INTEGRATING SUSTAINABILITY INTO OUR VALUE CHAIN
To catalyse transition to a low-carbon economy, CDL is committed to engaging and influencing our ecosystem of stakeholders, including our subsidiaries, investments and value chain to adopt more sustainable and innovative practices in alignment with global best practices.
We have identified key areas along our value chain where we can create positive ESG impact, referencing the UN Global Compact (UNGC) on Progress, “SDG Compass: The Guide for Business Action on the SDGs”, jointly developed by the GRI, UNGC, and World Business Council for Sustainable Development.
Leveraging our sphere of influence amongst stakeholders in the built environment, we apply our core competencies, invest in innovation, and engage our ecosystem to adapt to the fastchanging physical and regulatory challenges. Underlying this value chain process is proactive and continuous engagement with our internal and external stakeholders to support global and national climate ambitions.
With the hotel operations of our Group emerging from the effects of COVID-19, CDL has proactively engaged our wholly-owned hotel subsidiary, M&C, in setting clear targets and commitment to map out strategic action that is aligned with CDL’s net zero goals towards 2030. More details can be found in Chapter 2: Positive Impact – Turning Material Risks into Opportunities, from pages 29-34.
SYNERGISING POLICIES WITH GLOBAL AND NATIONAL SUSTAINABILITY DEVELOPMENTS
The World Economic Forum 2023 Global Risk Report highlighted ‘natural disasters and extreme weather’ as a key risk in the next two years. Six of the top 10 most severe risks in the next decade are also directly related to climate change.1 In 2022, CDL conducted a proactive review of our sustainability policies to tackle these upcoming challenges and risks. This is also in anticipation of heightened disclosure requirements by standard setters and regulators globally.
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|No.||CDL Policy||Considers additional metrics/requirements/updates from:|
|1||Biodiversity (since 2020)||
|2||Climate Change (since 2019)||
|3||EHS (since 2003)||
|4||Human Rights (since 2021)||
|5||Diversity, Equity and Inclusion (NEW)||
|6||Supplier Code of Conduct||
Global Alignment to Integrate Sustainability at the Group Level
As part of our efforts to integrate sustainability into our value chain, CDL has stepped up global alignment at the Group level with M&C, our largest subsidiary by GHG emission contribution. As part of CDL’s renewed SBTi-validated targets aligned with a 1.5o C warmer scenario, a new emissions reduction target of 58.8% under Scope 3 (category 15: Investments) was introduced; impacting six key subsidiaries, including M&C.
As our key subsidiary and major contributor of total CDL Scope 3 emissions,3 we worked closely with M&C in 2022 to identify further opportunities to reduce absolute emissions.4 M&C also established a target for all Singapore-based hotels to be Global Sustainable Tourism Council (GSTC)5 certified by 2025. With local M&C hotels certified as sustainable accommodation under GSTC, we are compliant with the highest social and environmental standards in the market.
|1||World Economic Forum Global Risks Report 2023, 18th Edition.|
|2||The first TNFD beta version was published in March 2022 and some of the areas such as the scenarios and the climate-nature nexus are still being developed for the final TNFD recommendations due in September 2023.|
|3||Based on publicly disclosure data from 2016-2020.|
|4||In 2019, M&C established its SBTi-validated target to reduce the Group’s carbon emission by 27% by 2030. The 2oC aligned target aims at absolute emissions reduction of 27% for owned and managed hotels under Scope 1, 2 and 3, from a 2017 base year.|
|5||GSTC criteria serve as the global standards for sustainability in travel and tourism. The criteria are used for education and awareness-raising, policy-making for businesses and government agencies and other organisation types, measurement and evaluation, and as a basis for certification. It covers sustainable management, socioeconomic impacts, cultural impacts and environmental impacts.|
In this regard, M&C implemented multi-pronged initiatives to enhance its sustainability commitment throughout 2022: