CapitaLand ranks among top 10% of the world’s most sustainable real estate developers
Climate strategy, commitment to occupational health and safety among sustainability efforts recognised by Dow Jones Sustainability Indices
Singapore, 10 September 2015 – CapitaLand Limited is listed in the Dow Jones Sustainability World Index 2015 for the fourth consecutive year, placing it in the top 10% of real estate developers among the world’s largest 2,500 companies, according to the S&P Global Broad Market Index (BMI). CapitaLand is one of only two Singapore companies listed in the index.
CapitaLand also retains its position as the longest-standing Singapore company to be listed in the Dow Jones Asia Pacific Index 2015 with its seventh consecutive listing, having been the first from the country to be listed when the Asia Pacific index was launched in 2009. This ranks CapitaLand in the top 20% of real estate developers in the Asia Pacific S&P Global BMI universe of 600 companies across six developed markets - Australia, Hong Kong, Japan, New Zealand, Singapore and South Korea.
This adds to the list of CapitaLand’s 2015 sustainability achievements - Global Real Estate Sustainability Benchmark Regional Sector Leader (Asia/Diversified), Global 100 Most Sustainable Corporations in the World, Sustainability Yearbook (Bronze Class recipient), FTSE4Good and MSCI Global Sustainability Indexes.
Mr Tan Seng Chai, Chairman, CapitaLand Sustainability Steering Committee, and Group Chief Corporate Officer, CapitaLand Limited, said: “CapitaLand is pleased to be recognised by the Dow Jones Sustainability Indices (DJSI), the leading sustainability leadership benchmark. We are heartened to be recognised in our vision to be a leading global enterprise that enriches people and communities. Sustainable business practices are essential to long-term value creation for our stakeholders. As a responsible developer, we are committed to be profitable and sustainable through innovation and stakeholder engagement.”
The latest DJSI real estate industry overview report released today reiterated that climate change and energy efficiency are of great importance for the industry, as buildings are responsible for about one-third of global greenhouse gas emissions.
Mr Tan added: “Climate change impacts every one of us. Rising temperatures and reduced rainfall could affect the severity of climatic and environmental challenges such as the haze that Singapore is battling again. At CapitaLand, we have standard haze mitigation measures 2 across our properties and our people are ready to ensure the continued comfort, health and safety of our stakeholders as soon as air quality levels deteriorate.”
To ensure the health and safety of its stakeholders, the Group is closely monitoring Pollutant Standards Index (PSI) readings at its shopping malls, serviced residences, office buildings and project sites. Staff at its properties are also providing updates to their tenants, shoppers and guests on the PSI readings and advising them on precautionary measures. As a precautionary measure, the external features of CapitaLand properties will be closed and outdoor activities postponed when PSI readings cross 150.
In the event that visibility deteriorates further, main contractors and sub-contractors at all CapitaLand project sites are required to comply with guidelines issued by the Ministry of Manpower and the National Environment Agency to protect workers from the effects of haze. In addition, risk assessments will be conducted to determine whether outdoor lifting operations involving tower and mobile cranes should cease due to the foreseeable risk of poor visibility.
Mr Tan said: “Just as we tackle the haze, we also do our part to mitigate the impact of climate change. Benchmarks like DJSI highlight the importance of top management support and remuneration-linked key performance indicators (KPIs) to boost companies’ sustainability drive, assessing companies across a spectrum of pertinent issues including climate strategy as well as occupational health and safety. CapitaLand has KPIs linked to climate change in the areas of carbon emission intensity reduction through increased energy efficiency. We have also recently ramped up our efforts to reduce carbon emissions by supporting sustainable mobility, with over 100 electric vehicle charging stations at our properties in Asia and Europe.”
DJSI, launched in 1999, is a family of indices evaluating the sustainability performance of the largest 2,500 companies listed on the S&P Global Broad Market Index. It is the longest-running global sustainability benchmark worldwide and has become the key reference point in sustainability investing for investors and companies.
Under DJSI, companies are reviewed based on RobecoSAM’s internationally recognised Corporate Sustainability Assessment methodology. Following a best-in-class approach, companies are selected for the indices based on comprehensive assessments of their corporate sustainability performances in the economic, environmental and social dimensions. Companies are classified into 59 RobecoSAM industries and assessed based on general and industry-specific sustainability trends. Only firms that lead their industries based on this assessment are included in the indices.
As one of the first companies in Singapore to publish externally-assessed Sustainability Reports annually, CapitaLand continually reviews issues material to the Group and its sustainability targets, which are embedded in remuneration-linked key performance indicators. Its 2014 externally assured Global Sustainability Report shows that CapitaLand has reduced its carbon emission intensity for its operational properties by 21% since 2008. It has increased its operational efficiency (per m2 ) since 2008, with energy and water consumption reduction of 13.6% and 21.6% respectively, thus achieving a cost avoidance of more than S$76 million for utilities since 2009.
CapitaLand continues to benchmark its performance against international standards. Recently, CapitaLand became a signatory of the United Nations Global Compact (UNGC), underscoring its commitment to UNGC principles – which had already been highlighted in the Group’s 2014 Global Sustainability Report.