Cdl Future Value 2030

VALUE CREATION

SUSTAINED GROWTH RISK MANAGEMENT

PRODUCTIVITY

CDL INNOVATION FUTURE VALUE 2030

RESOURCE EFFICIENCY

INTEGRATED SUSTAINABILITY REPORT 2017

CITY DEVELOPMENTS LIMITED CDL INTEGRATED SUSTAINABILITY REPORT 2017

CONTENTS

CDL Future Value 2030 01 BUILDING A SUSTAINABLE CDL at a Glance 02 ENVIRONMENT About CDL 03 Natural Capital 43 Chairman Statement 04 • Lifecycle Approach • Environmental Conservation CEO Statement 05 • Sustainable Resource Management • Climate Change and Emissions INTEGRATED STRATEGY FOR • Energy Management and Efficiency VALUE CREATION • Water Management and Quality Leadership Commitment • Investment in Environmental Protection to Sustainability 11 • Environmental Compliance CDL’s Value Creation Model 12 Performance Highlights in 2016 14 BUILDING GREEN CDL Future Value 2030: INFRASTRUCTURE ESG Goals and Targets 15 Manufactured Capital 59 Our Approach to Materiality 16 • Green Buildings Our ESG Risks and Opportunities 20 • Green Lease and Tenant Engagement • Uncompromised Quality and Standards Report Period and Scope 22 • Safe and Healthy Spaces BUILDING FUTURE VALUE • Sustainable Building Innovations • Social Inclusion Through Financial Capital 25 Universal Design • Market Review and Performance • BCA Green Mark Awards (2005 to 2016) • Key Financial Information • Prudent Capital Management and BUILDING OUR PEOPLE Sustainable Dividend Policy Human Capital 67 • Capital Management • Health and Safety • Acquisitions and Expansion • Job Creation and Employment • Funds Management • Benefits and Welfare BUILDING A RESILIENT • Fair Remuneration ORGANISATION BUILDING OUR COMMUNITIES Organisational Capital 31 Social and Relationship Capital 73 • Strong Leadership and Management • Stakeholder Issues of Interest • Corporate Governance • Stakeholder Engagement: Employees, • Corporate Values and Conduct Customers, Builders and Suppliers, of Business Investors and Media, Government • Risk Management Agencies and Regulators, Our Community • Brand and Reputation

ISO 14064 Reasonable Assurance Statement 88 Independent Limited Assurance Statement 91 GRI Content Index 96 CDL FUTURE VALUE 2030 01

At City Developments Limited (CDL), we strive to build value for tomorrow, today.

Since 1995, we have built on our ethos of “Conserving as we Construct” to fulfil our role as a builder of living spaces, lives and communities. As CDL continues to pursue greater excellence, we are introducing “CDL Future Value 2030” as our blueprint for the future. In the ever changing business and natural environment, it serves as our blueprint for sustained growth and value creation for our business, stakeholders, community and the environment. With increased threats of climate change and rapid urbanisation, this plan will guide us to continue our best practices and future ready our business as we move towards 2030.

Over the years, we have built a strong track record as Singapore’s trusted property pioneer and one of the most sustainable companies in the world. As we future proof our organisation to meet tomorrow’s challenges, we remain committed to our Environmental, Social and Governance goals and policies to mitigate risks, enhance resource efficiency, drive productivity and innovation, and ultimately create enduring value.

With an integrated approach, we continue to harness our capitals to realise our sustainability-centric vision. We believe that a sustainable business is only possible with a healthy planet as well as a prosperous and inclusive society.

The strategy and actions under the “CDL Future Value 2030” will remain dynamic as the global business landscape evolves. New issues will require new solutions, and CDL will be ready to deliver. CDL AT A GLANCE

Launched Over 1st $3.9b $3.5b Green Bond Group revenue in funds under by a Singapore in 2016 management Company which raised since 2014 $100m + + Listed on 22 TOP 12 Singapore Company and leading sustainability years Real Estate Management and indices of sustainability Development Company on 2017 including FTSE4Good Index integration into business Global 100 Most Sustainable Series, MSCI Global Sustainability strategy and operations Corporations ranking Indexes and Dow Jones 02 Sustainability Indices + + More than 87 Green Mark $16m developments and 100% in savings office interiors of office buildings owned and as a result of the energy-efficient managed by CDL are rated Green retrofitting and initiatives awarded by the Building and PLUS implemented for eight office Construction Authority Mark Platinum and Gold buildings from 2012 to 2016 * Includes subsidiaries and associated companies + + 16% 25% 15% reduction reduction reduction in carbon emissions in energy use in water use intensity from 2007 intensity from 2007 intensity from 2007 levels in 2016 levels in 2016 levels in 2016 ABOUT CDL

City Developments Limited (CDL) is VISION, MISSION AND VALUES a Singapore-listed international real estate operating company with a global presence spanning 97 locations Since the 1990s, sustainability has been integrated into in 26 countries. As one of Singapore’s CDL’s corporate vision and mission to create business largest companies by market value and sustain the Company’s growth. To complement capitalisation, our income-stable and geographically-diversified portfolio the Company’s business strategy in today’s fast-evolving comprises residences, offices, hotels, business environment, we introduced an enhanced set of serviced apartments, integrated corporate vision, mission, and values in 2016. developments and shopping malls, totalling over 18 million square feet of floor area globally. As we marked 20 years of sustainability in 2015, we also expanded our sustainability vision and mission to support our CDL has hotel assets in one of the world’s largest hotel groups – our new corporate vision and mission. London-listed subsidiary, Millennium & Copthorne Hotels plc (M&C), has over 130 hotels globally, many in Corporate Vision key gateway cities. Globally, CDL has developed over 40,000 homes Building Value for Tomorrow, Today and is one of Singapore’s largest commercial landlords, with one Sustainability Vision of the biggest landbanks amongst CDL Future Value 2.0: Creating Future Value Singapore private-sector developers. Sustainability Mission Building on our track record of over Harnessing our capitals – Financial, Organisational, Manufactured, 03 50 years in real estate development, Natural, Human, and Social and Relationship – to create enhanced value investment and management, CDL for stakeholders, now and in the future has developed growth platforms in five key international markets – UK, US, China, Japan and Australia. Corporate Mission The Company is also leveraging our stable of prime assets and growing As a trusted property pioneer and a global hotelier, CDL builds value our real estate funds management everywhere we go. business. We currently have over $3.5 billion in funds • We build quality and innovative spaces to house desirable homes, under management. competitive businesses and secure investments • We build sustainable profitability while conserving the environment • We build partnerships to achieve better results • We build engaging careers so staff can grow with the company • We build bonds with the community by supporting worthy causes

At CDL, we believe the future is ours to build.

Corporate Values

• Committed to positive results • Competitive in setting standards and beating the competition • Caring towards the people we work with, products we create, and the environment we operate in

*102-45 CHAIRMAN STATEMENT

Dear Stakeholders, been a firm advocate for sustainable strategies, practices and performance. development and I am heartened that In response, we are launching our 2016 was a milestone year our steadfast commitment has placed CDL Future Value 2030 blueprint. for sustainability with global Singapore and CDL on the world Aligned with our corporate vision developments like the landmark Paris map of sustainability. of “Building Value for Tomorrow, Agreement and the United Nations Today”, this blueprint details how (UN) Sustainable Development Goals Singapore is ranked the most CDL’s long-established sustainability (SDGs). Locally, Singapore set out sustainable city in Asia and second strategy and best practices will the national vision for a sustainable in the world after Zurich, according continue to add value to our future through the introduction of to the Sustainable Cities Index 2016 business, stakeholders, investors the Climate Action Plan, reinforcing from global design and consulting and the planet. Most importantly, it the 2015 edition of the Sustainable firm Arcadis. This was a marked sets clear directions and ESG goals Singapore Blueprint. improvement from its 10th position towards 2030, a milestone year for in 2015, when this global index was global climate goals and UN SDGs. 04 The emphasis on sustainability is first launched. also growing in global financial To reinforce the Board’s role in markets, with investors having Testament to our commitment to advancing sustainability within more access to Environmental, sustainability, CDL is ranked the CDL, the Board-level Corporate Social and Governance (ESG) data. Top Singapore Company and Most Social Responsibility and Corporate There has been progressively more Sustainable Corporation in Real Governance Committee has been evidence that investors are placing Estate Management & Development renamed the “Board Sustainability greater importance on such data, on the eminent 2017 Global 100 Committee” as of November 2016. believing in a causal link between Most Sustainable Corporations in good ESG practices and the long- the World ranking. In 2016, CDL was Amid the fast-changing business term success and economic value once again voted Asia’s Top Property landscape, the Board is fully of a company, beyond just pursuing Developer and Top Singapore committed to supporting the financial returns. Furthermore, Company in the Channel NewsAsia Management in maintaining CDL’s research1 has now shown that Sustainability Ranking for three leadership and dedication to investors are actively incorporating consecutive years. CDL also remains governance and sustainability best such data into investment decisions, as the first Singapore corporation practices for continued long-term reinforcing the business case for to be listed on four of the world’s business growth and achieving sustainability. Businesses must leading sustainability benchmarks greater value for stakeholders. adapt to the increasing importance – FTSE4Good Index Series (since of sustainability, capitalise on 2002), MSCI ESG Indexes (since such opportunities and unlock the 2009), Global 100 Most Sustainable Kwek Leng Beng potential of integrating sustainability Corporations in the World (since Executive Chairman into their operations. 2010), and Dow Jones Sustainability Indices (since 2011). Creating long-term sustained value has always been the priority of the With the rising demand for ESG data, Board and Management of CDL. there is a greater need for companies For over two decades, we have to communicate their sustainability

1 G. Unruh, D. Kiron, N. Kruschwitz, M. Reeves, H. Rubel, and A.M. zum Felde, “Investing For a Sustainable Future,” MIT Sloan Management Review, May 2016. CEO STATEMENT

Dear Stakeholders, Businesses can no longer ignore the impact of climate change risks Building on our 2016 began with unprecedented on their bottom line. The G20 momentum in global sustainable Financial Stability Board (FSB)’s sustainability vision to development. The landmark Paris Task Force, led by Michael R. ‘Create Future Value’, Agreement was ratified by over 120 Bloomberg, released the Climate- we have strategically nations by the end of 2016. The related Financial Disclosure United Nations (UN) Sustainable recommendations in December established a new Development Goals (SDGs) also 2016. This echoed regulatory blueprint – CDL Future came into effect from January 2016, developments in Singapore, Value 2030. with global calls for governments, where the Singapore Exchange the private sector and civil society to (SGX) launched the Sustainability take collective action towards these Reporting Guide in June 2016, common goals. requiring listed companies to disclose Environmental, Social and 05 2016 was the hottest year since Governance (ESG) performance modern record keeping began in on a ‘comply or explain’ basis from 18801. Widespread flooding in the financial year 2017. United States, Europe and Asia, resulted in over US$30 billion in To attract socially responsible economic losses2. This highlighted investors, SGX also joined the the need for immediate actions to UN Sustainable Stock Exchanges mitigate climate change, which has initiative and launched the inaugural in turn generated significant local SGX Sustainability Indices, of which and international regulatory activity. CDL was listed on its flagship Sustainability Leadership Index. Specifically, governments and The community of responsible the international investment investors is fast-expanding as community are increasingly evident in the US$60 trillion assets holding corporations accountable under management represented for their carbon emissions. 2016 by over 1,500 signatories of the saw the growth of carbon pricing, UN Principles for Responsible 1 According to independent analyses particularly in Asia. In Singapore, Investment (PRI), and the rapidly by National Aeronautics and Space the government announced in growing green bond market which Administration and the National Oceanic 3 and Atmospheric Administration its Budget 2017 that a carbon tax saw a 92% increase in 2016 and is 2 Estimates from the Swiss Re Group using targeting large direct emitters of expected to continue growing. Sigma data 3 Climate Bond Initiative Green Bond Greenhouse Gases (GHG) will be Highlights 2016 implemented in 2019. These developments present opportunities for CDL to attract like- minded investors and raise capital for future green building initiatives to enhance our value creation for shareholders and stakeholders. CEO STATEMENT

Introducing CDL Future Value 2030 Financial Capital – CDL is committed to upholding Building Future Value the highest standards of corporate As ESG integration becomes governance. As a testament of our essential to a company’s long-term Despite a challenging macro- continued pursuit for governance success and economic value, CDL environment, CDL remained resilient excellence, our ranking on the has continued to enhance our in 2016, posting a creditable profit Singapore Governance and sustainability strategy to future- of S$653.2 million and record Transparency Index rose from 24th proof our business. revenue of S$3.9 billion. This in 2015 to 10th in 2016. CDL was was driven by strong residential also accorded the prestigious “Most Building on our sustainability vision sales in Singapore and China, and Transparent Company Award 2016” to ‘Create Future Value’, we have divestments including the sale and in the Real Estate category at the strategically established a new recapitalisation of Summervale Securities Investors Association blueprint – CDL Future Value 2030. Properties Pte. Ltd. that resulted in (Singapore) (SIAS) Investors’ Choice It encapsulates our long-standing the establishment of our third Awards 2016, for our outstanding sustainability commitment and best Profit Participation Securities efforts in corporate disclosure and practices of over 20 years, and sets (PPS) platform. transparency standards. out clear directions and targets to guide us towards 2030. Through PPS 3, we are on track to In view of the heightened achieve our target of S$5 billion in threats from global terrorism, 2030 will be a milestone year with funds under management (FUM). cyber-attacks, and geopolitical world population expected to hit 8.5 We successfully unlocked the value and macroeconomic shifts, we billion, posing new challenges and of our Nouvel 18 project for S$977.6 enhanced our Enterprise Risk opportunities for global sustainable million and attracted a new pool of Management (ERM) framework to development. It is also the target untapped high net worth investors assess strategic risks and emerging year for major global commitments in Singapore. The funds raised will threats beyond our immediate including the Paris Agreement allow CDL to further recycle capital horizon, and proactively identify 06 and UN SDGs. Specifically for the for growth plans. control measures to mitigate them. built industry, 2030 is the target year for the Net Zero Agenda by Our Green Mark properties certified In 2016, we also strengthened the World Green Building Council by the Building and Construction our crisis management and and for Singapore to green 80% of Authority (BCA) were the subject of communication protocols in the event its buildings based on the Green the three successful PPS platforms of terrorism. Members of our Senior Building Masterplan. which achieved over S$3.5 billion Management team were trained on in FUM. As we continue to expand crisis management and emergency With this in mind, CDL Future Value geographically, our track record in response through a simulation 2030 contains well-defined goals eco-developments and corporate exercise to enhance preparedness. and targets to address ESG issues citizenship will help us to attract like- that are material to our business, minded partners and investors, and On top of our comprehensive while contributing towards a gain foothold in markets where our corporate policies and business sustainable future. The blueprint sustainability leadership and reputation code of conduct, we formalised is fundamental to our integrated provide a competitive edge. a new policy on Anti-Money sustainability strategy which will Laundering and Counter Financing continue to harness our six capitals Organisational Capital – Terrorism in 2016, and trained our – financial, organisational, natural, Building a Resilient Organisation employees to detect such criminal manufactured, human as well as acts. This is in line with our belief social and relationship – to create Investors are holding boards in staying vigilant and supports the tangible value for our business, increasingly accountable for Monetary Authority of Singapore in stakeholders, community and governance standards and safeguarding the nation from illicit the environment. demanding greater transparency. money laundering by global criminal and terrorist organisations. Moving forward, we will raise, Over the years, CDL’s green building by 2030, our carbon emissions efforts have also directly contributed Moving forward, we intensity reduction target to 38%, to our bottom line. From 2012 to will raise, by 2030, from the previously pledged 25% 2016, we achieved savings of more (versus 2007 levels), by using the than S$16 million as a result of both our carbon emissions Sectoral Decarbonisation Approach. energy-efficient retrofitting and intensity reduction In line with CDL’s commitment other initiatives implemented for target to 38%, from towards a low-carbon economy, eight CDL-managed office buildings. our new target is above Singapore’s the previously pledge of 36% from 2005 levels, As a testament of our commitment pledged 25% (versus from the Paris Agreement. to achieve at a minimum the BCA 2007 levels), by Green Mark GoldPLUS certification for Additionally, we set a target for all new developments – two tiers using the Sectoral 35% of our building materials to beyond the mandatory Green Mark Decarbonisation be derived from recycled content, certification level – 100% of office Approach. low-carbon sources, or certified buildings owned and managed by by recognised environmental CDL are rated Green Mark GoldPLUS organisations. Our upcoming and Platinum (the highest tier Singapore Sustainability Academy, certification). Natural Capital – for instance, is the first in Singapore Building a Sustainable Environment to be built with Cross Laminated Beyond building infrastructure, Timber and Glued Laminated we engage and empower our With increased pressure on Timber verified to be from commercial tenants to adopt corporations to be accountable for sustainable sources. low-carbon practices, encouraging their environmental footprint and them to play a bigger role in the rising costs of natural resources, To better understand the impact green building movement. At the maintaining a healthy natural capital our developments have on the end of 2016, more than 95% of 07 is of utmost importance to sustain environment and to preserve existing tenants have pledged their our growth. Singapore’s biodiversity, CDL has commitment to the CDL Green voluntarily conducted Biodiversity Lease Partnership Programme by For more than two decades, we Impact Assessments on new signing a Green Lease Memorandum have upheld our unwavering development sites since 2010. of Understanding. In addition, more commitment to environmental Furthermore, we took the initiative than 25% of the tenanted spaces management and resource to conduct a more comprehensive in our commercial properties have efficiency. As the first private- study, similar in scope with the been certified under the BCA Green sector property developer in Environmental Impact Assessment, Mark Scheme, including office Singapore to achieve the ISO 14001 for our latest Forest Woods interiors and retail outlets. Due Environmental Management System condominium. This led to the to the commitment and efforts and ISO 50001 Energy Management discovery of several rare species of our tenants and Green Lease System certifications in 2003 of plants that were transplanted to ambassadors, CDL remains the only and 2014 respectively, we have safe areas. developer to have received the top- continued our efforts to overcome tier BCA Green Mark Pearl Prestige inherent environmental challenges Manufactured Capital – award for two consecutive years. typically associated with property- Building Green Infrastructure related companies. Recognising that innovations Our firm commitment to quality and and collaborations are key to our As early as 2011, we established green spaces has differentiated our business success in the low-carbon carbon emission intensity reduction brand by strengthening our product economy, CDL invested S$2.25 targets, and in 2015 we added and manufactured capital. This has million to establish a research a Climate Change Policy to created enhanced value for our and development partnership our environmental and energy business, customers and investors, with the National University of management systems. In 2016, CDL and supported the economic Singapore (NUS) School of Design was the first property developer development and well-being of the and Environment. Through the in Singapore to achieve the ISO communities in which we operate. NUS-CDL Smart Green Home and 14064-1 verification for our GHG emissions disclosures. CEO STATEMENT

