Environmental Capital

Tracking Our Environmental Results

CapitaLand Environmental Tracking System

CapitaLand developed an in-house online Environmental Tracking System (ETS) to better track energy and water usage, waste generation and carbon emissions of its managed and owned operational properties. These include CapitaLand’s office buildings, shopping malls, serviced residences and integrated developments worldwide.

The management team of each property submits monthly data and uploads supporting documentation online. The consolidated data is analysed at the SBU and Group levels against reduction targets. This facilitates a better understanding of consumption patterns and identification of areas for eco-efficiency improvements.

Since 2012, ETS includes the tracking of energy and water usage of CapitaLand development sites as well as energy and paper consumption of CapitaLand’s corporate offices in Singapore and overseas.

Regular desktop audits are conducted to minimise data entry inaccuracies.
CapitaLand Eco-efficiency Commitments

CapitaLand established long-term and annual targets for the reduction of carbon emissions, energy and water usage per m2 in its properties worldwide. As the Group has achieved its 2015 targets and is on track to meet its 2020 targets, the Group reviewed and set new 2030 targets. It is also looking at setting a science-based carbon reduction target.

Long-term targets (using 2008 as base year):

  • Reduce carbon emissions intensity by 23% by 20209, and 30% by 2030
  • Reduce energy intensity by 20% by 2020, and 25% by 2030
  • Reduce water intensity by 20% by 2020, and 30% by 2030

Carbon Emissions

Total Carbon Emissions Scope 1, 2 and 3 (%) Total Carbon Emissions

CapitaLand is committed to address climate change risks through the reduction of its energy consumption as well as its other carbon emissions in its business operations. It is aware that the building sector accounts for around 30-40% of global energy use and more than 30% of global CO2 emissions10. Improving energy efficiency represents the largest and most cost-effective way to mitigate those emissions.

CapitaLand’s total carbon emissions11 (Scope 1, 2 and 3) in 2016 is 555,489 tonnes CO2e. Operational properties12 account for the largest proportion of CapitaLand’s Scope 1 and 2 emissions (552,141 tonnes CO2e or 99.4% of total carbon emissions) and remains the focus of CapitaLand’s energy efficiency initiatives. CapitaLand’s corporate offices account for 0.6% of total carbon emissions.

Total Carbon Emissions* (tonnes CO2e) Total Carbon Emissions
Carbon Intensity (kgCO2e/m2/month) Carbon Intensity
Energy Usage* (MWh) Energy Usage
Energy Intensity (kWh/m2/month) Energy Intensity
Water Usage (million m3) Water Usage
Water Intensity (m3/m2/month) Water Intensity
Operational Properties Carbon Emissions Intensity (kgCO2e/m2)

Despite an increase in absolute carbon emissions due to an expanded property portfolio, CapitaLand continued to reduce its carbon emissions intensity13 to 5.3 kg CO2e/m2/month, a 26.2% reduction compared to 2008 intensity levels. Compared to baseline intensity levels, a total of 145,400 tonnes of CO2e emissions was avoided in 2016.

Embodied Carbon – Development Projects

The carbon emissions from direct and indirect energy consumption at 25 construction projects was approximately 27,831 tonnes in 2016.

CapitaLand also aims to minimise its carbon footprint not only through reducing carbon emissions arising from the consumption of fuelled energy from its construction and operation activities but also from the embodied carbon in the production and distribution of building materials. For three projects in Singapore and two projects in China that were completed in 2016, embodied carbon emissions arising from materials usage at these projects was about 1.03 million tonnes14 or 1,340 kg/m2. The data collated is based on the entire construction period.

Energy

In 2016, the Group’s operational properties’ and corporate offices’ total energy consumption was 1,057 GWh (3.81 million GJ). Indirect energy consumption accounted for about 88% (3.35 million GJ) and direct energy consumption from gas, diesel and other fuels accounted for about 12% (0.46 million GJ15) of total energy consumption.

CapitaLand’s corporate offices in 11 countries account for 0.3% of the Group’s total energy consumption in 2016. The offices consumed 2,685 MWh of electricity, a 31% improvement in the electricity consumption per m2 compared to 2009.

