Social and Relationship Capital

CapitaLand’s social and relationship capital can be built up through community investments. In the longer term, this strengthens CapitaLand’s social licence to operate and ability to deliver sustainable value.

Stakeholders are groups that our business has a significant impact on and those with a vested interest in our operations. Our key stakeholders include employees, customers, business associates, builders and suppliers, and the local community. Other groups include regulators and key government agencies, non-governmental organisations (NGOs), representatives of the capital market and the media. They are mapped into groups based on their impact on the Company.

Through the various engagement channels, CapitaLand seeks to understand our stakeholders’ views, communicate effectively with them and respond to their concerns. Stakeholders’ issues of interest are outlined on the next page.

Stakeholder Issues of Interest*

Stakeholder	Engagement Channels	Issues	Sustainability Report
Customers-home buyers and residents, tenants, shoppers	Homebuyer: welcome parties, welcome kits Tenant: survey, green fit out guide, enrichment events such as Biz+ events CapitaLand Inside newsletter, social media	Workmanship, design Facilities management, Customer experience	Social and Relationship Capital, Environmental Capital
Investors, Analysts and Media	Annual general meetings Quarterly financial results announcements Media releases and interviews Annual reports, sustainability report Company website Regular analyst and investor meetings Response to sustainability surveys	Operational efficiency Monetary savings, cost avoidance and ROI ESG risks and opportunities	Financial Capital, Social and Relationship Capital
Employees	Regular dialogue sessions with senior management Regular employee engagement survey Volunteer programmes Recreation club activities	Work-life balance Remuneration and benefits Employee welfare	Human Capital, Social and Relationship Capital
Supply Chain – main contractors, vendors, suppliers	Environmental, Health and Safety (EHS) Policy and quarterly EHS monitoring Vendor evaluation, including events, meetings and trainings	Design and quality Occupational health and safety practices Workers welfare and well-being Environmental compliance	Human Capital, Social and Relationship Capital, Environmental Capital
Government/national agencies/Community/ NGOs	Senior management representation on boards of various industry bodies and sustainability related public discussions Regulatory readiness to the Singapore Government’s commitment to manage carbon emissions Longstanding partner of various national programmes Public communications plan for residents within a 100 m radius of our new developments Sustainability reports Participation in external conferences/forums Corporate advertisements Consultation and sharing with academics, NGOs and business associations	Sustainable building developments Stakeholder programmes to advocate greener tenant/resident/ customer behaviours Advocating best practices	Social and Relationship Capital

Stakeholder Engagement

Employees

CapitaLand actively engages its employees through various avenues, including regular communication sessions held by senior management for the effective flow of information and alignment of business goals and objectives across all levels of workforce. For more details, please refer to staff engagement in the Human Capital chapter.

Customers

CapitaLand conducts regular resident satisfaction surveys in all its serviced residences and tenant surveys at its shopping malls and office buildings. The feedback obtained is reviewed and relevant follow-up actions are taken to improve serviced residents’ experience and improve service levels to tenants.

In 2016, tenant surveys were conducted through online platforms to collect feedback on indoor environment quality (IEQ) in Raffles City Shanghai and Raffles City Beijing prior to the asset enhancement initiative (AEI) with over 80% of the respondents satisfied with the IEQ. Action was taken on feedback such as thermal comfort and incoming sunlight. More details can be found in the “Greening of Existing Buildings” case study in Environmental Capital Chapter.

In 2015, CapitaLand conducted its second biennial customer satisfaction survey of its office tenants in Singapore. Customers indicated more interest in two value-adding concepts amongst a few concepts proposed in the survey. The two concepts were further developed with tenants’ needs in mind and resulted in Just Use, which was launched as a pilot project in 2016; and Collective Works Capital Tower, a joint venture between CapitaLand and Collective Works to offer coworking spaces. Just Use is an online multi-service offering that aggregates the demands of the office community, allowing them convenient access to curated goods and services as well as special bulk discounts. Coworking has been evolving and gaining popularity in Singapore. CapitaLand has formed a joint venture with Collective Works to establish a coworking space at Capital Tower.

