DYNAMIC APPROACH TO MATERIALITY ASSESSMENT

Since 2014, materiality assessments are conducted annually and facilitated by a third party to determine the key economic, environmental, social and governance (EESG) issues that are important to our stakeholders. These issues are foundational to CDL’s annual sustainability reporting. Corresponding EESG targets, metrics, initiatives, and progress are reviewed by the management team, reported to the Board Sustainability Committee (BSC). and the Board for approval, before they are published annually in our Integrated Sustainability Report (ISR).

Learning from the unprecedented disruptions caused by the COVID-19 pandemic, we adopted a more dynamic approach on the assessment of key ESG issues from 2020 to 2022, addressing the fast-changing landscape and supply chain issues.2 The exercise determined the actual and potential impacts of these issues on CDL’s long-term value creation, and conversely, CDL’s impact on them. To gather feedback, online surveys were circulated to key stakeholder groups, including the BSC. More than 280 responses were received. Interviews with selected management staff of CDL headquarters and key subsidiaries, regulators, industry and sustainability experts, tenants and suppliers, provided insights into how CDL can manage and strategically address our ESG issues. The preliminary material issues were validated by CDL’s senior management and approved by the BSC thereafter.

2 We will be validating our list of material ESG issues with the relevant GRI Sector Standard for our industry when it is published by GRI.

 

2022 MATERIAL ESG ISSUES

Our findings revealed that environmental issues remained a key priority for stakeholders. “Innovation” was the top material issue in 2022, followed by “Energy Efficiency and Adoption of Renewables” and “Climate Resilience”. Innovation remains a high priority as it is an important driver in achieving CDL’s net zero commitments.

“Water and Waste Management” rose significantly in ranking, becoming one of the top five material issues in 2022. This reflects growing recognition that the climate crisis is a water and ocean crisis. In the fight against climate change and in the aftermath of COVID-19, there has been increased interest amongst global and local stakeholders in ocean-based climate solutions for global and national economic recovery plans.

Social issues including “Stakeholder Impact and Partnerships” and “Healthy Buildings” decreased in significance this year. Despite this, stakeholders emphasised the importance of managing these issues on a consistent and ongoing basis.

With greater focus on Scope 3 emissions, “Responsible Supply Chain” has increased in significance. Focus on the environmental performance of our Group’s hotel arm, Millennium & Copthorne Hotels Limited (M&C), is magnified. Moving forward, there will be greater synergies between CDL’s and M&C’s efforts to improve M&C’s sustainable hotel operations to align with CDL’s net zero goals.

Highly critical material issues Critical material issues Moderate material issues
1. Innovation 6. Occupational Health, Safety and Well-being 11. Diversity, Equity and Inclusion
2. Energy Efficiency and Adoption of Renewables 7. Product/Service Quality and Responsibility 12. Human Rights and Labour Conditions
3. Climate Resilience 8. Cyber-readiness, Security and Data Privacy 13. Healthy Buildings
4. Ethical and Transparent Business 9. Responsible Supply Chain 14. Future-ready Workforce
5. Water and Waste Management 10. Stakeholder Impact and Partnerships 15. Economic Contribution to Society
16. Biodiversity Conservation
17. Sustainable Finance

 Ranking increased significantly from the previous year’s materiality study

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CDL’s Material ESG Issues Stakeholders Impacted GRI Standards Disclosures Addressed in this Report
Innovation All stakeholders across our value chain
  • Construction and Real Estate Sector (CRES): Sustainability certification, rating, and labelling
Impact on Planet: Investing in Innovation and Technology
Energy Efficiency and Adoption of Renewables Customers, builders and suppliers, government and regulators, investors and analysts, community, academics and industry experts, and media
  • Energy
  • CRES: Building energy intensity
Impact on Planet : Investing in Innovation and Technology
Climate Resilience Customers, builders and suppliers, government and regulators, investors and analysts, lenders, academics and industry experts, community, and media
  • Emissions
  • CRES: Building greenhouse gas emissions
  • intensity
Impact on Planet: Investing in Innovation and Technology
Ethical and Transparent Business All stakeholders across our value chain
  • Anti-corruption
  • Anti-competitive behaviour
Impact on Performance and Profit: Investing in Sustainability
Water and Waste Management Customers, builders and suppliers, government and regulators, investors and analysts, community, academics and industry experts, and media
  • Water and Effluents
  • Waste
  • CRES: Building water intensity
Impact on Planet: Investing in Innovation and Technology
Occupational Health, Safety and Well-being All stakeholders across our value chain
  • Occupational health and safety
Impact on People:
Investing in Communities
Product/Service Quality and Responsibility Customers, builders and suppliers, government and regulators, investors, community, academics and industry experts, and media
  • Marketing and labelling
  • Customer health and safety
  • CRES: Sustainability certification, rating and labelling
Impact on People:
Investing in Communities
Cyber-readiness, Security and Data Privacy Customers, employees, government and regulators, investors and analysts, and media
  • Customer privacy
Impact on Performance and Profit:
Investing in Sustainability
Responsible Supply Chain Builders and suppliers, community, government and regulators, investors and analysts, academics and industry experts and media
  • Materials
  • Supplier environmental assessment
  • Supplier social assessment
Impact on Planet:
Investing in Innovation and Technology
Stakeholder Impact and Partnerships All stakeholders across our value chain
  • Direct economic impacts
Impact on People:
Investing in Communities
Diversity, Equity and Inclusion Employees, investors and analysts, academics and industry experts
  • Diversity and equal opportunity
Impact on People:
Investing in Communities
Human Rights and Labour Conditions All stakeholders across our value chain
  • Employment
  • Forced or compulsory labour
  • Labour/management relations
  • Non-discrimination
Impact on People:
Investing in Communities
Healthy Buildings Customers, builders and suppliers, government and regulators, investors and analysts, community, academics and industry experts, and media
  • Customer health and safety
Impact on People:
Investing in Communities
Future-ready Workforce Employees, government and regulators, and investors and analysts
  • Training and education
Impact on People:
Investing in Communities
Economic Contribution to Society All stakeholders across our value chain
  • Economic performance
  • Market presence
  • Indirect economic impacts
  • Employment
Impact on Performance and Profit:
Investing in Sustainability

Impact on People:
Investing in Communities

Biodiversity Conservation Builders and suppliers, investors and analysts, lenders, media, government and regulators, academics and industry experts, community
  • Biodiversity
Impact on Planet:
Investing in Innovation and Technology
Sustainable Finance Lenders, government and regulators, and academics and industry experts There is currently no relevant GRI topic on this disclosure Impact on Performance and Profit:
Investing in Sustainability