Committed to Strengthen Climate Resilience and the Transition Towards a Low-Carbon Future
The management of climate-related risks and opportunities is an integral part of the CDL Future Value 2030 sustainability blueprint launched in 2017. CDL strives to manage climate-related transition risks through ambitious carbon reduction targets and pushing the envelope in innovative building designs and sustainable construction materials and technologies to lower carbon footprint. We also strive to stay abreast of trends and highlight potential opportunities that may be unlocked by ESG best practices (e.g. green financing) and innovative solutions to lower carbon footprint.
Climate change not only physically affects properties but also threatens to leave assets stranded. In the face of climate change and extreme weather events, climate-proofing the company’s buildings for a low-carbon future is key to CDL’s growth strategy. Recognising that increased frequency and severity of climate events such as floods and heatwaves increase the risk of stranded assets, we strive to prepare our assets and support the built environment to tackle existing and future threats of natural disaster. We regularly conduct climate resilience tests and review control measures for our managed buildings. In addition, due diligence studies are conducted on potential asset acquisitions.
Under the strategic goal of ‘Reducing Environmental Impact’, we have established a set of robust targets to reduce our carbon emissions, energy and water consumption and waste generation, as well as sustainable material use. More details on the blueprint and our progress on each target are here.
Starting from 2015, CDL has been incorporating Environmental, Social and Governance (ESG) performance into executives and senior management’s individual key performance indicators. The initiative was extended to all employees in 2016. Today, all CDL employees have incentivised performance indicators linked to sustainability performance as part of their annual performance assessment. With the implementation of Balanced Scorecard System for company-wide performance appraisal in 2017, annual targets for carbon emissions and energy use reduction are shared between the Sustainability and operational departments to cultivate a strong sense of co-ownership and cross-function collaboration in achieving CDL’s environmental targets.
Carbon Emissions Reduction Performance for 2019
Our carbon performance is monitored against targets set under CDL Future Value 2030 sustainability blueprint and interim targets adopted for the year. In 2019, we achieved a reduction in carbon emissions intensity of 38% as compared to the baseline year of 2007, achieving our interim target. In recognition of CDL’s rigorous climate strategy and carbon management, we have achieved the 2019 CDP A List for corporate leadership in climate action.
SBTI-VALIDATED CARBON EMISSIONS INTENSITY TARGET
Total carbon emissions in 2019 were lower compared to 2018 (refer to the chart on Total Carbon Emissions from CDL’s Core Operations in Singapore). This was achieved by a multi-pronged approach including continued implementation of carbon reduction initiatives at CDL Managed Buildings and increased adoption of solar energy solutions.
Reported as Scope 2 emissions, electricity usage forms the largest source of emissions for CDL’s core operations in Singapore, accounting for more than 71% of our carbon footprint in 2019. As such, our carbon mitigation strategy has been largely focussed on addressing Scope 2 emissions.
CDL also recognises the importance of addressing Scope 3 emissions, given that another source of a company’s emissions lie upstream and/or downstream of its core operations. Monitoring and reporting Scope 3 emissions aids CDL in determining where emissions in our value chain concentrate and where to focus our carbon reduction efforts.
TOTAL CARBON EMISSIONS FROM CDL’S CORE 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, and loss of insulating and arc quenching media in switchgear systems.|
|Scope 2||Includes 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 activities (fuel used in power generators, purchased electricity, electricity upstream emissions and transmission losses and water usage), and other indirect emissions from electricity upstream emissions and transmission losses, local and international courier services, employee commuting, business air travel (excluding the influence of radiative forcing) and hotel accommodations, and water supply and wastewater treatment at corporate office and managed buildings.|
CARBON EMISSIONS INTENSITY OF CDL’S CORE OPERATIONS IN SINGAPORE (kg CO2e/m2)
|•||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 for carbon emissions shown in brackets represent calculations using a market-based method and includes 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, calculated based on monthly average area of the corporate office headquarters.|
|•||Managed Buildings: In 2019, CDL managed nine office buildings, two retail buildings, and three industrial buildings in Singapore, with an average monthly net lettable area of 176,057 m2, 45,310 m2 and 36,308 m2 respectively. Intensity figures are now calculated using per unit net lettable area instead of the previously used per unit leased floor area, to enable more accurate tracking of resource consumption in our managed buildings. As such, intensity figures for managed buildings from 2015 to 2018 have been restated.|
|•||Construction Sites: In 2019, CDL measured and monitored the environmental impact and performance of our seven construction sites in Singapore with a GFA of 91,127 m2 built for that year.|
TOTAL CARBON EMISSIONS FROM CDL’S CORE OPERATIONS IN SINGAPORE AND SIX KEY SUBSIDIARIES (Tonnes CO2e)
Since 2014, CDL has started reporting the carbon emissions of our key subsidiaries to ensure greater disclosure and accountability of the Group’s carbon footprint. Given CDL’s strong commitment to climate action and environmental protection, the behaviour and practices of our subsidiaries are also important to us.
|#||CDLHT Scope 3 includes emissions from waste disposed.|
|**||Data represents Le Grove Office only. Le Grove Serviced Residences was closed for renovation from December 2016 to July 2018.|
|*||Data also includes carbon emissions from franchised hotels.|
Towards Carbon Neutral
CDL is committed to enhancing the environmental performance of our properties by investing in infrastructure enhancements when required. Leading by example, we voluntarily reduced our annual carbon emissions to net-zero for our corporate office operations including our data centre, and for 11 Tampines Concourse – the first CarbonNeutral development in Singapore and Asia Pacific. Besides carbon neutralising the construction phase of 11 Tampines Concourse, we also annually offset emissions from its operations, including that of its tenants.