ENERGY REDUCTION STRATEGY AND PERFORMANCE
Electricity constitutes a significant proportion of the Company’s operational expenditure. It impacts the total amount of Scope 2 emissions released through our business activities. We prioritise cost-effective improvements of our energy performance and reductions in our carbon emissions and energy intensities. In 2014, the Company became the first developer in Singapore to achieve the ISO 50001 energy management system certification for asset management. We regularly review our energy management plans and continue to set energy reduction targets for our managed properties in Singapore.
Energy Reduction Strategy and Initiatives
Since 2004, the Company has retrofitted all our managed buildings by upgrading chiller plants, introducing motion sensors and installing energy-efficient lighting. Our cumulative initiatives since 2012 have continued to yield annual energy savings of over 14.5 million kWh, equivalent to more than S$3.5 million of cost savings. We have also incorporated climate-resilient designs and piloted solutions such as sustainable paints, more advanced energy-efficient air handling units with an electronically commutative (EC) fan, chiller plant optimisation and micro-climate control solutions at our investment properties to reduce heat gain and improve energy efficiency.
Green Lease Partnership Programme – Tenant and occupant activities within a building can account for approximately 50% of our total electricity consumption.1 Through our Green Lease Partnership Programme, we are shifting user mindsets and behaviours to support the Company’s green building commitment. Since end-2017, 100% of retail and office tenants have pledged their commitment to go green by signing a green lease. The Green Lease Partnership Programme activities include green guidelines for all new tenants, guiding them in fitting out works and operations.
City Green Tenant Bonus Programme (CGTB) – In 2024, the Company piloted the CGTB Programme, a first-of-its-kind decarbonisation initiative aimed at tenants at our corporate office, Republic Plaza, to reduce Scope 3 carbon emissions. Building on our Green Lease initiative, this programme incentivises tenants to adopt sustainable practices and cut energy consumption. Participants also benefit from the Company’s sustainability expertise and resource support.
Accelerating Renewable Energy Solutions
The adoption of renewable energy is integral in the design and construction of our projects. In 2024, the Company entered into Power Purchase Agreements for six commercial buildings to maximise solar energy adoption, and successfully completed installations. In addition to installing solar panels at selected buildings since the early 2000s, we have progressively participated in the emerging Renewable Energy Certificates (RECs) marketplace since 2017. We invested US$20 million in the SC Renewable Energy Plus Fund, a Singapore limited partnership focused on investing in a portfolio of renewable energy projects and other energy transition real assets. These investments in stable, economically viable markets enable us to deliver attractive returns for investors alongside wider climate benefits.
In line with the Company’s drive towards net-zero, the Company collaborated with like-minded consultants in 2024 to form five consortiums and submitted a total of six proposals for the BCA DPfD Challenge on three different types of assets – Republic Plaza, Palais Renaissance and Grand Copthorne Waterfront Hotel. This initiative aims to help the industry identify strategies and solutions available in the green building technology market to achieve 80% energy efficiency for high-rise commercial offices, hotels and mixed developments.
While our consortiums did not secure the bid, we valued the opportunity to demonstrate our commitment to advancing decarbonisation solutions.
With Republic Plaza and Palais Renaissance already achieving SLE status, our focus remains on exploring further energy performance enhancements using current technologies.
| 1 | Tenant and occupant activities accounted for 50.5% of total building electricity consumption in 2024 for CDL’s managed buildings |
Energy Efficiency and Reduction Performance
Since 2007, the Company has been tracking and reporting our environmental performance against our energy targets under our ISO 14001 and ISO 50001 environmental and energy management systems.
We regularly review the energy reduction and efficiency plans for all our properties and introduce initiatives to identify areas for improvement.
We set interim targets to track progress in reducing energy use intensity – 28% reduction for office and industrial buildings, and 21% reduction for retail buildings from 2016 levels. Despite 2024 being the warmest year on record in Singapore and ongoing asset enhancement initiative works at City Square Mall, we made strides to achieve 24% reduction in energy use intensity for office and industrial buildings, and 18% reduction for retail buildings. We remain committed to further improving and meeting our long-term reduction goals.
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 2024, applied to projects commencing in that specific year and measured at the point of TOP.
| • | Electricity consumption attributed to renewable sources from the purchase of RECs has been excluded from purchased electricity to avoid double counting. |
| * | There were no RECs purchased for the year 2024. |
| • | Purchased electricity intensity includes the electricity consumption attributed to renewable sources from the purchase of RECs. |
| • | Energy intensity fluctuations were in part affected by the following asset changes: In 2021, Fuji Xerox Tower was redeveloped, in 2022, Tagore 23 was sold and in 2023, Central Mall Conservation and Office Tower ceased operations to prepare for redevelopment while Tampines Concourse was returned to Singapore Land Authority. In 2024, Cideco Industrial Complex was sold |
| • | From 2018, energy from fuel consumption has been included in the data reported. |
| ^ | CDL refers to our operations that cover corporate office, managed buildings and construction sites in Singapore. |
| * | CBM Pte Ltd’s FY2024 data includes its fully owned Systematic Laundry & Healthcare Services Pte Ltd (SLHS). |
| ** | CDL’s energy consumption for 2023 has been restated to ensure accurate accounting of energy usage. |