Social and Relationship Capital

CapitaLand’s social and relationship capital can be built up through community investments. In the longer term, this strengthens CapitaLand’s social licence to operate and ability to deliver sustainable value.

Stakeholders are groups that our business has a significant impact on and those with a vested interest in our operations. Our key stakeholders include employees, customers, business associates, builders and suppliers, and the local community. Other groups include regulators and key government agencies, non-governmental organisations (NGOs), representatives of the capital market and the media. They are mapped into groups based on their impact on the Company.

Through the various engagement channels, CapitaLand seeks to understand our stakeholders’ views, communicate effectively with them and respond to their concerns. Stakeholders’ issues of interest are outlined on the next page.

Stakeholders’ Issues of Interest*

Stakeholder	Engagement Channels	Issues	Sustainability Report
Customers-home buyers and residents, tenants, shoppers	Homebuyer: welcome parties, welcome kits Tenant: survey, green fit out guide, enrichment events such as Biz+ events CapitaLand weekly lifestyle blog - INSIDE, social media	Workmanship, design Facilities management, Customer experience	Social and Relationship Capital, Environmental Capital
Investors, Analysts and Media	Annual general meetings Quarterly financial results announcements Media releases and interviews Annual reports and sustainability report Company website Regular analyst and investor meetings Response to sustainability surveys	Operational efficiency Monetary savings, cost avoidance and return on investment ESG risks and opportunities	Financial Capital, Social and Relationship Capital
Staff	Regular dialogue sessions with senior management Regular staff engagement survey Volunteer programmes Recreation club activities	Work-life balance Remuneration and benefits Employee welfare	Human Capital, Social and Relationship Capital
Supply Chain – main contractors, vendors, suppliers	CapitaLand Supply Chain Code of Conduct Environmental, Health and Safety (EHS) Policy and quarterly EHS monitoring Vendor evaluation, including events, meetings and trainings	Design and quality Occupational health and safety practices Workers welfare and well-being Environmental compliance	Human Capital, Social and Relationship Capital, Environmental Capital
Government/national agencies/Community and non-governmental organisations (NGOs)	Senior management representation on boards of various industry bodies and sustainability related public discussions Regulatory readiness to the Singapore Government’s commitment to manage carbon emissions Longstanding partner of various national programmes Public communications plan for residents within a 100 m radius of our new developments Sustainability reports Participation in external conferences/forums Corporate advertisements Consultation and sharing with academics, NGOs and business associations	Sustainable building developments Stakeholder programmes to advocate greener tenant/resident/ customer behaviours Advocating best practices	Social and Relationship Capital

Stakeholder Engagement

Staff

CapitaLand actively engages its staff through various avenues, including regular communication sessions held by senior management for the effective flow of information and alignment of business goals and objectives across all levels of workforce. For more details, please refer to staff engagement in the Human Capital chapter.

Customers

CapitaLand conducts regular resident satisfaction surveys at its serviced residences and tenant surveys at its shopping malls and office buildings. The feedback obtained is reviewed and relevant follow-up actions are taken to improve serviced residents’ experience and improve service levels to tenants.

CapitaLand conducted homebuyer surveys for its residential developments in China and Vietnam. Through these surveys, it garnered feedback on staff service, quality of homes and common facilities. The respondents for two China residential developments gave an average rating of 8 out of 10. 70-90% of respondents for eight Vietnam residential developments gave a satisfied to very satisfied rating for different indicators.

CapitaLand’s serviced apartments track and monitor its properties’ performance via two platforms. One is a subscription to ReviewPro. Its Guest Rating Score™ (GRS™) is an independent assessment of the individual properties’ quality rating based upon consumer reviews from the Internet. The GRS™ is calculated by analysing more than 100 million consumer reviews in 40 languages from more than 100 leading online travel agencies and review sites. This allows CapitaLand to benchmark and respond by making the necessary operational and service improvements to create a better customer experience for the guests.

Another platform allows guests to provide specific feedback and ensure that the properties respond promptly on specific feedback furnished.

Investors and Analysts

There is an increasing call for more transparency, stakeholder engagement and sustainability reporting. CapitaLand’s commitment to sustainability management and reporting has been affirmed by international sustainability performance benchmarks such as Dow Jones Sustainability Index and FTSE4Good.

Conveying timely, full, accurate and credible information to its shareholders, investors, analysts and the media is important to CapitaLand. CapitaLand provides regular updates on its strategies, financial performance and operations through multiple platforms. Official announcements and news releases are filed on the Singapore Exchange (SGX), updated on CapitaLand website, and issued to analysts and media for coverage. CapitaLand has a dedicated Investor Relations (IR) webpage with its announcements, IR policies and materials relating to its financial results and annual reports. Investors can sign up for email alerts to receive the latest announcements from CapitaLand. Investors can also send enquiries to the IR team through the “Contact Us” page or email groupir@capitaland.com.