NUS-CDL Tropical Technologies labour practices, diversity and equal Laboratory (T² Lab), CDL will opportunity. To develop and nurture continue to champion leading-edge talent, we provide our employees CDL also focusses on innovations which can be test- with training opportunities and bedded in our future developments scholarships to upgrade their skills grooming youths to to meet the lifestyle needs and or further their education. be environmentally climate challenges of tomorrow. conscious, as they form For the year under review, we carried Human Capital – out a company-wide strategic road the next generation Building our People mapping to introduce a Balanced of homebuyers, Scorecard management system employees and leaders. People are our greatest asset and during 2017. The new system will their performance, safety and well- measure and align cross-functional Given our leadership being are vital to CDL’s continued and individual employee performance in green buildings performance. We are committed to support our organisational and and sustainability to providing an inclusive, safe business objectives. and healthy environment for our integration, we will employees, as well as the workers at Social and Relationship Capital – have a competitive our construction sites and managed Building our Communities edge with the rise of commercial properties, even where they are not under our direct hire. Our continuous engagement efforts green consumerism. have enhanced our relationships In 2016, CDL took the lead in with stakeholders and helped to galvanising 24 of our key builders create wider economic value for the and consultants to sign a “Pledge community and the environment. CDL also focusses on grooming Towards Zero Vision through Safe Considerable resources have also youths to be environmentally 08 Design – Safe Practices – Safe been invested in building strategic conscious, as they form the Culture” at the 12th annual CDL Public, Private and People (3P) next generation of homebuyers, 5-Star Environmental, Health and sectors collaborations. In the long employees and leaders. Given our Safety (EHS) Awards. It marked the term, this strengthens CDL’s social leadership in green buildings and first time a developer in Singapore licence to operate and our ability to sustainability integration, we believe has rallied collective action along create value. that this will ultimately provide CDL its supply chain to support the a competitive edge with the rise Construction Industry Workplace Following the success of the inaugural of green consumerism. Through Safety and Health (WSH) Action Plans. EcoBank initiative in 2016, we flagship youth programmes such partnered Eco-Business for a second as the CDL-Compact Singapore As a result of our health and safety time in January 2017. Themed “Be Young CSR Leaders Award, CDL initiatives and proactive engagement a Zero Waste Hero”, the initiative E-Generation Challenge and My Tree with our employees, contractors and promotes responsible consumption House, as well as partnerships with their workers, we maintained zero and waste disposal, in support of the education institutions, we reached fatalities and occupational diseases Sustainable Singapore Blueprint. out to and empowered over 120,000 across CDL’s corporate office, youths and children during 2016. construction sites and managed A three-week collection drive of commercial properties in 2016. pre-loved items at seven CDL- Recognising that a healthy workplace managed buildings received about can have a positive impact on Respecting and protecting human 10,800kg of items, a 76% increase the happiness and productivity rights is vital for ensuring safe and from 2016. This equates to 2,646 of our tenants and occupants, fair working conditions for our metric tonnes of carbon equivalent CDL collaborated with the Health employees and workers. In 2016, we reduction to Singapore’s landfill. Promotion Board for the Workplace enhanced our Human Rights Policy The initiative capped off with a Well-being Partnership. Under this to address growing concerns and charity bazaar which raised over programme, we organised a series issues in this area. We also strive S$35,000 for the Children’s Charities of weekly health-related activities to ensure fair employment and Association of Singapore. in 2016, to promote a healthy work environment and active living among our supply chain management. In Following our investment in our office tenants. light of the recently announced mamahome, one of China’s carbon tax in Singapore, we are fastest growing online apartment Beyond customers and the also reviewing internal carbon rental platform with more than community, we actively engage with pricing scenarios to prepare for the 150,000 apartment listings in over existing shareholders and potential impending business impact. 20 Chinese cities in September investors to communicate our 2016, we further announced our business case for ESG integration. Additionally, we continue to seek investment in China’s leading We seek to position CDL as the new revenue streams and financing co-working space operator Distrii top investment choice among the through product innovation and in January 2017. Distrii plans to responsible investment community business diversification. expand in global gateway cities and by sharing our sustainability will create one of the largest co- leadership at high-level investor working facilities in Singapore. The conferences such as the CEO co-working space, spanning over Roundtable at the UN PRI in Person Riding on the fast- 60,000 square feet at CDL’s flagship Conference 2016 held in Singapore. Republic Plaza in the heart of the growing demand for city’s Central Business District, is The Journey Ahead sustainable investment scheduled to open in 2018. products and the Under our new CDL Future Value Collaborative partnerships will Singapore government’s 2030 blueprint, we will actively continue to be the key driver for our track and review our sustainability move to develop a sustainable development efforts. performance against the ESG goals green bond market, we In partnership with the Sustainable and targets established to support Energy Association of Singapore, we recently launched our CDL’s growth while complementing will open the landmark Singapore the UN SDGs. inaugural green bond Sustainability Academy in June 2017. – a first by a Singapore With the objective of promoting 09 To address investors’ increasing a low-carbon economy, resource company. The two-year expectation of ESG disclosure and efficiency and sustainable practices performance, we have raised the senior secured bond amongst businesses, youths and bar for sustainability reporting by raised S$100 million at the community, the zero-energy becoming the first private developer academy will advance CDL’s advocacy 1.98% fixed rate. Our in Singapore to adopt the new and stakeholder engagement for Global Reporting Initiative (GRI) maiden venture into sustainable development. Standards of Sustainability Reporting green bond links CDL’s for our Integrated Sustainability The partnerships, product ESG initiatives with the Report 2017. innovations and enhanced ESG capital markets and integration will supplement CDL’s In addition, we have established enable us to tap on resilient foundation laid more than a dedicated sustainability website 50 years ago. By combining the old like-minded investors, (www.cdlsustainability.com) to and the new, we hope to create provide more regular and dynamic providing an alternative synergistic value to ensure financial ESG reporting to shareholders, financing stream to success for our business, and a investors and partners, on top of the sustainable future for us all. advance our green annual sustainability report. building efforts. In tandem with the blueprint, to Grant Kelley remain competitive in today’s ever- Chief Executive Officer evolving business and regulatory landscape and to future-proof We have made strategic investments our business, we will embark on to capitalise on industry disrupting scenario planning to identify risks opportunities such as the and opportunities that emerging burgeoning sharing economy to stay trends, such as carbon tax and ahead of the curve. circular economy, may present to FINANCIAL CAPITAL

SOCIAL AND ORGANISATIONAL RELATIONSHIP CAPITAL CAPITAL CDL FUTURE VALUE 2030

HUMAN NATURAL CAPITAL CAPITAL 10

MANUFACTURED CAPITAL

INTEGRATED STRATEGY FOR VALUE CREATION INTEGRATED STRATEGY FOR VALUE CREATION

LEADERSHIP practices, ensuring effective Initially called the CSR and COMMITMENT TO integration of environmental, social Corporate Governance Committee, SUSTAINABILITY and governance (ESG) initiatives the Board Sustainability Committee into our business operations and was renamed in November 2016, Since 2008, a company-wide corporate objectives. to better reflect the Board’s role in Sustainability Committee was set advancing sustainability within up to drive sustainability across all Above this Committee sits a Board the organisation. corporate and operational units of Sustainability Committee that CDL. Led by the Chief Sustainability assumes an advisory role for CDL’s Officer with guidance from the sustainability strategy. This Board- Senior Management, the Committee level Committee meets at least initiates, drives, and monitors once a year to review CDL’s ESG various aspects of our sustainability performance and initiatives.

Sustainability Committee Structure as at November 2016

Board of Directors

11 CEO Board Sustainability Committee

Advisory Panel Chief Sustainability Officer (Senior Management)

Sustainability Committee Across Business & Operational Units

Corporate Labour Stakeholder Community The Governance & Practices & Engagement & Involvement & Environment Fair Operating Human Rights Consumer Issues Development Practices

Aligned with ISO 26000: Guidance on social responsibility INTEGRATED STRATEGY FOR VALUE CREATION

CDL’S VALUE It encapsulates our long-standing to address ESG issues which are CREATION MODEL sustainability commitment and best material to CDL’s business and practices, and sets clear directions stakeholders, while contributing In 2015, CDL marked our 20- to guide us towards 2030. towards a sustainable future. year sustainability journey by enhancing our strategy to 2030 will be a milestone year with The blueprint is fundamental to our “Create Future Value”. Founded world population expected to hit 8.5 integrated sustainability strategy on the ethos of “Conserving as billion, posing new challenges and which will continue to harness our we Construct”, CDL has been opportunities for global sustainable six capitals – financial, organisational, committed to future-proofing our development. It is also the target natural, manufactured, human as business through a three-pronged year for major global commitments well as social and relationship – strategy as a developer, an asset including the Paris Agreement and to build enhanced value for our owner and a corporate citizen. the United Nations (UN) Sustainable business, stakeholders, community Through comprehensive policies Development Goals (SDGs) which and the environment. and practices, CDL’s unique ESG came into force in January 2016. integration model has created long Specifically for the building industry, Aligning with UN SDGs lasting value for our brand, business 2030 is the focal point for the Net operations, stakeholders, customers, Zero Agenda by the World Green In February 2016, CDL took the investors and the community. Building Council and for Singapore initiative to be amongst the first to green 80% of its buildings based companies in Singapore to align Introducing CDL Future on the Green Building Masterplan. our material ESG issues with the Value 2030 SDGs. With the introduction of With this in mind, we strategically the new blueprint, we have 12 In line with our corporate vision of established long term ESG goals and taken further steps to map our “Building Value for Tomorrow, Today”, targets under our new blueprint. CDL Future Value 2030 goals and we have launched a new sustainability Delivering on three strategic goals, targets with nine relevant SDGs as blueprint – CDL Future Value 2030. a set of targets is clearly defined outlined on page 15.

CDL’s Value Creation Model

Build Financial Manufactured Sustainable Capital Capital Profitability while Conserving the SUSTAINABILITY Environment BLUEPRINT: CDL FUTURE VALUE 2030 Build Quality, Develop Engage Green and Innovative Spaces CONSERVE Natural Organisational Capital AS WE Capital CONSTRUCT Build a Resilient Organisation OUR VISION: and Committed BUILDING People VALUE FOR Manage TOMORROW, Build TODAY Partnerships and Bonds Social and Human with the Relationship Capital Capital Community Creating Tangible Value Through ESG Integration

Our Key Drivers The Value We Create Sustained Growth Several of our Green Mark certified properties, awarded by the Building and Construction Authority (BCA), were the subject of three successful Profit Participation Securities (PPS) investment platforms, which have raised a total of $3.5 billion in funds under management since 2014.

On 6 April 2017, we launched our inaugural green bond – the first by a Singapore company, which raised S$100 million at 1.98% fixed rate due in 2 years.

Resource Efficiency We achieved more than $16 million in savings as a result of the energy-efficient retrofitting and initiatives implemented for eight office buildings from 2012 to 2016, directly benefiting CDL’s financial bottom line.

Value Creation As of end 2016, over 95% of our existing tenants have pledged their commitment to the CDL Green Lease Partnership Programme by signing a Green Lease Memorandum of Understanding.

Tenant satisfaction rate remained high at 94% for offices, 96% for retail and 100% for 13 industrial buildings in 2016.

Productivity Our investment in sustainable and productive building methods such as the advanced Prefabricated Prefinished Volumetric Construction (PPVC) technology adopted for The Brownstone Executive Condominium, is expected to raise productivity by over 40%.

Innovation CDL has more than 20 years of track record in green building innovations, launching Asia Pacific’s first CarbonNeutral® development, 11 Tampines Concourse in 2009; Singapore’s first eco-mall, City Square Mall in 2009; and was the first developer in Asia to adopt PPVC in 2014.

In 2016, we invested $2.25 million in a partnership with the National University of Singapore for two new research laboratories to catalyse innovation in smart and green building technologies which can be test-bedded in our future developments.

Risk Management Since 2001, we have been implementing the CDL 5-Star Environmental, Health and Safety (EHS) Assessment System on 100% of our builders to assess their EHS performance and safeguard against associated risks.

To future-proof our business, we are embarking on a scenario planning exercise in 2017, to identify and mitigate emerging trends including carbon tax and circular economy, which can impact CDL’s supply chain. INTEGRATED STRATEGY FOR VALUE CREATION

CDL’s Capital Performance Highlights in 2016 CDL Future Value 2030: ESG Goals and Supporting Nine Relevant SDGs Targets (Effective from 2017) Manufactured • 87 Green Mark certified developments and office interiors Goal 1: Building Sustainable Cities and Communities SDG 11: Sustainable Cities Capital • More than 70% of CDL’s portfolio of Green Mark certified developments and properties are • To achieve Green Mark certification for 80% of CDL and Communities rated Green Mark GoldPLUS and Platinum – beyond the mandatory Green Mark certification level owned and/or managed buildings Social and • Over 95% of our existing tenants have signed on to the CDL Green Lease Partnership Programme • To maintain 100% tenant participation in CDL Green Relationship Lease Partnership Programme Capital • Invested $2.25 million in an R&D collaboration with National University of Singapore (NUS) • To double our commitment to adopt innovations SDG 9: Resilient and to catalyse innovations in climate-resilient and smart building technologies through NUS- and technology for green buildings Innovative Infrastructure CDL Smart Green Home and Tropical Technologies Laboratory (T² Lab)

• Announced the launch of the Singapore Sustainability Academy – a hub for capacity • To double resources devoted to advocacy of SDG 17: Partnership for building, advocacy and stakeholder engagement for sustainable development, in sustainability practices, stakeholder engagement Sustainable Development partnership with the Sustainable Energy Association of Singapore and capacity building

Natural Capital • Reduced carbon emissions intensity by 16% from 2007 levels Goal 2: Reducing Environmental Impact SDG 13: Urgent Action to • First property developer in Singapore to achieve ISO 14064 assurance for Greenhouse • To achieve the science-based target of reducing Combat Climate Change Gases (GHG) emissions disclosure carbon emissions* intensity by 38% from 2007 levels

• Reduced energy use intensity by 25% from 2007 levels • To reduce the usage intensity of energy and water SDG 7: Affordable and • Reduced water use intensity by 15% from 2007 levels by 25% from 2007 levels Clean Energy

14 • Established 2016 baseline for new waste disposal target • To reduce total waste disposed by 50% from SDG 12: Responsible Consumption – 13,523 tonnes of construction waste 2016 levels and Production – 4,283 tonnes of general, non-hazardous waste from commercial buildings

• Almost 100% of consultants and main builders of CDL developments have obtained both • To ensure 100% of appointed suppliers are certified ISO14001 and OHSAS18001 certifications by recognised environmental standards

• At least 80% of the Singapore Sustainability Academy was built with Cross Laminated • To ensure that 50% of our construction materials are SDG 15: Biodiversity and Timber and Glued Laminated Timber, which are harvested from sustainably managed derived from recycled content, low-carbon sources or Resource Conservation forests and verified by the Nature’s BarcodeTM system certified by recognised environmental organisations

Organisational • Zero corruption and fraud incidents across CDL’s core operations in Singapore Goal 3: Ensuring Fair, Safe and Inclusive Workplace SDG 16: Peace, Justice and Capital • To maintain Zero corruption and fraud incidents Strong Institutions across CDL’s core operations Human Capital • Zero fatality across CDL’s operations and direct suppliers in Singapore • To maintain Zero fatality across CDL’s operations SDG 8: Decent Work and and direct suppliers in Singapore Economic Growth

• Zero occupational diseases across CDL’s operations and direct suppliers in Singapore • To maintain Zero occupational diseases across CDL’s operations and direct suppliers in Singapore

• Accident Frequency Rate (AFR)* of 5.7 at corporate office • To maintain Zero AFR at CDL corporate office • AFR of 0.53 at construction sites • To maintain AFR of one or less for direct suppliers at • Zero AFR at managed properties construction sites and managed properties

* Number of workplace accidents per million manhours worked CDL’s Capital Performance Highlights in 2016 CDL Future Value 2030: ESG Goals and Supporting Nine Relevant SDGs Targets (Effective from 2017) Manufactured • 87 Green Mark certified developments and office interiors Goal 1: Building Sustainable Cities and Communities SDG 11: Sustainable Cities Capital • More than 70% of CDL’s portfolio of Green Mark certified developments and properties are • To achieve Green Mark certification for 80% of CDL and Communities rated Green Mark GoldPLUS and Platinum – beyond the mandatory Green Mark certification level owned and/or managed buildings Social and • Over 95% of our existing tenants have signed on to the CDL Green Lease Partnership Programme • To maintain 100% tenant participation in CDL Green Relationship Lease Partnership Programme Capital • Invested $2.25 million in an R&D collaboration with National University of Singapore (NUS) • To double our commitment to adopt innovations SDG 9: Resilient and to catalyse innovations in climate-resilient and smart building technologies through NUS- and technology for green buildings Innovative Infrastructure CDL Smart Green Home and Tropical Technologies Laboratory (T² Lab)

• Established 2016 baseline for new waste disposal target • To reduce total waste disposed by 50% from SDG 12: Responsible Consumption 15 – 13,523 tonnes of construction waste 2016 levels and Production – 4,283 tonnes of general, non-hazardous waste from commercial buildings

• Zero occupational diseases across CDL’s operations and direct suppliers in Singapore • To maintain Zero occupational diseases across CDL’s operations and direct suppliers in Singapore

* CDL’s carbon emissions take into consideration all GHG emissions INTEGRATED STRATEGY FOR VALUE CREATION

OUR APPROACH TO Initiative (GRI)-checked Social global and domestic trends, MATERIALITY and Environment Report, we have regulatory development, as well as focused our sustainability efforts stakeholder opinions. Materiality is any factor that can around material ESG issues by have a present or future impact on aligning our business perspectives CDL’s Stakeholders CDL’s value creation, and hence our with that of our stakeholders’. Our business performance over time. materiality also takes into account We define our stakeholders as Balancing internal and external the value chain where CDL has groups whom our business has a viewpoints is therefore critical in considerable influence, but not significant impact on, and those with defining and managing ESG issues direct control. a vested interest in our operations. that are of significant relevance to By assessing the significance and our business and stakeholders. To keep abreast of critical issues, impact of their interest on CDL’s we periodically review our material business, we have identified seven Since 2008 when we published issues against the changing key stakeholder groups. CDL’s first Global Reporting business landscape, emerging

Stakeholder Groups Impact and Significance Our Employees Our employees are part of our human capital and their health and safety, competencies and welfare are fundamental to CDL’s operational effectiveness. We aim to develop their potential to drive innovation, productivity and organisational excellence. 16 Our Customers Our aim is to create inspiring spaces and deliver quality homes in line with the rising expectations and lifestyle aspirations of tenants and homebuyers. CDL seeks to deliver sustainable solutions and exceptional service levels to benefit our customers.

Our Builders and Suppliers CDL works closely with partners in our value chain to ensure that construction activities are carried out in line with industry safety standards and sustainable building methods.

Our Investors We strive to maximise shareholder returns, maintain good corporate governance, and improve levels of transparency through financial and sustainability reporting and timely communication.

The Government and Regulators Beyond compliance, we partner with key government agencies to jointly elevate industry standards for green building, sustainability practices, as well as health and safety standards.

The Media As news and information outlets are one of the main sources of information for our stakeholders and the public, we aim to engage the media in promoting sustainability and the green building agenda to drive green consumerism.

Our Community Our developments shape public spaces and impact the interaction between people and their broader environment. CDL seeks to create green spaces that promote social integration, and invests in projects that support environmental conservation and community development.

