STRATEGIC MANAGEMENT OF MATERIAL ESG ISSUES
DYNAMIC APPROACH TO MATERIALITY ASSESSMENT
Since 2014, materiality assessments are conducted annually and facilitated by a third party to determine the key economic, environmental, social and governance (EESG) issues that are important to our stakeholders. These issues are foundational to CDL’s annual sustainability reporting. Corresponding EESG targets, metrics, initiatives, and progress are reviewed by the management team, reported to the Board Sustainability Committee (BSC). and the Board for approval, before they are published annually in our Integrated Sustainability Report (ISR).
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 2022, addressing the fast-changing landscape and supply chain issues.2 The exercise determined the actual and potential impacts of these issues on CDL’s long-term value creation, and conversely, CDL’s impact on them. To gather feedback, online surveys were circulated to key stakeholder groups, including the BSC. More than 280 responses were received. Interviews with selected management staff of CDL headquarters and key subsidiaries, regulators, industry and sustainability experts, tenants and suppliers, provided insights into how CDL can manage and strategically address our ESG issues. The preliminary material issues were validated by CDL’s senior management and approved by the BSC thereafter.
2 | We will be validating our list of material ESG issues with the relevant GRI Sector Standard for our industry when it is published by GRI. |
2022 MATERIAL ESG ISSUES
Our findings revealed that environmental issues remained a key priority for stakeholders. “Innovation” was the top material issue in 2022, followed by “Energy Efficiency and Adoption of Renewables” and “Climate Resilience”. Innovation remains a high priority as it is an important driver in achieving CDL’s net zero commitments.
“Water and Waste Management” rose significantly in ranking, becoming one of the top five material issues in 2022. This reflects growing recognition that the climate crisis is a water and ocean crisis. In the fight against climate change and in the aftermath of COVID-19, there has been increased interest amongst global and local stakeholders in ocean-based climate solutions for global and national economic recovery plans.
Social issues including “Stakeholder Impact and Partnerships” and “Healthy Buildings” decreased in significance this year. Despite this, stakeholders emphasised the importance of managing these issues on a consistent and ongoing basis.
With greater focus on Scope 3 emissions, “Responsible Supply Chain” has increased in significance. Focus on the environmental performance of our Group’s hotel arm, Millennium & Copthorne Hotels Limited (M&C), is magnified. 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. Innovation | 6. Occupational Health, Safety and Well-being | 11. Diversity, Equity and Inclusion |
2. Energy Efficiency and Adoption of Renewables | 7. Product/Service Quality and Responsibility | 12. Human Rights and Labour Conditions |
3. Climate Resilience | 8. Cyber-readiness, Security and Data Privacy | 13. Healthy Buildings |
4. Ethical and Transparent Business | 9. Responsible Supply Chain | 14. Future-ready Workforce |
5. Water and Waste Management | 10. Stakeholder Impact and Partnerships | 15. Economic Contribution to Society |
16. Biodiversity Conservation | ||
17. Sustainable Finance |
Ranking increased significantly from the previous year’s materiality study
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CDL’s Material ESG Issues | Stakeholders Impacted | GRI Standards Disclosures | Addressed in this Report |
Innovation | All stakeholders across our value chain |
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Impact on Planet: Investing in Innovation and Technology |
Energy Efficiency and Adoption of Renewables | Customers, builders and suppliers, government and regulators, investors and analysts, community, academics and industry experts, and media |
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Impact on Planet : Investing in Innovation and Technology |
Climate Resilience | Customers, builders and suppliers, government and regulators, investors and analysts, lenders, academics and industry experts, community, and media |
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Impact on Planet: Investing in Innovation and Technology |
Ethical and Transparent Business | All stakeholders across our value chain |
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Impact on Performance and Profit: Investing in Sustainability |
Water and Waste Management | Customers, builders and suppliers, government and regulators, investors and analysts, community, academics and industry experts, and media |
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Impact on Planet: Investing in Innovation and Technology |
Occupational Health, Safety and Well-being | All stakeholders across our value chain |
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Impact on People: Investing in Communities |
Product/Service Quality and Responsibility | Customers, builders and suppliers, government and regulators, investors, community, academics and industry experts, and media |
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Impact on People: Investing in Communities |
Cyber-readiness, Security and Data Privacy | Customers, employees, government and regulators, investors and analysts, and media |
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Impact on Performance and Profit: Investing in Sustainability |
Responsible Supply Chain | Builders and suppliers, community, government and regulators, investors and analysts, academics and industry experts and media |
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Impact on Planet: Investing in Innovation and Technology |
Stakeholder Impact and Partnerships | All stakeholders across our value chain |
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Impact on People: Investing in Communities |
Diversity, Equity and Inclusion | Employees, investors and analysts, academics and industry experts |
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Impact on People: Investing in Communities |
Human Rights and Labour Conditions | All stakeholders across our value chain |
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Impact on People: Investing in Communities |
Healthy Buildings | Customers, builders and suppliers, government and regulators, investors and analysts, community, academics and industry experts, and media |
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Impact on People: Investing in Communities |
Future-ready Workforce | Employees, government and regulators, and investors and analysts |
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Impact on People: Investing in Communities |
Economic Contribution to Society | All stakeholders across our value chain |
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Impact on Performance and Profit: Investing in Sustainability Impact on People: |
Biodiversity Conservation | Builders and suppliers, investors and analysts, lenders, media, government and regulators, academics and industry experts, community |
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Impact on Planet: Investing in Innovation and Technology |
Sustainable Finance | Lenders, government and regulators, and academics and industry experts | There is currently no relevant GRI topic on this disclosure | Impact on Performance and Profit: Investing in Sustainability |