CapitaLand launches 2030 Sustainability Master Plan to elevate its commitment to global sustainability
- Aims for 78% reduction in carbon emissions intensity
- To triple CapitaLand’s sustainable finance portfolio to S$6 billion by 2030
- To accelerate sustainability innovation and collaboration through inaugural ‘CapitaLand Sustainability X Challenge’
An integrated development in Singapore, Funan boasts the largest area for urban agriculture in the city with a 12,000-sq-ft food garden and a 4,000-sq-ft urban farm offering the community a green oasis within the heart of the city. A climate-friendly refrigerant chilled-water system is installed, preventing about 5 kilotons of CO2 emissions being emitted – equivalent to the annual emissions of about 1,500 cars.
Singapore, 1 October 2020 – CapitaLand has unveiled its first Sustainability Master Plan that articulates the Group’s sustainability targets, strategies and plans for the next decade till 2030. The Master Plan focuses on three key themes to drive CapitaLand’s sustainability efforts in the environment, social and governance (ESG) pillars, enabling the Group to create a larger positive impact for the environment and society:
Build portfolio resilience and resource efficiency
Enable thriving and future-adaptive communities
Accelerate sustainability innovation and collaboration
Mr Lee Chee Koon, CapitaLand’s Group Chief Executive Officer said: “At CapitaLand, sustainability is at the core of what we do. It is embedded into every stage of our real estate life cycle, from investment to development and operations. CapitaLand’s Sustainability Master Plan will be our strategic blueprint, focusing on areas where we can create the greatest positive impact and pursue profitable business growth in a responsible manner. The Master Plan will guide us to galvanise efforts across our global network of properties, enabling CapitaLand to make a bigger contribution to the environment and the communities where we operate, and position CapitaLand as a progressive employer of choice.”
“As a leading sustainable real estate company, we have set ambitious sustainability goals that build on CapitaLand’s successes in the past 20 years, to innovate and amplify the impact of our sustainability efforts in the next 10 years. We will review our Master Plan every two years to ensure that we remain on track as the Group continues to grow and evolve. Investors and governments are increasingly incorporating ESG considerations in their investment and policy decisions. CapitaLand’s continued excellence in ESG will enable us to remain at the forefront of these evolving demands, while building resilience and future-proofing our organisation. As a responsible real estate company, we seek to deliver long-term economic value to our stakeholders, while continuing to contribute to the environmental and social well-being of our communities,” added Mr Lee.
"At CapitaLand, sustainability is at the core of what we do. It is embedded into every stage of our real estate life cycle, from investment to development and operations. CapitaLand’s Sustainability Master Plan will be our strategic blueprint, focusing on areas where we can create the greatest positive impact and pursue profitable business growth in a responsible manner."
Ms Lynette Leong, Chief Sustainability Officer, CapitaLand Group said: “We acknowledge that the solution to sustainability challenges requires collective efforts and the pushing of boundaries. To advance sustainability innovation and collaboration for CapitaLand and within the built environment, we will introduce our inaugural ‘CapitaLand Sustainability X Challenge’. It is the first sustainability challenge by a Singapore real estate company on a global scale. Participants from across the world will not only stand to win project funding but, more importantly, pilot their solutions at CapitaLand’s global network of properties and be mentored by our business leaders. The ‘CapitaLand Sustainability X Challenge’ will enable CapitaLand to source and deploy impactful and scalable innovative solutions.”
“To accelerate CapitaLand’s sustainability efforts to meet our 2030 goals, we will also deepen our partnerships with financial institutions to triple our quantum of sustainable finance and further dovetail our sustainability performance to reap greater financial benefits. We will also implement our green lease programme globally, work with our customers to lower their resource consumption levels and drive better energy efficiencies together. Through the different approaches, we aim to amplify sustainability outcomes and measure the impacts by our new ‘Return on Sustainability’ metric,” added Ms Leong.
CAPITALAND’S 2030 SUSTAINABILITY MASTER PLAN
CapitaLand’s 2030 Sustainability Master Plan focuses on three themes to drive the Group’s sustainability efforts under the ESG pillars, which are anchored by CapitaLand’s strong governance and sustainable financial performance. As CapitaLand grows in a responsible manner, it can generate six capitals[1]: Manufactured Capital, Environmental Capital, Human Capital, Social & Relationship Capital, Financial Capital and Organisational Capital. The multiple capitals approach provides a fuller picture of the ways CapitaLand creates value for multiple stakeholders. CapitaLand will develop a new metric, ‘Return on Sustainability’, to quantify its sustainability outcomes and continue to benchmark its performance against global standards and indices to track its progress. This metric will incorporate factors such as operational efficiencies achieved, utilities cost avoidance and interest rate savings from its sustainability-linked loans.
