Surrounding these material issues, we have mapped the risks and opportunities to 13 relevant SDGs and the four pillars under the TCFD framework (Governance, Strategy, Risk Management, Metrics & Targets). These ESG risks and opportunities also complement the company’s Enterprise Risk Management (ERM) framework. More information can be found in the Risk Management Report in CDL’s Annual Report 2018.

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CDL’s Material ESG Issues Risks Opportunities Sustainable Development Goals TCFD Pillars
Innovation Services and products of conventional business models can be displaced by the advent of disruptive technology and by market innovators. Identified as the top material issue since 2017, innovation is deemed key to driving CDL’s business to the next level and enables us to raise the level of sustainable practices and ESG performance.

Through an Enterprise Innovation Committee formed in early 2018, company-wide initiatives are carried out at CDL to spur creative thinking and promote a culture of innovation among employees.

Solutions from sustainability-linked startups or vendors, where feasible, are piloted in CDL’s building projects or operations to test the viability of emerging technologies and innovative solutions.

In partnership with NUS, the Tropical Technologies Lab (T2 Lab) was opened in early 2018 to develop innovative, green building technologies.

Risk Management
Energy Efficiency and Renewable Energy Carbon tax and subsequent hikes will impact the cost of electricity and business operational costs.

Globally, more countries are also expected to capture the external costs of carbon emissions. In CDL’s key overseas markets – China, UK / Europe, Japan and Australia, carbon pricing is currently set at the range from US$1 to US$46 per tonne of carbon emissions, subject to changes in global pricing.

CDL has a strong track record as well as expertise in green buildings and solar energy to raise energy efficiency through a building’s life-cycle. It can maximise inbuilt and natural efficiencies, minimise embodied carbon, and increase renewable energy consumption in both new developments and asset enhancement.

Beyond brick and mortar, CDL can influence our supply chain and building users to adopt sustainable practices, solutions and lifestyles. 100% of CDL’s commercial tenants have subscribed to our green lease and more EV charging stations are being installed at our buildings.

Price of renewable energy has been falling in tandem with technological advancements and increased market access to renewable energy. When Singapore’s blockchain-enabled marketplace for renewable energy certificates (REC) was launched in end 2018, CDL was one of the first two corporate purchasers in Singapore to adopt this digital platform.

Governance Strategy Risk Management Metrics & Targets
Product Quality and Responsibility Failure to deliver on quality and responsibility affects corporate reputation and sales. CDL’s stringent quality assurance processes e.g. voluntary subscription to the Construction Quality Assessment System (CONQUAS) by BCA, has produced projects of superb quality. CDL was the first and only private sector developer to be conferred the inaugural Built Environment Leadership Platinum Star Award by BCA in 2018. We were also the only developer to win BCA’s Quality Excellence Award – Quality Champion Platinum for six consecutive years.

CDL’s developments have consistently excelled under the CONQUAS scheme, entrenching our reputation as one of the highest scoring CONQUAS developers. This has differentiated CDL’s branding, products and enhanced stakeholders’ confidence in our properties.

Strategy Risk Management
Occupational Health, Safety and Well-being The safety, health and wellness of employees and contractors’ workers may affect work performance and productivity.

As most activities at construction sites and managed buildings are carried out by appointed contractors, developers and landlords are exposed to safety and health risks if their management of contractors is not sufficiently stringent.

CDL established its first EHS policy and 5-Star EHS Assessment System since the early 2000s. These were enhanced in scope and standard over the years. CDL is committed to providing a safe, healthy and conducive work environment for its employees, workers of contractors and users of its buildings.

In 2017, CDL integrated our various ISO 14001 and OHSAS 18001 EHS Management System across all our key operations in Singapore, to effectively manage the safety, health and well-being of our employees and workers, directly or indirectly hired.

Strategy Risk Management
Anti-corruption Bribery and corruption are amongst the highest risks for businesses that could lead to financial and reputational loss. Such criminal cases and scandals have threatened the survival of many corporations globally. CDL’s zero-tolerance on any non-compliance to policies towards fraud, bribery and corruption provides assurance to all our stakeholders including investors and customers. Currently, CDL has benchmarked our practices with the voluntary SS ISO37001 Anti-bribery Management Systems to ensure that gaps, if any, are narrow and in accordance to globally-recognised best practices.

Continued training and refresher of the anti-corruption practices are provided to employees to ensure clear understanding of CDL’s anti-corruption commitment.