25 CapitaLand projects under construction in Singapore, China, Malaysia, and Vietnam consumed about 47,725 MWh of energy.

Operating Properties Energy Intensity (kWh/m2)

Despite an increase in total energy use due to expansion in its operational portfolio, CapitaLand reduced its energy intensity16 measured in kWh per m2 by 18.8% from base year 2008. Using a ‘Business as Usual’ (BAU17) approach, it is estimated that more than 432,000 MWh of energy consumption was avoided, resulting in an estimated cost avoidance of S$100 million since 2009.

The reduction in energy intensity or energy usage per m2 is computed at the property and SBU level. The reduction targets are KPIs for the property managers and the SBU CEOs.

CapitaLand is on track to achieving its 2020 energy intensity reduction target. The Group continues to implement various energy conservation measures, some of which are listed below. It also focuses on innovation to reduce energy consumption.

Focus Initiatives
Consumption Reduction
  • Natural ventilation to reduce air-conditioning demands
  • Sun shading, cool paints to reduce heat gain
  • Use of daylight, sun pipes/light shelves to reduce the need for artificial lighting
Energy Efficiency
  • Equipment upgrade of indoor air-conditioning to more efficient ones
  • Lighting retrofits to more efficient types such as T5 with electronic ballast, LED (light-emitting diode)
  • Central procurement of LED to encourage the new technology usage
  • Conduct energy audits at properties to improve energy efficiency
Control, Metering
and Monitoring
  • Dimmers/ occupancy sensors/ daylight sensors
  • Sub-metering systems to provide detailed energy information
  • Building Management Systems
Renewable Energy
  • Encourage use of renewable energy and purchase of green power
Renewable Energy

While energy efficiency is the most cost-effective and material way for CapitaLand to reduce carbon emissions, it also encourages the use of renewable sources to avoid emissions. In 2016, 0.5% (or 4,813 MWh) of the Group’s total electricity use was from renewable energy sources, which helps to mitigate about 2,800 tonnes of carbon emissions. 11 properties in Singapore, India, France, Germany and Belgium had on-site renewable energy systems (including building integrated photovoltaic panels) or purchased certified Green Power (electricity generated from renewable sources).

Water

A strategic approach to water management and quality enhances the efficiency, resilience and long term value of the Group’s portfolio. CapitaLand is committed to reducing water consumption, reusing water and preventing water pollution, especially in countries where the availability of clean water and sanitation are of concern. A regular survey was conducted to better understand water source and discharge for each property. Almost all of CapitaLand’s operational properties’ water consumption is derived from municipal supplies.18

In 2016, the Group’s operating properties’ total water consumption was about 10.4 million m3.19 This includes the use of 1.1 million m3 of recycled water20 and collected rainwater.

CapitaLand recognises the importance of effectively managing water consumption and the quality of water run-off leaving its project sites and requires its main contractors appointed to be ISO 14001 certified and monitor the waste water discharge into watercourse or sewer. 25 CapitaLand projects under construction in Singapore, China, Malaysia and Vietnam consumed about 1.1 million m3 of water. At its Singapore development sites, waste water is generally recycled and reused for vehicular washing.

Operating Properties Water Intensity (m3/m2)

The increase in water consumption is largely attributed to the expansion of the Group’s property portfolio, as well as increased activities carried out in the properties and weather conditions. CapitaLand reduced its water intensity21 measured in m3/m2 by 21.8% from baseline year 2008. The slight increase in water intensity from 2015 was mainly due to increase in occupancy and human traffic at its properties. The reduction in water usage per square metre is computed at the property and SBU level. This forms a critical part of the KPI for the property managers and the SBUs.

CapitaLand continues to implement the following initiatives to ensure efficient operations and minimise water wastage.

