STRATEGIC MANAGEMENT OF MATERIAL ESG ISSUES

Clean, renewable energy options are also limited in Singapore due to land and resource constraints. Despite this, we remain committed to be early adopters of green energy procurement to propel Singapore towards achieving its SG Green Plan targets.

In 2022, we replaced diesel-powered generators at our Irwell Hill Residences project site with an energy storage system, reducing construction-related carbon emissions by up to 80%. This system has since expanded to five more ongoing residential projects.

Through dedicated tracking, monitoring and improvements in energy efficiency, the Company has achieved cost savings of over S$44 million from reduced energy expenses across all our locally managed buildings since 2012. Regular asset upgrading and enhancement efforts since 2004 have helped the Company to maintain good energy performance for our existing managed buildings.

Meaningful opportunities to test and validate the use of Internal Carbon Pricing are also being explored to drive awareness of the cost of carbon and decarbonisation towards a net-zero future.

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 will enable us to deliver attractive returns for investors alongside wider climate benefits.

Ensuring the security and resilience of the Group’s networks and information systems is critical. Strengthening our capabilities to protect ourselves and respond to cyber-attacks is vital in preventing data theft, financial loss and disruption of operations.

A robust Group-level Cybersecurity Framework was adopted to protect the confidentiality, integrity and availability of our digital assets. This framework includes updated policies and standards that ensure our processes and technologies remain relevant and effective in addressing the current threat landscape. The Company’s Computer Security Policies and Standards were updated in late 2024 to incorporate the latest cybersecurity practices, including new guidelines for staff on generative artificial intelligence usage.

Our employees’ heightened awareness and vigilance towards IT security are maintained through a series of in-person and online cybersecurity training courses, complemented by periodic phishing attack simulations.

In line with Singapore’s Workplace Safety and Health (WSH) 2028 Roadmap, we collaborate with appointed contractors to promote good WSH practices onsite and in our offices, contributing to a strong Environment, Health and Safety (EHS) culture.

• Our core operations retained certification for the ISO 14001 and ISO 45001 Integrated Environmental and Occupational Health and Safety Management Systems
• Only developer appointed by the WSH Council as a WSH Advocate to propagate WSH excellence and influence contractors and Small and Medium Enterprises (SMEs) to adopt and uplift robust WSH practices
• Introduced “EHS Matters” on CityNexus app empowering staff to actively contribute to shaping a safer, more sustainable workplace
• Launched the CDL EHS Awards to recognise staff for excellence in EHS across the Group
• Regular site visits by Management Executive Committee (ExCo), senior management and key executives to further reinforce a culture of safety and collaboration
• Conducted an in-house Top Executive WSH Programme (TEWP) for our Board, ExCo and senior management

The Company’s CDL 5-Star EHS Assessment, launched in the early 2000s, recognises and awards contractor companies that are exemplary in EHS excellence and workers’ welfare, and workers who exhibit good safety behaviour. Our main contractors also achieved the Safety and Health Award Recognition for Projects (SHARP) for Lumina Grand, Copen Grand and Tembusu Grand. Similar practices are implemented at our subsidiary, CBM Pte Ltd, which invests in WSH technologies such as the Mobile Safety App and Tree Tilt sensors, to further improve workplace safety.

Quality and sustainable spaces that embed green features and promote healthy lifestyles in our office buildings and residential developments are continually being created. Creative design and technology optimise overall well-being and create a shared sense of community.

A dedicated Company-wide Green Building Policy, implemented since 2020, also supplements our EHS policy. In 2021, the Company updated our 3S Green Building Framework to align with the latest BCA Green Mark 2021.

Nine properties also maintained the WELL Health-Safety Rating certification across different portfolio types. Certified assets were assessed based on their building performance in sustainability, health and well-being via a global rating system developed by the International WELL Building Institute.

The Group takes a firm stance on our zero-tolerance policy towards fraud, bribery and corruption. This leads to greater opportunities such as access to capital and mitigates risks associated with legal, financial and reputational damage.

Mandatory training is provided to all new hires on key risk management-related topics (namely Anti-Money Laundering and Counter-Financing of Terrorism, Data Privacy and Incident Notification and Management) since 2022. An Anti-Money Laundering and Counter Financing of Terrorism refresher training is also conducted periodically for internal stakeholders.

Corporate and sustainability policies and guidelines by the Company are published on our corporate websites, sustainability microsite and staff intranet, CDL360.

