ALIGNMENT WITH TCFD RECOMMENDATIONS

As an early adopter of the IIRC’s integrated reporting approach in assessing our ESG impact through the financial lens, we have also utilised the TCFD framework since 2017 to better articulate climate-related risks that have financial impact. This section describes how CDL manages climate-related risks and opportunities, with reference to the four key pillars recommended by the TCFD.

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KEY PILLAR AND RECOMMENDED DISCLOSURE
CDL’S APPROACH Addressed in Our Report
Governance

CDL’s governance around climate-related risks and opportunities

  • Our board-level BSC has oversight of climate-related risks and opportunities and typically meets biannually to review emerging climate-related issues and our low-carbon strategy and initiatives.
  • Our CSO leads the Sustainability team and reports directly to the BSC on all sustainability matters, including global and local climate-related issues.
  • We have in place stringent climate-related policies and guidelines. Clear climate goals and targets are set under the CDL Future Value 2030 sustainability blueprint. ESG performance is tracked regularly and reported in our online quarterly sustainability report, in addition to the annual sustainability report.
Integrated Strategy for Value Creation, page 15

Reducing Environmental Impact, page 47

Shaping a Fair, Safe and Inclusive Workplace, page 68-71

Strategy

Proactive approach to identify and pre-empt potential impact of climate-related risks by setting ESG targets and practices to help business units to be future-ready for such risks. Strive to stay abreast of trends and highlight potential opportunities that may be unlocked by ESG best practices (e.g. green financing), innovative solutions to lower carbon footprint.

  • Mitigation: Our internal risk assessments have identified a list of material climate change risks and opportunities,
    which informed our sustainability strategy and forward-looking CDL Future Value 2030 sustainability blueprint.
  • Materiality Analysis: In 2019, we conducted our third comprehensive materiality assessment, gathering insights
    from more than 200 stakeholders to prioritise our material issues. Innovation remained as the top material issue.
    Sustainable finance and waste management are newly-added material issues. This is aligned with CDL’s current
    approach in tapping on our ESG leadership to gain access to lowered cost of capital and wider pool of investor
    funds, and Singapore’s advocacy for a zero waste nation.
  • Climate Change Scenario Planning: In 2019, we extended our 2018 study to include a 1.5°C scenario to align
    with the findings of IPCC’s “Special Report on Global Warming of 1.5°C”. We assessed the financial impact of
    climate-related physical and transition risks and opportunities to CDL’s core business operations in key markets.
    This is a step up from our 2018 study on 2°C and a business-as-usual 4°C scenario. The studies aim to give
    greater insight to the management to better prepare for the potential financial impact of both physical and
    transition risks of climate change.
  • Low-carbon Economy: Raising the use of renewable energy will lower our carbon footprint. CDL will continue
    to procure RECs, following our 2018 pioneering adoption of RECs from a blockchain-empowered online
    marketplace.
Integrated Strategy for Value Creation, page 16

Integrated Strategy for Value Creation, page 22

Reducing Environmental Impact, page 48 and 49

Reducing Environmental Impact, page 54

Reducing Environmental Impact, page 65

Risk Management

The processes used by CDL to identify, assess, and manage climate-related risks

  • Climate change risks and related regulatory and raw material supply risks are identified as strategic business risks and managed under CDL’s ERM framework.
  • Our stakeholder-driven materiality assessment complements our ERM framework in identifying and assessing material ESG risks and opportunities. The assessment considered voluntary and regulatory requirements, including the Singapore Government’s pledge to the Paris Agreement and the imposed carbon taxation in 2019.
  • Beyond managing climate-related risks and opportunities under the ERM framework, we also manage operational issues pertaining to climate change, energy, water and raw material supply through the ISO 14001 Environmental Management System and ISO 50001 Energy Management System.
Risk Management Report in CDL’s Annual Report 2019

Integrated Strategy for Value Creation, page 16

Reducing Environmental Impact, page 48, 53, 54

Shaping a Fair, Safe and Inclusive Workplace, page 68-71

Metrics and Targets

The metrics and targets used to assess and manage climate-related risks and opportunities which are material to CDL’s business

  • Since 2008, we have adopted the Ten Principles of UNGC and GRI reporting framework for our sustainability report.
  • In 2015, the IIRC framework was adopted to connect ESG performance with financial and business performance.
  • In 2016, CDL became the first real estate company in Singapore to embrace the SDGs in our sustainability reporting. In 2019, we continued to make progress, integrating and reporting on 14 relevant SDGs from the initial nine goals.
  • In 2017, CDL embraced the TCFD approach for our integrated sustainability reporting.
  • In addition to CDL’s core operations, we have been disclosing Scope 1, 2 and 3 of GHG emissions of CDL’s six key subsidiaries since 2015.
  • Our environmental performance metrics are prepared in accordance to global standards including GHG Protocol and ISO 14064 for the quantification and reporting of GHG emissions and ISO 16745 for the disclosure of Republic Plaza’s carbon footprint.
  • In 2018, we became the first real estate company in Singapore to have our carbon reduction targets assessed and validated by SBTi. With that, CDL raised our targets, committing to reduce our carbon emission intensity across its Singapore operations by 59% by 2030 from base-year 2007. This aligns us with the agenda of keeping global temperature increase to less than 2°C, improving CDL’s set of robust, long-term targets for energy, water and waste reduction, as well as sustainable material use under our CDL Future Value 2030 sustainability blueprint.
  • In 2019, CDL was amongst the pioneer batch of 87 global companies to join UNGC’s Business Ambition for 1.5°C campaign, pledging to set climate targets across our operations aligned with limiting global temperature rise to 1.5°C.
Report Period and Scope, page 93-95

Key Performance Summary, page 96-98

Integrated Strategy for Value Creation, page 12-14

GRI Content Index, page 112-123

SASB Sustainability Disclosure and Accounting Metrics for Real Estate Sector, page 124

Reducing Environmental Impact, page 50-52