CapitaLand secures first and largest S$300 million sustainability-linked loan in Asia’s real estate sector

In addition, interest rates on the sustainability-linked loan will be further reduced on a tiered basis, contingent on CapitaLand’s ongoing performance measured against a robust set of ESG indicators based on RobecoSAM’s Corporate Sustainability Assessment (CSA)[1], and a retained listing on the DJSI World.  RobecoSAM is an investment specialist focused exclusively on Sustainability Investing.  Together with S&P Dow Jones Indices, RobecoSAM also publishes the globally recognised Dow Jones Sustainability Indices (DJSI), including the DJSI World. 

Mr Andrew Lim, Group Chief Financial Officer for CapitaLand Group said: “CapitaLand’s ESG achievements distinguish us in Asia’s real estate sector.  Dovetailing CapitaLand’s ESG efforts with our cost of funding further demonstrates our commitment to embed sustainability into our business in the long run and is core to CapitaLand’s role as a responsible real estate company.”

“With growing public expectations and deeper focus on sustainability, embracing sustainability is not only good for our shared communities, but also beneficial for business.  By working with committed partners such as DBS and RobecoSAM, we aim to identify and capture the tangible benefits of good sustainability practices.  As we seek to continually deliver long-term value for our stakeholders, we remain guided by our credo, ‘Building People. Building Communities.’, to improve the economic, environmental and social well-being of the communities we operate in,” he added.

Mr Chew Chong Lim, Managing Director and Global Head of Real Estate at Institutional Banking Group, DBS Bank said: “There are growing expectations for corporates to adopt more sustainable practices. A focus on financials, while important, will no longer suffice. We need to magnify the overlapping interests among the financial bottom line, the environment and our society. Together with like-minded partners like CapitaLand, DBS is committed to developing banking solutions that will help us contribute to the UN’s Sustainable Development Goals, and craft a sustainable future for all.”

Mr Edoardo Gai, Head of Sustainability Services of RobecoSAM said: “CapitaLand is at the forefront of Singapore’s real estate sector in securing this sustainability-linked loan.  The Group has consistently shown that investing in sustainability is good business.  At RobecoSAM, through our rigorous assessment and ranking of ESG global practices, we have advocated, and assisted investors to seek better value from ESG investing.  We believe that this landmark collaboration between CapitaLand and DBS should inspire others in Asia to emulate.”

CapitaLand is also consistently transparent with its ESG efforts, being one of the first companies to voluntarily publish its first annual sustainability report in 2009.  This is before the reporting guidelines and requirements by Singapore Exchange (SGX) in 2011 and 2016 respectively.  CapitaLand’s Global Sustainability Report is also externally assured with all figures, statements and claims related to sustainability, validated.

In its latest Global Sustainability Report, CapitaLand reported a 29.4% reduction in carbon emissions intensity since 2008, exceeding its 2020 target of 23%.  It has achieved 23.4% and 24.1% energy and water reduction (per m² from base year 2008) respectively, exceeding its 2020 target of 20%.  This resulted in S$140 million in utilities cost avoidance since 2009.  In Singapore, 93% of CapitaLand’s existing buildings (by m²) has at least a Green Mark Gold rating.  For more on CapitaLand’s sustainability efforts, please refer to the CapitaLand 2017 Global Sustainability Report.

_{[1] For more about RobecoSAM and their Corporate Sustainability Assessment (CSA), please refer to Annex A.}