’s 6 key subsidiaries: CBM Pte Ltd, CDL Hospitality Trusts, City Serviced Offices, Le Grove Serviced Residences, Tower Club Singapore, hotels owned and managed by M&C

More information on CDL’s sustainability efforts can be found at www.digital.metafusion.com.sg/websites/2023/cdl

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Issued by City Developments Limited (Co. Regn. No. 196300316Z)

For media enquiries, please contact CDL Sustainability:

Stephanie Chua
Manager
T: + 6877 8400
E: [email protected]

Zachary Soh
Senior Executive
T: + 6877 8357
E: [email protected]