The global business landscape is fast changing. The shocks caused by the COVID-19 pandemic and recent global natural disasters have not only disrupted millions of lives, but also awakened political and business leaders to the fact that the health of our planet, people and economies is interdependent and interconnected. CDL’s Environmental, Social and Governance (ESG) strategy and our firm commitment to “Conserving as We Construct”, our corporate ethos established in 1995, has positioned us well in the transition to a low-carbon economy. Our value creation business model, anchored on four key pillars – Integration, Innovation, Investment, and Impact – provides us a solid foundation to mitigate and adapt to unprecedented threats and challenges. We are committed to achieving three deliverables: “Decarbonisation”, “Disclosure and Communication”, and “Digitalisation & Innovation”.
INTEGRATION: EMBRACING SUSTAINABILITY INTO CORPORATE CULTURE, BUSINESS STRATEGY AND OPERATION
Integrating sustainability at the highest governance level since 2012 has enabled further strategic oversight of ESG issues for long-term value creation. Led by the Chief Sustainability Officer, the Sustainability function has been empowered to remain independent in setting goals and tracking performance, while at the same time fully integrated into the company’s strategy and operations. The leadership, spearheaded by CDL’s Board Sustainability Committee, has been critical in purposefully integrating sustainability into our corporate culture and business, delivering CDL’s consistent and strong ESG performance and adding business value to the company.
Companies cannot manage sustainability without measuring their operational impact. Being the first Singapore company to publish a dedicated sustainability report since 2008, CDL has benefitted from producing 15 sustainability reports to date. Using a unique blended reporting model, harmonising key international reporting frameworks, standards, and approaches with the GRI Standards at its core, we have been able to identify material issues, set targets, track performance and improve deliverables. This has led our management to take strategic and prompt action to future-proof our business, and enabled our stakeholders, including investors and financiers, to make informed decisions.
INNOVATION: TURNING VISION INTO ACTION THROUGH BEST PRACTICES AND POLICIES
The road to net zero requires disruptive solutions to turn ambitions into reality. Our Green Building Technology Application function, established in 2020, focuses on leveraging cutting-edge technology to reduce our carbon footprint by enhancing the way we design, build, and manage our assets. To future-proof our business, CDL has been actively investing in PropTech venture capital funds, such as Fifth Wall and Taronga Ventures, as well as start-ups. We also actively explore and develop PropTech solutions in-house, such as digiHUB, a digital platform focussing on predictive and integrated facilities management solutions.
Sustainability-driven innovation goes beyond technology application. It also entails improving business operations and processes to become more efficient, while insulating the business from potential climate-related risks. Complementing CDL’s target to achieve net zero for our buildings by 2030, we established a Smart, Sustainable and Super Low Energy (3S) Green Building Framework in 2020. It represents a holistic framework aligned with the BCA Super Low Energy building requirements, as well as international standards for advancing health and well-being in buildings. In 2021, we updated the 3S Green Building Framework to include embodied carbon management in alignment with the expanded World Green Building Council’s Net Zero Carbon Commitment.
INVESTMENT: CHANNEL CAPITAL TO ADVANCE GREEN TRANSITION
Companies with strong ESG performance have proven to earn the trust of investors and financiers, allowing them to gain better access to financial resources for sustainable development. Since issuing the first green bond by a Singapore company in 2017, CDL has amassed more than S$3 billion of sustainable finance, including green loans, a green revolving credit facility and a sustainability-linked loan. The first-of-its-kind SDG Innovation Loan initiated by CDL in 2019 channelled funds to accelerate innovation, while securing a discount from lender DBS Bank Ltd. for our successful R&D and pilot of digiHUB. In April 2021, CDL’s joint venture company, South Beach Consortium, secured a five-year green loan totalling S$1.22 billion – one of Singapore’s largest green loans to date.
With the rise of green investments and innovations, sustainability skillsets are being recognised as essential tools needed for a greener future. In January 2022, CDL’s Singapore Sustainability Academy (SSA) and the Global Green Connect Academy launched Sustainability Connect, bringing together a network of sustainability professionals to share best practices with aspiring sustainability executives. It secured strong support from global and local knowledge partners, including the UN Institute for Training and Research.
IMPACT: BUILDING CAPACITY AND PARTNERSHIP FOR PLANET AND PEOPLE
The SSA, CDL Green Gallery and My Tree House are community-focused initiatives by CDL that were accorded the Building and Construction Authority’s Green Mark Platinum status as exemplary green projects that effectively demonstrate energy and water savings, environmentally sustainable building practices and innovative green features. A zero-energy facility, the SSA is Singapore’s first major People, Public and Private ground-up initiative in support of global SDGs and national goals to tackle climate change. A sustainability hub dedicated to action and advocacy, capacity building, knowledge and resource sharing, community engagement and partnership, the SSA has hosted over 700 events and trainings and welcomed over 23,700 attendees to its events since its opening in 2017. It involves an extensive partnership with six government agencies and 15 founding industry and NGO partners.
The first zero-energy gallery in Singapore, the CDL Green Gallery was launched in 2013 to educate the public on Singapore’s greening efforts through various exhibitions. The structure of the gallery was built within 24 hours using reusable, prefabricated, modular construction technology that reduces the environmental impact of construction.
My Tree House, the world’s first green library for kids located in the Central Public Library, was created in 2013 by CDL and National Library Board to encourage and facilitate environmental literacy and love for nature amongst younger generations.
LOOKING AHEAD TO NET ZERO: CREATING FUTURE FOR PLANET AND PEOPLE
The business case for ESG integration is stronger than ever today. By integrating sustainability into core business strategies, companies retain their competitive advantage and build resilience for long-term growth. Committing to the “Race to Zero” and embracing the triple bottom line approach pushes companies to do well and adds purpose to their business while doing good.
Author: Esther An, Chief Sustainability Officer, City Developments Limited (CDL)