A MILESTONE YEAR IN CSR FOR CDL

On behalf of the Board, I am pleased to present CDL’s Corporate Social Responsibility (CSR) Report for 2008. While it has been a challenging year due to the global economic downturn, it has been a milestone year for CDL as many of our CSR initiatives have borne fruit.

CDL’s inaugural Social and Environmental Report can be downloaded from www.cdl.com.sg/socialenvreport2008

RISK MANAGEMENT

The Group has taken deliberate efforts to review our core risks in light of the changing environment. We have made further enhancements to the framework and the Company’s Risk Management process for the year under review can be found under the Risk Management section.

ACTIVE ENGAGEMENT AND COMMUNICATION

As an affirmation of our CSR commitment and drive towards improvement, we voluntarily published our first CDL Social and Environmental Report 2008. This Report was successfully certified by the Global Reporting Initiative (GRI) as having met the Level C requirements, making it a first for a report from a Singapore company. GRI guidelines are the most common framework used globally for sustainability reporting.

It is heartening to see that many corporations are starting their CSR journey. To further this cause, we have been advocating the importance of CSR and sharing our CSR experience with the business and education community, as well as the community at large. We participated in wide-ranging events such as the Merrill Lynch Rising Stars – Asian Conference on CSR, JCI CSR Conference, Institute of Public Relations of Singapore Lunchtime Talk on CSR, Singapore Institute of International Affairs CSR and Sustainable Development Public Conference and being an industry partner for the Asian Forum on CSR. To raise CSR awareness amongst tomorrow’s leaders, we participated at the Singapore Management University Forum on Sustainability in Action and for the second year running; we were also a key corporate partner of “NUS CSR Awareness Month” jointly organised by the NUS CSR Student Movement, the MBA Students’ Corporate Ethics Focus Group of NUS Business School, and supported by Singapore Compact for CSR.

When engaging the investor community, we believe that corporate transparency and open communication are paramount. We have been using various communication platforms to ensure that our investors are promptly kept up to date on the activities of the Group. This includes making timely disclosure of the Group’s quarterly financial performance and briefings for the analysts and media during the half-year and full-year results where they meet and dialogue with the top management. The briefing presentations are also easily accessible via the SGXNET and the Group website.

Similarly, the top management continues to present to our shareholders on our business strategies and direction during the Annual General Meeting. There have also been frequent opportunities to meet the top management through various investor conferences and one-to-one meetings or teleconferencing to address investor queries.

THE INDUSTRY GREEN CHAMPION

For more than a decade, we have remained steadfast to developing and managing greener properties, as well as influencing our stakeholders, striving to ensure that we apply eco-friendly practices throughout all aspects of our business. In 2008, CDL was honoured to be the first and only developer accorded the inaugural Building and Construction Authority (BCA) Green Mark Champion Award, in recognition of our sustained commitment towards CSR and achieving outstanding track record in environmental sustainability.

Even before the Green Mark legislation, which was introduced in April 2008, CDL has been investing between 2% and 5% of our construction cost of a development in green design and features. Currently, CDL has the highest number of BCA Green Mark certified developments with a portfolio comprising 26 properties.

We have also achieved higher peaks of green excellence with another three developments, Cliveden at Grange, The Solitaire and 9 Tampines Grande, all of which have been accorded the pinnacle BCA Green Mark Platinum Award. This makes CDL the only developer with five Platinum developments in our fold.

At our new generation green building, 9 Tampines Grande, we will showcase the largest use of thermal solar panels and photovoltaic panels, measuring some 2,080 square metres, on the roofs and facades of a single development in Singapore. Collectively, the development’s green features will contribute to an estimated energy savings for the entire building amounting to 2.7 million kWh per year and a reduction in CO₂ emission by approximately 1,400 tonnes per year.

9 Tampines Grande – a state-of-the-art new generation green office.

Beyond green investments, our Environmental, Health and Safety (EHS) policy has been pivotal in setting the strategic direction for all CDL departments to adopt sustainable approach to our business by reinforcing an eco-conscious culture, conserving resources and preventing pollution. In our drive towards improved environmental excellence, CDL was awarded the ISO14001:2004 in Corporate Management and Operations for all functions at our headquarters in April 2008.

