CDL’s Climate Transition Plan
The CDL Future Value 2030 Sustainability Blueprint, established in 2017, outlines the company’s ESG goals, including near and long-term net-zero targets in line with our committed targets validated by the SBTi.
Our key 2030 and interim annual goals, targets and progress are tracked and reported quarterly and annually. Our Climate Change Policy and Climate Transition Plan form an integral part of the Future Value 2030 Sustainability Blueprint.
CLIMATE CHANGE POLICY
As the threats and impacts of climate change become increasingly unprecedented in scale, rapid and far-reaching transition towards a new climate economy is required. As Singapore’s property pioneer and leading green developer, CDL recognises the crucial role it must play in mitigating and adapting to the effects of climate change. At the core of our sustainability-centric vision is our ethos of “Conserving as We Construct” established since 1995 and our Future Value 2030 Sustainability Blueprint launched in 2017.
To help achieve the global climate targets set out in the Paris Agreement, CDL is dedicated to achieving low-carbon operations by setting a science-based target to reduce carbon emissions intensity across our Singapore operations by 59% by 2030 (from base-year 2007). Recognising that a sizeable proportion of our carbon footprint lies outside our business operations and direct control, we actively engage our supply chain and stakeholders to mitigate climate impact and to encourage the communities we operate in to make more low-carbon choices.
Click here to read our Climate Change Policy.
CDL’S Climate Transition Plan
CDL’s climate transition plan sets out our interim and long-term emissions reduction targets and outlines the strategies and measures to meet these targets. It is a time-bound action plan that lays out how we will achieve our sustainability strategy to pivot existing assets, operations and business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., limiting global warming to 1.5°C. Environmental disclosures need to enhance accountability and transformation; hence the relevance of climate transition plans to enable action to address climate risks and seize opportunities. Ultimately, we aim to work towards achieving a nature-positive future for the planet and people.
| Elements of Climate Transition Plan1 | The Company’s Initiatives |
| 1. Quantitative, detailed, and time-bound interim emission targets supporting a 2050 net-zero goal | In 2018, the Company set SBTi-validated greenhouse gas (GHG) reduction targets based on a 2°C warmer scenario. In 2021, these SBTi-validated targets were revised to align with a 1.5°C warmer scenario. In 2021, we signed the WorldGBC’s Net Zero Carbon Buildings Commitment, a global pledge to achieve net-zero operational carbon by 2030, covering new and existing wholly-owned assets under the Company’s direct management and operational control. During COP26, the Company extended our pledge towards a net-zero whole life carbon emissions approach. Through this expanded commitment, we pledged to achieve maximum reduction of embodied carbon in new developments, compensating for any remaining residual operational and upfront embodied emissions via offsetting for new developments by 2030 and advocating for all buildings to be net-zero carbon by 2050. For more information on our net-zero commitment, please refer to pages 76-77 in CDL ISR 2024.
Annual progress benchmarks:
|
| 2. Implementation to achieve “Decarbonisation”, “Digitalisation & Innovation”, and “Disclosure & Communication” | The real estate industry alone accounts for 37% of annual global GHG emissions. As a developer, we are committed to accelerate the built environment’s green transformation by investing into innovative solutions to decarbonise effectively. See pages 81-83 of this report for more information on how we have leveraged green technology and innovation to mitigate and adapt to climate risks, paving the way towards a net-zero future.
No party can achieve these global goals alone. Engaging and collaborating with our stakeholders, suppliers, and wider value chain is critical to support the green transition. The Company has long pioneered programmes to spearhead greater collaboration and knowledge sharing on climate action. These include our Women4Green initiatives, Youth4Climate, CDL Green Gallery and Incubator For SDGs. Our Singapore Sustainability Academy is also a platform for capacity building and thought leadership. On top of this, the Company is an active partner in industry collaborations, alliances and advocacy groups that are focused on climate action. To achieve the Company’s net-zero climate ambition, we have implemented various ESG policies to ensure the business is aligned with global and local goals and best practices. These policies can be found on CDL’s sustainability website. |
| 3. Whole-institution approach by integrating transition plan into overall business strategy | Sustainability and climate transitions are integrated into the Company’s business strategy and operations vertically across all levels and horizontally across business units. The Company’s Board and leadership are committed to strategically integrating sustainability across key aspects of our business and advancing sustainability efforts. On behalf of the Board and supported by the CSO, the BSC has direct advisory supervision on our sustainability strategy, material ESG issues, work plans, performance targets, and sustainable investments, as well as sustainability reporting. The sustainability portfolio engages all levels of the company’s operations across each operational unit. Chaired by the CSO, the Sustainability Committee is supported by an advisory committee comprising C-suites from all business units and the Executive Committee. The five sub-committees are led by the HODs of relevant business units and are accountable for the Company’s ESG performance through our remuneration and appraisal processes. Each sub-committee is supported by relevant management and operational staff across all departments and operational units. For more information, please refer to page 17 in CDL ISR 2024.
The Group recognises that climate risks are business risks. In the face of climate change, climate-proofing our buildings for a low carbon future is key to the Group’s growth strategy. As such, climate-related risks and opportunities are fully integrated into the Group’s strategic risk management framework. For more information, please refer to CDL’s AR 2023, page 64. The Company is focused on taking proactive action in assessing potential portfolio risks and opportunities for sustainable investment decisions via our Sustainable Investment Principles. |
| 4. Sustainability targets that support a just transition and consider nature, climate and social impacts | The CDL Future Value 2030 Sustainability Blueprint, established in 2017, sets out our strategic ESG goals. Our key 2030 and interim annual goals, targets and progress are tracked and reported quarterly and annually. The Blueprint is aligned with the UN SDGs and outlines three overarching goals with corresponding 2030 targets. Through this, we strive to ensure that there are no negative externalities to the environment and community:
For more information about CDL’s Future Value 2030 Sustainability Blueprint, please refer to pages 41-46 in CDL ISR 2024. |
| 5. Transparency, verification and accountability in reporting all elements of transition plan | What gets measured gets managed. The Company’s robust sustainability reporting, through our Value Creation Model, has effectively helped us set targets, track performance and identify gaps for continual improvement to deliver the best results and enhance practices. We have created a unique blended reporting framework using GRI Standards as our core since 2008, adding CDP since 2010, GRESB since 2013, Integrated Reporting Framework since 2015, SDG Reporting since 2016, TCFD framework since 2017, SBTi since 2018, SASB Standards and CDSB Framework since 2020.
External assurance is key to enhancing data credibility and instiling confidence in readers. External assurance of our sustainability report started in 2009, and has continued to expand. ISR 2022 and ISR 2023’s external assurance has been further elevated in its scope against the GRI Standards, SASB Standards, as well as the TCFD and CDSB frameworks. Since July 2017, we have also been voluntarily publishing an online quarterly sustainability report, with our Group CEO as the advisor, to update stakeholders of our progress towards key goals and targets that are set under the Blueprint. For more information about our sustainability reporting framework, please refer to pages 19-25 in CDL ISR 2024. |
| 6. Flexibility, responsiveness and rapidly escalating ambition in development and implementation of transition plan towards a nature-positive future | We will continue to stay abreast of global and national climate goals and action. As a private sector leader in climate transition, the Company will continue to review and accelerate action towards a low carbon and nature-positive future. We are committed to consistently reviewing our climate action framework, including renewing our SBTi-validated targets every three years. |