Sustainability Report 2015
Top Management’s Commitment – Executive Statement
Dear Stakeholders,

2014 was the warmest year ever recorded1. Human influence has been deemed as “extremely likely” the dominant cause of global warming2. Extreme weather events have claimed numerous lives, destroyed communities and put businesses in jeopardy. The world urgently needs to mitigate climate change, and calls for greater actions and transparency from global corporations have intensified. Increasingly, consumers are also demanding that companies operate in a more responsible manner.

Against this backdrop, 2015 is an important year for sustainable development and climate change solutions, as world leaders will meet in September to approve the Sustainable Development Goals to guide national and global policies to 2030. In December 2015, leaders will also assemble in Paris to adopt a global agreement on the growing dangers of human-induced climate change.

Locally, in October 2014, the Singapore Exchange announced its plan to adopt the “comply or explain” approach for sustainability reporting for all listed companies. This will make sustainability reporting not just a “nice-to-have”, but a “must-have” for Singapore-listed firms soon.

While CDL has long moved beyond regulatory compliance for sustainability practices and reporting, we continue to be watchful of the developments in this growing expectation. We are committed to sharpening our frameworks and closing in on our gaps as we work towards achieving greater and more lasting value for our stakeholders – customers, investors, regulators, suppliers, employees and the community.

Celebrating 20 Years of Corporate Social Responsibility

2015 is a special year for CDL as we commemorate 20 years of our Corporate Social Responsibility (CSR) journey. This year will also mark Singapore’s 50 years of independence and nation building.

As one of Singapore’s largest listed companies and leading eco-developer, CDL’s sustainable development has gone hand in hand with our nation’s rapid progress from third world to first. Through pioneering strategies, championing groundbreaking innovations and setting new sustainability benchmarks, our CSR journey has progressed by leaps and bounds over the past two decades.

We have embraced our position as impetus to innovate, invest in and improve the ways buildings sustain life, and our efforts have helped place Singapore on the world map for sustainability. We are honoured to be the first Singapore corporation to be listed on three of the world’s leading sustainability benchmarks – FTSE4Good Index Series (since 2002), Global 100 Most Sustainable Corporations in the World (since 2010) and the Dow Jones Sustainability Indices (since 2011).

In 2014, CDL was included as a constituent of the MSCI Global Sustainability Indexes, and was also listed on the Global Real Estate Sustainability Benchmark (GRESB). In Singapore and Asia, CDL was ranked the top property developer in the inaugural Channel NewsAsia Sustainability Ranking 2014. Testament to our Environmental, Social and Governance (ESG) performance, these listings have helped CDL attract global investors and partners, contributing to our sustained growth.

Integrated Reporting Approach with an Expanded Scope

Integrating CSR into our corporate vision and strategy has created business value and long-term sustainability for CDL. To advance our commitment, we have adopted the Integrated Reporting (IR) approach for this year’s report, connecting our social and environmental performance with business and financial impact. This approach will further strengthen the tracking and communication of our sustainability strategy and performance, complementing the Global Reporting Initiative (GRI) G4 guidelines that focus on issues material to our business. With valuable inputs from our internal and external stakeholders, a materiality assessment was completed in 2014 to identify and connect material issues to our strategy and life cycle management.

A strategic risk assessment workshop was also carried out in 2014 to evaluate key risks that are of impact to our business. Besides business-related risks, ESG risks such as fraud and corruption as well as ineffective Environmental, Health and Safety (EHS) management were identified as strategic risks of business concern. We will continue to review and ensure that effective controls and mitigating measures are put in place to manage these risks.

In the process of adopting the IR approach, we have come across opportunities and challenges. However, we are committed to raising the bar for our reporting journey and will strive to find ways to address gaps.

In this year’s report, we have also expanded the scope of our reporting. We have included the measurement and disclosure of the environmental performance of our key subsidiaries – Millennium & Copthorne Hotels plc (M&C), CDL Hospitality Trusts, CBM Pte Ltd, City Serviced Offices, Le Grove Serviced Apartments and Tower Club. We will strive towards improving our environmental targets across all operations.

Setting New Green Building and Sustainability Benchmarks

New sustainability benchmarks were established in the year under review. CDL’s Tree House condominium achieved a Guinness World Record for the largest vertical garden in April 2014. Beyond an aesthetic feature, the 24-storey vertical garden provides tangible benefits. Air-conditioning energy savings of between 15% and 30% annually are expected for the 48 west-facing master bedrooms insulated by the garden.

As we continue to push the frontier of sustainable building methods, we announced our plan to adopt the advanced construction technology, Prefabricated Prefinished Volumetric Construction (PPVC), for the development of a new Executive Condominium with 638 apartments. Over 5,000 building modules will be used in what is likely the world’s largest PPVC application for a large-scale residential development. Productivity is expected to increase by more than 40%, saving some 55,000 man days. In addition, homebuyers can look forward to better quality as the building modules are prefabricated offsite using highly-engineered techniques under controlled conditions. For workers and the environment, PPVC will also create safer, cleaner and less polluted construction sites.

Our promise to deliver quality green homes was re-affirmed as CDL was awarded the Green Mark3 Quality Champion (Platinum) by the Building and Construction Authority (BCA)4 in 2014, earning us the distinction of being the only developer to have received this highest honour for two consecutive years. As at end 2014, CDL has over 70 BCA Green Mark developments, including 33 Platinum projects – the highest number amongst private developers in Singapore. All our new developments will continue to be assessed under BCA’s Construction Quality Assessment System (CONQUAS) and we remain committed to quality excellence. These accolades have helped differentiate our brand and products, positioning us to attract an emerging market that is prepared to pay a premium for quality and green spaces.

