CDL’S JOURNEY TO NET ZERO
CARBON REDUCTION STRATEGY AND PERFORMANCE
Since 2018, CDL has been the only company in Southeast Asia and Hong Kong to remain on the CDP A List, and is the only Singaporean company on the 2022 CDP A List. This reaffirms our climate-focused strategies in strengthening our resource-efficient portfolio towards a resilient future.
Operational Carbon Emissions Performance
CDL’s largest source of emissions is electricity usage, reported under Scope 2 emissions. Therefore, the key focus of our carbon mitigation strategy is to reduce Scope 2 emissions. Details can be found under “Energy Reduction Strategy and Performance”, on ISR 2023, page 71.
In 2022, CDL achieved a carbon emissions intensity reduction of 24%, as compared to baseline year of 2016.7 This is alongside a 10% reduction in total carbon emissions across all CDL’s business operations in Singapore, compared to 2021, as Singapore fully transitions to living with COVID-19.
CDL recognises the importance of addressing Scope 3 emissions, which are indicators of exposure to climate risks in our supply chain or use of products. We monitor and report Scope 3 emissions to enhance our carbon reduction efforts by identifying large emission sources along our value chain. In 2022, with the phased return to pre-COVID levels of business operations, a rise in scope 3 emissions was recorded.
In line with the six GHG inventory categories as described by ISO14064-1:2018, Scope 1 emissions as per GHG protocol will correspond to Category 1, Scope 2 will correspond to Category 2 and Scope 3 will correspond to Category 3 to 6 of ISO14064-1:2018.
|7||CDL’s renewed SBTi targets were validated in December 2021. After revising interim targets with endorsement from management, stringent carbon emissions intensity reduction rates based on the new 2016 baseline year were operationalised since 2H 2022.|
TOTAL CARBON EMISSIONS FROM CDL’S OPERATIONS IN SINGAPORE (Tonnes CO2e)
|•||Scope 1 includes direct emissions from fuel used in power generators, petrol for company vehicles, loss of refrigerant in air-conditioning systems, loss of insulating and arc quenching media in switchgear systems and discharge of fire suppression agents.|
|•||Scope 2 ncludes indirect emissions from purchased electricity consumed by the operational activities of CDL at both our corporate office and managed buildings.|
|•||Scope 3 includes emissions arising from property development operational activities (e.g. fuel used in power generators and heavy vehicles, purchased electricity, electricity upstream emissions and transmission losses, and water usage), and other indirect emissions (e.g. electricity upstream emissions, distribution and transmission losses, local and international courier services, employee commute, business air travel (excluding the influence of radiative forcing) and hotel accommodations, water supply and wastewater treatment at corporate office and managed buildings).|
|^||Scope 3 emissions for CDL construction sites were restated from 2019 to 2021 to account for a negative 576 MWh electricity adjustment by the electricity vendor for Whistler Grand site in February 2022 that is distributed equally throughout the project’s construction period.|
|Notes (applicable throughout this Natural Capital Section):|
|•||CDL’s operations in Singapore refer to the corporate office, managed buildings and construction sites. They exclude hotel properties.|
|•||Figures stated in charts may not add up due to rounding of decimals.|
|•||In accordance with GHG Protocol, Scope 2 emissions are calculated using both location-based and market-based methods. The figures shown in brackets represent calculations using a market-based method and include the reduction in emissions from the purchase of RECs.|
|•||Corporate Office: CDL Corporate Office in Singapore occupied approximately 5,013 m2 across four floors in Republic Plaza. The measurement applies to all environmental performance reported in this chapter.|
|•||Managed Buildings: In 2022, CDL managed seven office buildings, two retail buildings and three industrial buildings in Singapore, with an average monthly net lettable area of 132,070 m2, 45,355 m2 and 36,346 m2 respectively. The measurement applies to GHG calculations, with all other environmental performances reported using the net lettable area.|
|•||Construction Sites: In 2021, CDL measured and monitored the environmental impact and performance of eight active construction sites in Singapore with a GFA of 88,483 m2 built for that year. The measurement applies to all environmental performance reported in this chapter.|
|•||Tagore 23’s GHG emissions, energy, water and waste data are included up to 7 March 2022, as the property was sold off.|
CARBON EMISSIONS INTENSITY OF CDL’S OPERATIONS IN SINGAPORE (kg CO2e/m2)
|^||Scope 3 emissions for CDL construction sites and total carbon emissions for CDL were restated from 2019 to 2021 to account for a negative 576 MWh electricity adjustment by the electricity vendor for Whistler Grand site in February 2022 that is distributed equally throughout the project’s construction period.|
|^^||As at 31 December 2022, CDLHT is an associate of the Group (instead of a subsidiary), following an accounting deconsolidation in May 2022. However, CDLHT remains a key associate of the Group and its environmental performance is accounted for under the Group’s current SBTi-validated Scope 3 carbon emissions reduction target for 1.5 degree warmer scenario.|
|#||Data excludes carbon emissions from M&C hotels which are managed by third-party operators and where CDL does not have direct operational control over them.|