Climate Change and Emissions

In Singapore, the building and real estate sector is responsible for as much as 25.7%1 of electricity consumption. The sector is also projected to contribute about 13.8%2 of Singapore’s 2020 Business-As-Usual (BAU) greenhouse gas (GHG) emissions. As a major developer and manager of property assets, CDL is committed to low-carbon operations through actions outlined in our Climate Change Policy.

The world experienced record high temperatures in 2016. The extent of Arctic sea ice, a key climate change indicator, is estimated to cover 40% less area now than it did 40 years ago and is declining at a rate of 13.4% per decade. As Singapore is a low-lying and densely populated island, the projected continued increase in average temperatures and rise in sea levels may pose a risk to our core activities. More frequent warmer days will result in increased use of air conditioners, leading to declining air quality in cities. Resulting implications for the property sector include increased demands on ventilation and air conditioning equipment, as well as higher operating costs due to greater plant wear and tear and rising energy consumption.

Through climate change adaptation initiatives, we reduce the risk of business disruption that may affect our customers and residents, and mitigate potential damage and costs associated with the repair and maintenance across our assets due to extreme weather and global warming.

Measuring and Reducing Carbon Emissions

To track and mitigate our climate impact, CDL established targets to reduce our carbon emissions3 intensity by 22% by 2020 and 25% by 2030, below BAU levels from 2007. In 2016, CDL achieved a reduction in total carbon intensity emissions by 16%.

To better manage our carbon reduction efforts, we have implemented a GHG management system in accordance with the requirements of ISO 14064-1, and have externally audited and validated our emissions computations since 2015. ISO 14064-1 is an international standard that specifies organisational-level principles and requirements for quantification and reporting of GHG emissions and removals.

Since 2009, CDL has also voluntarily reduced our annual carbon emissions to ‘net zero’ for our Corporate Office operations including our data centre and 11 Tampines Concourse – the first CarbonNeutral® development in Singapore and Asia Pacific. Besides carbon neutralising the construction phase of 11 Tampines Concourse, we also annually offset emissions from its operations, including that of our tenants.

Increasing Accountability and Disclosure

Even though the reporting of Scope 3 emissions is voluntary, CDL monitors and discloses the emissions to better assess their impact across the entire value chain and identifies the most effective ways to reduce them. Since 2014, we have included hotel accommodations from business travels and employee commute in our calculations.

Due to CDL’s ongoing overseas diversification strategy, there has been a higher frequency of business travel. As a result, air travel from our Corporate Office has been increasing since 2014. However, we strongly advocate for communication via audio or video conferencing where possible to minimise overseas travel.

Since 2014, CDL has been tracking and reporting the carbon emissions of our key subsidiaries to ensure greater disclosure and accountability of the Group’s carbon footprint. The following chart shows carbon emissions from over 130 hotels owned and managed by Millennium & Copthorne Hotels plc (M&C) in over 20 countries, CDL Hospitality Trusts (CDLHT), CBM Pte Ltd, City Serviced Offices (CSO), Le Grove Serviced Apartments as well as Tower Club.

1 Source: Energy Market Authority, Singapore Energy Statistics 2016
2 Source: National Climate Change Secretariat website www.nccs.gov.sg
3 CDL’s carbon emissions take into consideration all GHG emissions

Note

Scope 1

Includes direct emissions from fuel used in power generators, petrol for company vehicles, loss of refrigerant in air-conditioning systems and loss of insulating and arc quenching media in switchgear systems.

Scope 2

Emissions reported are for activities in Singapore. Due to the lack of contractual instruments available in Singapore, location-based emissions and market-based emissions are the same. Includes indirect emissions due to purchased electricity consumed at CDL’s Corporate Office, commercial, and industrial buildings as well as construction sites.

Scope 3

Includes other indirect emissions arising from electricity transmission losses, local and international courier services, employee commuting, business air travel (excluding the influence of radiative forcing) and hotel accommodations, water supply and water treatment (excluding water treatment for property development sites).

* Before 2014, scope 1 and 2 emissions were reported collectively.
4 Figures stated in charts may not add up due to rounding of decimals

Note

Corporate Office

CDL’s Corporate Office in Singapore occupies approximately 6,618 m2 across nine floors in City House and one floor in Republic Plaza. Measurement is applicable to all environmental performance reported.

Commercial and Industrial Buildings

In 2016, CDL managed 12 commercial buildings and three industrial buildings in Singapore, with an average monthly leased floor area of 247,106 m2 and 26,644 m2 respectively. Measurement is applicable to GHG calculations, with all other environmental performance reported using the total leased area. Data before 2014 includes two industrial buildings, Pantech 21 and New Tech Park which were divested in November 2013.

Construction Sites

While carbon emissions due to construction activities at CDL’s construction sites are a result of contractors’ direct and indirect emissions, CDL recognises the significant environmental impact of these construction activities. In 2016, CDL measured and monitored the environmental impact and performance of its 12 construction sites in Singapore with a gross floor area of 193,083 m2 built for that year. Measurement is applicable to all environmental performance reported in this section.

* Before 2014, scope 1 and 2 emissions were reported collectively.

The largest source of emissions was electricity usage at CDL-managed commercial and industrial properties, which accounted for about 74% of the Company’s carbon footprint in Singapore.