Governance Risk Management
Business Ethics and Compliance Non-compliance to any legislation may result in fines and non-financial sanctions which will disrupt operations and affect business reputation. Failure to comply with local and international laws will also threaten a company’s license to operate. CDL has in place clear policies and Risk Management systems to continuously monitor and validate business processes and benchmarks them against industry best practices. Within our robust EHS management system, the applicable legal requirements are regularly monitored and evaluated for compliance. Incentives and penalties have also been implemented to improve and tighten contractors’ site management. Such good practices and track records have enhanced CDL’s branding and investors’ and stakeholders’ trust in the company. Governance Risk Management
Climate Change The building sector has strong environmental impact and is heavily reliant on natural resources for its operations.

Building material cost is expected to increase with depleting natural resources globally. Climate-related litigation, new policies and more stringent regulations such as carbon pricing, water tariffs hike and stricter building standards are expected. Rising energy cost and carbon pricing will pose challenges to maintain profitability and sustained growth.

CDL’s voluntary target to achieve Green Mark GoldPLUS for all new developments, two levels above legal compliance, has driven us to adopt design and features that raise energy efficiency. Early adoption of solar power has helped CDL lower its carbon footprint.

Apart from building two zero-energy developments in Singapore namely the Green Gallery @ SBG and the Singapore Sustainability Academy, CDL also boasts a strong track record in the early use of solar energy in both commercial and residential developments, e.g. South Beach and D’Nest. Adopting prefabricated construction technology and sustainable building materials such as cross-laminated timber not only raised productivity and EHS performance, but also helped CDL to reinforce its leadership and expertise in best practices.

Governance Strategy Risk Management Metrics & Targets
Cyber Security and Data Governance Malicious cyber-attacks can inflict serious disruptions to businesses and affect the reputation of and stakeholders’ trust in a company.

Businesses also need to be mindful of compliance requirements for international and local data privacy protection laws.

Besides having holistic IT governance structures, robust detection and mitigation measures in place to protect our critical business systems and data, CDL’s IT response plans are tested by independent external and internal auditors and benchmarked against best industry practices. Governance Risk Management
Economic Contribution to Society CDL’s financial performance impacts the vested interests of its shareholders, employees and vendors. CDL gives back to society through our community outreach for youth development, supporting the arts, helping the less fortunate and environmental conservation. Our Singapore Sustainability Academy also contributes to capacity building, training and development of the green industry. We provide free use of this dedicated space to stakeholders for the promotion of the SDGs and climate action. Strategy Governance
Product Safety and Customer Well-being Failure to meet legal obligation and contractual responsibility to ensure the safety of the occupants at its residential, office, commercial and industrial developments could lead reputational and financial loss. To ensure compliance and prevent latent defects, CDL has in place a robust policy to identify design risks and assess the severity of EHS impacts throughout the construction stages of our developments.

Beyond product safety, CDL encourages our employees and tenants to go green and stay healthy. CDL is one of the first six companies to participate in the BCAHPB Green Mark for Healthier Workplaces when the scheme was launched in October 2018. We also encourage participation in this scheme among our tenants.

Strategy Risk Management
Responsible Supply Chain and Sourcing Natural resources are finite, and the availability and rising costs of these resources have significant impact on a developer’s bottom line and financial performance.

Selection and procurement of building materials has an impact on CDL’s ESG performance, such as carbon reduction, worksite health and safety.

CDL has a strong track record in supply chain management by engaging contractors and consultants that abide to its ethos of ‘Conserving as we Construct’since 1995.

We have built a supply chain that shares CDL’s firm commitment to EHS through the CDL 5-Star EHS assessment. The CDL Green Procurement Guidelines within the EHS Management System has given clear guidance to suppliers. Suppliers’ support has helped CDL to adapt effectively to challenges posed by climate change or shortage of resources, for long-term business sustainability.

Governance Strategy Risk Management Metrics & Targets
Talent Attraction, Retention and Development The outflow of talent will impact on CDL’s human capital, operational efficiency and sustained growth.

As an employer committed to fair and equal opportunity for its employees, CDL promotes diversity at the workplace and strives to be an employer of choice.

Our focus on staff development and innovative culture has helped to attract and retain talents as well as strengthen our positive standing.

Strategy Risk Management
Water Management and Efficiency Singapore was ranked ‘most at risk of facing high water stress’ by the World Resource Institute in 2015. Water price went up by 30% between 2017 and 2018.

Developers and landlords face the challenge of securing long-term reliable supplies of clean water at a reasonable cost.

CDL has a strong track record in adopting technologies to raise water efficiency and minimise wastage such as rainwater harvesting at residential and commercial developments. Its developments are designed with a strong focus on water sustainability throughout the lifecycle of the asset.

As the water market grows and emerging technologies become more accessible and affordable, CDL will continue to further enhance its water management by adopting new technologies and solutions to reduce fresh water consumption, increase its reuse and recycling of wastewater, and improve the quality of treated wastewater.

Governance Strategy Risk Management Metrics & Targets