CapitaLand’s serviced apartments subscribe to ReviewPro, a leading provider of online reputation management analytics for the hospitality sector. Its Guest Rating Score™ (GRS™) is an independent assessment of the individual properties’ quality rating based upon consumer reviews from around the internet. The GRS™ is calculated by analysing more than 100 million consumer reviews in 40 languages from more than 100 leading online travel agencies and review sites. This allows CapitaLand to benchmark and respond by making the necessary operational and service improvements to create a better customer experience for the guests.

Investors and Analysts

There is an increasing call for more transparency, stakeholder engagement and sustainability reporting. CapitaLand’s commitment to sustainability management and reporting has been affirmed by international sustainability performance benchmarks such as Dow Jones Sustainability Index and FTSE4Good.

Conveying timely, full, accurate and credible information to our shareholders, investors, analysts and the media is important to CapitaLand. This is done through announcements on SGXNET, the CapitaLand website www.capitaland.com and other communication channels. Underlying CapitaLand’s investor and analyst communications is its Shareholders’ Communications and Investor Relations (IR) policy which is available at http://investor.capitaland.com.

The IR team maintains regular interaction with shareholders through the Annual General Meeting (AGM), biannual media and analyst results briefings as well as meetings and conferences with investors and analysts, roadshows and site visits. CapitaLand also organises CapitaLand Investors’ Day events for equity and debt investors.

The Group Communications team engages the media regularly through official announcements and news releases, media and analyst briefings, interviews with senior management and many networking events. The team also works very closely with the media in its efforts to profile CapitaLand’s management and corporate developments of the various business units, as well as its sustainability and corporate social responsibility initiatives. It also leverages on social media platforms such as Facebook, Instagram, Twitter, LinkedIn and YouTube to communicate key messages.

In 2016, CapitaLand met over 770 institutional investors and arranged more than 70 visits for investors to CapitaLand properties in Singapore, China and Vietnam. CapitaLand hosted a CapitaLand Investors’ Day events with over 60 investors participating. CapitaLand also held 5 non-deal roadshows in the United States, United Kingdom, Europe, China (including Hong Kong) and Thailand. For more information, please refer to CapitaLand Limited Annual Report 2016, page 55-57.

Supply Chain

CapitaLand works closely with its contractors and suppliers who are committed to high quality, environmental, health and safety standards. Contractors are only appointed for its projects upon meeting the Group’s stringent selection criteria, including environment and safety.

For building operations, CapitaLand’s contractor management guidelines require all contractors to comply with local government and other legal requirements. Preference is given to ISO 14001 and OHSAS 18001 certified companies.

CapitaLand requires main contractors appointed for its development projects to be ISO 14001 and OHSAS 18001 certified, or to engage an independent accredited assessor to conduct site EHS legal compliance audits. In line with our global commitment to human rights, CapitaLand also inserted a clause in the main contractor specifications to ensure no child labour and forced labour at the CapitaLand project sites.

For more information on the performance monitoring, please refer to supply chain segment in the Human Capital chapter.

Government Agencies and Regulators

CapitaLand participates in stakeholder consultations organised by key government agencies so as to furnish feedback on proposed regulatory changes that impact the company’s business. This allows CapitaLand to plan ahead, in view of the cost of regulatory alignment. Engaging regulators and relevant industry bodies has enabled CapitaLand to be aware of industry challenges, placing the company in a better position to leverage on existing and future opportunities for growth.

CapitaLand is committed to regulatory compliance. Procedures are in place to ensure that its activities and operations comply with existing regulatory requirements through regular monitoring, evaluation and auditing of the CapitaLand EHS management systems (for more details, please refer to Environmental Capital chapter). Some of CapitaLand’s projects also set new benchmarks in the area of sustainability and innovation through the design and use of technologies. More than S$2.5 million was invested in innovative features for three of its projects.

Community/NGOs

CapitaLand is a signatory to the United Nations Global Compact and a Gold member of the Global Compact Network Singapore. It is also a founding member of the Singapore Green Building Council.