Theme 1: Build portfolio resilience and resource efficiency
To reduce carbon emissions intensity by 78%[2]
CapitaLand has set ambitious carbon reduction targets which include a 78%[1] reduction in carbon emissions intensity by 2030. The new target is more than double the 29.4%[2] reduction it achieved in 2019[3]. CapitaLand also seeks to reduce its energy consumption intensity at its operating properties by 35%[2] and increase the proportion of total electricity consumption from renewable sources by 35% by 2030. In 2019, CapitaLand reduced its energy consumption intensity by 19.2%[2], and about 2%[2] of the Group’s total electricity consumption was from renewable sources.
CapitaLand has also outlined other environment-related targets in its new Sustainability Master Plan. This includes a higher 45%[2] reduction of water consumption intensity for its operating properties. New targets include achieving a 25% recycling rate at operating properties and to divert 75% of its construction waste away from the landfill. These targets add to CapitaLand’s existing target to green its entire global portfolio by 2030.
Theme 2: Enable thriving and future-adaptive communities
To strengthen Human Capital, Health and Safety, and Supply Chain Management
The CapitaLand Sustainability Master Plan will see CapitaLand fostering a diverse and dynamic workforce and a talent pool which will enable the company to achieve its next phase of growth.
CapitaLand will continue to adopt a zero-tolerance policy on practices that compromise on the safety and well-being of its customers and staff at all CapitaLand properties, whether operational or under construction. Lastly, CapitaLand will positively influence its supply chain and strengthen working relationships with its customers to effect a positive impact on their sustainability performance.
To implement green lease programme globally and strengthen customer relationships
CapitaLand will implement its green lease programme to all tenants across asset classes and geographies by 2030. The green lease programme encourages tenants to implement environment-friendly features in their premises and embrace more sustainable practices. Through a green fit-out guide and closer tenant engagement, CapitaLand’s green lease programme focuses on areas such as energy and water conservation, proper waste management, indoor environmental quality, green purchasing and good maintenance practices. It will help to improve the overall well-being of both tenants and their customers while also achieving cost savings from reduced utilities consumption.
The implementation of the green lease programme is part of CapitaLand’s focus to work collaboratively with its customers to support their changing expectations and needs. Through the evolution of its products and services, CapitaLand remains committed to strengthening customer relationships and attaining consistently high levels of customer satisfaction.
Theme 3: Accelerate sustainability innovation and collaboration
Leading sustainable operational excellence in the real estate industry
CapitaLand aims to lead the industry in best practices to ensure sustainable operational excellence across its global portfolio. In addition to fostering deeper collaborations with its partners to drive its sustainability goals, CapitaLand will also leverage technology and innovation to raise productivity, elevate service quality and improve the well-being and safety of its customers.
To triple its sustainable finance portfolio to S$6 billion by 2030
Over the next decade, CapitaLand aims to be a leader in sustainable finance that is tied to its ESG performance so as to continually spur ESG initiatives within the company. CapitaLand is the first real estate company in Singapore to set a public sustainable finance target. By 2030, CapitaLand intends to secure S$6 billion through sustainable finance such as sustainability-linked loans, green loans and green bonds. This is triple the S$2 billion CapitaLand has raised to date through sustainable finance. As a Group, CapitaLand and its real estate investment trusts have raised over S$3.3 billion through sustainable finance thus far.
Some of CapitaLand’s current sustainability-linked loans which are tied to its sustainability performance have resulted in interest rates savings. As CapitaLand further raises such sustainable finance tools, some of the interest rate savings will be used to pilot suitable sustainable innovation projects that are impactful and scalable to meet CapitaLand’s sustainability goals.
Launches inaugural ‘CapitaLand Sustainability X Challenge’
CapitaLand will step up its support for innovation to deploy advanced sustainability solutions in its properties and the built environment. Launched in conjunction with CapitaLand’s Sustainability Master Plan, the inaugural ‘CapitaLand Sustainability X Challenge’ will source for innovations on a global scale to meet its sustainability targets aligned with business needs as set out in CapitaLand’s Sustainability Master Plan. Participants can submit their solutions from November 2020. Two winners will be selected, and each winner will receive up to S$50,000 in project funding to further develop their innovations and pilot their solutions with CapitaLand. For more information on the ‘CapitaLand Sustainability X Challenge’, please see Annex A.
Suitable companies can also leverage CapitaLand’s new Smart Urban Co-Innovation Lab (SmartLab) in Singapore. In partnership with Infocomm Media Development Authority and Enterprise Singapore, SmartLab serves as a co-innovation platform for the built environment industry to test ideas and pilot innovation solutions for commercialisation, with government funding available for eligible projects.
CapitaLand will review and recalibrate its 2030 targets every two years in line with shifts in the global landscape. For more information on CapitaLand’s Sustainability Master Plan, please visit, https://www.capitaland.com/en/about-capitaland/sustainability.html. For highlights on CapitaLand’s sustainability achievements, please see Annex B.
[1] Adapted from the six capitals defined by the International Integrated Reporting Council (IIRC).
[2] Targets are relative to 2008 as a baseline.
[3] For operational properties at the end of 2019. Excludes properties from the former Ascendas-Singbridge.