Environmental Capital

Managing our Environmental Footprint

CapitaLand’s Environmental Management System (EMS) is a key tool in managing the Group’s environmental footprint across its global and diverse portfolio, with more than 12,700 staff. This EMS, together with CapitaLand’s Occupational, Health and Safety Management System (OHSMS) are integrated as CapitaLand’s Environmental, Health and Safety Management System (EHSMS). CapitaLand’s EHSMS is audited by a third-party accredited certification body to ISO 14001 and OHSAS 18001 standards. ISO 14001 and OHSAS 18001 are internationally recognised standards for the environmental management of businesses and occupational health and safety management of businesses respectively.

CapitaLand’s EHS Committee and the SBU EHS Committees are responsible for driving the EHSMS.

CapitaLand Environmental, Health and Safety Policy6

As an international corporate social citizen, CapitaLand is committed to protecting the environment and upholding the occupational health and safety of everyone in the workplace*, and will: Carry out exemplary Environmental, Health and Safety practices to minimise pollution and health and safety risks Seek continual improvement on its Environmental, Health and Safety performance Comply with pertinent legislations and other requirements Implement the CapitaLand Sustainable Building Guidelines and Occupational Health and Safety programmes We make this policy readily available to all employees, suppliers, service providers and partners. *This includes implementing an EHS Management System.

Since 2012, the Group achieved ISO 14001 certification for its EMS in 15 countries⁷ – Singapore, Australia, Belgium, China, France, Germany, India, Indonesia, Japan, Malaysia, Philippines, Spain, Thailand, United Kingdom (UK) and Vietnam – covering all markets with investment properties. This encompasses all business functions including property development, property management as well as corporate management and operations.

Risk Management of Environmental Aspects and Impacts

As part of the certified EMS, new or updated legal requirements are reviewed quarterly and compliance is evaluated annually. In 2016, CapitaLand complied with the environmental laws and regulations in Singapore, Australia, Belgium, China, France, Germany, India, Indonesia, Japan, Malaysia, Philippines, Spain, Thailand, UK and Vietnam.

CapitaLand’s EMS provides a systematic process to manage the Group’s environmental impacts and to continuously improve its environmental performance. A key element is to identify and manage significant environmental aspects of its business operations that can potentially have a negative impact on the environment. The significance level of each environmental aspect and impact is assessed using a risk assessment technique based on factors comprising the likelihood of the occurrence, severity of the impact and control measures implemented.

CapitaLand strives to minimise impacts such as resource depletion, carbon emissions and waste generation. This is done by setting environmental targets such as green building rating targets, carbon emissions, energy, water and paper usage reduction targets, stakeholder engagement activities, and implementing various measures to achieve them. The targets are linked to the remuneration to staff including top management. For more details, please refer to the table “2016 Key Performance Indicators”.

Training

To facilitate effective implementation of CapitaLand’s EHSMS, training and awareness programmes are planned and conducted for all staff. New staff are inducted to the EHSMS, as well as CapitaLand’s EHS policy and briefed on the roles they play. For the implementation of CapitaLand’s EHSMS, Heads of Departments in administration, operations, and project development, including heads of operating properties, design managers and project managers, undergo more detailed training. In 2016, more than 8,600 CapitaLand staff attended at least one EHS-related training amounting to more than 83,000 training hours.

To overcome the challenge of its extensive international portfolio, CapitaLand has a “Train the Trainer” method for its EHS Implementor Training Programme. This ensures that there are trainers based in countries where CapitaLand operates to minimise travelling by trainees. An e-learning module on Introduction to EHS was launched in 2016.

Global Internal and External Audits

CapitaLand has in place an internal audit system to ensure the conformance and effective implementation of its EMS to ISO 14001 international standards. Internal audits are conducted in the 15 markets where it has investment properties at least once a year covering at least 50% of the sites in each country. External audits are conducted annually by a third-party accredited certification body.

High Performance Sustainable Developments and Assets

Green building ratings and certifications help assure and demonstrate the quality of CapitaLand projects and portfolio. These ratings serve as an external validation that key environmental aspects have been considered in the Group’s project design, development and operations.

Green Building Rating

Green building rating targets are set at the outset of CapitaLand projects⁸. This aids resource management as green rated buildings are more resource efficient to construct and operate.

The target for Singapore projects is minimum Green Mark Gold^PLUS, two levels above the legal requirement of Green Mark Certification, administered by the Building and Construction Authority (BCA) in Singapore. The target for projects outside Singapore is certification by a green rating system administered by a national government ministry/agency or a World Green Building Council (WGBC) recognised Green Building Council. The green rating target for iconic projects outside Singapore is set at one level above certification.