*102-40, 102-42, 102-43, 102-46 Stakeholder-Driven In addition, we took the initiative that are of the highest concern to Materiality to assess our material ESG issues our business and stakeholders. against the UN’s 2030 Agenda for In February 2016, we conducted a Sustainable Development by aligning In view of emerging regulatory materiality review to validate and them with nine relevant SDGs. developments and global trends, update CDL’s material ESG issues, such as the impending rise of which were originally identified Defining and Prioritising Singapore’s water prices and the through a rigorous materiality Our Material Issues growing momentum towards a assessment completed in November circular economy, we have also 2014. Through an online survey Following the methodology of included water conservation, administered by an independent AA1000’s materiality process, the list effluent and waste management, as consultant, seven stakeholder groups of 22 ESG issues were mapped onto well as responsible material use as were asked to rank a list of 22 ESG a matrix reflecting the importance to issues of increasing importance. issues, and provide feedback on any external (x-axis) and internal (y-axis) additional issues which they deemed stakeholders. We further identified In tandem with our new CDL Future as important to our business. the top 10 most critical ESG issues Value 2030 sustainability blueprint based on the 10 highest aggregated which contains clear ESG goals The high response rate of 75% score given by our internal and and targets, the top 10 material reflected the willingness of our external stakeholders. ESG issues have been reviewed and stakeholders to engage with CDL on endorsed by our Board of Directors sustainability matters, and underscores The process has helped us focus our in February 2017. the relevance of these issues to our sustainability strategy and reporting long-term business success. scope on the most material issues 17

Materiality Review Process

Stakeholder feedback Validate and update through an online Align with UN SDGs 22 ESG issues survey

Board review CDL Future Value 2030 Prioritise top 10 and approval ESG goals and targets material ESG issues

*102-42, 102-43, 102-46 INTEGRATED STRATEGY FOR VALUE CREATION

CDL Materiality Matrix

4 3 2

5 1

7 10 4 9

8 6 Importance to external stakeholders

18 3

1 2 3 4 5 Importance to internal stakeholders Legend LOW MEDIUM HIGH CRITICAL

Top 10 Material Issues

1 Legal Compliance

2 Anti-corruption and Anti-fraud

3 Product Quality and Responsibility

4 Employee Health and Safety

5 Customer/Public Health and Safety

6 Economic Contribution to Society

7 Supplier Health and Safety

8 Customer and Tenant Engagement

9 Energy Efficiency

10 Environmental Impact Assessment and Mitigation

*102-47 Top 10 Impact and Topics under Addressed in this Material Issues Boundaries GRI Standards Report

1 Legal Compliance All stakeholders across our • Anti-competitive behavior All value chain • Socioeconomic compliance • Environmental compliance • Customer privacy

2 Anti-corruption All stakeholders across our • Anti-corruption Organisational and Anti-fraud value chain Capital

3 Product Quality Customers, builders and • Marketing and labelling Organisational and Responsibility suppliers, government • Sustainability certification, Capital, and regulators, investors, rating and labelling Manufactured community, and media Capital

4 Employee Health Employees, government • Occupational health Human Capital and Safety and regulators, and media and safety

5 Customer/ Public Customers, community, • Customer health and safety Manufactured Health and Safety government and regulators, Capital, Social and and media Relationship Capital

6 Economic All stakeholders across our • Economic performance Financial Capital, Contribution to value chain • Market presence Human Capital, Society • Indirect economic impacts Social and 19 Relationship Capital

7 Supplier Health Builders and suppliers, • Occupational health Human Capital, and Safety government and regulators, and safety Social and investors, and media Relationship Capital

8 Customer Customers, investors, • Approach to stakeholder Manufactured and Tenant community, government engagement Capital, Social and Engagement and regulators Relationship Capital

9 Energy Efficiency Customers, builders and • Energy Natural Capital suppliers, government • Emissions and regulators, investors, community, and media

10 Environmental Builders and suppliers, • Biodiversity Natural Capital Impact Assessment community, and media and Mitigation

Issues of Increasing Impact and Topics under Addressed in this Importance Boundaries GRI Standards Report Responsible Material Use Customers, builders and • Materials Natural Capital suppliers, government Water Conservation and regulators, investors, • Water Effluent and Waste community, and media • Effluent and Waste Management

*102-47 INTEGRATED STRATEGY FOR VALUE CREATION

Our ESG Risks and Opportunities

CDL recognises that disconnection between sustainability and risk management can lead to strategic and operational risks, as well as missed opportunities for growth. Through stakeholder engagement and materiality assessment, we complement our Enterprise Risk Management (ERM) in the identification and assessment of ESG risks and opportunities, having reviewed the impact of material ESG issues on our business and stakeholders.

We will continue to monitor and review the risks and mitigating controls, to reflect changes due to emerging global trends and the ever-evolving business landscape. Details on CDL’s ERM framework can be found on page 37 to 39.

Climate Change Risks Product Risks This includes risks driven by changes in Property purchase and leasing is a regulations, physical climate parameters significant investment or recurring expense and other climate-related developments. for CDL’s customers. The failure to meet One example is the enforcement of the customers’ expectations on product quality Paris Agreement that will reshape national and responsibility will affect CDL’s market economies, development paths, and value performance. CDL makes it a priority to chains for companies across the globe. deliver innovative green and safe designs, Along with a formalised Climate Change with high standards of workmanship and Policy since 2015, CDL also adopted the functionality, by voluntarily subscribing to Sectoral Decarbonisation Approach to the BCA Construction Quality Assessment set science-based targets to demonstrate System (CONQUAS). For quality assurance, commitment to keep global warming CDL has set a target to rectify defects below two degrees Celsius. reported at new developments within 30 days. 20 Health & Safety Risks Although most work activities at our Raw Materials Supply Risks construction sites and managed buildings Developing new buildings requires raw are carried out by contractors, CDL materials ranging from timber to steel. The recognises that a safe work environment is stability and the sustainability of the supply a productive one. production of such materials have direct impact on CDL’s core business operations. Within the EHS Management System (EHS Within the EHS MS, CDL has Green MS), CDL established an independent audit Procurement Guidelines that clearly state tool – the CDL 5-Star EHS Assessment the requirements for sustainable sourcing. System– to ensure contractors’ onsite EHS performance. CDL also requires contractors Regulatory Risks RISKS to have a minimum of a bizSAFE level 3 or Legal non-compliance may result in OHSAS18001 certification, to ensure that monetary fines and non-financial sanctions workplace safety and health risks can be which may impact CDL’s operations and adequately addressed and managed. reputation. Failure to comply with local and international laws will also threaten People Risks CDL’s licence to operate in those markets. This includes fraudulent and corrupt Within the EHS MS, the applicable legal practices amongst employees and business requirements are regularly monitored contacts that may result in financial and evaluated for compliance. A system losses and reputational damage. CDL has of incentives and penalties has also been a zero-tolerance policy towards fraud implemented to improve and tighten and corruption, and has in place whistle- contractors’ site management. blowing procedures enabling employees and other persons to raise concerns of Water Risks possible improprieties in confidence. In Increases in water tariffs, the supply addition, the loss of human talent will of water and its subsequent discharge impact the company’s daily operations and into water systems are key risks to the ability to sustain growth. Identification, environment that CDL has identified. To development and retention of talent are ensure a reduction in the use of potable key aspects of CDL’s human capital risk water in construction, CDL monitors water management. consumption closely with set targets in place. Water recycling and silt water treatment systems have been set up onsite, and discharges into the water systems are closely monitored. Demographic Shifts Responsible Investment and Green Financing The UN Population Prospect in 2008 The UN Principles for Responsible projected that almost 10% of the world’s Investment has amassed over 1,500 population will be above 65 years old by signatories, representing US$60 trillion in 2020 and by 2030, this statistic is projected assets under management pledged towards to go up to 15%. An aging population poses incorporating ESG factors into investment challenges on how businesses design jobs and ownership decisions. The expanding and fulfill customers’ needs. It also presents pool of socially responsible investors is also opportunities for corporations to respond evident in the rapid growth of green bond and position themselves to meet these new markets, which saw a 92%** increase in demands and realities. 2016 and is expected to continue growing.

As a leading eco-developer, CDL can These developments present opportunities leverage on our green building track record for CDL to attract fresh funds from the and expertise to innovate product offerings global responsible investment community, to capitalise on the emerging senior homes as well as raise capital for future green 21 and elderly care markets. building initiatives and innovation through the issuance of green bonds. Low-Carbon Economy By 2020, the global low-carbon and On 6 April 2017, CDL announced the resource efficient industry is projected to successful launch of our inaugural green reach US$2.2 trillion*. With Singapore’s bond which raised $100 million to finance pledge for 36% reduction in emissions green building initiatives for our flagship intensity by 2030, the Climate Action Republic Plaza. Plan and Sustainable Singapore Blueprint, governmental efforts are increasingly Sharing Economy OPPORTUNITIES moving towards a green growth economy. While the burgeoning sharing economy has disrupted conventional businesses Beyond our long-established commitment in office and residential lease, CDL has to invest 2% to 5% of a new development’s capitalised on these rapidly growing sectors construction cost on green features, CDL by venturing into new business models has partnered the NUS School of Design in search of long-term recurring revenue and Environment to catalyse innovations streams. in smart and green building technologies, which can be test-bedded in our future • In January 2017, CDL invested in China’s developments. Through the NUS-CDL leading co-working space operator Distrii Smart Green Home and NUS-CDL Tropical to create one of the largest co-working Technologies Laboratory (T² Lab), CDL facilities in Singapore – over 60,000 will champion novel solutions to meet the square feet of space at Republic Plaza in future lifestyle needs of homebuyers and the heart of the city’s Central Business tenants in a climate-resilient, urbanised District, scheduled to open in 2018. environment. • In September 2016, CDL China invested In the year ahead, CDL will be reviewing the in the fast-growing Chinese online adoption of carbon pricing to stay ahead of apartment rental platform mamahome the upcoming carbon tax regulation. – a one-stop solution for both apartment owners and rental customers * Based on a study by UN Environment, – with more than 150,000 apartment 2013. listings in 20 China cities.

** Climate Bond Initiative Green Bond Highlights, 2016. INTEGRATED STRATEGY FOR VALUE CREATION

REPORT PERIOD The Board has adopted a number and disclosed within this Integrated AND SCOPE of policies, collectively referred to Sustainability Report. as Responsible Hospitality, which This is CDL’s tenth Sustainability are designed to recognise M&C’s Our Report continues to integrate Report. It replaces the CDL wider impact on the communities in ISO 26000:2010 Guidance on social Integrated Sustainability Report which it operates. M&C’s Corporate responsibility, and the Company 2016 as our latest annual publication Responsibility activities and full year actively promotes compliance dedicated to providing information carbon footprint are included in its with internationally adopted on financial, governance, social and Annual Report available at standards and regulations in the environmental performance that www.millenniumhotels.com. fields of occupational standards, are material to CDL’s business and environmental protection, and the stakeholders. Monetary values in this Report are fight against corruption. presented in Singapore dollars, which This Report contains a full is CDL’s functional currency. Where Reporting Boundaries and year’s data from 1 January to possible, we have provided up to five Standards 31 December 2016 and focuses years of historical data for comparison. primarily on operations owned This Report is aligned with the and managed by CDL’s Singapore CDL voluntarily discloses the latest Global Reporting Initiative headquarters, excluding that information as we believe in (GRI) Standards for sustainability of our subsidiaries. The scope upholding the principles of reporting launched in October 2016, covers our principal business as corporate transparency, disclosure, and its Construction & Real Estate a real estate management and and communication with our Sector Supplement. It is prepared development company, comprising stakeholders. Any variance in data in accordance with GRI Standards operational functions such as from the CDL Annual Report 2016 – Comprehensive option and its 22 project development as well as is due to updates following the Reporting Principles for defining property and facilities management external assurance of this Integrated reporting content: of commercial and industrial Sustainability Report. For additional developments, and our corporate information on our comprehensive • Stakeholder Inclusiveness: headquarters in Singapore. In 2016, initiatives on sustainability, please beyond identifying our property development was the main refer to our sustainability microsite: stakeholders and responding to contributor to CDL’s pre-tax profit. www.cdlsustainability.com. their expectations and interests, we engage our builders and Following the inclusion of carbon Report Content suppliers in the rigorous reporting emissions data from our key process in line with the new GRI subsidiaries since 2015, we have In each reporting cycle, CDL’s Standards. This helps to raise further expanded the reporting Sustainability Committee reviews the accountability of stakeholders scope to include their energy and content of the Report to determine along our supply chain. water use data for FY 2016. These six its relevance to our business. Efforts • Sustainability Context: subsidiaries are: are also made to ensure that current presenting performance in the and emerging material issues wider context of sustainability; • CBM Pte Ltd pertaining to sustainability and the • Materiality: focusing on issues • CDL Hospitality Trusts interests of our stakeholders are that impact business growth and • City Serviced Offices addressed. are of utmost importance to our • Le Grove Serviced Apartments stakeholders; • The Tower Club Singapore Other operational committees • Completeness: including full • Hotels owned and managed by oversee existing management coverage of material topics and Millennium & Copthorne Hotels systems and certifications such boundaries that are of significant plc (M&C) as the ISO 14001 Environmental economic, environmental, and Management System, ISO 50001 social impact to enable stakeholders M&C has over 130 hotels with more Energy Management System, OHSAS to assess CDL’s performance in the than 37,000 rooms worldwide, many 18001 Occupational Health and reporting period in key gateway cities. While CDL has Safety Assessment System and a 65% interest in M&C, the company Singapore Quality Class. Relevant This Report has successfully has its own Board of Directors that targets and key performance completed the GRI Materiality oversees its policies and operations. indicators are established, tracked, Disclosures Service which verifies that

*102-48, 102-49 the General Disclosures 102-40 to • Scope 2 — indirect emissions assurance is in accordance with 102-49 were correctly located in both from purchased electricity using ISAE 3000 Assurance Engagements the GRI Content Index and in the text the location-based method Other than Audits or Reviews of of this Report. The GRI Content Index • Scope 3 — indirect emissions Historical Financial Information. The can be found on pages 96 to 100. such as our business travel, staff assurance, including the scope of commute, and outsourced services work and conclusions, can be found This Report also adopts the in the Assurance Statement on International Integrated Reporting In addition to the GHG Protocol, our pages 91 to 95. Council’s (IIRC) Integrated carbon emissions are also calculated Reporting Framework by based on The CarbonNeutral® In line with our steadfast commitment connecting ESG performance Protocol, a set of guidelines to meet to align CDL’s environmental practices with business and financial impact the global standard for managing with international best practices, for a more meaningful and all- our offset-inclusive programmes. CDL became the first Singapore rounded corporate reporting. The Protocol includes requirements developer in 2016 to validate our Centred around six capitals – for GHG assessments, emissions Greenhouse Gas (GHG) emissions Financial, Organisational, Natural, reduction planning, carbon credit data against the stringent ISO 14064 Manufactured, Human, and Social eligibility, management of carbon for GHG verification. CDL’s 2016 and Relationship – this approach credits through registration and GHG emissions data continues to be aims to present a holistic picture retirement, and communication of verified by Lloyd’s Register Quality to our investors and stakeholders CarbonNeutral® programmes. Assurance Ltd. (LRQA) in accordance on how the interrelation between with the requirements of ISO 14064- our business and sustainability We use an operational consolidation 3 specification with guidance for performance leads to value creation approach to determine organisational the validation and verification of in the long-term. CDL’s value boundaries. For example, our GHG assertions. LRQA’s Assurance creation model is outlined on carbon and energy data includes Statement, which is for the internal 23 page 12. only the distribution impacts. Data GHG report prepared by CDL, can be is consolidated from a number found on pages 88 to 90. To request Since 2005, CDL has been a of sources, including our project for CDL’s GHG report, please write in signatory to the United Nations sites and fuel use information, and to our feedback channel. Global Compact and we are is analysed centrally. Our baseline committed to its 10 principles. Our year is 2007 and our emissions are Accessibility annual Integrated Sustainability independent of any GHG trades. Report also serves as our CDL continues to print only Communication on Progress (COP) External Assurance limited copies of this Integrated addressing the areas of human Sustainability Report as part of our rights, labour, environment and anti- The CDL Integrated Sustainability environmental conservation efforts. corruption. Our COP is available at Report 2017 continues to be Current and previous editions of the www.unglobalcompact.org. externally assured to validate reports are available at the accuracy and reliability of its www.cdlsustainability.com. Our carbon footprint is calculated in content. Ernst & Young LLP (EY) was accordance with the World Business engaged to provide independent Feedback Channel Council for Sustainable Development limited assurance of this Report and World Resources Institute’s against the latest GRI Standards Feedback from our stakeholders is (WBCSD/WRI) Greenhouse Gas (GHG) for sustainability reporting and vital for us to continually improve Protocol, a Corporate Accounting and the Construction & Real Estate our reporting and sustainability Reporting Standard. This protocol is Sector Supplement. The assurance practices. We welcome your views, considered the current best practice covered figures and statements comments or feedback, which may for corporate or organisational found in this Report that are related be directed to: emissions reporting, and we measure to the Subject Matters approved by our emissions in three ‘scopes’: CDL’s Chief Sustainability Officer Ms Esther An and agreed as per the Assurance Chief Sustainability Officer • Scope 1 — direct GHG emissions Statement. EY reviewed the City Developments Limited from sources that are owned, underlying systems and processes 9 Raffles Place, #36-00 Republic such as company-owned that support the Subject Matters Plaza, Singapore 048619 vehicles and refrigerants in this Sustainability Report. The Email: [email protected]

*102-49 FINANCIAL PERFORMANCE

SDG GOAL 8 DECENT WORK AND ECONOMIC GROWTH 24

GEOGRAPHICAL PORTFOLIO EXPANSION DIVERSIFICATION

BUILDING FUTURE VALUE FINANCIAL CAPITAL

A company’s financial capital and MARKET REVIEW AND 2016, compared with a 3.7% decline market performance depend on its PERFORMANCE in 2015. Rentals of private residential ability to create a competitive edge properties declined by 4.0% for 2016 and generate tangible value for its Despite the challenging economic compared with the 4.6% fall in 2015. shareholders, customers, employees environment, the CDL Group and the society at large. Sustaining achieved a creditable net profit after Despite uncertainties in the residential healthy profits also relies on tax and non-controlling interests property sector, CDL continued to intangible assets such as leadership (PATMI) of $653.2 million for FY achieve steady sales. In 2016, the quality, organisational excellence, 2016 (FY 2015: $773.4 million). Basic Group, together with our joint venture brand equity, environmental earnings per share was 70.4 cents for associates, sold 1,017 units including management and human capital. FY 2016 (FY 2015: 83.6 cents). The ECs, at a sales value of about $1.25 lower PATMI versus 2015 was due to billion, emerging as one of the top- More studies have shown that the absence of the substantial profits selling private developers in Singapore investors are increasingly linking a recognised in Q4 2015 from our (FY 2015: 674 units with total sales firm’s financial performance to its second Profit Participation Securities value of $691.5 million). sustainability practices. According to (PPS) platform. Nonetheless, a 2015 report by Morgan Stanley, over PATMI for 2016 was boosted by With interest rates likely to rise, buyers 70% of investors consider sustainability strong residential sales in China are taking a more cautious approach, factors for investment decisions. and Singapore, and divestitures which continues to impact prices and including our 52.52% interest in City rentals. However, new launches with Globally, over 140 parties have e-Solutions Limited in Q3 2016, and strong attributes are likely to continue ratified the Paris Agreement as of Exchange Tower in Q4 2016, as well to enjoy good sales momentum. For end March 2017, and many forward- as the recapitalisation of Summervale the office sector, URA data showed looking companies have begun to Properties Pte. Ltd. (Summervale) that prices and rentals of office space align their corporate agendas to resulting in the establishment of our in FY 2016 fell by 2.8% and 8.2% the United Nations (UN) Sustainable third PPS platform. respectively. Our office portfolio Development Goals (SDGs). In nonetheless continued to enjoy 25 Singapore, to manage resource Revenue rose 18.2% to a record $3.9 healthy occupancy of 95.9% as at 31 scarcity, the government has put billion for FY 2016 (FY 2015: $3.3 December 2016, versus the national in place measures to encourage billion). The increase was driven by the average occupancy rate of 88.9%. corporations to use their natural property development segment which capital more efficiently or risk contributed 44.7% of the revenue, In view of the headwinds in the increasing costs. With these moves with strong maiden contribution from Singapore market, we have been toward a low-carbon and inclusive Hong Leong City Center in Suzhou in de-risking our Singapore exposure by economy, companies will need to Q4 2016 and steady sales of our other growing our international segments. address long-term sustainability Singapore projects, namely Gramercy We have been actively seeking opportunities and risks in order to Park, Coco Palms, D’Nest and The opportunities overseas, primarily in our stay competitive. Venue Residences and Shoppes, five key markets – United Kingdom as well as revenue recognition in (UK), United States (US), China, Japan At CDL, we aim to capitalise on these entirety from the fully sold Lush Acres and Australia. In FY 2016, our overseas opportunities and mitigate operational Executive Condominium (EC), which segments accounted for 58% of CDL risks to achieve a balanced triple obtained Temporary Occupation Group’s total EBITDA* and 45% of total bottom line for sustained growth. Permit (TOP) in June 2016. assets. This is inclusive of our hotel portfolio under our London-listed In today’s highly volatile business Domestically, Singapore’s residential subsidiary Millennium & Copthorne environment, CDL continues to property market across all market Hotels plc (M&C). adopt prudent financial management, segments continued to be weighed capitalising on our assets and down by oversupply and government Revenue from overseas development investments in growth strategies to property cooling measures projects is recognised on completion, enhance shareholder value. remained largely in place. Urban and moving forward, we expect these Redevelopment Authority (URA) projects to contribute significantly to data indicated that prices for private our profits. Over 80% of the Group’s residential properties fell by 3.1% in land bank in terms of proposed Gross Floor Area is now overseas, with China and UK as our largest markets.