Community Development Investment and Value

Community development is a key focus of CapitaLand’s sustainability strategy. This has built strong social capital and goodwill for CapitaLand in the communities it operates in. It supports various stakeholder engagement activities which include environmental sustainability, health and safety, social integration as well as helping underprivileged children.

Helping Underprivileged Children

CapitaLand recognises that the long-term success of the company is closely intertwined with the health and prosperity of the communities in which it operates. CapitaLand Hope Foundation (CHF), CapitaLand’s philanthropic arm, was established in 2005. A registered charity in Singapore, CHF believes in investing in the fundamental needs of education, healthcare and shelter of underprivileged children to relieve them of hardship and help them to eventually break the poverty cycle. Every year, CapitaLand allocates up to 0.5% of its net profit to CHF and supports its day-to-day operations with staff from the various functional departments within the company.

In 2016, CapitaLand invested more than S$2.4 million through CHF to benefit underprivileged children and over S$0.5million in other community development initiatives.

To measure the impact of CapitaLand’s community development investments in sustained programmes, it referenced the impact of the CapitaLand Kids’ Food Fund based on the London Benchmark Group (LBG)¹ model for impact assessment.

Other Key Programmes

Initiative	Impact
CapitaLand Hope Schools New school facilities funded by CHF create a more conducive learning environment, while staying in dormitories allow the children to focus on their studies and foster character development. CapitaLand Nang Yen Primary Hope School was the first Hope School funded by CHF in Vietnam	CapitaLand Nang Yen Primary Hope School located in Phu Tho Province, one of the most impoverished provinces in Vietnam. The original school was built in 1975 with makeshift classrooms made from clay and leaves. In 2011, CHF donated VND2.2 billion (about S$ 140,000) to fund the construction of new school buildings and facilities, including a two-storey block with 10 classrooms, a library-cum-reading room, and upgraded equipment for outdoor activities for close to 200 pupils from surrounding villages with education from Grade 1 to 5, equivalent to that offered by primary schools in Singapore. CapitaLand staff based in Vietnam regularly visited the school to better understand the needs of the students and the community. In 2016, over 50 CapitaLand staff volunteers and senior management embarked on a five-day volunteer expedition and helped build more toilets and sheltered walkways to cater to the growing pupil population, cemented damaged walls, and refurbished the library with more shelves, which were filled with books gathered from the local community through a book donation drive organised by CapitaLand staff in Vietnam. A series of educational activities, including sports sessions, art and craft workshops, and CapitaLand’s signature Little Architect Programme, were also organised for the pupils. From the post-volunteer survey conducted in March 2016, 100% of the staff volunteers had expressed appreciation for the spirit of community development at CapitaLand and will continue to embrace this corporate culture. For more information, please watch this video of the 2016 volunteer expedition at https://www.youtube.com/watch?v=r_P2Ksvpodc&feature=youtu.be (SDG 4)
CapitaLand Therapy for Children Project Support the treatment and rehabilitation needs of underprivileged children with physical disabilities through financial assistance	In 2016, 30 underprivileged children with physical disabilities from Sichuan and Shaanxi provinces received treatment as part of a continual partnership with China Foundation for Poverty Alleviation and China Association of Persons with Physical Disabilities. To date, a total of 160 children with physical disabilities have benefitted from CHF’s support and now have improved mobility. (SDG 1)

Advocating Staff Volunteerism

CapitaLand is a strong advocate of volunteerism and was one of the first companies to formalise three days of Volunteer Service Leave (VSL) for its staff. In 2016, over 2,100 staff in CapitaLand properties tapped on this VSL policy to volunteer more than 16,000 hours in volunteer activities in Asia and beyond. In addition, staff also volunteered after office hours as CapitaLand encourages its staff to volunteer in their own time – over 210 staff continued to volunteer in CapitaLand initiatives during their personal/own time for more than 3,500 hours. The estimated salary cost to CapitaLand in 2016 based on VSL taken was over S$200,000.

In recognition of staff’s social contribution as volunteers, CHF donates S$500² to an approved Institution of a Public Character (IPC) in Singapore or International Non-Profit Organisation or RMB1,000 to a China-based children’s charity of the staff’s choice when he/she has taken all three days of VSL within the year.