Focus Initiatives
Consumption Reduction
  • Flow regulators; self-closing delayed action faucets/motion-activated faucets;
    dual flush/low flush toilets
  • Choice of local plant species and drought resistance plants; irrigate plants in the morning or late afternoon to minimise evaporation losses
Control, Metering and Monitoring
  • Water audit; sub-metering to track consumption and early leak detection
Recycling
  • Rainwater harvesting; condensate recovery; grey water recycling

Waste Management

Waste Recycled

CapitaLand aims to manage waste at its properties responsibly. As waste generated at its operational properties is mostly from its tenants, residents and the general public, CapitaLand engages its stakeholders through various means to minimise and recycle waste. Recycling bins are made available at its properties for its tenants, shoppers and serviced residents.

CapitaLand implements waste management strategies as part of its EMS. However, data in certain countries and properties is not readily available or cannot be consolidated due to local supply chain issues. In 2016, more than 4,700 tonnes of recyclable waste22 was collected from 100 properties in 15 countries. This includes 7,033 kg of e-waste collected at Singapore office buildings.

CapitaLand launched an e-waste collection and recycling initiative at eight of its office properties in Singapore. The initiative aimed to encourage tenants to safely dispose and recycle their personal and corporate e-waste. During the collection period from 15 August to 31 December 2016, the total amount of e-waste collected was 7,033 kg. CapitaLand plans to continue the initiative in 2017. CapitaLand also partnered with StarHub to roll out e-waste recycling bins at 10 of its malls in Singapore to encourage shoppers and tenants to adopt e-waste recycling.
Paper Conservation in CapitaLand Corporate Offices

CapitaLand reduced its paper usage by more than 56% per employee compared to 2009. These savings are attributable to the conscious effort by every employee to reduce paper usage. In 2016 almost 16 tonnes of used paper were collected from its corporate offices for recycling.

Paper accounts for the main stream of waste generated from CapitaLand corporate offices. To reduce paper usage, CapitaLand has established a systematic paper management and recycling programme. This includes default settings for double-sided and black and white printing, encouraging the use of e-mails, e-fax and promoting a “think before you print/copy” attitude to encourage employees to use less paper. Recycling bins (including secured bins) are conveniently located at corporate offices to encourage employees to recycle used paper. Work processes are increasingly made available online to avoid paper consumption, e.g. CapitaLand implemented the Human Resource e-Letters initiatives across various SBUs in Singapore, Malaysia, and China since 2014. The e-Letters initiative enables employees to view their Annual Increment, bonus, and Restricted Cash Plan letters online. Corporate offices in Singapore implemented “Follow-me” printing to track paper usage more effectively and minimise wastage.

CapitaLand actively promotes the use of environmentally-friendly paper. In Singapore, letterheads and name cards have been printed on recycled paper since 2011. CapitaLand annual reports were printed with recycled paper from 2006 to 2010 and with Forest Stewardship Council (FSC) paper from 2011. Biodegradable soy-based ink from renewable resources is used to print the annual report.

Resource Management at Development Projects

CapitaLand requires its main contractors to implement proper waste management procedures to minimise construction waste, properly manage and dispose the waste generated. An estimated 5,700 tonnes of construction waste was recorded for four development projects in Singapore in 2016. For its China development projects targeting LEED certification, the projects have set a target of at least 75% of construction waste to be diverted from landfill.
CapitaLand continues to build up capacity to leverage Building Information Modelling (BIM) technology to improve the design and construction process through more integrated project coordination. BIM can perform clash detection before construction, identifying situations where mechanical and electrical pipes will clash with structural members. This detection saves time and cost of remedial work and minimises material wastage. BIM is implemented in 12 projects under development in Singapore, China and Vietnam.

Green Transport

As of end 2016, CapitaLand has installed over 80 electric vehicle (EV) charging stations in 30 CapitaLand managed properties in Singapore, China, Belgium, Germany and Japan. The total electricity charged at these stations exceeded 130 MWh (estimated travel distance of more than 613,000 km23) in 2016.

Over 90% of CapitaLand properties24 worldwide are conveniently located in close proximity to transport hubs such as bus-stops and train/subway stations. This allows easy access to the surrounding communities and facilities. Free shuttle bus services to transport hubs are made available at some of its shopping malls.