* Earnings Before Interest, Taxes, Depreciation and Amortisation FINANCIAL CAPITAL

KEY FINANCIAL INFORMATION

YEAR 2012 2013(1) 2014 2015 2016 Revenue $3,354 m $3,213 m $3,764 m $3,304 m $3,905 m

Tax paid $204 m $135 m $115 m $128 m $157 m

Staff costs $665 m $705 m $763 m $818 m $810 m

Profit before tax $960 m $948 m $1,004 m $985 m $914 m

Profit for the year attributable

to owners of the Company $678 m $686 m $770 m $773 m $653 m

Return on equity 9.3% 8.9% 9.2% 8.6% 7.0%

Net asset value per share $8.03 $8.50 $9.25 $9.89 $10.22

Basic earnings per share 73.2 cents 74.0 cents 83.2 cents 83.6 cents 70.4 cents DIVIDENDS Ordinary dividend per share

– Final 8.0 cents 8.0 cents 8.0 cents 8.0 cents 8.0 cents(2)

– Special interim – 8.0 cents 4.0 cents 4.0 cents 4.0 cents

– Special final 5.0 cents – 4.0 cents 4.0 cents 4.0 cents(2)

26 Preference dividend per share 3.9 cents 3.9 cents 3.9 cents 3.9 cents 3.9 cents

Notes: (1) The 2013 comparative figures were restated to take into account the retrospective adjustments arising from the adoption of FRS 110 – Consolidated Financial Statements. (2) Final and special final tax-exempt (one-tier) ordinary dividends proposed for financial year ended 31 December 2016 have been approved by the ordinary shareholders at the Annual General Meeting held on 25 April 2017.

PRUDENT CAPITAL hence adjust the dividend payment review the policy from time to time MANAGEMENT AND to shareholders or issue new shares and reserves the right to modify, SUSTAINABLE DIVIDEND or other financial instruments. amend and update the policy. POLICY The Company’s dividend policy aims CDL monitors capital using a net Building a strong capital base is to provide a return to shareholders debt equity ratio which is defined the key objective of our capital at least once a year, after taking as net borrowings divided by management. This will ensure CDL into account the Group’s financial total capital employed. In 2016, maintains investor, creditor and market performance, short- and long- we maintained a robust balance confidence, as well as sustains our term capital requirements, future sheet with a cash position of business expansion and growth plans. investment plans, general global approximately $3.9 billion and a and business economic conditions healthy net gearing ratio of 16% (FY We manage and adjust our capital and any regulatory factors. The 2015: 26%). structure according to changes in CDL Board endeavours to maintain economic conditions. For this purpose, a balance between meeting Our strong cash position will enable our definition of “capital” encompasses shareholders’ expectations and the Group to seize acquisition all components of equity, including prudent capital management with a opportunities and other growth non-controlling interests. CDL may sustainable dividend policy; and will platforms swiftly. CAPITAL MANAGEMENT

As at As as As at As at As at 31/12/2012 31/12/2013(1) 31/12/2014 31/12/2015 31/12/2016 Cash and cash $2,157 m $2,720 m $3,898 m $3,565 m $3,673 m equivalents

Net borrowings $2,357 m $2,589 m $2,820 m $2,938 m $1,865 m

Net gearing ratio(2) 25% 25% 26% 26% 16%

Net gearing ratio 18% 18% 19% 19% 12% – if fair value gains on investment properties are taken into consideration

Interest cover ratio 17.4 times 13.7 times 12.1 times 13.0 times 12.5 times

Notes: (1) The 2013 comparative figures were restated to take into account the retrospective adjustments arising from the adoption of FRS 110 – Consolidated Financial Statements. (2) Excludes fair value gains on investment properties as the Group’s accounting policy is to state its investment properties at cost less accumulated depreciation and impairment losses.

CDL’s financial information is described in more detail in our Annual Report 2016. Current and previous reports are available at www.cdl.com.sg 27 ACQUISITIONS AND UK streams. With more than 150,000 EXPANSION apartment listings spanning over 20 In May 2016, CDL acquired our cities in China, the platform provides The CDL Group is on track to first office redevelopment property online management software and achieve our $5 billion target for in the UK, Development House, other value added services including acquisitions and to grow our funds in Shoreditch (north of the City housekeeping, renovation, 24-hour under management (FUM) business of London) for £37.4 million. The concierge and a call centre. Synergies to $5 billion by 2018 – a five year existing 28,000 square feet (sq ft) can be shared with the Group’s target set in 2014 as part of our six-storey office building can be properties concentrated in the key accelerated diversification strategy. potentially redeveloped into a nine- gateway cities of Shanghai, Suzhou storey office building with about and Chongqing. A key focus of CDL’s growth 90,000 sq ft, with ancillary retail strategy is to actively build our space at the ground floor. Japan overseas platforms in our core development business, particularly China In October 2016, the Group signed in five key overseas markets – the an agreement with Mitsui Fudosan UK, US, China, Japan and Australia, In September 2016, CDL China Residential Co., Ltd. to acquire a while seizing suitable opportunities Limited, a wholly-owned subsidiary 20% stake in Park Court Aoyama The in Singapore. of the Group, invested RMB Tower, a prime residential project 100 million for a 20% stake in located in the highly sought-after In 2016, the Group made three mamahome, one of China’s fastest Aoyama district within central Tokyo. strategic overseas acquisitions, growing online apartment rental Comprising a 26-storey tower with bringing our total acquisitive platforms. This investment will 163 apartments and facilities, it is investments to $2.5 billion contribute to the Group’s future expected to complete in 1H 2018. since 2014. long-term recurring income FINANCIAL CAPITAL

The Group has continued to remain In February, the Group announced FUNDS MANAGEMENT highly acquisitive as it entered into its wholly-owned subsidiary, CDL 2017, making three new investments China Limited entered into an equity In 2016, CDL unlocked value in Q1. transfer agreement to acquire a in Nouvel 18, a 156-unit luxury prime Shanghai commercial project freehold residential development In January, the Group announced for a total transaction value of RMB on Anderson Road through our that an agreement was signed to 900 million. The acquisition will third PPS platform for $977.6 invest RMB 72 million for a 24% be made through the purchase of million. This initiative was our first stake in Distrii, a leading operator of a 100% equity stake in Shanghai funds management platform where co-working spaces in China. Distrii Meidao Investment Co. (Shanghai the asset was a purely high-end currently has a capacity of over Meidao). Shanghai Meidao owns residential project. PPS 3 was also 2,200 seats across ten locations in the commercial development unique as it targeted Singaporean Shanghai, of which over 80% has currently known as Meidao Business high net worth investors, while our already been taken up. It is opening Plaza in Shanghai’s fast-developing previous two PPS platforms were five more co-working facilities – Hongqiao Central Business District. primarily targeted at institutional three in Shanghai, one in Beijing investors. and one in Hangzhou in 1H 2017– In the same month, the Group also bringing the total to 15 locations, acquired the 1.6 acre Ransomes Under the PPS 3 structure, we with a seating capacity of 3,700. Wharf site in Battersea for £58 exited our entire interest in It plans to further expand in other million. The site is located within the Summervale, the vehicle holding global gateway cities. Distrii will London Borough of Wandsworth, on Nouvel 18, via a recapitalisation make its first international foray by the south bank of the River Thames, by high net worth Singaporeans leasing more than 60,000 sq ft of adjacent to the Albert Bridge. It is and companies wholly-owned space at Republic Plaza, the Group’s also a short distance from Battersea by Singapore citizens. The flagship Grade A office building in Park, which is one of London’s best recapitalisation comprised $102 Raffles Place. This will help backfill kept riverside open spaces. The site million issued in the form of 28 some of the space that will be has existing planning permission for ordinary and preference shares to vacated by one of the Group’s 118 apartments including affordable Green 18 Pte Ltd, a special purpose anchor tenants in the building. It is homes, commercial units and car vehicle company formed by the expected to open in 1H 2018. parking spaces. The residential incoming investors. development will comprise six residential buildings of up to 10 storeys. Site demolition works are expected to commence in Q3 2017. The investors will enjoy a preferred CDL will also continue to pursue 5% annual internal rate of return and our funds management and capital upside beyond that, when the units recycling programme. This may are sold, less any incentives fees. take the form of another PPS or Concurrently, two banks provided traditional private equity structures. $579.2 million in senior loans We are actively exploring asset facilities, and the remainder $296.4 enhancement initiatives for our million was raised via issuance of existing office portfolio to ensure notes (fixed income securities). our assets remain relevant, up-to- date and competitive. Additionally, The Group’s wholly-owned we are evaluating innovative subsidiary, Trentwell Management offerings and new growth platforms Pte. Ltd. (Trentwell), was appointed that are complementary to our core as the exclusive asset manager businesses. The sharing economy is and marketing agent (for five years expected to grow significantly, and with an option to extend to seven) our investments such as mamahome to manage, lease, market and sell and Distrii, provide the Group entry the units of Nouvel 18. Trentwell into these growing sectors, which will receive an incentive fee after a will contribute to our long-term performance benchmark is met. recurring income streams.

The third PPS is in line with In addition, with the growing our strategy to grow our funds demand for socially responsible management business, enabling investment products, we recently the Group to recycle capital for launched our inaugural green our growth plans and unlock bond on 6 April 2017 - a first by a shareholder value. With PPS, the Singapore company. The two-year 29 Group has over $3.5 billion FUM and senior secured bond raised S$100 is on track to achieve our $5 billion million at 1.98% fixed rate, offering FUM target by end-2018. us an alternative financing stream. We are keen to explore more green bond issuances in the future that will LOOKING AHEAD link our sustainability initiatives with capital markets, and enable us to tap In 2017, CDL plans to be more on investors who are supportive of acquisitive with a focus on finding the commitment that CDL has made in-place income in Singapore over the past two decades towards and overseas. Our robust balance sustainability best practices. sheet and war chest place us in a strong position to deploy capital In Singapore, the cooling measures for acquisitions which can be and oversupply of office space in the form of physical assets, will continue to dampen market equities or debt instruments. We sentiment in the near-term. will continue to exercise strict However, we remain highly discipline in capital management, plugged-in to our home market remaining highly selective and value with defensive measures in place to oriented, and may take a contrarian navigate headwinds. approach when needed, to enhance shareholders’ returns. CORPORATE POLICIES

SUSTAINABILITY CORPORATE STANDARDS AND GOVERNANCE SDG GOAL 16 PEACE, JUSTICE AND BENCHMARKS STRONG INSTITUTIONS

RISK MANAGEMENT

BUILDING A RESILIENT ORGANISATION ORGANISATIONAL CAPITAL

MAINTAINING STRONG Effective Communication • A structured induction programme LEADERSHIP AND through All Levels where HODs brief new hires on MANAGEMENT their respective departments, Aligning corporate culture and while the Human Resources (HR) Reflecting CDL’s continued employees’ commitment with department shares on CDL’s commitment to groom leaders the Company’s strategic goals is organisation profile and VMV from within and attract competent key to our business performance • CDL360, an employee professionals to maintain the and sustainability. Our employees communications platform Company’s strong management, are informed of the Company’s containing CDL’s VMV, Code of we announced several senior performance and any new direction Business Conduct and Ethics, appointments in 2016. These through regular communication corporate policies, HR initiatives, included the Deputy Chief Executive and reviews of processes at all CSR information, Company-wide Officer, Chief Financial Officer, Chief levels. Our Senior Management announcements and news Human Resource Officer, Head of Team (SMT) and Heads of about CDL Asset Management, Head of Capital Departments (HODs), who are Markets, and Head of Investor highly involved in setting the Measuring Up to Best Practices Relations. directions, meet regularly to look into key issues. Our review and We recognise that organisational The move is part of CDL’s communication channels include: capital is an intangible asset and it ongoing efforts to enhance our may not be meaningful to quantify organisational structure and • Biweekly SMT Meetings to discuss its performance. However, where management systems to sustain and review strategic initiatives applicable, we strive to align our long term growth, as we ramp up • Monthly HOD Meetings for policies and practices to best-in- our diversification plans and position operational updates and senior class, international and national our Company for expansion of our leaders’ directions standards including: international presence and funds • Quarterly Business Operations management platforms. Meetings where frontline HODs • ISO 9001 – Quality Management 31 review operational issues • ISO 14001 – Environmental Enhanced Vision, Mission • Quarterly Risk Management Management System and Values (VMV) Committee (RMC) Meetings • ISO 14064-1 – Greenhouse Gas chaired by our CEO and attended Emissions In 2016, the Company introduced by members of SMT and HODs • ISO 26000 – Guidance on Social an enhanced set of corporate in charge of the Company’s Responsibility VMV to complement our business strategic risks to provide updates, • ISO 50001 – Energy strategy in today’s evolving business guidance, and reporting of key Management Systems landscape. Launched by our Chief risk issues. The RMC also reports • OHSAS 18001 – Occupational Executive Officer at an employee quarterly to the Board Audit and Health and Safety Management town hall, the refined VMV guides Risk Committee • CDP (formerly known as Carbon our actions in supporting the • Regular taskforce meetings Disclosure Project) Company’s purpose to build value chaired by our CEO/ Group • Global 100 Most Sustainable for our business and stakeholders, General Manager/ Chiefs on Corporations in the World as we continue to transform our matters such as sustainability, • FTSE4Good Index Series organisational frameworks and ISO 14001, risk management, • Dow Jones Sustainability Indices develop our growth platforms. and tenant engagement • MSCI Global Sustainability Indexes • CEO staff dialogues where • Global Real Estate Sustainability Supporting our corporate vision our CEO will receive feedback Benchmark (GRESB) of “Building Value for Tomorrow, from employees and share top • Channel NewsAsia Sustainability Today”, we have also introduced a management’s vision for CDL Ranking new sustainability blueprint – • Town hall and staff events • UN Global Compact 100 Index CDL Future Value 2030. It sets throughout the year where top • United Nations (UN) Sustainable clear directions and goals to propel management communicates Development Goals (SDGs) our business into the future. Our business directions and • Singapore Exchange (SGX) VMV and CDL Future Value 2030 challenges, celebrates Sustainability Indices blueprint can be found on page 12 good results, and addresses • Singapore Quality Class and 15. employees’ queries ORGANISATIONAL CAPITAL

Such structures and processes not Governance Award. The Diversity Remuneration Matters only build institutional knowledge, Award recognises excellence in but also facilitate continuous promoting diversity in boards Principle 7: Procedures for improvement to achieve critical of directors amongst SGX-listed Developing advantages in an increasingly companies. In addition, CDL also Remuneration Policies competitive and challenging industry. took home the Runner-Up award Principle 8: Level and Mix of for Internal Audit Excellence, which Remuneration recognises public listed companies Principle 9: Disclosure of CORPORATE that have put in place an effective Remuneration GOVERNANCE internal audit function which enhances corporate governance, risk Accountability and Audit CDL is committed to upholding management and internal controls. the highest standards of corporate Principle 10: Accountability governance and business integrity in As CDL continues to uphold the Principle 11: Risk Management and all our business activities, which are highest standards of corporate Internal Controls essential for the long-term viability governance, we have improved Principle 12: Audit & Risk of the Group’s businesses and the our ranking on the Singapore Committee (ARC) enhancement of shareholder value. Governance and Transparency Principle 13: Internal Audit (IA) Index (SGTI) from the 24th To demonstrate our commitment position in 2015 to 10th in 2016. Communication with Shareholders towards excellence in corporate The SGTI assesses companies governance, CDL has joined the on their corporate governance Principle 14: Shareholder Rights Securities Investors Association disclosure and practices, as well Principle 15: Communication with (Singapore) (SIAS) and its partners as the timeliness, accessibility and Shareholders since 2010 in making the following transparency of their financial Principle 16: Conduct of public Statement of Support, which results announcements. Shareholder Meetings 32 was reiterated at the 7th Singapore Corporate Governance Week 2016 Practices and Principles For the full Corporate Governance organised by SIAS: Report, please refer to the CDL Our corporate governance practices Annual Report 2016. “As an Organisation, we are are set out in the Corporate committed to upholding high Governance Report within CDL’s standards of corporate governance 2016 Annual Report with specific CORPORATE VALUES AND to enhance shareholder value. We reference to the principles and CONDUCT OF BUSINESS believe practising good corporate guidelines of the Code of Corporate governance is central to the health Governance 2012 (2012 Code). The Board and SMT remain steadfast and stability of our financial markets Where the Company’s practices in conducting business with and economy.” differ from the principles and integrity, consistent with the high guidelines under the 2012 Code, the standards of business ethics, and in Pursuit of Excellence Company’s position in respect of the compliance with all applicable laws in Governance and same is also set out in our Corporate and regulatory requirements. This Transparency Governance Report. shapes a culture of responsibility among employees, with a system of At the SIAS Investors’ Choice Awards Board Matters checks and balances at all levels of 2016, CDL received the prestigious the organisation. “Most Transparent Company Award Principle 1: The Board’s Conduct 2016” in the Real Estate category for of Affairs A corporate DNA of responsible our outstanding efforts in corporate Principle 2: Board Composition practices, strong accountability and disclosure and transparency and Guidance an effective control system will help standards. CDL was also conferred Principle 3: Chairman and CEO to contribute towards Goal 16 of the the Merit award for Diversity Principle 4: Board Membership UN SDGs in promoting fair, peaceful under the Singapore Corporate Principle 5: Board Performance and inclusive societies where Principle 6: Access to Information businesses can thrive and prosper. Code of Business Conduct • Compliance with the Company’s date of announcement of financial and Ethics policies and procedures, results for the first, second, and third including those on internal quarters of the Company’s financial CDL has in place an internal code controls and accounting year and one month before the date of business and ethical conduct • Safeguarding and proper use of of announcement of the full-year crystallising the Company’s the Company’s assets, confidential financial results, and ending on business principles and practices information and intellectual the date of the announcement of for matters which may have ethical property rights, including the the relevant results. The Directors implications. The code provides a respect of intellectual property and employees of the Company clear framework for staff to observe rights of third parties are notified in advance of the the Company’s principles such as • Competition and fair dealing in commencement of each “closed honesty, integrity, responsibility and the conduct of the Company’s period” relating to dealings in the accountability at all levels of the business, in its relationships with Company’s securities. The internal organisation and in the conduct customers, suppliers, competitors code on securities trading is available of the Company’s business in their and towards its employees on the Company’s intranet for easy dealings with customers, suppliers access by all employees. and fellow colleagues. It is available Internal Code on Dealings on the Company’s intranet for easy in Securities Corporate Policies and access by all employees. Guidelines CDL’s internal code on securities The code provides guidance on trading sets out the implications of In line with the Board’s stance to issues such as: insider trading and provides guidance maintain high ethical standards and internal regulation on dealings which are integral to our corporate • Conflicts of interest and the in the Company’s securities by its identity and business, CDL has the appropriate disclosures to be made Directors and employees. These following corporate policies and • The Company’s stance against guidelines prohibit dealing in the guidelines, which are publicly corruption and bribery Company’s securities (a) on short- available on our corporate website 33 • Compliance with applicable term considerations, (b) while in (www.cdl.com.sg) and intranet for laws and regulations including possession of unpublished material easy access by all employees. The those relating to the protection price-sensitive information in policies have also been disseminated of the environment and the relation to such securities, and (c) to employees of CDL’s key conservation of energy and during the “closed period”, which subsidiaries, where applicable. natural resources is defined as two weeks before the

Corporate Policies

Anti-Corruption Policy and This set of policy and guidelines spell out the responsibilities of CDL’s Guidelines companies and of each employee in observing and upholding CDL’s ‘zero-tolerance’ position against all forms of corruption, bribery, and extortion. It also provides information and guidance to employees on how to recognise, address, resolve, avoid, and prevent instances of corruption, bribery, and extortion which may arise in the course of their work.