The built sector contributes to 39% of global energy-related carbon emissions and remains heavily reliant on natural resources. Heightened demand for clean energy, cost-efficient and market-ready circular economy solutions present opportunities to maintain profitability and sustained growth in the short- to medium-term.

The findings will supplement the Company’s decarbonisation and transition roadmap in the near term, including our pledge to the WorldGBC Net Zero Carbon Buildings Commitment made in February 2021.

The Company’s decarbonisation roadmap aims to achieve a 63% reduction in Scope 1 and 2
emissions, alongside a Scope 3 emissions reduction of 41% in embodied carbon and 58.8% in investments. To achieve our SBTi-validated targets aligned with a 1.5°C future, decarbonisation efforts continue to involve multi-business unit collaborations facilitated by the Green Building, Decarbonisation and Safety department.

In 2024, homebuyers of Sengkang Grand Residences received their units virtually using the CDL Virtual Unit Handover initiative that was established in 2020. Homebuyers of Amber Park were given the option of receiving their units either virtually or in-person. The Company also organised 14 customer engagement events, participated by more than 500 homebuyers.

Our key subsidiaries M&C and CBM Pte Ltd are dedicated to excellent customer service and experience. In 2024’s customer satisfaction surveys, both subsidiaries exceeded their target scores, achieving higher-than-expected customer satisfaction rates.

The Group strives to be ahead of the curve in ensuring employee satisfaction, productivity and well-being, and building a workforce with skill sets that future-proof our business.

The Company’s skills-based hiring approach emphasises specific competencies and transferable skills, enabling us to prioritise technical and soft skills over educational qualifications, while reducing unconscious bias. To maintain consistency and objectivity, we use an interview assessment form with standardised questions to evaluate each candidate’s suitability for the role.

Our commitment to holistic employee development has been recognised industry-wide, with the Company and CBM Pte Ltd proudly receiving top employer awards in 2024, a testament to our strong employer branding and excellence in human resource practices.

Through partnerships and collaborations, the Group has actively sourced for low-carbon and innovative solutions to test bed at our development projects and managed buildings. In-house solutions leveraging technology also add and deliver exceptional value to our customers and prospective homebuyers.

In 2024, we continued leveraging innovative green building technologies and decarbonisation solutions across life stages of an asset. We expanded the use of energy storage systems to over six residential projects in 2024, following a successful pilot deployment in 2022. We also utilised a carbon sequestration and activation system for ready-mixed concrete for selected parts of building structures at Copen Grand, contributing to lower embodied carbon.

We installed a smart lighting system in our corporate office, and piloted a predictive, machine-learning model control solution at City House to reduce energy waste generated from chiller systems and AHUs. The Company also completed a trial using low-pressure drop filters for three AHUs, improving air filtration efficiency and reducing energy consumption by about 15%.

At the Company’s commercial and retail properties, recycling bins and facilities are provided to encourage the recycling of paper, plastic and metal by shoppers and tenants. Circular solutions are also sourced through innovative partnerships and competitions amongst start-ups.

To instil a ‘waste-less’ mindset amongst employees, training is conducted to raise awareness on topics like circularity and waste management through workshops, learning trips and seminars.

Aligned with Singapore’s ‘City in Nature’ vision encapsulated in the Singapore Green Plan 2030, the Company has stepped up on ‘Cooling by Greening’ as an added strategic focus, alongside our ethos of “Conserving as We Construct” towards a low-carbon and nature-positive future. This commitment applies to new and existing assets. CDL has long been committed towards incorporating a significant amount of greenery in our developments, including conservation of heritage trees, vertical garden, lush landscape and blue features.

Since 2010, the Company has made it a standard practice to conduct BIAs on greenfield sites located within or adjacent to natural habitats before construction.

Our developments are designed with a life cycle approach to water sustainability. We adopt technologies to raise water efficiency such as rainwater harvesting, which are implemented at many of our commercial and residential developments.

Addressing Singapore’s water challenges through conservation and rainwater harvesting, where feasible, has been a priority for the Company. We partner with PUB – Singapore’s national water agency – annually for Singapore World Water Day, by engaging our corporate staff, tenants and members of the public as part of a water conservation campaign.

The Group is committed to respecting and promoting the rights and dignity of our employees, workers and communities.

To promote EHS awareness and employee well-being, we offer mental health and mindfulness workshops, counselling support, onsite health screenings, fitness challenges and weekly fruit distributions. A safe and supportive workplace is fostered through ergonomic evaluations, hazard assessments, safety training and feedback channels. Additionally, we carry out regular salary reviews and provide comprehensive and flexible benefits for our employees.