CapitaLand’s management conducts biannual briefings on its half year and full year financial results for analysts and media. Investors can view live webcasts or videos of the briefings which are available on its IR webpage for up to three years. Its management and IR team also hold briefings for investors based in Singapore on its quarterly financial results.

The Group Communications team works closely with the media to profile CapitaLand’s senior management and latest developments of the Group. The team communicates with the consumers and the public through print, broadcast and digital media outlets. This also includes sharing news and stories, as well as executing brand and marketing campaigns on our social media platforms via Facebook, Instagram, Twitter, LinkedIn, YouTube, and through CapitaLand’s weekly lifestyle blog, INSIDE. For more information, please refer to “Investor & Media Relations” CapitaLand Limited Annual Report 2017, page 64-65.

Supply Chain

CapitaLand works closely with its contractors and suppliers who are committed to high quality environmental, health and safety standards. Contractors are only appointed for its projects upon meeting the Group’s stringent selection criteria, including environment and safety.

For building operations, CapitaLand’s contractor management guidelines require all contractors to comply with local government and other legal requirements. Preference is given to ISO 14001 and OHSAS 18001 certified companies.

CapitaLand requires main contractors appointed for its development projects to be ISO 14001 and OHSAS 18001 certified, or to engage an independent accredited assessor to conduct EHS legal compliance audits. In line with our global commitment to human rights, CapitaLand also inserted a clause in the main contractor specifications to ensure no child labour and forced labour at the CapitaLand project sites.

In end 2017, the CapitaLand Supply Chain Code of Conduct was rolled out progressively to influence its supply chain to operate responsibly in the areas of anti-corruption, human rights, health and safety, as well as environmental management.

For more information on the monitoring of contractors’ and suppliers’ performance, please refer to the Supply Chain Management segment in the Human Capital chapter.

Government Agencies and Regulators

CapitaLand participates in stakeholder consultations organised by key government agencies so as to furnish feedback on proposed regulatory changes that impact the company’s business. This allows CapitaLand to plan ahead, in view of the cost of regulatory alignment. Engaging regulators and relevant industry bodies has enabled CapitaLand to be aware of industry challenges, placing the company in a better position to leverage existing and future opportunities for growth.

CapitaLand is committed to regulatory compliance. Procedures are in place to ensure that its activities and operations comply with existing regulatory requirements through regular monitoring, evaluation and auditing of the CapitaLand EHS management systems (for more details, please refer to Environmental Capital chapter). Some of CapitaLand’s projects also set new benchmarks in sustainability and innovation through the design and use of technologies. More than S$2.5 million was invested in innovative features for two of its projects.

Community/NGOs

CapitaLand is a signatory to the United Nations Global Compact and a Gold member of the Global Compact Network Singapore. It is also a founding member of the Singapore Green Building Council.

Community Development Investment and Value

Community development is a key focus of CapitaLand’s sustainability strategy. This has built strong social capital and goodwill for CapitaLand in the communities it operates in. It supports various stakeholder engagement activities which include environmental sustainability, health and safety, social integration as well as helping underprivileged children.

Helping Underprivileged Children

A registered charity in Singapore, the philanthropic arm of CapitaLand, CapitaLand Hope Foundation (CHF) invests in the fundamental needs of education, healthcare and shelter of underprivileged children to relieve them of hardship and help them to eventually break the poverty cycle. Every year, CapitaLand allocates up to 0.5% of its net operating profit to CHF and supports its day-to-day operations with staff from the various functional departments within the company.

In 2017, CapitaLand invested more than S$2.9 million through CHF to benefit underprivileged children and over S$0.5 million in other community development initiatives. CapitaLand measures the impact of its community development investments in sustained programmes. For example, it referenced the London Benchmark Group’s (LBG)¹ model for impact assessment for the CapitaLand-NUHKids Nutrition Fund, which is part of the CapitaLand Kids’ Food Fund (KFF). CapitaLand KFF aims to improve food security and nutritional wellbeing of children from financially challenged families through the provision of fortified milk formulas and nutritional supplements. In 2017, through the continued partnership with National University Hospital, People’s Association and Community Development Councils, CHF donated more than S$176,000 to benefit more than 1,100 underprivileged children.