Fraud Policy and Guidelines CDL provides guidance on actions which may constitute fraudulent conduct and highlights the importance of the implementation, maintenance, and compliance with the internal controls framework of the Group and its policies and procedures. ORGANISATIONAL CAPITAL

Whistle-Blowing Policy CDL has a whistle-blowing procedure which enables employees and other persons to raise in confidence, whether anonymously or otherwise, concerns on possible improprieties relating to accounting, financial reporting, internal controls, auditing or other matters, without fear of reprisal in any form. The ARC has the responsibility of overseeing this Policy, which is administered with the assistance of the Head of IA. Under these procedures, arrangements are in place for independent investigation and for appropriate follow-up actions to be taken.

To facilitate and encourage reporting, the Whistle-Blowing Policy and the dedicated whistle-blowing communication channels (email, postal address and telephone numbers) are available on the Company’s website and intranet, and is easily accessible by all employees and other persons.

Toll-free lines for callers from Singapore, China, and Thailand are now available. Direct email channels to the Board Chairman, CEO, and ARC Chairman were also established for reports involving any Director, Senior Management and the Head of IA.

Personal Data Policy CDL’s Personal Data Policy informs our stakeholders on how CDL manages personal data in compliance with the Singapore Personal Data Protection Act (No. 26 of 2012). Customers can get in touch with our Data Protection Officer by mail, email, and phone on the following:

• Any questions, complaints or feedback relating to their Personal Data or our Personal Data Policy 34 • To withdraw their consent to our use of their Personal Data as set out in our Personal Data Policy • To obtain access and/or make corrections to their Personal Data records under our control or in our possession

Competition Policy and Guidelines It is CDL’s policy to compete fairly and ethically in the conduct of business in all markets, and this Policy seeks to:

• Educate our employees on and improve their knowledge and understanding of anti-competitive practices, conduct and acts which amount to an abuse of a dominant position in the market, which are prohibited • Provide direction and guidance to employees in their relationships and communications with competitors and customers

Environmental, Health and Safety CDL’s corporate EHS Policy reflects our pledge towards a “Safe and Green” (EHS) Policy culture. The Policy includes Key Performance Indicators for departments contributing to our EHS performance. This ensures that we achieve a consistently high EHS standard across the organisation.

Climate Change Policy CDL supports Singapore’s Intended Nationally Determined Contribution of reducing its Emissions Intensity by 36% from 2005 levels by 2030, and to stabilise emissions with the aim of peaking around 2030. Based on existing procedures and policies demonstrating our commitment in mitigating climate change, a Climate Change Policy was formalised on 3 March 2015. Human Rights Policy In 2016, CDL expanded our existing Corporate Statement on Human Rights into a Human Rights Policy, to broaden the scope of issues and deepen our human rights system. CDL has been a signatory to the United Nations Global Compact’s principles on Human Rights and Labour since 2005, and is guided by international human rights principles as derived from the Universal Declaration of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. Beyond our compliance to the local government’s policy and national legislation in protecting human rights, the policy covers aspects including respects for human rights, equitable employment practices, non-discrimination, fair welfare and compensation, as well as workplace health and safety within our developments.

In addition, CDL seeks to uphold fair and responsible practices and promote inclusivity in all our business activities, by effecting the following responsibilities along our value chain.

Anti-Money Laundering and In 2016, CDL introduced the Anti-Money Laundering and Counter Counter Financing Terrorism Policy Financing Terrorism policy for its property business in line with Urban Redevelopment Authority’s guidance and Monetary Authority of Singapore’s mission to mitigate the risk of Singapore being used as a platform by global criminals and terrorist organisations to launder illicit funds. The Policy provides guidelines and procedures for our front line sales and compliance function to detect and report such criminal acts.

Pledge for Zero – A CEO CDL is a founding signatory of the “Pledge for Zero – A CEO Commitment Commitment Charter Charter”, launched at the inaugural Construction CEO Summit organised 35 by the Workplace Safety and Health Council in 2008. CDL adopted the pledge and committed to establish a zero-injury workplace. In 2016, CDL reiterated our commitment towards Construction Industry Workplace Safety and Health (WSH) Action Plans by galvanising 24 of our key builders and consultants to sign the ‘Pledge Towards Vision Zero Through Safe Design – Safe Practices – Safe Culture’.

Employers’ Pledge of Fair CDL is a signatory of the Employers’ Pledge of Fair Employment Practices Employment Practices with the Tripartite Alliance for Fair Employment Practices (TAFEP). TAFEP works with employer organisations, unions and the Government to create awareness and facilitate the adoption of fair employment practices. The alliance is co-chaired by representing employer unions and National Trades Union Congress.

Green Procurement Specifications Reflecting our belief in more efficient use of resources, we have a set of Green Procurement Specifications for the selection of vendors and suppliers at our Corporate Office and across core business operations in Singapore. The guidelines include:

• Sharing the corporate EHS Policy with new vendors and suppliers • Indicating preference for use of eco-friendly and recycled materials and products • Indicating preference for ISO 14001 certified vendors • Declaring the use of eco-friendly and recycled paper in printed materials ORGANISATIONAL CAPITAL

Supplier Code of Conduct The Supplier Code of Conduct provides comprehensive guiding principles for our vendors and suppliers to comply with CDL’s expectations of ethical standards, covering the following areas:

• Business integrity • Health, safety, and environment • Fair competition • Legal compliance • Open communication • Human rights • Conflict of interest • Reciprocity • Gifts and entertainment

Ethical Marketing Practices Since 2000, we have developed a set of internal procedures and an operations manual for marketing and leasing. These are reviewed annually to reflect changes in marketing practices, technology, regulation, and stakeholder expectations.

Marketing collaterals produced by CDL are compliant with the Singapore Code of Advertising Practice administered by the Advertising Standards Authority of Singapore, an Advisory Council to the Consumers Association of Singapore.

CDL’s marketing practices also comply with the URA’s Housing Developers Rules (HDR) and Building and Construction Authority’s (BCA) Guidelines for Outdoor Signs at our construction sites. The HDR seeks to enhance transparency in the real estate industry, enabling homebuyers to make better informed decisions when buying a home, while the BCA guidelines prohibit cross-marketing of other products and services. 36 Board Diversity Pledge In July 2015, CDL supported the Board Diversity Pledge initiated by the Singapore Institute of Directors and the SGX. By taking the pledge, the Company commits to promoting diversity as a key attribute of a well- functioning and effective Board.

This is in line with our belief that a diverse Board will enhance decision- making by harnessing the variety of skills, industry and business experiences, gender, age, ethnicity and culture, geographical background and nationalities, tenure of service, and other distinguishing qualities of the members of the Board.

Crisis Management Protocol In 2016, CDL validated our corporate crisis management protocol which include incidence escalation, operational response and crisis communication. The effort culminated in a crisis simulation exercise where the SMT was put through a series of rigorous crisis scenario-based tests and a mock media conference and interview.

Universal Design Policy CDL develops a wide range of properties from mass market executive condominiums to luxury homes. Regardless of property type, we believe that resource-efficient buildings can be a differentiator. We also continue to embed the principles of Universal Design – “design for all people” in all our projects, above the mandatory requirements specified in the Code of Barrier-Free Accessibility by the BCA.

Our design brief includes features that encourage community-building and social integration. Our Universal Design Policy, which is endorsed by CDL’s top management, provides the Company with a framework to create an inclusive built environment through developing buildings that respond to differing customer needs. Procedures for Compliance CDL had no incidents of non- view of the risks arising from the compliance with the Singapore Group’s core business – property As part of CDL’s corporate Code of Advertising Practice, nor investment, development and governance process, all key with laws and regulations for which management activities – and corporate policies are reviewed and significant fines or non-monetary a systematic risk assessment approved by our Board to ensure that sanctions were issued to the methodology for the identification, all members of the highest governing Company in 2016. There were also assessment, management and bodies are informed at all times. New zero incidents of anti-competitive reporting of such risks on a Directors are also given a manual behaviour and monopoly practices consistent and reliable basis. which includes all key corporate within the Company. The RMC focuses on identifying policies for their knowledge. and addressing strategic and key operational risks whilst ensuring Every year, all employees are RISK MANAGEMENT that the business units are required to complete a compulsory accountable for the management, online declaration to acknowledge Risk management is a critical monitoring and control of risks that they are aware of, have read, component to our business success. within their day-to-day operations. and are in compliance with the The Group has constantly strived to Since 2015, the RMC also receives policies, standards, and practices advance risk management practice quarterly risk reports from as set out in the Company’s as an important component in all local operating subsidiaries and Corporate Policies and Guidelines. our business portfolio and activities. overseas operations from China These Policies include the Code It demonstrates the Group’s and Thailand and Millennium & of Business Conduct and Ethics as commitment to high standard of Copthorne Hotels plc (M&C). This well as policies and guidelines on corporate governance and serves as greatly enhanced the visibility of Anti-corruption, Fraud, Competition, a beacon for our strategic planning key risks arising from business Whistle-blowing, Personal Data and decision-making process. operations outside Singapore to the Protection, EHS, Climate Change ARC and the SMT, while allowing and Human Rights. Board ARC a unified value of good corporate 37 governance and risk management To raise employees’ awareness of The Board has an overall to be permeated in our overseas the Company’s zero-tolerance responsibility to ensure that the operations. position on corruption, a series of Group has the capability and Anti-corruption Awareness Bulletins necessary resources to manage risks CDL’s ERM Framework were published on CDL 360 intranet in new and existing businesses, and in December 2016. that business plans and strategies The Company’s ERM framework accord with the risk appetite that was developed to realise the value Within the induction and training the Group undertakes to achieve of risk management by providing programme for all new employees, its corporate objectives. To assist an enterprise-wide view of the risks information on Code of Business the Board in discharging its role involved in property investment, Conduct and Ethics and related in risk management oversight, the development and management corporate policies including Anti- ARC has been delegated by the activities, and institutionalising corruption, Fraud, and Competition Board to provide oversight and to a systematic risk assessment are provided. review matters relating to the risk methodology for the identification, management policies and systems assessment, management and Employees and other parties who of the Company. reporting of risks on a consistent have a business relationship with and reliable basis. CDL can raise in confidence, RMC whether anonymously or The ERM function provides the otherwise, concerns of non- The ARC’s risk management RMC and the SMT with regular compliance through any of oversight is assisted by the RMC, updates on key strategic risks, the dedicated whistle-blowing which comprises SMT and HODs, global trends, assessment of key reporting channels which are business units and corporate risk exposures from operations and available on the CDL website. functions. The RMC is responsible any new emerging risks that may for ensuring the effectiveness of require management focus and In 2016, there were zero incidents the risk management framework coordination. It also assists the RMC of fraud and corruption across CDL’s of the Group. The objective is on quarterly reports to the ARC on business operations in Singapore. to provide an enterprise-wide the overall strategic and operational ORGANISATIONAL CAPITAL

risks positions, including mitigating Protection Act and Anti-Money identification, assessment, evaluation, measures, treatment plans and the Laundering and Counter Financing monitoring, and reporting of risks. occurrence or potential occurrence Terrorism Act, which took effect in Continuous training to build risk of significant risk events. In addition, 2014 and 2015 respectively. awareness and competencies, ERM monitors and works closely as well as systems and tools to with front-line operations to The RMC and ERM functions operationalise the risk management manage enterprise-wide regulatory regularly review the framework framework are put in place to compliance requirements. These against international standards and support this critical function. compliance requirements include, best practices in risk management but are not limited to, policies to establish a holistic, structured, and practices on Personal Data and consistent process for the

CDL Board of Directors Audit and Risk Committee

CDL Management Risk Management Committee 38

CDL Strategic Business Risks

Investment Treasury and Human Operational and Portfolio Financial Resource Risks Risks Risks Risks + + + Crisis IT and Cyber EHS Market Risks Security Risks Risks Risks

Strategy, Policies, Systems and Tools that Support Risk Management Processes

Continuous Training and Developing Competencies in All Staff The framework has categorised property damages, liabilities and CDL strongly believes that the CDL’s strategic business risks into business interruption arising most senior executive in the the following main types. For full from a terrorism or extremism company sets the “tone from the details on each risk type, please refer event. To better prepare ourselves top” towards risk management and to the Risk Management Report in for any eventuality, the Group instils an effective risk culture. This CDL Annual Report 2016. practised crisis management and is crucial for the success of risk communication protocols at our management at both operational • Crisis Risks corporate HQ in a mock terrorism and strategic levels. To reinforce • EHS Risks event. The SMT was put through the desired culture and to promote • Human Resource Risks a crisis simulation exercise that accountability and ownership at • Investment and Portfolio Risks featured a series of crisis scenarios all levels, our management and • IT and Cyber Security Risks to test crisis management and employees are engaged regularly on • Market Risks emergency response procedures. risk management related activities • M&C Risks The exercise culminated in a mock such as risk identification and • Operational Risks press conference and one-on-one assessment workshops and topical • Strategic Risks interview with the CEO to simulate talks by external consultants. • Treasury and Financial Risks the rigour and demand required of our management team during and Moving Forward Through stakeholder engagement after a major crisis. and materiality assessment, The Group recognises that risks we have also identified a list of 2. Cyber Security cannot be completely eliminated material Environmental, Social With cyber-attacks becoming more and has taken effort to effectively and Governance (ESG) risks and prevalent and complex, the Group and efficiently reduce them to opportunities to complement our is adopting industry best practices acceptable levels. The Group’s strategic business risks under the and moving beyond technology domestic and overseas operating ERM framework. Our material ESG defence towards a more holistic and environments are affected by shifts risks and opportunities can be found risk-based cybersecurity framework. in geopolitical undercurrents, which 39 on page 20 and 21 of this report. The objective is to establish a slow global economic growth. robust foundation to identify and To manage these risks and others Reviews and Improvements protect our critical assets and more risks from emerging global trends importantly, be able to detect and in the form of rapid digitalisation, The Group strives to detect, beyond respond to the relevant threats. Data technology disruptions and our immediate horizon, strategic recovery exercises are also carried demographics shift, the Group will risks and emerging threats that may out to ensure critical information continue to refine and improve impact the execution and outcome can be made available quickly and our risk management framework, of our strategy. In the Group’s annual business recovery objectives are systems and processes to ensure risk assessment, we have identified met. Information security materials both inherent risks and risks arising Global Terrorism and Extremism, are also made available to better from these emerging trends are Cyber Security, Geopolitical and educate employees of prevailing being monitored and managed Macroeconomics, and Emerging risks, especially in the handling of efficiently. In that way, we hope Global Trends as top strategic risks sensitive corporate data. to strike a good balance between that will have long term impact on risks and returns in the increasingly our global business portfolio. Risk management must be an dynamic business environment of ongoing process. Our RMC and the future. 1. Global Terrorism and Extremism ERM functions continue to look In view of the heightened threat into global best practices and and to mitigate potential severe ways to sharpen our awareness consequences from a terrorism of global trends, new threats and event, the Group has initiated a emerging technologies to mitigate global insurance programme for long-term risks that may have a special risk insurance coverage on profound impact on our business its global property assets against sustainability. ORGANISATIONAL CAPITAL

BRAND AND REPUTATION

Beyond our ESG policies, practices and standards, CDL’s sustainability achievements have helped to build positive brand reputation and a trusted track record for the organisation.

Regional and International Accolades

Channel NewsAsia Sustainability Named Top Property Developer in Asia and Top Singapore Corporation Ranking (since 2014) for three consecutive years, and second among the top 100 sustainable companies across 11 key Asian markets in 2016.

CDP (formerly known as Carbon The first Singapore company to voluntarily disclose carbon emissions data Disclosure project) (since 2007) with CDP, a global environmental disclosure system used by investors, representing over US$100 trillion in assets.

Dow Jones Sustainability Indices The first Singapore developer to be listed on both the DJSI and (DJSI) (since 2011) FTSE4Good Index Series.

FTSE4Good Index Series Amongst an elite group of companies worldwide that meet globally (since 2002) recognised ESG standards.

Global 100 Most Sustainable Most Sustainable Corporation in Real Estate Management & Development Corporations in the World and Top Singapore Corporation in this eminent global ranking announced (since 2010) annually at the World Economic Forum. Only Singapore company to be listed for eight consecutive years. 40 Global Real Estate Sustainability Achieved a Green Star ranking – the highest category of sustainability Benchmark (GRESB) (since 2013) performance for GRESB, a leading global source of comprehensive portfolio level sustainability data for the real estate industry.

MSCI Global Sustainability Indexes Received the highest ‘AAA’ rating by MSCI ESG Research. The Indices are (since 2009) designed to represent the most prevalent ESG investment strategies.

