STRATEGIC ALIGNMENT WITH TCFD RECOMMENDATIONS

Recognising that material ESG issues have impending impact on our business performance, CDL has been an early adopter of the IIRC’s integrated reporting approach in assessing our ESG impact through a financial lens since 2015. In the same light, we support the call for more effective climate-related financial disclosures to inform longer term investment decisions, by becoming one of the four pioneering Singapore companies to pledge our support for the Recommendations of the TCFD launched in June 2017. In this Report, we voluntarily disclose our climate-related financial disclosures in four key pillars as 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

  • CDL’s board-level BSC has oversight of climate-related risks and opportunities and meets at least twice a year to review emerging climate-related issues and our low-carbon strategy and initiatives in managing them.
Chapter 1: page 14
  • CDL has in place stringent climate-related policies and guidelines. Clear goals and targets are set under the CDL Future Value 2030 Blueprint. ESG performance is tracked regularly and reported online quarterly in addition to the annual sustainability report.
Chapter 1: page 14
  • CDL’s Chief Sustainability Officer leads the Sustainability department and reports directly to the BSC and Group CEO on all sustainability matters, including global and local climate-related issues.
Chapter 1: page 14
Strategy

Proactive approach to identify and pre-empt potential impact of climaterelated 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.
Chapter 1: page 23-26
Chapter 3: page 52
  • Materiality Analysis: In end 2017, we conducted a comprehensive materiality assessment with feedback from 160 stakeholders and advice from an expert panel, to prioritise our material ESG issues. We adopted the top material issue – Innovation – extensively into our business and have stepped up aggressively to scout for innovative solutions. To address climate change as one of the 13 most material ESG issues, CDL continued to finetune our sustainability strategy and raise our ESG targets to future-proof our business against climate risks.
Chapter 1: page 20-22
Chapter 3: page 52
  • Climate Change Scenario Planning: In 2018, we completed Phase 1 of a Climate Change Scenario Analysis to assess the financial impact of climate-related risks and opportunities to CDL’s core business operations in key markets including Singapore, China and United Kingdom. The study takes into consideration of a 2°C and a business-as-usual 4°C scenario. Financial impacts from identified climate-related risks and opportunities provide basis for us to stress-test and enhance the resilience of our strategy and risk management approaches.
Chapter 3: page 52
  • Low Carbon Economy: Raising the use of renewable energy (RE) has been a priority to lower the company’s carbon footprint. In Q4 2018, CDL became a pioneering procurer of REC from a new blockchain empowered online marketplace with a view to raise our use of renewable energy.
Chapter 3: page 58
Risk Management

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

  • Climate change risks and related water and raw material supply risks are identified as strategic business risks and managed under CDL’s ERM framework.
Chapter 3: page 52
Risk Management Report in CDL’s Annual Report 2018

  • Our stakeholder-driven materiality assessment complements our ERM framework in identifying and assessing material ESG risks and opportunities. The assessment considered existing and emerging voluntary and regulatory requirements, including the Singapore Government’s pledge for the Paris Agreement and upcoming carbon taxation in 2019.
Chapter 1: page 20-22
  • 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.
Chapter 3: page 52
Chapter 3: page 57, 63
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 UNGC’s ten principles and GRI framework for our sustainability report, which was not mandatory in Singapore till 2017.
Chapter 1: page 30-32
  • In 2015, the IIRC Framework was adopted for sustainability reporting to connect ESG with financial and business performance.
Chapter 3: page 53-67
  • In 2016, CDL became the first real estate company in Singapore to embrace UN SDGs in our sustainability reporting.
Chapter 3: page 69-70
  • In 2017, CDL embraced the TCFD approach for our integrated sustainability reporting.
Chapter 1: page 18-20
  • In addition to CDL’s core operations, we have been disclosing Scopes 1, 2 and 3 of greenhouse gas (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 its carbon reduction targets assessed and validated by the Science Based Targets initiative (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, enhancing 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.