NATURAL CAPITAL

ENSURING SUPPLY CHAIN RESILIENCE AND SUSTAINABLE SOURCING

With our pledge to the WorldGBC’s Net Zero Carbon Buildings Commitment and green and responsible procurement, consistent engagement with our supply chain is pivotal for a net-zero whole life carbon-built environment.

Significant SUPPLIER Identification

The Company engages various types of suppliers across our value chain and operations. We identify and work closely together with our tier 1 supply chain partners to prevent disruption in delivering quality products and services.

In 2024, there were more than 1,800 tier 1 suppliers for CDL. 16 of them were considered as our significant suppliers.¹ Most of these suppliers were based in Singapore, as the majority of our property developments and managed assets are located in Singapore. Our significant suppliers made up approximately 80% of our total spend. As part of our supplier assessment, suppliers with substantial actual/potential negative ESG impacts will not be approved to work with CDL. As at end 2024, no suppliers were terminated from having substantial or potential negative ESG impacts.

Procurement of Sustainable Materials

For over a decade, the Company has implemented sustainable procurement guidelines that set clear specifications for responsible sourcing along our supply chain. This includes the Responsible Procurement Guidelines² since 2008, and the Green Procurement Guidelines for property developments since 2009. In line with our corporate EHS Policy introduced in 2003, these guidelines encourage the use of eco-friendly and recycled materials that have been certified by approved local certification bodies, such as Singapore Green Building Council (SGBC) and Singapore Environment Council (SEC). In 2021, we updated our 3S Green Building Framework to align with the latest BCA Green Mark 2021. The revised framework also included net-zero targets such as embodied carbon management to promote sustainable building practices.

Our green procurement guidelines also indicate our preference for ISO 14001, ISO 45001, and bizSAFE Level 3 certified vendors. In key operations like property development and asset management, major suppliers and builders must meet the EHS pre-qualification criteria. All suppliers are required to sign a supplier code of conduct, which provides comprehensive guiding principles for our vendors and suppliers to comply with the Company’s expectations, including environment, health, safety and ethical employment.

In 2024, 100%³ of our main contractors and key consultants for property development had recognised EHS certifications. In our asset management division, 100%⁴ of suppliers³ appointed were certified by recognised EHS standards.

Supply Chain Engagement

The Company assesses risks in our supply chain through regular engagement with our upstream suppliers and align our operational policies with the latest regulatory developments. We conducted a detailed supply chain segmentation study on our top 100 suppliers and top five raw materials used in 2019. This helped to strengthen our understanding of how emerging trends, such as automation and climate change, present risks and opportunities to our supply chain strategy, including forced labour and migrant risks. With no significant change to our supply chain in 2024, the study continues to guide our approach in addressing labour risks within the region.

To ensure a healthy and safe working environment, the Company’s Management Executive Committee (ExCo), senior management and key executives regularly engage with workers across our construction sites, managed buildings, hotels and corporate office on EHS matters.⁵ The Company expanded our support for our main contractors by guiding them on the use of advanced carbon calculation tools and accounting methods to evaluate the embodied carbon of their respective projects completed in 2024. The aggregated data was eventually externally audited in accordance with ISO 14064 Greenhouse Gas standards. This process enhanced our contractors’ awareness and proficiency in carbon accounting, a skillset of growing importance.

In 2024, the Company’s property development team continued to engage our main contractors and consultants on EHS topics every quarter. These sessions covered various safety topics, such as EV safety installations and preventive maintenance, as well as sustainability, supply chain management and mental wellness.