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. It is reviewing its carbon emissions intensity to set a science-based carbon reduction target11. Long-term targets (using 2008 as base year): Reduce carbon emissions intensity by 23% by 2020, 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

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 emissions¹². Improving energy efficiency represents the largest and most cost-effective way to mitigate those emissions. CapitaLand is working towards setting an internal carbon price for its global portfolio.

CapitaLand’s total carbon emissions¹³ (Scope 1, 2 and 3) in 2017 was 656,158 tonnes CO₂e. Operational properties¹⁴ account for the largest proportion of CapitaLand’s Scope 1 and 2 emissions and remain the focus of CapitaLand’s energy efficiency initiatives. CapitaLand’s corporate offices account for 0.5% of total carbon emissions.

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 intensity¹⁵ to 5.06 kg CO₂e/m²/month, a 29.4% reduction compared to 2008 intensity levels. Compared to baseline intensity levels, an estimated 178,000 tonnes of CO₂e emissions was avoided in 2017.

Embodied Carbon – Development Projects

The carbon emissions from direct and indirect energy consumption at 26 construction projects was approximately 18,900 tonnes in 2017.

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 six projects in China that were completed in 2017, embodied carbon emissions arising from materials usage at these projects was about 690,000 tonnes¹⁶ or 688 kg/m². The data collated is based on the entire construction period.

Energy

In 2017, the Group’s operational properties’ and corporate offices’ total energy consumption was 1,229,785 MWh (4.43 million GJ). Indirect energy consumption accounted for about 89.8% (3.98 million GJ) and direct energy consumption from gas, diesel and other fuels accounted for about 10.2% (0.45 million GJ¹⁷) of total energy consumption.

CapitaLand’s corporate offices in 13 countries accounted for 0.3% of the Group’s total energy consumption in 2017. The offices consumed 2,648 MWh of electricity, a 35% improvement in the electricity consumption per m² compared to 2009.

26 CapitaLand projects under construction in Singapore, China and Vietnam consumed about 33,050 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 intensity¹⁸ measured in kWh per m² by 23.4% from base year 2008. Using a ‘Business as Usual’ (BAU¹⁹) methodology, it is estimated that more than 580,000 MWh of energy consumption was avoided, resulting in an estimated cost avoidance of S$135 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.

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	Upgrade to more efficient air-conditioning equipment Use more efficient lighting such as T5 with electronic ballast, LED (light-emitting diode) 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. However, this remains challenging due to limited rooftop space where they should be optimally installed. In 2017, 0.6% (about 7,500 MWh) of the Group’s total energy use was from renewable energy sources, which helps to mitigate about 3,950 tonnes of carbon emissions. Six properties in Singapore and China had on-site renewable energy systems. Thirty-three properties in India, France, Germany and Belgium purchased full or partial green power (component of 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 supplies²⁰.

In 2017, the Group’s operating properties’ total water consumption was about 10.9 million m³. This includes the use of 955,000 m³ of recycled water²¹ 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. Twenty-two CapitaLand projects under construction in Singapore, China and Vietnam consumed about 699,000 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 intensity²² measured in m³/m² by 24.1% from baseline year 2008. The reduction in water usage per m² 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 residence guests.

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 2017, more than 4,300 tonnes of recyclable waste²³ was collected from 95 properties in 15 countries.

Paper Conservation in CapitaLand Corporate Offices

CapitaLand reduced it paper usage by 58% per staff compared to 2009. These savings are attributable to the conscious effort by every staff to reduce paper usage. In 2017, 19 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. Work processes are increasingly made available online to avoid paper consumption. Default settings for double-sided and non-colour printing, use of emails and tracking of paper consumption are some measures to encourage staff to consume less paper. Corporate offices in Singapore implemented “Follow-me” printing to better track paper usage and minimise wastage. Recycling bins (including secured bins) are conveniently located at corporate offices to encourage staff to recycle used paper.

CapitaLand actively promotes the use of environmentally-friendly paper. In Singapore, letterheads and name cards have been printed on recycled paper since 2011. Where needed, print collaterals such as CapitaLand annual report and calendar are printed on Forest Stewardship Council (FSC) paper.

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 470 tonnes of construction waste was recorded for its development projects in Singapore in 2017. 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 10 projects under development in Singapore, China and Vietnam.