Other Key Programmes

Initiative	Impact
CapitaLand Therapy for Children Project (CTCP) Support the treatment and rehabilitation needs of underprivileged children with cleft lip and palate issues through the continual partnership with China Foundation for Poverty Alleviation. The project was implemented by two leading NGOs: Smile Angel Foundation (嫣然天使基金会) and Future Smile Charitable Foundation (微笑明天基金会). (SDG 1)	Through CHF’s support, CTCP has benefitted 160 children with physical disabilities to date and in 2017, 313 children with cleft and palate issues received treatment. Xiaochao, a two-year-old boy who lived with his grandma in a small town in Sichuan province had difficulty feeding and eating since he was an infant. He was abandoned by his mom at one and a half years of age and his father was away working in the city. In August 2017, Xiaochao received surgery for cleft lip, and reports indicate he is getting healthier and stronger.
CapitaLand Hope Schools New school facilities funded by CHF create a more conducive learning environment, while staying in dormitories allow the children to focus on their studies and foster character development. (SDG 4)	In 2017, over 40 CapitaLand staff volunteers and management from Singapore, China, Malaysia and Vietnam embarked on a three-day volunteer expedition to CapitaLand Xingfuzhilu Hope School located in Chifeng, Inner Mongolia, China, with the aim to improve the learning and development environment for the students. The staff volunteers helped with gardening work in the school field, installed bookshelves in classrooms, and painted colourful wall murals in the activity and art & craft rooms. A series of educational activities, including science classes and CapitaLand’s signature Little Architect Programme, were also organised for the pupils. A donation of over S$50,000 was used to refurbish five classrooms and dormitories as well as provide hot water dispensers and schoolbags, etc.

Advocating Staff Volunteerism

CapitaLand is a strong advocate of volunteerism and was one of the first companies to formalise three days of Volunteer Service Leave (VSL) for its staff. In 2017, over 1,600 staff in CapitaLand properties tapped on this VSL policy to volunteer more than 13,500 hours² in various activities in Asia and beyond. CapitaLand encourages its staff to volunteer and over 125 staff dedicated more than 1,700 hours to volunteer during their personal time on CapitaLand initiatives. The estimated salary cost to CapitaLand in 2017 based on VSL taken was over S$210,000.

In recognition of staff’s social contribution as volunteers, CHF donates S$500³ to an approved Institution of a Public Character (IPC) in Singapore or International Non-Profit Organisation or RMB1,000 to a China-based children’s charity of the staff’s choice when he/she has taken all three days of VSL within the year.

In 2017, 158 staff qualified for this donation incentive and about S$64,000 will be pledged for donation by CHF in 2018.

Based on post-volunteer event surveys, more than 94% of the respondents feel proud working in CapitaLand, and enjoy working in a company with a positive and vibrant corporate culture.

Social Integration of CapitaLand Properties

CapitaLand is committed to building safe, accessible, vibrant and quality real estate developments to enhance the lives of its shoppers, tenants, serviced residence guests, homeowners and members of the community. Its social integration criteria include:

• Ensuring accessibility in the built environment to people of different age groups and varying mobility;
• Connectivity to public transport, roads, amenities and between buildings; and
• Providing community spaces as public gathering points.

These criteria are integrated into the CapitaLand’s Sustainable Building Guidelines to ensure that they are considered from the start of the project development process.

Universal Design (UD) considerations ensure that public spaces in CapitaLand projects are accessible to users of different age groups and varying abilities. These include:

• Seamless connectivity to the external surroundings, e.g. bus stops, adjacent buildings, streets and sidewalks;
• Barrier-free access from accessible (handicapped) parking lots and family lots to lift lobbies;
• Sheltered and barrier-free drop-off areas;
• Accessible (handicapped) parking lots and family lots;
• Designated pedestrian lanes in carparks; and
• Amenities such as accessible toilets, lifts and nursing rooms.

CapitaLand champions the UD concept in Singapore. In 2017, CapitaLand obtained four Universal Design Awards from Singapore’s Building and Construction Authority (BCA).

The Group’s overseas developments are to comply with local UD/barrier-free codes and guidelines, and are encouraged to adopt BCA’s UD Guide in the absence of local codes and guidelines.

The following key figures represent CapitaLand’s overall alignment to the social integration criteria and are based on the floor area of its owned and managed properties. More than 70% of CapitaLand’s completed and operational properties worldwide have met all criteria for social integration.

More than 95% of CapitaLand’s properties worldwide have at least one access-enabled facility for the disabled. These facilities include accessible alighting and boarding bays, lifts, parking lots and public toilets. Its office buildings and shopping malls in Singapore, and shopping malls in Japan are also guide-dog friendly.

Over 90% of CapitaLand’s properties worldwide are conveniently located in close proximity to transport hubs such as bus stops and train/subway stations. This allows easy access to the surrounding communities and facilities. Free shuttle bus services are also available at some of its shopping malls. Bicycle parking facilities are also provided at many of its properties. All CapitaLand integrated developments are well connected with public transport facilities.

Close to 90% of CapitaLand’s shopping malls, office buildings and integrated developments have atrium event spaces and/or children play areas. These provide communal spaces to promote community engagement. Family or nursing rooms are a common feature at CapitaLand’s shopping malls.

Almost all CapitaLand residential projects have disability access enabled facilities, including accessible alighting and boarding bays, lifts, parking lots and public toilets.