The Company’s contractors and suppliers abide by our principles and policies such as the Supplier Code of Conduct, Human Rights Policy and Universal Design Policy. Since 2001, the CDL 5-Star EHS Assessment – an independent audit tool to assess, measure and improve our main contractors’ EHS management and performance – has been in place to ensure a comprehensive, audited and appraised approach. At CBM Pte Ltd, EHS matters are discussed at management and risk management committee meetings to ensure that business units are updated in a timely manner.

Our Group’s ESG performance and reputation is upheld through established processes and regular engagement with our suppliers to procure sustainably sourced and safe building materials, ensure fair labour human rights practices for workers and provide healthy buildings for building occupiers.

In line with the Company’s corporate EHS Policy established in 2003, regularly updated guidelines encourage the use of eco-friendly and recycled materials certified by approved local certification bodies, such as the Singapore Green Building Council (SGBC) and SEC.

In 2024, monthly engagements with representatives of the ExCo, senior management and relevant key executives from business units were conducted across active project sites, managed buildings, hotels and our corporate office to assess site conditions, workers’ and employees’ well-being, as well as to address WSH concerns. The Company also supports our main contractors in the tabulation of carbon emissions data associated with building materials outlined in ISO 14064 greenhouse gases standards, contributing to the sustainability proficiency of our contractors. The Company’s main contractors and consultants also contribute industry knowledge at our quarterly CDL EHS 5-Star seminars, while our annual EHS Sports Challenge continues to enhance EHS awareness for our contractors and workers through interactive activities.

In May 2024, CDL was the first real estate company in Singapore to launch our SME Supplier Queen Bee Decarbonisation Programme, in partnership with Enterprise Singapore, bolstering efforts in public-private collaboration to accelerate decarbonisation. For more information, please refer to page 110 of the CDL ISR 2025.

In the same month, in partnership with National Parks Board (NParks) and Ocean Geographic, the Company launched the nature-action exhibition themed “We Love Our Planet” at the CDL Green Gallery. This exhibition highlights the critical role of nature and biodiversity in ensuring ecosystem resilience and addressing the climate crisis.

In July 2024, the Company launched the new Annex to the Singapore Sustainability Academy, accelerating climate action and collaboration.

Key events, including the continuation of major initiatives such as the Youth4Climate Festiva “We Love Our Planet” Storytelling Contest, CDL-GCNS Young SDG Leaders Award, and more were held.

In 2024, we continued to support Assisi Hospice’s fundraising efforts using virtual platforms. The Group contributed donations-in-kind, including shopping, F&B and hotel vouchers towards the event’s lucky draw and game prizes. Over S$267,400 was raised through the CDL Challenge – a fundraising campaign that rallied donations from stakeholders (namely staff and business partners) – and our support of Assisi e-Fun Day activities and its Gala Dinner.

In March 2025, we launched the CDL EcoTrain and the CDL MicroForest at City Square Mall. The CDL EcoTrain is Singapore’s first repurposed SMRT train cabin for sustainability education and awareness, while the 2,900 sq ft CDL MicroForest is Singapore’s first research-based regenerative tropical microforest located in a dense city centre.

More information about the initiatives above as well as our other stakeholder engagement initiatives can be found in Chapter 4 of the CDL ISR 2025.

Companies that lag in their ESG performance could be penalised through higher cost of debt financing or face divestment from shareholders.

In June 2024, we secured a S$400 million landmark sustainability-linked loan provided by DBS Bank to advance nature conservation and sustainable development in Singapore. This led to the Company being conferred the Best Sustainability-Linked Loan – Real Estate award at The Asset Triple A Sustainable Finance Awards 2025.

The Company is a signatory to the UN Principles of Responsible Investing (PRI). We have also developed the CDL Sustainable Investment Principles to steward responsible capital allocation and decision-making for investments.

Socially responsible businesses should embed diversity and inclusion principles into recruitment practices, opportunities for advancement and remuneration policies.

Reflecting our commitment to meritocracy, our compensation and rewards policies are performance-based, promoting a culture of fairness and motivation. We monitor and address gender pay gaps, ensuring equitable remuneration across various staff levels.

Our workforce diversity is further enriched by an inclusive workplace culture, with employees hailing from a variety of ethnic backgrounds. Since 2023, CDL Group has introduced a DEI Policy to ensure a dignity-centred workplace where all employees are mutually respected.