SUSTAINABILITY BOARD STATEMENT CDL SUSTAINABILITY BOARD STATEMENT With 2024 confirmed as the warmest year on record, the urgency for collective climate action is clear. As the natural world underpins half of the global economy, the collapse of these ecosystems could pose significant risks to businesses.1 A World Economic Forum study estimates that extreme heat and other climate hazards could cause up to US$610 billion in annual fixed asset losses for listed companies by 2035.2 The health of our planet is inextricably linked to the resilience of our people, economies and businesses. Recent market changes and increased regulatory scrutiny highlight the importance of transparent and accurate sustainability reports to manage sustainabilityrelated risks and opportunities. In September 2024, the Singapore Exchange Regulation (SGX RegCo) announced that beginning with financial year (FY) 2025, all listed issuers will be required to report their Scope 1 and Scope 2 greenhouse gases (GHG) emissions, incorporating the climate-related requirements aligned with the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB). Larger issuers by market capitalisation will likely need to report Scope 3 GHG emissions from FY 2026.3 Therefore, businesses must take proactive steps to prepare for these changes. 2024 in Review – Zero in on Action for Sustained Value 2024 marks 30 years since CDL adopted its corporate ethos, 'Conserving as We Construct'. The Group has been pragmatically integrating sustainability solutions into its GET (Growth, Enhancement and Transformation) strategy, focusing on four key sustainability pillars – Integration, Innovation, Investment and Impact – with four key deliverables: “Decarbonisation”, “Digitalisation & Innovation”, “Disclosure & Communication”, and “Defence through Mitigation & Adaptation”. Sustainability has been consistently embraced to enhance its risk management resilience and add value through risk adaptation, innovation, partnerships and robust reporting. Integration: Embracing sustainability into operations, partnerships and reporting In 2024, CDL conducted a Group-wide assessment and identified sustainability-related risks and opportunities (SROs) and their potential financial effects on its business over the short, medium and long term. This exercise aims to achieve greater alignment with ISSB, which issued its inaugural IFRS S1 and S2 in June 2023. Several jurisdictions, including Singapore, have adopted these standards using a phased approach. CDL started its materiality assessments since 2014. The latest materiality assessment concluded that CDL’s top five issues, which rank highest on both impact and financial materiality, are "energy efficiency and adoption of renewables", "cyberreadiness, security and data privacy", "occupational health, safety and well-being", "green and healthy buildings", and "governance and business conduct". CDL recognises that thriving ecosystems are essential for resilient urban environments and we actively engage in initiatives that promote nature-positive development and biodiversity conservation. Its early adoption of Biodiversity Impact Assessments since 2010, as well as being the first corporate in Southeast Asia to publish a report aligned with the Taskforce on Nature-related Financial Disclosures (TNFD) framework in 2024, reflect its dedication to preserving natural habitats while advancing its business objectives. The TNFD framework complements CDL’s sustainability reporting on ‘impact’ and ‘value’, enabling it to address ESG risks better and explore growth opportunities. CDL is honoured that its Chief Sustainability Officer (CSO), Ms Esther An, has been appointed as a member of the TNFD, representing Singapore and CDL as the only ASEAN company in the Taskforce, advocating nature and biodiversity conservation on a global scale. Collaboration is key for advancing sustainability integration in the Group’s ecosystem of partners. Without collective action, the shared global goal of net-zero and naturepositivity is impossible. To address the growing need for a sustainability action hub, CDL opened the Singapore Sustainability Academy (SSA) Annex in July 2024, an extension of the SSA set up in 2017. The Annex will focus on capacity building, education and networking, and engaging partners in climate action. Since June 2017, the SSA and the SSA Annex have hosted some 1,200 events and training sessions, engaging over 40,000 visitors. Innovation: Advancing towards Greener and Cooler Urban Spaces Over the past year, CDL continued leveraging innovative green building technologies and decarbonisation solutions. At its Executive Condominium (EC) project, 1 Nature’s decline could bankrupt the global economy, Economist Impact, 21 May 2024 2 Climate risks are set to slash corporate earnings. Here’s what CEOs and boards can do, World Economic Forum, 12 Dec 2024 3 SGX RegCo to start incorporating IFRS Sustainability Disclosure Standards into climate reporting rules, SGX, 23 Sep 2024 ANNUAL REPORT 2024 SUSTAINABILITY 47
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