ENVIRONMENT, HEALTH AND SAFETY (EHS) The Group is committed to be a socially and environmentally responsible organisation that advocates for a ‘Safe and Green’ corporate culture. In this regard, it is paramount that the Group maintains high environment, health and safety standards across the Group, particularly at the operational level. We manage this risk by: a) Maintaining our longstanding commitment to EHS, exemplified by leadership actions from our Board of Directors, ExCo and Senior Management since the implementation of the CDL EHS Policy in 2003. b)Establishing an EHS Executive Committee comprising Group COO, Group GM, Group CFO, Senior Management representatives and relevant key executives across the business units to ensure workers are engaged, resources adequately allocated to EHS, and EHS performance is regularly monitored. c) Maintaining an integrated ISO 14001 and ISO 45001 Environment, Health and Safety Management System (EHSMS) across all key operations in Singapore, to manage the environmental impact of our operations and the safety, health and well-being of employees, workers, homebuyers, tenants and building users. Where possible, our hotels also align their policies and procedures with the requirements of best practice accredited systems. d) Putting in place an EHS internal audit system to ensure the effective implementation of its integrated EHSMS are in compliance with ISO 14001 and ISO 45001 standards. e) Monitoring contractors’ onsite EHS performance through an independent audit tool – CDL 5-Star EHS Assessment System. f) Maintaining robust EHS practices for our managed assets to provide safe, conducive and eco-friendly environment for building users. g) Practising responsible supply chain sourcing as part of our commitment to reduce the Group’s EHS risks with preference for ISO and bizSAFE certified vendors/ suppliers and regular interactions within our supply chain through EHS knowledge sharing seminars and engaging initiatives. h)Cultivating a proactive and strong EHS-centric culture amongst internal and external stakeholders through trainings, workshops and seminars covering EHS topics including mental health promotion. i) Establishing regular updates through open communication and feedback channels to ensure stakeholders are empowered to advocate and adopt EHS best practices. j) Ensuring accountability through quarterly reporting to the Board on EHS performance and practices, with EHS KPIs tied to remuneration. k) Reviewing legal requirements quarterly with annual compliance evaluation to these requirements. HUMAN CAPITAL As we seek new avenues of growth, a key differentiator alongside access to innovation will be the ability to attract and retain talent, including new skills and capabilities. The loss of some or all our key executives or the inability to attract or retain the right people, could materially and adversely affect our business in the medium to longterm. We manage this risk by: a) Benchmarking and reviewing the competitiveness of our remuneration package on a periodic basis. b) Investing in human capital development of our existing workforce, as well as current and emerging capabilities through professional hires and targeted recruitment. c) Setting up an Enterprise Innovation Committee (EIC) to promote crossdepartment engagement, empowering employees to be innovative and share their ideas through in-house programmes to yield a capable and more agile workforce in support of business goals. d)Conducting Employee Engagement Surveys, to help enhance existing policies, better address employee concerns, and introduce targeted initiatives to make CDL a better workplace. e) Rolling out leadership development programmes to groom talent and establish succession planning for key positions. DATA PRIVACY The Group recognises that data privacy breaches may undermine customer confidence and result in litigation from customers and/or fines and penalties from regulators. We manage this risk by: a) Adopting a pragmatic “Data-light, Data-tight” approach in our business conduct. b)Adopting a risk-based approach to data protection. c) Conducting awareness training to ensure that employees who directly and/or indirectly handle personal data in the course of their work are cognisant of data protection principles and are equipped with the right knowledge to carry out good data protection practices in their day-to-day activities. d)Ensuring compliance with data protection requirements by our data processors. For more information on how we manage personal data, please refer to our data privacy policy on our websites. Group Data Privacy Policy https://www.cdl.com.sg/index.php/privacy-policy COMPLIANCE The Group operates in many jurisdictions and is subject to applicable laws and regulations of the markets in which we operate, such as anti-bribery, corruption, money laundering, terrorism financing, competition and data privacy, along with all other relevant laws and regulations applicable to licensing and conducting of sales, leasing, construction, property development, asset management and hotel operations. In addition, various aspects of hotel operations are required to achieve compliance with the Payment Card Industry Data Security Standards (“PCIDSS”), and failure to do so could result in penalties and/or withdrawal of credit card payment facilities. We manage this risk by: a) Maintaining a zero-tolerance policy and ‘tone from the top’ towards compliance, including that of fraud, bribery and corruption. The Group currently benchmarks our practices against SS ISO 37001 to ensure that gaps are minimised, and our practices are in accordance with industry standards. b)Conducting training sessions and adopting e-learning modules to raise awareness and train employees on ways to avoid or prevent non-compliant behaviour. An annual e-declaration exercise is to be completed by all employees, to acknowledge that they have read and understood, and agree to abide by, the Group’s policies. c) Maintaining effective whistleblowing reporting and communication channels for employees, contractors, customers and stakeholders of the Group to report any unethical, fraudulent or corrupt practices, in good faith, without fear of retaliation, for investigation and action subject to applicable laws. d) Establishing platforms and channels to proactively monitor and identify applicable laws and regulatory obligations and embed compliance into policies and operating procedures. e) Aligning our policies and procedures as reasonably possible and practical with the requirements of best practice accredited framework, systems and industry standards. LEGAL The Group is exposed to legal and reputational damage resulting from breach of law or civil suits. We manage this risk by: a) Consulting inhouse lawyers and external legal counsel, where necessary, for advice on major transactions. b) Taking actions to protect and defend against actual or threatened litigation. c) Monitoring and reporting significant litigation and disputes to the ExCo and Board. d) Reviewing and maintaining the necessary liability insurance coverage. INVESTMENT/ DIVESTMENT RISK The Group is exposed to the risk of deployment of capital into investments that fail to meet targeted returns, due to inadequate planning, errors in underlying assumptions or changes in external conditions beyond our control. We manage this risk by: a) Conducting a comprehensive analysis including due diligence and feasibility studies to evaluate investment and divestment decisions. b)Reviewing and updating investment thresholds and parameters, to be in line with changing strategies and business environment. c) Close monitoring of portfolio performance to ensure that it is on track to meet set targets. RISK MANAGEMENT CORPORATE GOVERNANCE 71 70 CORPORATE GOVERNANCE ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED
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