In 2016, 147 staff qualified for this donation incentive and about S$$60,000 will be pledged for donation by CHF in 2017.

Based on some post-volunteer surveys, more than 87% of staff volunteers feel proud working in CapitaLand, and enjoy working in a company with a positive and vibrant corporate culture. For more information on CHF, please visit www.capitalandhopefoundation.com.

Social Integration of CapitaLand Properties

CapitaLand is committed to building safe, accessible, vibrant and quality real estate developments to enhance the lives of its shoppers, tenants, serviced residence guests, homeowners and members of the community. Its social integration criteria include:

• Ensuring accessibility in the built environment to people of different age groups and varying mobility;
• Connectivity to public transport, roads, amenities and between buildings; and
• Providing community spaces as public gathering points.

These criteria are integrated into the CapitaLand’s Sustainable Building Guidelines to ensure that they are considered from the start of the project development process. Universal Design (UD) considerations ensure that public spaces in CapitaLand projects are accessible to users of different age groups and varying abilities. These include:

• Seamless connectivity to the external surroundings, e.g. bus-stops, adjacent buildings, streets and sidewalks;
• Barrier-free access from accessible parking lots/family lots to lift lobbies;
• Sheltered and barrier-free drop-off areas;
• Accessible (handicapped) parking lots, family lots;
• Designated pedestrian lanes in carparks; and
• Amenities such as accessible toilets, lifts and nursing rooms.

CapitaLand champions the UD concept in Singapore. In 2016, CapitaLand obtained four Universal Design Awards from Singapore’s Building and Construction Authority (BCA).

The Group’s overseas developments are to comply with local UD / barrier-free codes and guidelines, and are encouraged to adopt BCA’s UD Guide in the absence of local codes and guidelines.

More than 70%⁴ of CapitaLand’s completed and operational properties worldwide met all criteria for social integration.

More than 95% of CapitaLand’s properties worldwide have at least one disability access enabled facility. These facilities include accessible alighting and boarding bays, lifts, parking lots and public toilets. Its shopping malls in Singapore and Japan are guide-dog friendly.

Over 90% of CapitaLand’s properties 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 are also available at some of its shopping malls. Bicycle parking facilities are also provided at many of its properties. All CapitaLand integrated developments are well integrated with public transport facilities.

Close to 90% of CapitaLand’s shopping malls, office buildings and integrated developments have atrium event spaces and/or children play areas. These provide communal spaces to promote community engagement. Family or nursing rooms are a common feature at CapitaLand’s shopping malls.

Almost all CapitaLand residential projects have disability access enabled facilities, including accessible alighting and boarding bays, lifts, parking lots and public toilets.

Raising Public Awareness And Community Outreach

CapitaLand organised activities aligned with its focus on community investment, raising awareness and stakeholder engagement in the area of philanthropy, environment, health and safety. The social capital generated in these focus areas supports CapitaLand’s business and sustained growth.

Initiative	Impact
“Building for Tomorrow. Walk for Hope” Experiential Charity Event	CHF donated RMB1,000,000 to improve educational and healthcare rehabilitation services to hearing-impaired children in Beijing, Shanghai, Guangzhou, Wuhan and Chengdu. CapitaLand organised its second “Building for Tomorrow. Walk for Hope” experiential charity event in these five Chinese cities on 16 January 2016 to raise awareness of the needs of hearing impaired children. Close to 3,500 participants comprising CapitaLand’s senior management and staff, community volunteers including members of the public, business associates, local government officials and celebrities, undertook so called ‘hardship challenges’ in the 6-8 kilometres walk. Participants were given headsets to listen to simulated noise recordings during the walk and participated in listening games where they had to pick out words and phrases amidst the sound interference so that they could empathize the daily challenges faced by the hearing-impaired children. For more information, please visit http://inside.capitaland.com/advocate/change-makers/201604-stepping-up-stepping-forward.
CapitaLand Earth Hour Campaign. It was the ninth year that CapitaLand participated in the annual global sustainability movement to raise awareness on climate change and encourage individual action.	More than 280 CapitaLand’s properties across Asia and Europe participated in the WWF Earth Hour initiative by turning off the façade and non-essential lights through the night on 19 March 2016 and organised activities with key messages on saving energy and water, taking public transport and recycling, beach cleanup, tree planting to engage tenants, shoppers, residents and public.
Venue sponsorship for health events at CapitaLand properties	CapitaLand malls and office buildings in CapitaLand Mall Trust and CapitaLand Commercial Trust.
Biz+ Series 2016, a tenant engagement programme comprising seminars, workshops and networking sessions, was themed on ‘‘Bridging the Online-to-Offline (O2O) Gap in Retail’	Three seminars were held centred on this theme to help retailers be aware of and identify growth opportunities in the evolving consumer retail landscape. Industry experts in new mobile payment modes and digital marketing tactics were invited to share insights on how retailers can engage customers from the online to the offline space. A CEO breakfast roundtable session titled ‘Upsize: Millennial Customers’ was organised in September 2016 where leaders of various retail brands came together for a lively discussion on ways to adapt to the millennials to secure their business and loyalty as they become the upcoming influential group of consumers in the next 15 years.