Our rigorous CDL 5-Star Assessment System conducted every quarter at our work sites has resulted in improved environmental performance in 2008. Significant improvement of between 3% and 20% of water use, energy use and waste generated has been reduced at the work sites.

As a major landlord in Singapore, CDL has introduced various energy conservation projects in our buildings resulting in a 5% reduction in energy consumption in 2008. However, total water use has increased largely due to higher occupancy in our buildings.

In 2008, we are also happy to report that our efforts in energy and paper conservation measures have achieved a 10% reduction, a significant improvement above our target of 5%, at our Corporate Office.

CDL'S ENVIRONMENTAL PERFORMANCE
- Resources used in Project Development
(PER SQUARE METRE OF GROSS FLOOR AREA)

CDL'S ENVIRONMENTAL PERFORMANCE
- Resources used in Property and Facilities Management

CDL'S ENVIRONMENTAL PERFORMANCE
- Resources used in Corporate Office

REALISING OUR EMPLOYEES' POTENTIAL

We continued to refine our human resource practices with a view to retain our employees, cultivate their potential and to also care for their well-being both at work and at home. We believe in investing in our employees and creating a conducive, challenging and supportive work environment.

More information can be obtained in the Human Resource Review found under the Human Resource Review section.

COLLABORATIVE EFFORTS FOR OUR COMMUNITY

CDL has retained our sustained strategy of focusing our community initiatives in the four core areas including the environment, the arts, youth development and the less fortunate which have resulted in stronger and more synergistic collaborations with our partners and beneficiaries. Apart from sustainable community programmes, we have also continued to employ a model of engaging our stakeholders beyond acts of philanthropy. For 10 years now, we have maintained active employee volunteerism through our employee volunteer platform, City Sunshine Club (CSC), and leveraged on our network of extensive resources within our group of companies to help the less fortunate in our midst.

Shaping Our Environment

For the year under review, our green efforts remained unabated. Ongoing green initiatives include Project: Eco-Office, initiated by CDL with Singapore Environment Council (SEC) in 2002 to help businesses go green in the office. Companies are also encouraged to participate in an online green office audit and when ready, a formal office audit would be conducted by an independent auditor. Successful companies will be awarded the Green Office Label certification. The programme has gained much momentum evident from the increased interest from companies who have decided to go green. In 2008, 15 companies including BP, the Royal Bank of Scotland and CDL’s subsidiary, CBM Pte. Ltd., were presented with their certifications during the Green Office Label Presentation Ceremony. Since its launch in 2005, 37 offices have been certified with the Green Office Label.

We participated in two key Clean and Green Singapore events in 2008 – Schools’ Carnival 2008 and 10% Energy Challenge by National Environment Agency (NEA). To-date, we have “adopted” a total of six schools, including Catholic High School (Primary) which we have adopted since 2005, Catholic High School (Secondary), CHIJ St. Nicholas Girls’ School (Primary and Secondary) and the newest addition to the family, Maris Stella High School (Primary and Secondary) as part of NEA’s Corporate and School Partnership Programme.

Maris Stella High School, along with CDL’s other adopted schools, presented creative, dynamic and unique environmental projects at the NEA Schools’ Carnival held in November 2008.

We sponsored various eco-initiatives such as the NEA 10% Energy Challenge launched in April 2008, with the aim to encourage an energy-efficient lifestyle at home; the Project Carbon Zero, a supporting project to the 10% Energy Challenge targeting at Primary 3 to 5 children, managed by SEC, and the National University of Singapore (NUS) Green Carnival, a project which brought the urgent message of environmental conservation to over 30,000 NUS undergraduates, employees and academics, through various student-initiated environmental projects.

To further our support towards environmental conservation and youth development, CDL signed a Memorandum of Understanding (MoU) with NUS School of Design and Environment through its Master of Science (Environmental Management) programme in August 2008. This marks the first partnership between NUS and a leading property developer in the area of environmental management to develop workable solutions to ensure the sustainability of the built environment.

In May 2008, CDL hosted the Green Heart Gala Dinner to raise funds to further the conservation and educational work of our long-standing partners, SEC and Nature Society (Singapore). The Gala Dinner, held at The St. Regis Singapore, was attended by some 450 distinguished guests from both public and private sectors, and raised over $300,000, exceeding the target of $250,000. It was also an opportune time to unveil “Heart Voyage 2”, my second photo art book, where 60 copies were donated to raise an additional $30,000.

