EXECUTIVE CHAIRMAN'S STATEMENT
Despite ongoing global uncertainties and challenges, CDL remains steadfast in integrating Economic, Environmental, Social, and Governance (EESG) considerations into our core business operations.
Dear Stakeholders,
Global temperatures are rising and 2023 was the hottest year on record.1 The Intergovernmental Panel on Climate Change (IPCC) report warns that by 20402, temperatures will likely exceed the critical 1.5°C threshold, resulting in more frequent and extreme weather events, affecting the lives of over 90% of the world’s population.
Nature and the economy are closely interdependent. The world has lost a striking 69% of its wildlife in the last 50 years.3 Continuous loss of essential ecosystem services could reduce global GDP by US$2.7 trillion annually by 2030.4
To keep global warming within the 1.5°C threshold, leaders at the 28th Conference of Parties (COP28) endorsed commitments and pledged over US$186 million to drive climate action and continue to build momentum to protect and restore nature.5 The Monetary Authority of Singapore (MAS) launched the Singapore-Asia Taxonomy at COP28 to reduce the risk of green or transition washing by banks and financial institutions.
Sustainability reporting has also evolved to align with financial reporting. In June 2023, the International Sustainability Standards Board (ISSB) launched the International Financial Reporting Standards (IFRS) climate reporting standards to create a global baseline for comprehensive and consistent ESG reporting. The Singapore Government also pledged to publish an annual report detailing its progress, efforts and plans in environmental sustainability, demonstrating its commitment to global climate goals and achieving net-zero emissions by 2050.
Businesses play a key role in the global effort towards net-zero emissions and nature protection. Our “Conserving as We Construct” ethos has been an important part of our business strategy since 1995. With the support of numerous stakeholders in our value chain, our collective sustainability efforts have culminated in significant accomplishments.
However, the climate crisis is a pressing issue that demands greater efforts, and CDL is committed to advancing our sustainability initiatives. With the launch of the Taskforce on Nature-related Financial Disclosures (TNFD) and ISSB’s S1 and S2, corporates face even more pressure to make nature- and climate-related financial disclosures. In 2017, CDL adopted the Task Force on Climate-Related Financial Disclosures (TCFD), and this year CDL is the first Singapore company to commit to nature-related disclosures based on the TNFD Recommendations. We have also conducted a gap analysis to measure our alignment with IFRS S1 and S2.
Maintaining Operational Resilience
Despite ongoing global uncertainties and challenges, CDL remains steadfast in integrating Economic, Environmental, Social, and Governance (EESG) considerations into our core business operations. This approach has enabled us to anticipate and mitigate various enterprise risks proactively, contributing to our long-term success.
In 2023, CDL Group delivered a resilient net profit after tax and non-controlling interest (PATMI) of S$317.3 million for the full year ending 31 December 2023 (FY2023).
Our hotel operations made a remarkable recovery to pre-pandemic levels in most markets, while our property development and investment properties segments remained resilient. The hospitality sector is poised for growth with asset optimisation and alignment with the Group’s sustainability goals.
Leadership Commitment Towards a Net-Zero and Nature-Positive Future
The convergence of climate, nature and business risks is becoming increasingly evident. ESG criteria are increasingly used by regulators, investors, insurers and banks to assess a company’s performance. ESG and sustainable investing are projected to increase at a rapid pace. By 2025, around 33% of global assets under management will have ESG mandates.6 Stronger ESG performance leads to more opportunities for accessing ESG funds and sustainable financing.
In 2023, CDL continued to be recognised in multiple ESG indices and accolades. We maintained our position on 14 international benchmarks and achieved double ‘A’s in the 2023 CDP A List for corporate climate action and water security.
Thanks to our management’s unwavering dedication to corporate sustainability, CDL was ranked 22nd in the Corporate Knights 2024 Global 100 Most Sustainable Corporations in the World, maintaining our ranking as the world’s most sustainable real estate company for the sixth consecutive year.
Testament to our ESG performance and growth, CDL also received the inaugural Best ESG Company award in The Edge Singapore Billion Dollar Club awards. Started in 2017, the awards celebrate excellence among companies listed on the Singapore Exchange (SGX).
Advancing Together: Pressing Onward for a Sustainable and Nature-Positive Future
CDL celebrated our 60th Anniversary in 2023, commemorating our remarkable growth from just a fledging residential developer with eight employees in 1963 to a global real estate company with over 8,000 employees worldwide. While reflecting on our achievements, we remain committed to continuous improvement.
The Board supports the Management’s efforts to transform our built environment and revolutionise our approach to design, construction and building management in line with the CDL Future Value 2030 Sustainability Blueprint. The evolving business landscape demands a recalibration of corporate values, placing ESG principles at the heart of our operations. With a commitment to creating a low carbon, nature-positive, healthy and resilient world, CDL aims to accelerate climate action through collaborations with the public, private and people sectors. A healthy planet is essential for thriving communities and economies.
Kwek Leng Beng
Executive Chairman