Raising Public Awareness And Community Outreach

CapitaLand organises activities that are aligned with its focus on community investment, raising awareness and stakeholder engagement in the areas of philanthropy, environment, health and safety. The social capital generated in these focus areas supports CapitaLand’s business and sustained growth.

Initiative	Impact
CapitaLand Giving Marketplace This new initiative aimed to promote the spirit of giving among CapitaLand staff and tenants. They could contribute by purchasing goods sold by social enterprises and charities. It also gave social enterprises and charities an opportunity to share their causes and products as well as offer volunteering opportunities. For every item purchased or donations made at the marketplace, CHF donated S$3 to participating charities and another S$3 to Rainbow Centre Singapore, CapitaLand Commercial Trust’s adopted charity for 2017.	During the event, guest speakers from the National Volunteer and Philanthropic Centre (NVPC) and Community Chest shared more about the art of giving, effective giving and meaningful volunteerism. More than 100 staff and tenants participated in the “Art of Giving” lunch talk. A post event survey showed 100% of the participants were interested to attend similar future events and 100% of the participants felt that the lunch talk helped them learn more about giving and volunteering for the community. More than S$6,000 was raised by CHF for the beneficiaries.
CapitaLand Earth Hour Campaign It was the tenth year that CapitaLand participated in the annual global sustainability movement to raise awareness on climate change and encourage individual action.	More than 280 CapitaLand’s properties worldwide participated in the WWF Earth Hour initiative by turning off the façade and non-essential lights through the night on 25 March 2017. The properties also organised activities to engage tenants, shoppers, residents and the public to play their part environmental sustainability in various ways such as saving energy and water, taking public transport, recycling and tree planting.
Venue sponsorship for health events at CapitaLand properties	CapitaLand malls and office buildings in CapitaLand Mall Trust and CapitaLand Commercial Trust.

Framework – Corporate Giving And Volunteerism
Building People. Building Communities. To invest in the communities in which CapitaLand operates through its philanthropic arm, CapitaLand Hope Foundation (CHF), to promote social growth and development of underprivileged children, with respect to their education, healthcare and shelter needs.
Policies	Corporate Philanthropy Underprivileged Children (up to 16 years old) Areas of Focus: Education, Healthcare and Shelter Geography: Communities where CapitaLand operates Employee Volunteerism: Volunteer Service Leave (paid): three days per year
Corporate Governance	Governing Authority Established CHF as a corporate foundation governed under the Singapore Charities Act Conferred Grant Maker Status under the Double Tax Deduction scheme Engagement with the Inland Revenue Authority of Singapore and Singapore’s Ministry of Culture, Community and Youth to ensure legal compliance Submission of Annual Report to the Commissioner of Charities, Singapore Board of Directors One non-executive independent director, one non-executive, non-independent director and one executive non-independent director Internal/External Audit Thorough audit of financial accounts and statements for submission to the Commissioner of Charities, Singapore. Volunteer Service Administrative System Built-in Volunteer Service Leave and Volunteer Service (non-workday) modules into the online HR leave application system Track both workdays and non-workdays volunteer activities
Strategic Goals	Invest in fundamental needs i.e. education, healthcare and shelter of underprivileged children; to relieve them of hardship and eventually break the poverty cycle Focus on communities where CapitaLand operates as the long-term success of CapitaLand’s business is closely intertwined with the health and prosperity of these communities Go beyond donations and be actively involved in projects that will have positive impact on both the community and its business
Action Plan	Alignment with Business Goals and Stakeholders’ Interest Source of funding for CHF: up to 0.5% of CapitaLand’s annual net operating profit Align community investment with business and interests of stakeholders e.g. shareholders, consumers, employees and the community CapitaLand’s corporate governance including internal policies, procedures and codes of business conduct (e.g. anti-corruption and whistle blowing policy) Employee Volunteerism Advocate volunteerism to embody the true spirit of community investment in CapitaLand Employee involvement can lead to improved teambuilding, better working relationships and enhanced internal brand value Support volunteer efforts with a donation to a children’s charity of the employee’s choice if all three days of Volunteer Service Leave are taken Progress Management CHF’s work is well supported by the various departments in the company and linked to effective management systems Set meaningful targets and key performance indicators when planning community investment initiatives. In addition to measuring input, e.g. donation amount, CHF will also look into output and outcome, e.g. time invested by staff and impact of donations, referencing LBG model where appropriate Collaborate with credible, experienced and established organisations to build programmes that will have long-term sustainable impact on the beneficiaries Brand Building Building brand, reputation and trust among its stakeholders will help CapitaLand garner wider support, which is crucial in maintaining sustainable operations for CHF
Impact	Improved academic results, health and behavioural performance of beneficiaries Staff volunteers feel proud and enjoy working in the company with a positive and vibrant corporate culture