Bicycle parking facilities are also available at close to 100 of its properties. In Singapore, there are more than 500 bicycle lots in its 15 office buildings and shopping malls, with around 180 of these in the Civic District and CBD to cater to tenants and employees who want to cycle to work. Shower facilities are also available in CapitaLand’s own headquarters in Capital Tower for staff who cycle to work. There are more than 7,000 bicycle lots in its overseas office buildings and shopping malls.

In support of Singapore’s move towards a car-lite society and to promote healthy living, Funan will offer full amenities and end-of-trip facilities for cycling enthusiasts. Funan’s proposed streetscape on its ground floor features multiple access points and gentle slopes, which will make it easy for cyclists and pedestrians alike to enter the building.

* GRI 102-48
9 CapitaLand has a long-term target of achieving 20% in energy reduction per m2 by 2020 (2008 base year). This would translate to an estimated carbon emissions intensity of 5.5 kg CO2/m2/month in 2020, a 23% reduction in carbon intensity by 2020 (using 2008 as base year). This assumes that the portfolio and energy consumption pattern remains unchanged from 2014 and based on 2014 carbon emission factors.
10 “Buildings for Our Future”, GBPN in partnership with KPMG, 2013.
11 This is computed mostly from purchased electricity consumption under Scope 2, and some direct energy consumption under Scope 1 as defined by the Greenhouse Gas (GHG) Protocol and using individual country CO2 emission factors retrieved from the IEA Statistics – CO2 emission factors from fuel combustion 2016 edition. Scope 3 emissions are computed from staff business travel by air.
12 The Group’s portfolio of operational properties increased from 142 in 2008, 167 in 2009, 182 in 2010, 195 in 2011, 210 in 2012, 199 in 2013, 204 in 2014, 226 in 2015 and 243 in 2016.
13 Computation of carbon emissions intensity excludes new properties which have been in operation for less than 12 months, properties undergoing asset enhancement initiatives (AEI) and corporate offices. The number of properties are 127, 145, 152, 174, 189, 175, 191, 174 and 178 for the period from 2008-2016 respectively.
14 The materials are concrete, cement, sand and aggregate, steel, bricks, aluminum, glass, paint, ceramic tiles and granite. Densities and coefficients used for computation of the embodied carbon emissions of these materials are obtained from the Inventory of Carbon & Energy (ICE) Version 2.0.
15 Direct energy consumption from gas, diesel and other fuels (gasoline) are approximately 424,875 GJ, 24,488 GJ and 12,012 GJ respectively.
16 Computation of energy intensity excludes new properties which have been in operation for less than 12 months, properties undergoing asset enhancement initiatives (AEI) and corporate offices. The number of properties are 127, 145, 152, 174, 189, 175, 191, 174 and 178 for the period from 2008-2016 respectively.
17 The assumption is that energy consumption in subsequent years will continue at 2008 levels (base year) unless energy improvement measures are adopted.
18 Two properties extract groundwater mainly for emergency and non-potable use. One property extracts groundwater for potable use with the appropriate treatment system in place. Meters are installed to monitor water usage.
19 This includes 2,882 m3 of water consumed mostly for drinking and washing of cups at the CapitaLand corporate offices.
20 Mostly NEWater, treated waste water produced by PUB, the national water agency of Singapore, which has been further purified using advanced membrane technologies and ultraviolet disinfection.
21 Computation of water intensity excludes new properties which have been in operation for less than 12 months, properties undergoing asset enhancement programmes and corporate offices. The numbers of properties are 123, 141, 148, 169, 186, 172, 188,171 and 175 for the period from 2008-2016 respectively.
22 Whilst recycling facilities are made available at CapitaLand properties, not all public waste collectors are able to furnish the recycled waste collected in weight as requested for reporting purposes. In 2016, about 78,300 tonnes of non-recyclable waste was generated at 134 properties in Singapore, China, rest of Asia and Europe. These included integrated developments, shopping malls, serviced residences, and office buildings.
23 This is computed using “2016 Tesla Model S” efficiency of 4.7 km/kWh (FuelEconomy.gov).
24 Includes CapitaLand owned and managed properties only.