South East Asia Property Awards In addition to winning top honours as Best Developer in Singapore and Best 2016 – Special Recognition in CSR, Condo Development in Southeast Asia for Gramercy Park, CDL was given Singapore and Special Recognition two Special Recognition awards in CSR and Sustainable Development. in Sustainable Development, Singapore

STOXX® ESG Leaders Index Ranked amongst leading global companies in terms of ESG criteria based (since 2014) on indicators provided by leading ESG research provider Sustainalytics.

The Sustainability Yearbook 2017 Listed on the annual guide of the world’s most sustainable companies in each industry as determined by the RobecoSAM’s yearly Corporate Sustainability Assessment.

UN Global Compact 100 Only Singapore company selected as an index constituent based on (since 2014) the implementation of the ten UN principles and evidence of executive leadership commitment and consistent base-line profitability.

2016 Bulldog Corporate Social CDL Singapore Young Photographer Awards 2016 received a Bronze Responsibility (CSR) PR Awards – Award under the Best Campaign Supporting Arts/Culture category. The Bronze Award award recoginses deserving companies with great achievements in CSR. Local Accolades

SIAS Investors’ Choice Awards For the second consecutive year, CDL was conferred the prestigious 2016 – Most Transparent Company award by SIAS for our outstanding efforts in corporate disclosure and Award, Real Estate transparency standards.

Singapore Corporate Awards 2016 Inaugural winner of the Special Recognition Award for Sustainability – Special Recognition Award for introduced at this longstanding awards jointly organised by the Institute Sustainability of Singapore Chartered Accountants, the Singapore Institute of Directors and The Business Times, and supported by the Accounting and Corporate Regulatory Authority and the SGX.

SGX Sustainability Indices Listed as one of the 24 firms on the inaugural SGX Sustainability Leaders Index that are considered to be clear frontrunners in ESG standards amongst listed companies in Singapore.

Workplace Safety and Health (WSH) Proud recipient of the distinguished Developer Award for the ninth year Awards 2016 – WSH Developer and only developer to receive the accolade in 2016. Four of CDL’s project Award and SHARP Awards sites were also accorded the SHARP (Safety and Health Award Recognition for Projects) award.

2016 Patron of the Arts Award A recipient since 1997, the Award by the National Arts Council recognises 41 CDL’s sustained contribution towards the promotion and advancement of the arts scene in Singapore.

In addition to the above, we have also received numerous project-related accolades. More of CDL’s achievements can be found on our corporate website: www.cdl.com.sg. WASTE LOW-CARBON MANAGEMENT OPERATIONS SDG GOAL 13 URGENT ACTION TO COMBAT CLIMATE CHANGE

SDG GOAL 12 SDG GOAL 15 RESPONSIBLE BIODIVERSITY CONSUMPTION AND AND RESOURCE PRODUCTION CONSERVATION

SDG GOAL 7 AFFORDABLE AND CLEAN ENERGY 42

WATER ENERGY STEWARDSHIP EFFICIENCY

BUILDING A SUSTAINABLE ENVIRONMENT NATURAL CAPITAL

CDL has always been a strong aspects including carbon emissions, We are deeply rooted in our supporter and advocate of energy efficiency, water use, commitment to minimise and environmental protection. In as well as waste and resource mitigate the impacts of our 1995, we adopted the ethos of management. In addition, we developments on the natural “Conserving as we Construct” monitor and report other aspects habitats of wildlife and to protect because we recognised that a such as biodiversity and noise biodiversity. We are committed to thriving, healthy environment and which are important to many of preserving biodiversity particularly symbiotic relationship with nature our stakeholders. when we develop on greenfield sites. is critical to the sustainability of businesses. We have since Since 2010, CDL has practised maintained our commitment to LIFECYCLE APPROACH Biodiversity Impact Assessments effectively manage and enhance our (BIA) for new construction sites on a natural capital. Since having adopted voluntary basis. BIA helps to determine ISO14001:2015, we have further if any plant or animal life of national The building industry has a high strengthened our existing conservation importance exists at the environmental impact. Globally, sustainability strategy by using a intended development site and makes it contributes 30% of Greenhouse lifecycle approach to better mitigate recommendations for environmental Gases (GHG) emissions (the largest the negative environmental impacts mitigation if necessary. amount among all business sectors) associated with a building. From and consumes 40% of energy pre-construction environmental We raised the bar when we and resources. CDL’s business as impact studies to the subsequent developed the new Forest a developer and landlord relies maintenance and eventual Woods condominium in 2016. heavily on finite natural resources demolition of buildings, we have We voluntarily conducted an such as energy, water, concrete policies and guidelines to manage, environment study similar in and wood amongst other building monitor and review our impact scope to an Environmental Impact materials to create safe and efficient and performances. These aid Assessment. The three-month spaces for our customers. As such, our continual improvement and study was tailored to determine 43 resource scarcity and rising costs transition to a circular economy in the environmental baseline have a significant impact on the the future. of the site, and to understand long-term continuity of our business the environmental impacts operations and bottom line. that may arise from demolition ENVIRONMENTAL and construction activities. By aligning ourselves with CONSERVATION Environmental indicators such as the Singapore Government’s wind, lighting and shading effect of commitment to the Paris Agreement Studying Environmental the new development, water quality, and the United Nations (UN) Impact, Protecting air quality, noise production, waste Sustainable Development Goals Biodiversity management from the construction (SDGs), CDL has enhanced our activities, and the biodiversity of policies and practices to reduce our As Singapore is highly urbanised, existing flora and fauna were studied. environmental impact, ensuring that densely populated and land our natural capital remains strong scarce, the government considers 36 species of animals and 31 and sustainable. optimal land use planning a crucial species of plants were identified, aspect of Singapore’s sustainable with the Black Morinda trees Comprising representatives development. All CDL development observed to be the rarest in from relevant business units, the projects are within the land allocated Singapore. In consideration of the Environment sub-committee by the Urban Redevelopment conservation importance of this under the company-wide Authority (URA) for home and rare flora species, CDL has moved Corporate Social Responsibility commercial use and hence, none the two Black Morinda trees on site (CSR) Committee, identifies are located within protected areas. to a nursery. Further action will be environmental issues and manages With proper planning by URA, taken to transplant them back to impacts of our operations and the forests in Singapore are not the original site upon completion of activities. For close to two decades, commercially exploited for timber or the development. CDL has had in place a host of other resources. policies and systems to assess and manage our material environmental NATURAL CAPITAL

SUSTAINABLE RESOURCE impact of our projects across their to promote responsible sourcing MANAGEMENT life-cycle. We also acknowledge along our supply chain since 2008. that the use of virgin materials can The guidelines encourage the use of Responsible Material Use and impact the environment and human eco-friendly and recycled materials, Green Procurement health. By specifying the use of in alignment with our corporate sustainable and non-toxic building environmental, health and safety Development and management of materials in our developments, we (EHS) Policy. An example is the use of buildings involves an extensive use can deliver environmental, social, non-toxic materials like low volatile of materials and waste generation. and business benefits. organic compounds paint. All our Hence, we set clear guidelines and builders, suppliers and vendors of new specifications on the procurement Beyond adopting good practices in development projects are required to of materials and construction our operations, CDL has had a set of comply with these guidelines. management to reduce the overall green procurement specifications

Top Five Building Materials

2015 2016 Granite 209,714 tonnes Granite 237,226 tonnes

Sand 146,639 tonnes Sand 195,699 tonnes

Cement 73,231 tonnes Cement 90,648 tonnes

Steel 26,254 tonnes Steel 36,709 tonnes

Granite or marble tiles 6,881 tonnes Timber 5,418 tonnes 44

For new projects starting from Embodied Carbon carbon and the carbon associated 2016, we have set a target for with operations (cooling, powering, 35% of our building materials Beyond CDL’s key business activities, providing water etc). Understanding to be derived from recycled we are aware that there are associated the relationship between ‘embodied’ content, low-carbon sources energy and carbon emissions from carbon and ‘operational’ carbon can or those certified by recognised materials that we use. This energy and assist in determining the optimum environmental organisations. carbon comes from the extraction, overall carbon reduction of the processing, manufacture and building from a lifecycle perspective. For the Singapore Sustainability transportation of the materials and are Academy, which started considered to be ‘embodied’ within the To evaluate the environmental construction in 2016, at least 80% building. The whole life carbon of the footprint of our buildings, CDL started of the structure was built with building consists of both the embodied to track the embodied carbon present Cross Laminated Timber (CLT) and Glued Laminated Timber (Glulam). CLT in particular is harvested from Embodied Carbon Emissions Intensity sustainably managed forests. 2.73 Both CLT and Glulam used in the 2 construction of the Academy were e/m

2 1.94 verified by the Nature’s BarcodeTM

tCO 1.62 1.46 1.46 system as coming from responsible 1.35 sources. The system entails scientific tests like DNA analysis to minimise the risk that the wood materials are derived from illegal logging activities. Echelon UP@Robertson HAUS@ Jewel@ Gramercy Lush Quay SERANGOON Buangkok Park Acres GARDEN

Note: Any variance in data from CDL Annual Report 2016 is due to updates following the external assurance of this Integrated Sustainability Report. in materials used in our completed leading to declining air quality in CarbonNeutral® development in developments. Based on the materials cities. Resulting implications for the Singapore and Asia Pacific. Besides list from development projects property sector include increased carbon neutralising the construction completed in 2016 and the Building demands on ventilation and air phase of 11 Tampines Concourse, and Construction Authority (BCA) conditioning equipment, as well we also annually offset emissions Carbon Calculator1, the embodied as higher operating costs due to from its operations, including that of carbon emission intensity for each of greater plant wear and tear and our tenants. our projects was derived. rising energy consumption. Increasing Accountability With a better understanding of Through climate change and Disclosure our embodied carbon emission adaptation initiatives, we reduce intensity from projects completed in the risk of business disruption that Even though the reporting of 2016, CDL aims to account for our may affect our customers and Scope 3 emissions is voluntary, materials intensity and embodied residents, and mitigate potential CDL monitors and discloses the carbon emissions when considering damage and costs associated with emissions to better assess their our total carbon footprint. the repair and maintenance across impact across the entire value our assets due to extreme weather chain and identifies the most and global warming. effective ways to reduce them. CLIMATE CHANGE Since 2014, we have included hotel AND EMISSIONS Measuring and Reducing accommodations from business Carbon Emissions travels and employee commute in In Singapore, the building and real our calculations. estate sector is responsible for To track and mitigate our climate as much as 25.7%2 of electricity impact, CDL established targets to Due to CDL’s ongoing overseas consumption. The sector is also reduce our carbon emissions4 intensity diversification strategy, there projected to contribute about 13.8%3 by 22% by 2020 and 25% by 2030, has been a higher frequency of of Singapore’s 2020 Business-As- below BAU levels from 2007. In 2016, business travel. As a result, air 45 Usual (BAU) greenhouse gas (GHG) CDL achieved a reduction in total travel from our Corporate Office emissions. As a major developer carbon intensity emissions by 16%. has been increasing since 2014. and manager of property assets, However, we strongly advocate for CDL is committed to low-carbon To better manage our carbon communication via audio or video operations through actions outlined reduction efforts, we have conferencing where possible to in our Climate Change Policy on implemented a GHG management minimise overseas travel. page 34. system in accordance with the requirements of ISO 14064-1, and Since 2014, CDL has been tracking The world experienced record high have externally audited and validated and reporting the carbon emissions temperatures in 2016. The extent of our emissions computations since of our key subsidiaries to ensure Arctic sea ice, a key climate change 2015. ISO 14064-1 is an international greater disclosure and accountability indicator, is estimated to cover 40% standard that specifies organisational- of the Group’s carbon footprint. less area now than it did 40 years level principles and requirements for The following chart shows carbon ago and is declining at a rate of quantification and reporting of GHG emissions from over 130 hotels 13.4% per decade. As Singapore is emissions and removals. owned and managed by Millennium a low-lying and densely populated & Copthorne Hotels plc (M&C) in island, the projected continued Since 2009, CDL has also over 20 countries, CDL Hospitality increase in average temperatures voluntarily reduced our annual Trusts (CDLHT), CBM Pte Ltd, City and rise in sea levels may pose a carbon emissions to ‘net zero’ for Serviced Offices (CSO), Le Grove risk to our core activities. More our Corporate Office operations Serviced Apartments as well as frequent warmer days will result in including our data centre and 11 Tower Club. increased use of air conditioners, Tampines Concourse – the first

1 The BCA Carbon Calculator uses a cradle-to-site system boundary 2 Source: Energy Market Authority, Singapore Energy Statistics 2016 3 Source: National Climate Change Secretariat website www.nccs.gov.sg 4 CDL’s carbon emissions take into consideration all GHG emissions NATURAL CAPITAL

Total Carbon Emissions from CDL’s Core Business Operations in Singapore5 Scope 1 Scope 2 Scope 3

2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 486 965 935 844 32,305 25,558 24,182 24,639 2,712 5,415 6,430 6,132

1,703 642 614 27,743

543 71 1,401 1,118 67 572 658 21,130 23,239 1,522

e 22,346 2 104 1,022 5,241

Tonnes CO Tonnes 4,543 4,289 151

187 291 276 270 262 2,525*

2,858 3,027 44 47 52 39 1,264 741 CORPORATE COMMERCIAL AND CONSTRUCTION SITES OFFICE INDUSTRIAL BUILDINGS

Note:

Scope 1 Includes direct emissions from fuel used in power generators, petrol for company vehicles, loss of refrigerant in air-conditioning systems and loss of insulating and arc quenching media in switchgear systems.

Scope 2 Emissions reported are for activities in Singapore. Due to the lack of contractual instruments available in Singapore, location-based emissions and market-based emissions are the same. Includes indirect emissions due to purchased electricity consumed at CDL’s Corporate Office, commercial, and industrial buildings as well as construction sites.

Scope 3 Includes other indirect emissions arising from electricity transmission losses, local and international courier services, employee commuting, business air travel (excluding the influence of radiative forcing) and hotel accommodations, water supply and water treatment (excluding water treatment for property development sites).

* Before 2014, scope 1 and 2 emissions were reported collectively.

5 Figures stated in charts in this chapter may not add up due to rounding of decimals Carbon Emissions Intensity from CDL’s Core Business Operations in Singapore Scope 1 Scope 2 Scope 3

2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 71.7 142.4 141.3 127.5 97.2 92.3 88.0 90.0 18.0 25.7 30.6 31.8

94.7 92.7

82.0 2 e/ m 2 5.1 5.1 2.4 Kg CO 83.5 2.1 76.3 81.3 84.9

22.3

42.9 40.7 40.7 39.6

0.3 0.3 0.5 5.3 7.9 47 4.8 25.0 23.5 1.2 20.3 16.8* 10.9 7.9 8.6 6.5 7.0 5.9 4.6 2.7 CORPORATE COMMERCIAL AND CONSTRUCTION SITES OFFICE INDUSTRIAL BUILDINGS

Note:

Corporate CDL’s Corporate Office in Singapore occupies approximately 6,6182 m across nine floors in City House and one floor in Republic Office Plaza. Measurement is applicable to all environmental performance reported in this section.

Commercial In 2016, CDL managed 12 commercial buildings and three industrial buildings in Singapore, with an average monthly leased floor and Industrial area of 247,106 m2 and 26,644 m2 respectively. Measurement is applicable to GHG calculations, with all other environmental Buildings performance reported using the total leased area. Data before 2014 includes two industrial buildings, Pantech 21 and New Tech Park which were divested in November 2013.

Construction While carbon emissions due to construction activities at CDL’s construction sites are a result of contractors’ direct and indirect Sites emissions, CDL recognises the significant environmental impact of these construction activities. In 2016, CDL measured and monitored the environmental impact and performance of its 12 construction sites in Singapore with a gross floor area of 193,083 2m built for that year. Measurement is applicable to all environmental performance reported in this section.

* Before 2014, scope 1 and 2 emissions were reported collectively.

The largest source of emissions was electricity usage at CDL-managed commercial and industrial properties, which accounted for about 74% of the Company’s carbon footprint in Singapore. NATURAL CAPITAL

Carbon Emissions from CDL and Six Key Subsidiaries Scope 1 Scope 2 Scope 3 * Oct – Sep data # Excluding emissions from waste disposed

e 31,808 2 296,906 60,543

29,125 Tonnes CO Tonnes 273,257 27,323 58,021 262,918 59,200

2,148 22,428 7,363 1,268 25,023 60,938 5,324 14,467 7,690

1,528# 17,568 7,091 1,257 48 23,734 6,557

2,772 16,634

21 22 948 911 53 801

38 90 441 11 10 486 503

58 103 30 132 80 4 1 216 98 8 205 148 9 110

2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014* 2015* 2016 CDL CBM CDLHT CSO Le Grove Tower Club M&C ENERGY MANAGEMENT Electricity constitutes a significant Initiatives to maximise energy AND EFFICIENCY proportion of our operating efficiency are applied differently expenditure. Improvements in across our key business units and The use of energy in general creates energy efficiency will thus enable at different stages in the building’s emissions, whether direct or indirect, us to reduce cost and improve our lifecycle. Each business unit has that will lead to global warming operational efficiency. Integrating its own specific guidelines that and air quality deterioration. The energy efficiency considerations detail the strategic initiatives, core activities of CDL’s business are into the design and construction of performance standards, and highly energy intensive, using both our assets can also help to reduce specific requirements relating electricity from the grid and diesel. the energy usage (and electricity to energy efficiency and climate The extraction of fossil fuels causes costs) of our customers, tenants, change mitigation measures. These depletion of natural resources and and residents. guidelines are to be considered potential oil spills may threaten in the design, construction, and delicate ecosystems. operation of the assets.

Stage in Project Energy Efficiency Focus Benefits Lifecycle Design Maximise use of natural lighting Reduce electricity consumption and ventilation

Use of solar energy for common areas Reduce reliance on the grid and lower where applicable carbon emissions

Use of energy efficient lightings in all Reduce electricity use through energy common areas efficient equipment or fittings 49 Energy efficient home appliances to be included in the units

Construction Use of electricity directly from the power grid Reduce emission levels of carbon, supply to reduce the use of diesel generators sulphur oxides, nitrogen oxides and particulates

Operation of Assets Use of renewable energy where possible Reduce reliance on fossil fuel energy through installation of solar and Building Integrated Photovoltaic (BIPV) panels

Identify high energy usage installations to Reduce electricity consumption determine relevant initiatives, e.g. chiller through energy efficient equipment upgrading or modernisation of lifts or fittings

Use of Energy Management System Optimise key equipment’s efficiency programme to optimise chiller efficiency and and reduce energy use Building Management System to control key equipment in buildings

CDL is committed to innovating, ISO 50001 Energy Management System Automated Meter Reading portal developing, and adopting energy (EnMS) certification for the provision of was introduced in 2014 for our efficient fittings and renewable property and facilities management tenants to monitor their electricity energy solutions in our properties. services in our managed buildings. use on a near real-time basis. This This not only helps reduce electricity empowers our tenants to better consumption, it also contributes to User behaviour has an impact on track their energy consumption, as the industry’s know-how in green energy and resource consumption. what gets measured, gets managed. innovations for a low-carbon future. As an asset owner, CDL has been In addition, incentives from both actively engaging our tenants on the Tuas Power and CDL are provided In 2014, CDL became the first importance of energy conservation. to tenants who achieve substantial developer in Singapore to achieve the In partnership with Tuas Power, an reductions in energy consumption. NATURAL CAPITAL

Key Energy Initiatives in 2016

Energy Initiatives Buildings Savings Chiller upgrading or Republic Plaza, City House, Fuji Xerox 1,451,476 kWh/year, equivalent to improvement Towers, Palais Renaissance more than $270,000/year

Solar and BIPV panels 7 & 9 Tampines Grande, City Square Mall, 193,886 kWh, equivalent to King’s Centre and Quayside Isle almost $37,0006

Energy efficient lighting Fuji Xerox Towers, Manulife Centre, 60,859 kWh/year, equivalent to King’s Centre almost $12,000/year

Total Energy Used by CDL’s Energy Used at CDL Construction Sites Core Business in Singapore

CDL CDL Commercial CDL Total Energy Used at Energy Use Intensity at Construction and Industrial Corporate CDL Construction sites CDL Construction sites Sites Buildings Office (MWh) (kWh/m2)

62,647 61,398 54,629 54,651 56,052 MWh kWh/m2 5,838 5,074 9,000 60 56,213 55,743 7,051 8,160 8,182 8,000 50 46,965 45,937 47,336 7,000 42 38 39 6,000 40 34 33 5,000

MWh 30 4,000 3,000 20 2,000 10 1,000 596 581 613 554 533 5,838 5,074 7,051 8,160 8,182 50 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Note: Energy intensity figures for 12 CDL construction sites in Singapore are based on the built gross floor area for the projects in 2016.