Greening Existing Buildings in the Portfolio

CapitaLand is committed to achieving minimum Green Mark certification for all of its existing stock of properties by 2020, in support of the Singapore government’s Green Building Master Plan. It has also set an internal target to green all its existing properties outside Singapore by 2030 with each achieving minimum certification level by a green rating system administered by a national government ministry/agency or a WGBC recognised Green Building Council. As at end 2016, it has already achieved green certification of almost 50% (by m²) of its global portfolio.

Life Cycle Management: CapitaLand Sustainable Building Guidelines

CapitaLand’s Sustainable Building Guidelines (SBG) is an in-house guide developed since 2007 to ensure environmental considerations are factored in at all stages of a project, from feasibility, design, procurement, construction, operation to redevelopment. It covers developments and refurbishments, and joint venture developments where CapitaLand has management control and the largest stake. Originally titled Green Buildings Guidelines, it was renamed in 2014 to reinforce the company’s holistic approach towards sustainability.

Mitigating Climate Change Risks and Identifying Opportunities through Design

Climate change brings about different effects in different geographies including rising sea levels, violent storms, long intense heat waves, flash floods and fresh water depletion. As countries rally for action to mitigate climate change, more stringent regulations may be expected and companies will face increased expectations from stakeholders. By adopting the SBG, CapitaLand aims to future-proof its developments by addressing the risks of climate change right from the design stage. The localised context of each project is to be studied in detail, and appropriate measures taken in consideration of climate change. SBG also sets guidelines for buildings to be less energy reliant, e.g. setting green rating targets above legal requirements, and also encourage the use of renewable energy whenever possible. CapitaLand developments that are future-proofed against changing climatic conditions and of higher operating efficiency would likely be valued by stakeholders.

The SBG is regularly reviewed to ensure continuous improvement, with a focus on four key objectives of minimising carbon footprint and energy consumption, water management, generation of waste, and promoting biodiversity in the life cycles of its developments. Changes since inception include higher green building rating requirements, increased focus on biodiversity, use of certified wood and design for accessibility.

Environmental Impact Assessment (EIA)

A key component of the SBG is the mandatory Environmental Impact Assessment (EIA). An EIA is carried out during the feasibility stage of any development project. The significant findings of the EIA and their cost implications, if any, are incorporated in the investment paper submitted to the Board of Directors for approval.

The EIA focuses on identifying any environmental threats or opportunities related to the project site and its surroundings, covering areas such as floods, biodiversity, air quality, noise, connectivity, heritage and resources.

Biodiversity

CapitaLand is committed to preserving the biodiversity of its sites as well as the wider area wherever possible. This is done by addressing any distinctive ecological features of the site, taking into consideration nature reserves on or near the site, protecting plant and animal species on the site and removing invasive plant species on or near the site. External experts will be engaged to provide expert advice when appropriate.

With its focus on gateway cities in Asia, most CapitaLand projects and properties are located in urban and built-up areas. There are no sites located within protected areas and no material biodiversity risk identified. Instead, CapitaLand encourages greenery within its projects as it enhances the liveability of the project for its end-users and vitality of the surrounding communities over the long term. For its Funan redevelopment project in Singapore, the project will feature a multi-level landscape with the creation of a series of gardens, including urban farms and edible gardens. The urban farm aims to showcase sustainable food production with a range of technologies, demonstrating the diversity and cyclical relationships of crop production. More than 430 trees were conserved at 13 completed projects or projects under development. SBG encourages the use of certified wood and other more sustainable wood materials and products, such as composite wood, engineered wood and bamboo. In China, a number of CapitaLand residential projects feature composite wood or engineered wood for their interior finishings.

Some possible concerns to biodiversity include the flow out of waste or toxic materials from construction sites and properties. With CapitaLand’s EMS, this flow out (e.g. waste water), if any, is monitored and minimised.

Life Cycle Management

Objectives
Minimise Carbon Footprint and Energy Consumption Understand and minimise the amount of embodied carbon Use energy-efficient equipment Reduce direct and indirect carbon emissions (through consumption of fuelled energy) from construction and operation activities Use renewable energy Enhance Biodiversity Create, enhance and conserve habitat for flora and fauna, particularly protected species, both on-site and in the wider area Consultation with experts, local authorities and communities Eliminate or minimise environmental impacts to site through control measures Use more sustainable materials like certified wood and bamboo Minimise Resource Depletion Reuse of grey water and rainwater harvesting Use water-efficient fittings Minimise Generation of Waste Adopt Building Information Modelling (BIM) Implement reduce, reuse and recycle waste hierarchy for building components and materials
Training of Staff Stakeholder and Community Engagement