President & Group CEO’s Message

Dear Stakeholders,

At CapitaLand, we recognise that the long-term success of our business is closely intertwined with the health and prosperity of the communities we operate in. As CapitaLand works towards transforming city living globally, we believe in integrating sustainability to build a resilient and sustainable real estate of the future.

We share the United Nations Global Compact’s (UNGC) commitment to deliver lasting benefits to people and communities. Before becoming a signatory in 2015, we had been adopting universal principles on human rights, labour, the environment and anti-corruption, as well as taking strategic actions that advance the development of society.

In 2017, CapitaLand delivered a set of resilient and healthy financial results of S$3.1 billion in earnings before interest and tax (EBIT), with the Group’s return on equity at 8.5%, up from 6.6% in 2016. As we continue to expand into new cities and businesses, we remain resolute and steadfast in maintaining a high standard of integrity and have the courage to do what is right when conducting our business and interacting with stakeholders. We do not condone any form of business malpractice or impropriety and we adopt a zero-tolerance policy on corruption and bribery. Staff found engaging in such acts will be dealt with seriously. We have also instituted a code of conduct to ensure these ethical values permeate throughout our supply chain.

Our core markets, Singapore and China, made national level commitments as part of the Paris Agreement on Climate Change. In Singapore, a carbon tax will be imposed from 2020 and staggered increases in water prices have been implemented from June 2017. In China, two new environmental protection laws were enacted to better combat industrial and water pollution more effectively, with effect from 1 January 2018.

CapitaLand understands the need to continually improve our operational efficiency and reduce our carbon emission intensity. As at end 2017, we have achieved green certification for more than 55% (by m²) of our global portfolio of owned and managed properties, and are diligently working towards achieving certification for the remainder of our portfolio by 2030. We also managed to reduce energy and water intensity (per m2) by 23.4% and 24.1% respectively for our operational properties and reduced our carbon emission intensity by 29.4%, compared to the base year 2008. This amounted to utilities cost avoidance in excess of S$140 million for the Group since 2009.

In today’s changing landscape, we are committed to upskill our staff. In 2017, we organised the “Be Future-Ready Learning Event”, a full day event with industry experts sharing insights on digital revolution, and dealing with online negativity. Over 1,290 staff invested more than 5,500 hours attending training on topics including analytics and innovation. CapitaLand also partnered with Singapore’s Economic Development Board (EDB) in a skills development and innovation programme named CapitaLand ELEVATE. This programme aims to upskill CapitaLand’s staff and develop technology-enablers for the company to seize opportunities to build real estate of the future. The programme will enable CapitaLand to create people-centric products, services and experiences.

We invested more than S$2.9 million through CapitaLand Hope Foundation to benefit underprivileged children in markets where we operate, and over S$0.5 million in other community development initiatives. In 2017, over 1,600 staff in CapitaLand properties tapped on the paid volunteer service leave provided and contributed more than 13,500 volunteer hours to play their part in building communities.

We are glad that our efforts have been recognised globally. CapitaLand remain the only Singapore company to receive the “Silver Class” distinction in real estate, in RobecoSAM’s The Sustainability Yearbook. We remain listed in the Dow Jones Sustainability World and Asia Pacific Index, FTSE4Good Index Series, MSCI Global Sustainability Indices, Euronext VigeoEiris Indices World 120, and STOXX® Global ESG Leaders Indices.

To continue delivering long term value to our stakeholders, we must remain a purpose driven company, adapt quickly to the changing environment, stand resolute against any misconduct as trusted stewards of our stakeholders, and continue to upskill our staff. This sustainability journey will take continual effort. We thank all our stakeholders for their continued support and together we can improve the economic, environmental and social well-being of the communities we operate in.

LIM MING YAN
President & Group CEO
CapitaLand Group