Partnering Stakeholders, Empowering Our Community

In line with BCA’s 3rd Green Building Masterplan and the latest Sustainable Singapore Blueprint which focus on user engagement, CDL formed a Tenant Engagement Taskforce in July 2014. The CDL Green Lease Partnership Programme was also launched in October to encourage our commercial tenants to reduce their carbon footprint. Research has shown that human behaviour is as important as the physical infrastructure when it comes to energy use5. CDL has always believed that stakeholder engagement is key to the success of our sustainability drive. We are pleased that 66% of our tenants have signed the CDL Green Lease Memorandum of Understanding (MOU) as at December 2014, pledging their commitment to monitor, manage and reduce energy consumption6.

Safety of not only our employees, but also our contractors and their workers, is a key priority. 2014 marked the 10th Anniversary of CDL’s 5-Star EHS awards, where we introduced the inaugural Safe Worker Award to recognise the contributions of the unsung heroes of our industry, and to further strengthen our efforts to promote workers’ well-being holistically. The Award aims to recognise exemplary workers who live the safety message and inspire fellow colleagues to be more safety conscious. We also announced that construction workers at our new construction sites with onsite living quarters will receive computers and free Wi-Fi connectivity.

Community building is the soul of CDL’s CSR strategy. This is why CDL has been investing in developing today’s youths to become tomorrow’s leaders. By partnering education institutions and creating knowledge sharing platforms, CDL hopes to cultivate a strong sense of social responsibility in our future leaders. Some examples include our support for Nanyang Technological University’s inaugural Sustainable Enterprise Challenge 2014, and our sustained efforts in the 4th CDL Singapore Compact Young CSR Leaders Award.

Through CDL’s longstanding support for the arts, we have helped shape the local arts scene by nurturing young creative talents at a national level. Our 5th CDL Singapore Young Photographer Award in 2014 received over 1,500 entries.

In celebration of Singapore’s 50th birthday, CDL is a presenting sponsor of the Singapore Garden Photographer of the Year. In partnership with National Parks Board, this year-long national photo competition is based on themes surrounding our City in a Garden. We hope this initiative will create greater appreciation and awareness of Singapore’s natural heritage through the lens of the community. In addition, CDL has partnered the National Museum of Singapore to launch the first open call for a special SG50 commemorative public sculpture. The winning artwork, centred on the theme ‘The Red Dot, Today & Tomorrow’, will be CDL’s gift to Singapore’s Golden Jubilee in 2015.

CDL Future Value 2.0

Even though it has been two decades since we started our sustainability journey, there is still much more to do. As a listed company, we are committed to continually create value for investors and stakeholders. However, it is not enough for us to just do well financially. We must also do good for the community and our environment.

We understand that the availability, quality and affordability of our capitals can affect the long-term viability of our business and, in turn, our ability to create value over time. As such, we are committed to managing all our capitals – Financial, Manufactured, Organisational, Social and Relationship, Human, and Natural – prudently and effectively to build future value. CDL, with over 50 years of proven track record, has harnessed invaluable goodwill and trusted reputation, earned from our management of these capitals. We will and must continue to build on this trust.

Despite challenges in the global and domestic economies, CDL remained resilient with strong earnings of $770 million for 2014, while maintaining our commitment to CSR and sustainable development. 2015 is expected to be another challenging year for the Singapore property market, and the outlook of the global economy remains fragile. Nevertheless, we believe that there will be pockets of opportunity. We remain poised to capitalise on this down cycle by expanding on our know- how, diversifying our products and markets, and carving out new opportunities both locally and abroad.

To address pressing issues such as climate change and labour crunch, we will continue to seek green building innovations and game-changing technologies to raise productivity and quality. Recognising the crucial role CDL plays in mitigating the effects of climate change, we took our commitment to environmental best practices one step further and formalised a Climate Change Policy which is available on our company website.

We will further step up stakeholder engagement efforts to change behaviour and raise performance in EHS across our supply chain as government agencies ramp up enforcements in these areas. Efforts will be made to encourage the adoption of CDL’s CSR values and commitment to best practices across our subsidiaries and associated companies. With collective effort, this will further strengthen our leadership in sustainability as a Group.

We see unlimited possibilities to create a lasting and positive impact on our stakeholders, the community and the environment. Through our sustainability efforts, we hope to create stronger brand equity, product differentiation as well as investor and consumer value. As we enter the next chapter of our CSR journey, our focus is to "Create Future Value" for generations to come, building upon our ethos of "Conserving as we Construct". By harnessing our capitals, we strive to complement Singapore’s vision to be a clean, green, sustainable and smart nation. Together, we build tomorrow, today.

Kwek Leng Joo
Deputy Chairman

24 April 2015

1 According to the National Aeronautics and Space Administration, the US National Oceanic and Atmospheric Administration and the Japan Meteorological Agency.
2 Intergovernmental Panel on Climate Change Fifth Assessment Report (2013).
3 Developed by BCA in 2005, the Green Mark rating is the national assessment system of green building performance based on key areas of energy efficiency, water efficiency, environmental protection, indoor environment quality and green features and innovation.
Green Mark certified buildings are re-assessed once every three years to determine if they maintain the Green Mark status.
4 BCA is an agency under the Ministry of National Development and functions as the regulator of Singapore’s building and
construction industry.
5 Source: World Business Council for Sustainable Development's Energy Efficiency in Buildings Summary Report on
6 As of April 2015, close to 80% of CDL's commercial tenants have signed the Green Lease MOU