Energy Reduction and Management Strategy

Electricity constitutes a significant proportion of CDL’s operational expenditure. It impacts the total amount of Scope 2 emissions released through our business activities. CDL places great emphasis on cost-effectively improving our energy performance to reduce carbon emissions and energy intensities. With this priority in mind, we were the first developer in Singapore to achieve the ISO 50001 energy management system certification for asset management in 2014. We have since continued to set energy reduction targets for our managed properties in Singapore, while continually improving their energy performance through careful review and implementation of energy management plans.


Lifecycle Approach of Energy Management

We take a holistic view towards energy reduction by adopting measures across various stages of a building’s lifecycle — from design and construction to operation of the asset. Each business unit adheres to guidelines (shown on the right) that detail the strategic initiatives, performance standards and specific requirements relating to energy efficiency and climate change mitigation measures.

Stage in Project Lifecycle Key Energy Management Initiatives Benefits
Design Incorporate passive design strategies that reduce solar heat gain through design of building form, envelope and orientation Reduce electricity consumption and cooling cost
Increase building greenery on roof and facade to reduce urban heat gain
Increase natural ventilation to improve passive cooling and reduce heat gain
Maximise natural lighting Reduce electricity consumption and cost
Use energy-efficient lighting such as LED lighting in all common areas
Incorporate energy-efficient home appliances in building units
Incorporate solar panels such as building-integrated photovoltaics (BIPV) systems in common areas, where applicable Reduce reliance on the grid and lower carbon emissions
Construction Use electricity directly from the power grid supply to reduce reliance on diesel generators Reduce emission levels of carbon, sulphur oxides, nitrogen oxides and particulates
Operation of Assets Identify high energy consumption installations and their respective energy management opportunities, e.g. installation of PV, chiller upgrading and lift modernisation Reduce electricity consumption and cost
Install sub-metering systems to provide data granularity and identify energy management opportunities Enhance the monitoring and control of building equipment (e.g. heating ventilation and air conditioning, lifts) to reduce energy use
Leverage advanced management systems to enhance building performance, e.g. Energy Management System to optimise chiller efficiency and Building Management System to control key equipment in buildings
Generate on-site renewable energy, where possible, through the installation of PV and BIPV panels Reduce reliance on fossil fuel; lower carbon emissions

Energy Reduction Strategy and Initiatives

Since 2004, CDL has retrofitted all our managed buildings by upgrading chiller plants, introducing motion sensors, installing energy-efficient lighting and recladding facades. Due to COVID-19, implementation of new energy-saving initiatives was postponed in 2020 and 2021. Our efforts from previous initiatives since 2012 continued to yield an estimated annual energy savings of around 15.1 million kWh, equivalent to more than $3.5 million of cost savings in 2021. We have also incorporated climate-resilient design and installations, such as green roofs and vertical green walls, at our investment properties to reduce heat gain and mitigate urban heat island effect.

Over the years, we have actively engaged tenants as part of CDL’s sustainability outreach efforts to raise sustainability awareness and promote green practices along our value chain. Since 2014, we have been implementing our Green Lease Partnership Programme, which engages and encourages tenants to adopt energy conservation measures. In 2021, we continued to maintain a 100% programme participation rate for our retail and office tenants.

Accelerating Renewable Energy Solutions

The adoption of renewable energy is integral in the design and construction of our projects. In addition to installing solar panels at selected buildings since the early 2000s, we have progressively participated in the emerging RECs marketplace since 2017. By procuring locally-sourced RECs, CDL attributed 100% of the electricity consumed by our headquarters’ operations and part of our commercial buildings’ operations in 2021 to renewable sources. This helped to offset 734 tonnes of carbon emissions, which is equivalent to powering approximately 424 four-room HDB flats for one year.

Energy Efficiency and Reduction Performance

As part of our ISO 14001 and ISO 50001 environmental and energy management systems, CDL has been tracking and reporting our environmental performance against our energy targets since 2007.

We regularly review the energy reduction and efficiency plans for all our properties and introduce initiatives where areas for improvement are identified. In 2021, we trialed more advanced energy-efficient air handling units with an electronically commutative (EC) fan and micro-climate control solution at selected properties.

Our current interim targets aim to reduce energy use intensity by 37% from 2007 levels for office and industrial buildings, and 18% from 2010 levels for retail buildings. We surpassed our interim annual targets in 2021, with a performance of 48% reduction in energy use intensity1 for office and industrial buildings, and 31% reduction in energy use intensity for retail buildings, respectively.2

We monitor and drive energy efficiency and reduction improvements through target and performance tracking for development projects. Our current targets are to achieve an energy use intensity of 95 kWh/m2 or lesser by 2030, with an interim target of 105 kWh/m2 or lesser in 2020, for completed projects that have reached TOP status in the reporting year. In 2021, the finalised energy use intensity for the completed project, The Tapestry, has marginally missed the interim 2021 target.

Moving forward, CDL has started piloting a smart energy storage system to replace the traditional diesel-powered generator to reduce our carbon footprint.

1 Energy use intensity is for purchased electricity, as base year levels were calculated using purchased electricity only.
2 2021 interim annual targets were set based on CDL’s 2°C-aligned carbon target previously validated by SBTi in 2018. The targets were to reduce energy use intensity by 45% from 2007 levels for office and industrial buildings, and 18% from 2010 levels for retail buildings, by 2030.

Total Energy Usage of CDL’s Operations in Singapore (MWh)

Note: Electricity consumption attributed to renewable sources from the purchase of RECs has been excluded from purchased electricity to avoid double counting.

Energy Usage and Energy Usage Intensity of CDL’s Operations in Singapore

Note: Purchased electricity intensity here includes the electricity consumption attributed to renewable sources from the purchase of RECs.

Total Energy Usage of CDL’s Operations in Singapore and Six Key Subsidiaries (MWh)

To align with our reporting scope for GHG emissions, CDL also reports on the energy data of our subsidiaries. The tracking and reporting of our subsidiaries’ energy data not only ensures greater disclosure and accountability, but also enables the Group to strategically manage energy usage.

From 2018, energy from fuel consumption has been included in the data reported.
* Data represents Le Grove’s office only. Le Grove Serviced Residences was closed for renovation from December 2016 to July 2018.
** Operations of Ingensys was added upon acquisition by CBM in 2019.
*** CBM and Le Grove’s 2020 values were corrected to include fuel consumption for vehicles.