Framework – Corporate Giving And Volunteerism
Credo and Mission	Building People. Building Communities. To invest in the communities in which CapitaLand operates through its philanthropic arm, CapitaLand Hope Foundation (CHF), to promote social growth and development of underprivileged children, with respect to their education, healthcare and shelter needs.
Policies	Corporate Philanthropy Underprivileged Children (up to 16 years old) Areas of Focus Areas of Focus Education, Healthcare and Shelter Employee Volunteerism Volunteer Service Leave (paid): three days per year Geography Geography Communities where CapitaLand operates
Corporate Governance	Governing Authority Established CHF as a corporate foundation governed under the Singapore Charities Act Conferred Grant Maker Status under the Double Tax Deduction scheme Engagement with the Inland Revenue Authority of Singapore and Singapore’s Ministry of Culture, Community and Youth to ensure legal compliance Submission of Annual Report to the Commissioner of Charities, Singapore Board of Directors Chaired by Mr S R Nathan, former President of the Republic of Singapore5 Two non-executive independent directors, one non-executive, non-independent director and one executive non-independent director Internal/External Audit Thorough audit of financial accounts and statements for submission to the Commissioner of Charities, Singapore. Volunteer Service Administrative System Built-in Volunteer Service Leave and Volunteer Service (non- workday) modules into the online HR leave application system Track both workdays and non-workdays volunteer activities
Strategic Goals	Invest in fundamental needs i.e. education, healthcare and shelter of underprivileged children; to relieve them of hardship and eventually break the poverty cycle Focus on communities where CapitaLand operates as the long-term success of CapitaLand’s business is closely intertwined with the health and prosperity of these communities Go beyond donations and be actively involved in projects that will have positive impact on both the community and its business
Action Plan	Alignment with Business Goals and Stakeholders’ Interest Source of funding for CHF: up to 0.5% of CapitaLand’s annual net profit Align community investment with business and interests of stakeholders e.g. shareholders, consumers, employees and the community CapitaLand’s corporate governance including internal policies, procedures and codes of business conduct (e.g. anti-corruption and whistle blowing policy) Employee Volunteerism Advocate volunteerism to embody the true spirit of community investment in CapitaLand Employee involvement can lead to improved teambuilding, better working relationships and enhanced internal brand value Support volunteer efforts with a donation to a children’s charity of the employee’s choice if all three days of Volunteer Service Leave are taken Progress Management CHF’s work is well supported by the various departments in the company and linked to effective management systems Set meaningful targets and key performance indicators when planning community investment initiatives. In addition to measuring input, e.g. donation amount, CHF will also look into output and outcome, e.g. time invested by staff and impact of donations, referencing LBG model where appropriate. Collaborate with credible, experienced and established organisations to build programmes that will have long-term sustainable impact on the beneficiaries Brand Building Building brand, reputation and trust among its stakeholders will help CapitaLand garner wider support, which is crucial in maintaining sustainable operations for CHF
Impact	Improved academic results, health and behavioural performance of beneficiaries Staff volunteers feel proud and enjoy working in the company with a positive and vibrant corporate culture