DYNAMIC APPROACH TO MATERIALITY ASSESSMENT

Anchored on a multi-stakeholder approach, the Group’s 2023 materiality assessment provides an inside-out and outside-in perspective of our financial and ESG impacts on our stakeholders and business. The latest addition of the ISSB Standards into our reporting framework has included financial materiality as a priority consideration. This is a continuation of our double materiality approach, in assessing sustainability-related risks and opportunities in a holistic manner.

Learning from the unprecedented disruptions caused by the COVID-19 pandemic, we adopted a more dynamic approach on the assessment of key ESG issues from 2020 to 2023, addressing the fast-changing landscape and supply chain issues1. The exercise determined the actual and potential impacts of these issues on the Company’s long-term value creation, and conversely, our impact on them. This year, we have updated our materiality assessment to align qualitatively with the ISSB’s IFRS S1 and S2. Endorsed by MAS, SGX RegCo and ACRA, the IFRS Standards require companies to assess the ESG issues that are considered material to the company, taking into account both financial and non-financial information, including the impact of climate-related risks and opportunities. To incorporate and understand financial materiality, the Company’s ExCo, selected senior management representatives and key executives from key subsidiaries assessed the potential financial impact of each ESG matter. Online surveys were circulated to key stakeholder groups, including the BSC. More than 377 responses were received. Interviews with selected management staff of the Group’s headquarters and key subsidiaries, investors, regulators, industry and sustainability experts, tenants and suppliers, provided insights into how the Group can manage and strategically address our ESG issues. The preliminary material issues were validated by the Company’s ExCo, senior management and key executives from business units and approved by the BSC thereafter.

2023 Material ESG Issues

Our findings revealed that environmental issues remained a key concern for stakeholders. With the urgency of the global energy transition2, “Energy Efficiency and Adoption of Renewables” rose to become the top materiality issue in 2023, followed by “Climate Resilience and Adaptation” and “Innovation”. Innovation continues to remain a high priority and an important driver in achieving CDL’s net-zero commitments.

With greater focus on Scope 3 emissions and future mandatory reporting for Scope 3 emissions under the ISSB Standards, “Responsible Supply Chain” has increased in significance. This is aligned with the increased focus on the environmental performance of our Group’s hotel arm, M&C. Moving forward, there will be greater synergies between CDL’s and M&C’s efforts to improve M&C’s sustainable hotel operations to align with CDL’s net-zero goals.

Highly critical material issues Critical material issues Moderate material issues
  1. Energy Efficiency and Adoption of Renewables
  2. Climate Resilience and Adaptation
  3. Innovation
  4. Cyber-readiness, Security and Data Privacy
  5. Occupational Health, Safety and Well-being
  1. Responsible Supply Chain
  2. Future-ready Workforce and Talent Retention & Attraction
  3. Product/Service Quality and Responsibility
  4. Green and Healthy Buildings
  5. Stakeholder Impact and Partnerships
  1. Ethical and Transparent Business
  2. Water Management
  3. Human Rights and Labour Conditions
  4. Waste Management and Circularity
  5. Sustainable Finance
  6. Diversity, Equity and Inclusion
  7. Economic Contribution to Society
  8. Biodiversity Conservation

 Ranking increased significantly from the previous year’s materiality study

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The Group’s Material ESG Issues Stakeholders Impacted GRI Standards Disclosures Addressed in this Report
1. Energy Efficiency and Adoption of Renewables Customers, builders and suppliers, government and regulators, investors and analysts, community, academics and industry experts, and media
  • Energy
  • CRES: Building energy intensity
Standing on the Side of Nature
– Impact on Planet
2. Climate Resilience and Adaptation Customers, builders and suppliers, government and regulators, investors and analysts, lenders, academics and industry experts, community, and media
  • Emissions
  • CRES: Building greenhouse gas emissions intensity
Standing on the Side of Nature
– Impact on Planet
3. Innovation All stakeholders across our value chain
  • Construction and Real Estate sector (CRES): Sustainability certification, rating, and labelling
Standing on the Side of Nature
– Impact on Planet
4. Cyber-readiness, Security and Data Privacy Customers, employees, government and regulators, investors and analysts, and media
  • Customer privacy
Thriving with Nature
– Impact on Profit
5. Occupational Health, Safety and Well-being All stakeholders across our value chain
  • Occupational health and safety
Growing with Nature
– Impact on People
6. Responsible Supply Chain Builders and suppliers, community, government and regulators, investors and analysts, academics and industry experts and media
  • Materials
  • Supplier environmental assessment
  • Supplier social assessment
Standing on the Side of Nature
– Impact on Planet
7. Future-ready Workforce and Talent Retention & Attraction Employees, government and regulators, and investors and analysts
  • Training and education
Growing with Nature
– Impact on People
8. Product/Service Quality and Responsibility Customers, builders and suppliers, government and regulators, investors, community, academics and industry experts, and media
  • Marketing and labelling
  • Customer health and safety
  • CRES: Sustainability certification, rating and labelling
Growing with Nature
– Impact on People
9. Green and Healthy Buildings Customers, builders and suppliers, government and regulators, investors and analysts, community, academics and industry experts, and media
  • Customer health and safety
Growing with Nature
– Impact on People
10. Stakeholder Impact and Partnerships All stakeholders across our value chain
  • Direct economic impacts
Growing with Nature
– Impact on People
11. Ethical and Transparent Business All stakeholders across our value chain
  • Anti-corruption
  • Anti-competitive behaviour
Thriving with Nature
– Impact on Profit
12. Water Management Customers, builders and suppliers, government and regulators, investors and analysts, community, academics and industry experts, and media
  • Water and Effluents
  • CRES: Building water intensity
Standing on the Side of Nature
– Impact on Planet
13. Human Rights and Labour Conditions All stakeholders across our value chain
  • Employment
  • Forced or compulsory labour
  • Labour/management relations
  • Non-discrimination
Growing with Nature
– Impact on People
14. Waste Management and Circularity Customers, builders and suppliers, government and regulators, investors and analysts, community, academics and industry experts, and media
  • Waste
Standing on the Side of Nature
– Impact on Planet
15. Sustainable Finance Lenders, government and regulators, and academics and industry experts
  • There is currently no relevant GRI topic disclosure
Thriving with Nature
– Impact on Profit
16. Diversity, Equity and Inclusion Employees, investors and analysts, academics and industry experts
  • Diversity and equal opportunity
Growing with Nature
– Impact on People
17. Economic Contribution to Society All stakeholders across our value chain
  • Economic performance
  • Market presence
  • Indirect economic impacts
  • Employment
Thriving with Nature
– Impact on Profit

Growing with Nature
– Impact on People

18. Biodiversity Conservation Builders and suppliers, investors and analysts, lenders, media, government and regulators, academics and industry experts, community
  • Biodiversity
Standing on the Side of Nature
– Impact on Planet

 

1 We will be validating our list of material ESG issues with the latest GRI Sector Standard for our industry when it is published by GRI
2 Fostering Effective Energy Transition Insight Report, World Economic Forum, June 2023