In October, the sale of the limited edition “Heart Voyage 2”, including specially autographed copies by President S R Nathan, also helped to raise some $150,000 for 31 beneficiaries of President’s Challenge 2008.

23 organisations donated generously towards President’s Challenge 2008 through the sale of “Heart Voyage 2”.

We also participated in global campaigns like Earth Hour held on 29 March. In addition to turning off the façade building lights and the main lights in the common areas of five CDL buildings from 8 pm to 9 pm as a gesture to combat global warming, we also encouraged our tenants to participate and turn their office lights off during the said hour.

In our 2009 calendar, “Melodies”, we embraced the simple pleasures that little birds bring to us with melodies that paint a smile on our faces and brighten our everyday. The calendar is the 12th instalment of our “Beauty of Nature” Calendar Series which is distributed to our business associates and employees to reinforce the message on the need to protect our natural heritage and preserve its beauty daily.

Caring for the Less Privileged

Beyond philanthropic contributions towards extensive worthy causes, CDL serves the community by offering time and resources to sustain effective community programmes with many long-standing partners. In 2008, more than 2,600 hours of community worked were clocked by about 60% of employees in the company’s volunteer programmes.

CDL employees turned up in full force to support the Assisi Hospice Charity Fun Day 2008 in May. The Group took up a 37-metre long pavilion offering delectable delicacies as well as exciting games for the young and old. Some 225 employees from the Group volunteered. CDL has been a long-term corporate partner to Assisi Hospice, a charity organisation that provides palliative care to adults and children suffering from cancer and other life-limiting illnesses.

For the second consecutive year, over 40 CDL employees together with their families, stepped up to lend a hand in the Special Olympics Challenge at the National Vertical Marathon organised by Nanyang Technological University held at Republic Plaza. The volunteers played buddies to 36 Special Olympians in completing the 60-storey relay race to the top of the building. In addition to sponsoring the venue, CDL also sponsored the CDL Corporate Challenge category to encourage our office tenants, partners and business associates to adopt a healthy lifestyle by participating in the vertical marathon.

CDL employees were meaningfully engaged in helping the needs of the less fortunate through befriending, youth mentorship, sharing of expertise and pooling of resources to help community partners. Employee volunteers continued to run weekly lessons at Dreams @ Kolam Ayer to help children at risk of delinquency or poor performing students from needy families by imparting important character attributes through storytelling and various activities. Some 25 children aged between nine and 14 years benefit from this programme.

Supporting the Arts

The biennial Singapore Young Photographer Award (SYPA), initiated and managed by CDL, in partnership with five major photo clubs, the National Arts Council and National Youth Achievement Award (NYAA) Council, was held for the 2nd time. Aimed at nurturing young local photography talents, there is also a CDL Young Architectural Photographer Award category, to recognise talents who have an eye for the beauty of buildings.

SYPA winners were presented their awards by Minister Dr Vivian Balakrishnan.

Promoting greater appreciation of the arts in Singapore, CDL, along with our joint-venture partners also contributed the use of the South Beach site as one of host venues for the second Singapore Biennale 2008.

Cultivating the Leaders of Tomorrow

Investing in youth development programmes remained a priority. Over 30 employee volunteers from CDL and subsidiary company CBM Pte. Ltd. participated in HomeCreation, an annual community project by Raffles Institution in collaboration with Dreams @ Kolam Ayer, which aims to harness the energy of youths in community work and improve the living conditions of the needy. Some 60 low-income families in Geylang Bahru benefited from having their homes repainted and refurbished.

Students of Raffles Institution and CDL employees helped refurbish the homes of 60 low-income families.

A long-time supporter of the NYAA, CDL has continued to contribute significantly to NYAA’s initiatives such as the Young Photographers Network to bring out the best in young Singaporeans.

Our eco-community projects involving the youth mentioned earlier in this report are synergistic with our passion towards youth development and to harness a new eco-conscious generation.

I hope this Report has provided a concise picture of our CSR efforts in 2008. Looking ahead, despite the uncertain financial landscape in 2009, we remain dedicated to our CSR commitments. We will explore ways to productively stretch our resources, strengthen our business sustainability and protect the interest of our stakeholders and make further headways in our CSR journey.

Kwek Leng Joo
Managing Director