Energy Used at CDL Commercial Energy Used at CDL Corporate Office and Industrial Buildings

Total Energy Used at Energy Use Intensity Energy Use Total Energy Used at Energy Use Intensity at CDL Commercial at CDL Commercial Intensity at CDL CDL Corporate Office CDL Corporate Office and Industrial Buildings Industrial Buildings (MWh) (kWh/m2) Buildings (MWh) (kWh/m2) (kWh/m2)

MWh kWh/m2 MWh kWh/m2 70,000 20 640 92 90 16.4 18 620 90 60,000 15.2 15.6 15.2 15.8 16 88 600 88 50,000 14 580 86 12 86 40,000 560 84 8.2 10 84 30,000 7.3 540 8 81 82 520 20,000 6 80 4 500 10,000 1.4 1.4 1.3 2 480 78 56,213 55,743 46,965 45,937 47,336 596 581 613 554 533 0 0 460 76 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Note: Energy intensity figures for 12 commercial buildings and Note: Energy intensity figures are based on the floor area of the Corporate three industrial buildings in Singapore are based on the leased Office locations. area of the buildings.

As a result of our energy-saving In 2015, CDL introduced targets to year in review, CDL achieved a 25% initiatives, CDL achieved a reduction of reduce energy use intensity across reduction in energy usage intensity, 24% in total energy usage intensity in our core business operations in exceeding the original target set for 2016 across all CDL commercial and Singapore by 22% by 2020 and 25% 2030. industrial buildings against 2007 levels. by 2030 from 2007 levels. For the

6 Average electrical tariff in 2016 was $0.189. Source: www.spgroup.com.sg Energy Used in subsidiaries’ energy data not only and practices of our subsidiaries Key Subsidiaries ensures greater disclosure and are also of importance to us. accountability, but also enables The following chart shows the Similar to our reporting scope for the Group to better manage energy usage of CDL and six key GHG emissions of our headquarters’ energy usage as a whole. Given subsidiaries, namely CBM, CDLHT, operations, CDL also reports on CDL’s strong commitment to CSO, Le Grove, Tower Club the energy data of our subsidiaries. environmental protection and and M&C. The tracking and reporting of our energy conservation, the behaviours

Energy Used in CDL and Six Key Subsidiaries 2014 2015 2016 * Oct – Sep data 460,521 458,931* 457,799* 56,052 54,629 54,651 MWh 41,358 35,255 31,500 1,932 1,872 1,780 51 1,025 999 440 422 329 244 209 186 177

CDL CBM CDLHT CSO Le Grove Tower Club M&C

WATER MANAGEMENT for water is estimated to more than and the quality of rainwater run- AND QUALITY double by 2060. Singapore is likely off leaving our project sites. We to become one of the world’s most equally acknowledge the significant Water remains a scarce resource water stressed countries7 come benefits that arise from a strategic in Singapore and is essential for 2040. To combat this, the national approach to water management supporting life. It is an important water agency, PUB, has built a and quality, as they enhance the resource that we have to manage robust and diversified water supply efficiency, resilience, desirability and and it plays an important role in known as the ‘Four National Taps’ to long-term value of our assets and creating attractive, healthy, and ensure water security for the nation. developments. Not only do they efficient green spaces in which However, water scarcity is still a deliver significant benefits to the our customers would want to serious issue, and in 2017 water environment, but they also promote live and work. However, the use prices will increase for the first time performance and cost efficiencies of water in our business activities in 17 years, going up by 30% over across our operations. may reduce the availability of two phases. freshwater. Moreover, some of our From the initial stages of design all core business activities result in Taking a strategic approach towards the way through to construction and degradative water use, and pollution effective water management management, CDL’s developments may occur if the discharge is not systems to minimise consumption are conceptualised with a strong managed properly. and manage water quality is focus on water sustainability. Such a key priority. We recognise responsible water management With climate change and a rapidly the importance of effectively practices allow us to deliver value to growing population, the demand managing water consumption our customers through cost savings.

7 World Resource Institute’s Ranking of the World’s Most Water-stressed Countries in 2040 NATURAL CAPITAL

Stage in Project Water Management Focus Benefits Lifecycle Design Use of water-efficient fittings and fixtures Reduce use of water

Use of recycled water and drought-resistant Reduce the use of potable water plants

Construction Installation of self-closing taps Reduce the use of potable water

Collection of rainwater for washing vehicles

Installation of systems to allow water recycling for site cleaning

Installation of silty water treatment system Prevent silty water from being discharged into water systems

Operation of Assets Comprehensive use of water-efficient Reduce use of water fixtures and fittings

Use of NEWater for operations that do not Reduce reliance on potable water require potable water

As part of the Environmental In recognition of our significant Due to the higher water usage Management System objectives contribution towards Singapore’s for development projects nearing under ISO 14001, CDL tracks water sustainability, CDL was completion in 2016, our water usage monthly water consumption against one of the first recipients of the in construction sites increased by 52 the respective targets for our key inaugural Watermark Award by about 24% compared to 2015. business processes. PUB in 2007. Since the inception of PUB’s Active, Beautiful, and Clean To manage our water usage, CDL Within our key business activities, Waters certification in 2010, CDL has since 2015 established targets to water pollution is of most has also been a pioneer winner for reduce water use intensity by 22% significance, compared to other a number of our developments. by 2020 and 25% by 2030 against types of pollution. CDL has To date, 14 of our buildings have 2007 levels. We have so far achieved implemented a variety of Silt and been certified as “Water Efficient a 15% reduction in 2016, with more Earth Control Measures at all Buildings” by PUB for outstanding initiatives to be put in place to construction sites to ensure that Total efforts in water conservation. achieve our target by 2020. Suspended Solids (TSS) readings of the discharged water do not exceed the legal limit of 50 mg/litre. Beyond Highest TSS this, we also set targets below the 44 legal limit for our ongoing projects. 40 For example, in one of our recently awarded projects, we set a target of less than 40 mg/litre on the 26 TSS reading of the effluent, 21

highlighting our commitment to mg/litre 15 preventing pollution.

In 2016, the highest TSS level discharged across all our 12 worksites was 21 mg/litre, well 2012 2013 2014 2015 2016 below the legal limit. Key Water Initiatives in 2016

Water Initiatives Business Unit Savings Use of recycled water for Projects Development 167,982 m3, equivalent to almost construction site activities $350,0008

Use of NEWater instead of Property and Facilities Management Use of 133,140m3 of NEWater, savings potable water of more than $40,0009 as compared to using potable water

Total Water10 Used by CDL’s Water Used at CDL Construction Sites Core Business in Singapore

CDL Construction CDL Commercial and CDL Corporate Total Water Used at Water Use Intensity Sites Industrial Buildings Office11 CDL Construction at CDL Construction Sites (m3) Sites (m3/m2) 758,549 717,033 512,993 535,336 545,290 m3 m3/m2

250,000 1.3 1.4 191,160 143,880 1.2 200,00 1.0 0.88 1.0 149,761 170,232 128,401 150,000 0.71 0.8 0.59 3

m 0.6 567,389 573,153 100,000

384,592 385,575 375,058 0.4 50,000 0.2 3,065 3,107 3,201 2,874 2,912 191,160 143,880 128,401 149,761 170,232 53 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Note: Water intensity figures for CDL commercial and industrial buildings Note: 2016’s water intensity figure is for 12 CDL construction sites in are based on the leased area of the buildings. Singapore and is based on the built gross floor area for the projects in 2016.

Water Usage at CDL Commercial Water Used at CDL Corporate Office and Industrial Buildings

Total Water Used at Water Use Intensity Water Use Intensity Total Water Used at CDL Water Use Intensity at CDL CDL Commercial at CDL Commercial at CDL Industrial Corporate Office 3(m ) Corporate Office 3(m /m2) and Industrial Buildings Buildings Buildings (m3) (m3/m2) (m3/m2) m3 m3/m2 m3 m3/m2 700,000 0.18 3,300 0.48 0.16 0.47 0.15 0.16 3,200 0.46 600,000 0.46 0.13 0.45 0.14 3,100 500,000 0.12 0.12 0.12 0.12 0.44 0.44 3,000 0.43 400,000 0.10 0.08 2,900 0.42 300,000 0.08 2,800 0.05 0.06 0.40 200,000 0.04 0.03 0.04 2,700 0.38 100,000 0.02 2,600 567,389 573,153 384,592 385,575 375,058 3,065 3,107 3,201 2,874 2,912 0 0 2,500 0.36 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Note: Water intensity figures for 12 commercial buildings and three industrial buildings in Singapore are based on the leased area of the buildings.

8 Water tariff at $2.0817 per 3m before GST, inclusive of water tariff, water conservation tax and waterborne fee. Source: www.pub.gov.sg 9 NEWater tariff of $1.7807 per 3m before GST, inclusive of NEWater tariff and waterborne fee. Source: www.pub.gov.sg 10 Water used in Singapore, a highly water stressed country, is from the reservoir and considered as town water. 11 CDL Corporate Office’s water data is included in the data of commercial buildings. NATURAL CAPITAL

Water Use in Key Subsidiaries

Similar in scope for GHG emissions and energy, we also report the water consumption data of our key subsidiaries.

Water Used in CDL and Key Subsidiaries 2014 2015 2016 * Oct – Sep data 6,099,614* 6,057,942* 5,984,800 ) 3 Water (m Water 545,290 535,336 508,820 477,312 459,072 446,822 15,888 15,344 13,257 8,176 7,599 7,237

CDL CDLHT Le Grove Tower Club M&C

Note: CBM and CSO are tenants within a building and hence do not have separate meters to track respective water usage within their facilities

Waste Management and waterways, while incineration of the waste is generated by our 54 causes pollution issues and affects builders and commercial tenants. The way we generate, treat and air quality. Unless re-used, demolition at the dispose of waste has a strong end of a building’s life cycle can impact on the environment and CDL remains steadfast in managing produce significant waste for land community-at-large. Waste our waste efficiently and seeks to disposal. To mitigate our impact on breakdown in landfills contribute reduce, reuse, and recycle our waste the environment, CDL has several to carbon emissions and leachates whenever feasible. As a property strategies to practise the 3Rs in may contaminate groundwater developer and manager, the bulk waste management:

Waste Initiatives Benefits Management Method Reduce Adoption of Prefabricated Prefinished Generates less waste and paves the way for Volumetric Construction (PPVC) technology cleaner and safer construction sites for large-scale residential development

Construction and Demolition Waste Policy Leads to builders’ increased use of since 2009 for the adoption of sustainable sustainable products and improved recycling construction practices rates for construction waste

Reuse Reuse furnishing used in our show flats Reduce waste generated and costs required wherever the design or theme permits to re-purchase materials

Identify materials for reuse or recycling under BCA’s Demolition Protocol

Recycle Recycling programme for light bulbs Reduce land pollution by diverting mercury away from landfills

Recycling programme for commercial Reduce waste sent to incineration plants and buildings and CDL corporate office use of natural resources Construction Waste Generated at INVESTMENT IN CDL Construction Sites ENVIRONMENTAL PROTECTION Waste Generated at CDL Waste Intensity at CDL Construction Sites (tonnes) Construction Sites (kg/m2) tonnes kg/m2 Testament to our commitment to 70.0 15,000 66.2 70.0 environmental conservation, CDL established a minimum target for all 58.5 60.0 new developments to be certified 50.0 10,000 43.9 BCA Green Mark GoldPLUS, two tiers 40.0 beyond legislative requirements. 30.2 30.0 To support this ambition, CDL 5,000 typically invests 2% to 5% of a new 20.0 development’s construction cost in 10.0 green design and features. 6,671 4,544 12,323 13,906 13,523 0 0 2012 2013 2014 2015 2016 CDL also supports various non-

Note: 2016’s waste intensity figure for 12 CDL construction sites in Singapore are based on the governmental and grassroots built gross floor area for the projects in 2016. organisations that drive environmental conversation and sustainability within the wider In land-scarce Singapore, most Waste Disposed of and community. Additionally, we support of the general waste is sent to the Recycled at CDL Commercial youth-led environmental groups waste-to-energy incineration plants. and Industrial Buildings in eco-outreach and education Incineration plants are capable of initiatives. Some organisations that reducing the solid waste volume by In CDL-managed buildings, we have supported in the past 90%, and the incinerated ash is then around 4,283 tonnes of general, include the Singapore Environment transported to the landfill for disposal. non-hazardous waste were Council and Nature Society 55 Mindful that construction debris disposed, with about 704 tonnes (Singapore). cannot be incinerated and are directly of recyclable waste collected in sent to the landfill, we are spurred 2016. 83% of the recyclable waste Since 2015, CDL has donated up to to continuously invest, innovate, collected was paper. $100,000 every year to the North and adopt leading-edge technology West Community Development such as PPVC to significantly reduce Our paper recycling programme has Council’s “Power Up Scheme”. A construction waste. seen increasing tenant participation three year programme, the scheme from 68% in 2005 to 100% in 2016. provides electricity bill rebate to All of CDL’s generated waste at both Although lamps contain trace low income households that have the construction sites and managed amounts of mercury, lamps that are shown commitment towards buildings is non-hazardous and available for sale in Singapore can reducing energy consumption. More disposed of in accordance with be disposed of safely as general information on CDL’s partnerships the National Environment Agency’s waste and thus not considered and community investment in (NEA) waste regulations. as hazardous. However, as a environmental conservation responsible corporate citizen, CDL programmes can be found on pages In 2016, construction waste actively collects lamps for recycling 84 to 87. generated at all CDL construction to conserve natural resources sites amounted to 13,523 tonnes, and to reduce contamination by with a waste intensity of 70 kg/m2. mercury. Under the lamp recycling This is higher than the previous years programme with Global Lamp as many of our construction projects Recyclers, 15,836 lamps weighing in 2016 were nearing completion for more than 1,753 tonnes were handover to the homebuyers. recycled in 2016. NATURAL CAPITAL

ENVIRONMENTAL the procedures at construction Managing Construction Noise COMPLIANCE sites. Since 2005, we have been incentivising our builders to uphold In Singapore, NEA regulates the CDL is committed to compliance high EHS standards through the CDL noise levels from construction sites with all applicable EHS legal 5-Star EHS Awards and monetary with a set of permissible noise limits requirements enforced by local rewards. From 2013, a penalty that vary depending on the time of governing authorities such as system has been imposed on the day and neighbouring premises. BCA, NEA, Ministry of Manpower, builders of all new developments To protect nearby residents, we Singapore Civil Defence Force and for any EHS infringements. This was place emphasis on our builders to other relevant enforcers. Through formulated as part of an ongoing comply with the construction noise constant monitoring, evaluation, review of our system and process to limits at all our construction sites. and auditing of our ISO 14001 maintain good EHS performance. and OHSAS18001 certified EHS To minimise noise-related management system, CDL actively As a responsible corporate citizen, complaints, our builders are ensures that all our activities and we provide avenues for the public to encouraged to put in place an active operations comply with existing raise enquiries or complaints on EHS management programme and to regulatory requirements. matters. Phone hotlines managed take all necessary action to address by our appointed builders are set-up and resolve related complaints. In 2016, 18 fines were imposed on for all construction sites. As part of our efforts to keep our builders across 12 construction the community informed about sites. Four were for vector In 2016, across our 12 ongoing project statuses, schedules of the breeding, five for working beyond sites, we had one complaint construction process at each site allowable hours, five for performing regarding dust from construction are communicated with a view to construction activities above the activities affecting nearby residents. inform the community about works noise limit, and four for workplace The contractor has since put in that might affect them. More details safety infringements. controls in the area surrounding on our public communications can 56 the construction site to prevent be found on page 83. To prevent future occurrences of further incidences of dust nuisance non-compliance, we have reviewed to the community. and streamlined our current processes to improve and tighten

EHS-Related Fines

CDL Construction CDL Commerical and Value of Fines (S$) Sites Industrial Buildings

Number of Fines Value of Fines (S$) 20 150,000 121,400 122,500 100,600 110,000 15 2 3 100,000

44,000 50,000 5

8 13 18 13 18 0 0 2012 2013 2014 2015 2016

Note: Amounts are based on the fines invoiced as of 31 December of the year in which the fines were incurred. MOVING FORWARD In 2017, CDL will also place greater emphasis on waste management, In natural resource scarce given the fact that the nation’s only Singapore, the efficient landfill Pulau Semakau will run out management of available resources of space by 2035. In line with the will continue to be a pressing issue. vision of the Sustainable Singapore The impending carbon tax and Blueprint for our nation to achieve increased water prices are examples zero-waste, CDL has set a target to of government measures that will decrease waste disposal levels by 5% significantly impact business cost. against 2016 figures, and increase the level of waste recycling to 5% of CDL is aligned with Singapore’s total waste disposed in 2017. goal of becoming a climate resilient city and the growing international Our enhanced environmental targets focus on low-carbon economies. are outlined in our newly launched As such, we have adopted the sustainability blueprint – CDL Future Sectoral Decarbonisation Approach Value 2030, which can be found on (SDA) to raise our carbon emission page 15 of this report. reduction target. The SDA is a climate science-based method to By strengthening our natural capital, limit the rise of global temperatures we are well poised to future-proof to 2°C above pre-industrial levels. our business against emerging With this approach, we have revised regulatory developments and our target of reducing our carbon rising resource costs. Our strong emissions from 25% to 38% by 2030 environmental credentials will against 2007 levels in support of also enable CDL to capitalise on Singapore’s commitment to the the growing green financing and 57 Paris Agreement and the country’s sustainable investment markets, to Climate Action Plan. generate value for our shareholders and other stakeholders. SDG GOAL 11 SUSTAINABLE CITIES AND COMMUNITIES SDG GOAL 12 RESPONSIBLE CONSUMPTION AND PRODUCTION

SDG GOAL 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE SDG GOAL 17 PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT

GREEN BUILDING SUSTAINABLE & LEASE INNOVATIONS

BUILDING GREEN INFRASTRUCTURE MANUFACTURED CAPITAL

More than just a developer of living As of December 2016, CDL has certified developments and spaces, we pride ourselves as a amassed a portfolio of 87* Green properties are rated Green Mark builder of lives and communities. Mark certified developments and GoldPLUS and Platinum – the highest For more than 20 years, CDL has office interiors awarded by the tier certification. championed groundbreaking Building and Construction Authority innovation and set green building (BCA). Besides tangible cost savings For the full list of CDL’s Green Mark benchmarks to keep us ahead in and priceless reputational gain, our awarded developments and office a highly competitive market. Our pursuit of green spaces supports interiors, please refer to page 65. quality, sustainable and resilient the Sustainable Development Goals spaces have strengthened our (SDG 11) to make cities inclusive, Our green building credentials also manufactured capital, enabling safe, resilient and sustainable. helped to enhance our product us to not only create enhanced differentiation and desirability. value for our business, investors Eco-features and resource saving and customers, but also support CHAMPIONING GREEN benefits are added to our marketing economic development and the BUILDINGS collaterals to strengthen the well-being of the communities we marketability of our quality green operate in. For over a decade, the Company homes and offices. has been investing between 2% By 2030, almost 60% of the world’s and 5% of a new development’s Greening Existing Buildings population will live in urban areas. construction cost on green building While cities occupy just 3% of design and features. Besides new developments, CDL has the Earth’s land, they account for set the pace for greening our existing up to 80% of the world’s energy We proactively adopt sustainable buildings. A 2016 study by BCA3 on consumption and 75% of carbon construction methods and 101 retrofitted buildings revealed emissions1. These pose challenges integrate innovative technologies an average total annual electricity to the way our cities can continue to enhance the environmental savings of 17%, equivalent to about to create jobs and prosperity, performance and financial value $51 million in savings each year. 59 given the constraints of land and of our properties, as well as to resource scarcity. create comfortable green homes. Since 2004, CDL has retrofitted To optimise resource- and cost- all of our existing commercial and As a leading provider of urban savings, sustainability considerations industrial buildings by upgrading residential and working spaces, are factored into the entire life-cycle chiller plants, introducing motion CDL is well-poised to leverage of our developments, starting from sensors, installing energy-efficient our green building expertise to concept design to construction and lighting, and recladding facades. On harness efficiency gains through building management. average, these efforts have yielded an technological enhancement and estimated annual energy savings of innovation. Our steadfast commitment to around 16.2 million kWh, equivalent green buildings has strengthened to more than $3 million4 in 2016. Over the years, CDL’s green building our licence to operate against the efforts have translated to tangible backdrop of emerging regulatory As a result of these initiatives, 10 benefits for our business. From 2012 changes, and enabled CDL to be of our commercial buildings were to 2016, we achieved savings of recognised as the built industry leader. certified Green Mark Platinum more than $16 million as a result of for improved environmental the energy-efficient retrofitting and Since 2011, CDL has set a minimum performance during the initiatives implemented for eight target for all its new developments re-certification process. CDL-managed office buildings, to be certified BCA Green Mark2 directly contributing to CDL’s GoldPLUS, two tiers beyond the For more details on CDL’s energy financial bottom line. mandatory Green Mark certification management initiatives in 2016, level. Today, more than 70% of please refer to page 50 on CDL’s portfolio of Green Mark Natural Capital.

* Include subsidiaries and associated companies 1 Source: www.un.org/sustainabledevelopment 2 Developed by BCA in 2005, the Green Mark rating is the national assessment system of green building performance based on key areas of energy efficiency, water efficiency, environmental protection, indoor environment quality and green features and innovation. Certified Green Mark buildings are re-assessed once every three years to determine if they maintain the Green Mark status. 3 Source: BCA Building Energy Benchmarking Report 2016 at www.bca.gov.sg 4 Average electricity traffic in 2016 was $0.189. Source: www.singaporepower.com.sg MANUFACTURED CAPITAL

GREEN LEASE AND More than 25% of the tenanted awarded developer in the Green Mark TENANT ENGAGEMENT spaces in our commercial properties Pearl category, winning three out of have been certified under the BCA the five awards given out in 2016. Beyond focusing on building Green Mark Scheme, including office infrastructure, we recognise that interiors, retail, supermarkets and CDL can work with our commercial restaurants as of December 2016. Spotlight tenants to play a bigger role in the green building movement, in In recognition of our concerted line with BCA’s 3rd Green Building commitment and sterling success Empowering our Masterplan. in encouraging tenants towards Tenants for BCA Green environmentally-friendly efforts, Mark Office Interior Tenant and occupant activities CDL emerged as the only developer Certificate within a building can account for to receive BCA Green Mark Pearl close to 50%3 of the total electricity Prestige Award for two consecutive NCR Asia Pacific, a tenant consumption of a building. Hence, years. In 2016, this top-tier accolade at 7 & 9 Tampines Grande, enabling our commercial tenants was awarded to 7 & 9 Tampines leveraged on CDL’s green to adopt low-carbon and energy- Grande, developed and managed by initiatives and attained Green efficient practices not only helps CDL, for outstanding commercial Mark Office Interior Gold them to lower their carbon footprint, tenant engagement. The Green Mark certification in 2016. CDL but also achieves utility savings for Platinum building embraces one of fitted the perimeter lights CDL’s asset management. the largest and most extensive use of NCR Asia Pacific’s office of solar technology in a commercial with photocell sensors, Since 2014, we have implemented property in Singapore. which reduce their energy the CDL Green Lease Partnership consumption and increase Programme to support our In addition, 11 Tampines Concourse utility savings. NCR Asia Pacific commercial tenants in reducing and Central Mall (Office Tower), also is also a participant of CDL’s 60 their energy consumption and developed and managed by CDL, paper and lamp recycling environmental footprint. As of were winners of BCA Green Mark programme, whereby CDL December 2016, over 95% of our Pearl Awards 2016. 11 Tampines has created collection points existing tenants have pledged Concourse, the first CarbonNeutral® within the building for tenants their commitment by signing a development in Singapore and Asia to place used paper and lamps Green Lease Memorandum of Pacific, is a Green Mark GoldPLUS for recycling. Understanding. We further supported building, while the Central Mall (Office our tenants’ green practices through Tower) is a Green Mark Platinum various end-user initiatives. building. In total, CDL is the most-

1. CDL Green Lease 2. Digital Energy 3. Electricity Rebate Ambassadors Monitoring Portal to Tenants in Partnership with Tuas Power

• Provide tenants with • Provide real-time half • Reward tenants with guidance on ‘greening’ hourly updates of energy a 1% electricity rebate their offices through advice consumption when they attain a 2% on energy and water savings over the previous conservation measures and • Enable tenants to better quarter’s bill indoor greenery track and manage energy usage • Act as consultants for BCA Green Mark Office Interior certifications and CDL-pioneered Project: Eco-Office. DELIVERING Our promise to deliver quality Ensuring Safe Design and UNCOMPROMISED green homes and commercial Construction QUALITY AND spaces was re-affirmed when STANDARDS CDL was once again awarded the We place great emphasis on the Quality Excellence Award – Quality structural stability of our buildings, The quality of our developments Champion (Platinum) by BCA in fire and emergency safety determines how well we perform 2016, earning us the distinction of compliance, as well as the integrity in the marketplace. We recognise being the only developer to have of building materials. Qualified that each property purchase is received this highest honour for four professionals such as architects, a significant investment for our consecutive years. engineers and technical supervisory customers and we make it a staff are engaged to monitor priority to deliver on innovative construction to ensure they are green designs, high standards of CREATING SAFE AND built in accordance with building workmanship, and buildability, HEALTHY SPACES regulations and codes. Our builders without compromising on are expected to meet CDL’s high functionality or price. As a developer and manager of standards in terms of the quality, residential and commercial spaces, it safety and sustainability for Established in 1989, the BCA is our utmost responsibility to ensure our developments. Construction Quality Assessment the safety and well-being of our System (CONQUAS)5 has been the homebuyers, tenants, shoppers, and As part of CDL’s environmental, industry benchmark for quality even the community in the vicinity health and safety (EHS) and workmanship standards of of our buildings. Management System, we have put construction projects in Singapore. in place a process where safety Although it is not mandatory for In 2016, there was no incident and health hazards are identified, private sector projects to subscribe of non-compliance with health reduced and mitigated during key to CONQUAS, CDL has consistently and safety voluntary codes and stages of a property development put in our best efforts to submit all standards such as OHSAS 18001 at to safeguard the health and safety 61 our projects for assessment since CDL’s developments or managed of workers on-site and the public in the inception of the system. properties. proximity.

Concept Design Design Construction Risk Assessment Risk Assessment Risk Assessment

• Site appraisal to identify • Environmental impacts • Conducted by builders significant environment are further reviewed before construction impacts, health and safety and design mitigation commences hazards measures are identified • Identify health and • Information is passed • Designs also comply safety hazards and on to the designers with Singapore’s Design environmental to address risks for Safety regulations to impacts caused by the at the design address health and safety construction process development stage risks during construction, maintenance and building • Actions taken to address occupation EHS risks to ensure the safety and health • Information is passed on of workers and the to the builders to address community risks at the construction stage

5 BCA CONQUAS is the de facto national standard assessment system on the quality of buildings based on three areas of Structural Works, Architectural Works and M&E Works. MANUFACTURED CAPITAL

Protecting Customers’ and Public Safety and Health

As a responsible facility manager, CDL actively identifies the significant hazards and manages the risks in all CDL- managed commercial buildings. To ensure the safety and security of our commercial tenants and the public, every building is under the care of a Complex Manager who oversees its daily operations with a team of full-time service providers, and a range of safety and security measures.

Measures Coverage and Features Security and Loss Prevention • CCTV monitors • 24-hour security guards • Emergency management procedures – review and improve continually

Emergency Response Plan • Covers building-related emergencies such as flu epidemic outbreaks, fires, and major electricity outages • Flood management response plan (since 2012) • Fire drills – two mandatory every year • Table-top exercises – two annually • Flood drills • Terrorist threats response plan

Lifts and Escalators – Preventative • In compliance with latest mandatory safety standards and stringent Maintenance Regime codes of practices • Engages only licenced contractors to perform the maintenance and inspections • Incident reporting process 62 • Rectification procedures – e.g. equipment is taken out of service until problems are addressed and deemed safe for use again

On top of the day-to-day cleaning 326,700 foreign workers7. As part The game-changing technology is services, as well as the maintenance of our long-term strategy for expected to raise productivity by of good sanitation and indoor air environmental and supply chain over 40%, on top of creating a safer quality, CDL also takes care of the management, CDL has invested in construction site and reducing waste. health and well-being of our tenants sustainable and more productive and their employees through a building methods to mitigate the The adoption of PPVC technology series of health-related activities and challenges of skilled labour shortage follows CDL’s success in pioneering programmes jointly organised with and rising cost of resources. the Prefabricated Bathroom Units the Health Promotion Board. More (PBUs). The use of PBUs improves details of our workplace well-being Raising Productivity through construction productivity by up to programmes can be found on pages Technologies 80% and reduces construction waste 78 to 79. while improving water tightness of In 2014, CDL became the first the bathrooms. To date, CDL has developer in Asia to adopt the installed more than 10,000 PBUs in PIONEERING advanced construction technology, our residential developments. SUSTAINABLE BUILDING Prefabricated Prefinished Volumetric INNOVATIONS Construction (PPVC) for our Since 2000’s, CDL has also 638-units The Brownstone Executive pioneered the use of drywalls which As Singapore’s third largest Condominium (EC) – likely the are easy to install and improve contributor of carbon emissions, world’s largest application of productivity compared with the the built sector consumes close concrete PPVC for a large-scale conventional brickwall system. to 40% of electricity6 and employs private residential development.

6 Source: BCA Building Energy Benchmarking Report 2015 at www.bca.gov.sg 7 Source: Ministry of Manpower foreign workforce (construction sector) statistics as of June 2016 Investing in Future Technologies

In support of the national vision for a smarter, greener, and more liveable Singapore, CDL invested $2.25 million in a R&D collaboration with National University of Singapore’s School of Design and Environment to catalyse innovations in smart and climate-resilient building technologies. Through two first-of-its-kind programmes – NUS-CDL Smart Green Home and NUS-CDL Tropical Technologies Laboratory (T² Lab), CDL will continue to champion leading-edge innovations which can be test-bedded in our future developments. These technological solutions will enhance value to our homebuyers and tenants by addressing their future lifestyle needs in an inclusive and urbanised environment in the tropics.

NUS-CDL Smart Green Home Objective: To harness research in developing innovative solutions to create homes that are safe and secure, healthy and comfortable, and acoustically pleasing

• Advanced research and education facilities for the experimentation and implementation of technologies leading to a smart community and nation • Re-configurable structure to enable comparative research through flexible experimental setup, testing and monitoring • Ideas that can be tested here include energy efficiency, quality of indoor environment and sustainable home of the future • A showcase to facilitate visits by students and industry collaborators

NUS-CDL T² Lab Objective: To enable researchers to examine integrated technology solutions for people-centric, climate responsive buildings of the future

• Possible studies include examining biomimicry building envelope devices and systems for harvesting of energy from renewable resources (such as sun, wind and daylight); solar control and shading; 63 vertical and edible garden; solar chimney; and smart building materials • Test-bed to explore how architecture and building design deal with extremities of weather, air pollution, and rising sea water levels • Designers and building scientists could also explore new ideas and concepts to innovate existing building designs to address environmental challenges that threaten liveability, comfort, well-being and health, in an intensified, compact urban environment like Singapore

Innovating for a Smart and Liveable City

Since 2001, CDL has embarked on integrated smart-home solutions, starting with the introduction of the intelligent, interactive, and internet-ready i-Home concept for The Equatorial condominium. Over the years, we have continued to innovate and introduce smart-home features in our residential developments, creating living spaces that will improve the quality of life and support Singapore’s position as a leading international Smart City.

Smart solutions are also introduced at CDL-managed commercial and retail buildings. Some of our smart initiatives include:

Building and Coverage Initiative Features and Benefits Forest Woods Smart Home Technology • Smart Home Centre (Lite) controls smart devices (under development) in all units and sensors installed easily • Smart Door Sensor monitors the opening of doors for added security • Smart IP Camera monitors what is happening at home when residents are away • Smart Lighting Control and Air Conditioner Control automates lights and air-conditioning remotely MANUFACTURED CAPITAL

Building and Coverage Initiative Features and Benefits Echelon Home Energy • Monitors home energy usage (completed in 2016) Monitoring System • Controls air-conditioners and lighting usage (HEMS) – first-of- via hand-held smart devices like iPads its-kind smart home • Home users can programme alerts that are triggered solution prototyped in via email or short message service (SMS) if their collaboration with Daiwa energy usage exceeds pre-determined limit House from Japan • Offers greater convenience and proactive energy management

H2O Residences Digital Smart Signage • Offers easy content management (completed in 2015) introduced in lift lobbies • Instant broadcast of important estate messages and club house via multimedia • Eliminate usage of paper versus traditional notice boards All CDL commercial and Chiller Plant • Tracks performance and makes adjustments retail properties Optimisation System automatically according to the parameters • Ensures optimal efficiency at all times City Square Mall Web-based Remote • Operators can remotely receive and monitor first- Republic Plaza Monitoring System hand information of chiller system performance for Chiller Plant • System enables proper actions to be taken when Performance deviation is detected • Drawing from our experience, we have embarked on an extended pilot with BCA for a chiller efficiency smart portal. Progressively, more buildings will be added to this pilot project. City Square Mall Carpark Lighting • Auto dimming of carpark lighting to 30% Fuji Xerox Tower Motion Sensors during low usage 64 King’s Centre • Lights will turn up to 100% when sensors Palais Renaissance detect movements Republic Plaza Tagore 23

PROMOTING SOCIAL In 2016, CDL’s H2O Residences and Following our investment in INCLUSION THROUGH The Palette were recognised with the mamahome, the fast-growing UNIVERSAL DESIGN BCA Universal Design Mark Award Chinese online apartment rental – GoldPLUS for imbuing user-centric platform with more than 150,000 Since 2011, CDL has been committed philosophy into its design, operations apartment listings in 20 China cities to building socially inclusive green and maintenance. The Rainforest EC in September 2016, we further spaces with a Universal Design Policy. also received the Universal Design announced in January 2017 our Apart from supporting Singapore’s Mark Award – Gold. investment in China’s leading co- vision of building an inclusive society, working space operator Distrii which our initiative also contributes towards plans to expand in global gateway Goal 11 of UN SDGs in providing MOVING FORWARD cities. Marking its first international universal access to safe, inclusive foray, Distrii will create one of the and accessible, green and public Digital disruption and the largest co-working facilities in spaces, in particular for women and emergence of sharing economy Singapore. The co-working space, children, older persons and persons have affected conventional spanning over 60,000 sq ft at CDL’s with disabilities, by 2030. businesses in office and residential flagship Republic Plaza in the heart lease. To stay relevant in today’s of the city’s Central Business District, Our principle of ‘designing for all fast-evolving business landscape, is slated to open in 2018. people’ across all our projects goes CDL has leveraged our strong beyond the minimum requirements financial capital and enterprise agility The new ventures are expected specified in the Code of Barrier-Free to invest in new business models to bring in fresh revenue streams Accessibility by BCA and the mandatory and innovate product offerings to to complement our existing lines requirements of Universal Design. capitalise on opportunities in these of business where CDL’s resilient Details on CDL’s Universal Design Policy rapidly growing sectors. foundation was laid more than 50 can be found on page 36. years ago. BCA GREEN MARK AWARDS* (2005 TO 2016)

Green Mark Platinum • 7 & 9 Tampines Grande • King’s Centre (in new and existing building categories) • Lush Acres • 368 Thomson • M Social Singapore • Central Mall (Office Tower) • Manulife Centre • CDL Green Gallery @ Singapore Botanic Gardens • My Tree House @ Central Public Library Heritage Museum • Palais Renaissance • City House • Quayside Isle • City Square Mall • Republic Plaza (in new and existing building categories) • South Beach Tower • Cliveden at Grange • South Beach Residences • Cube 8 • The Glyndebourne • Echelon • The Oceanfront @ Sentosa Cove • Eling Residences (Chongqing) • The Residences at W Singapore – Sentosa Cove • Fuji Xerox Towers • The Solitaire • Gramercy Park • The Venue Residences and Shoppes • Grand Copthorne Waterfront Singapore • Tree House

• H2O Residences • Volari • Haus@Serangoon Garden • W Singapore – Sentosa Cove • Hundred Trees Green Mark GoldPLUS • 11 Tampines Concourse • D’Nest (in new and existing building categories) • Exchange Tower, Bangkok • Blossom Residences • Jewel @ Buangkok • Buckley 18** • Livia • Buckley Classique • New Futura • CDL Office — City House, Levels 2 & 5 • Novotel Clarke Quay (Green Mark for Office Interior) • NV Residences 65 • CDL Office — City House, Levels B1 & 21 • Shelford Suites (Green Mark for Office Interior) • St. Regis Hotel & Residences, Singapore • CDL Office — City House Levels 19, 20 & 23 • The Arte (Green Mark for Office Interior) • The Palette • CDL Office — City Square Mall Management Office • The Rainforest (Green Mark for Office Interior) • UP@Robertson Quay • City Square Residences • Wilkie Studio • Coco Palms Green Mark Gold • Botannia • Nouvel 18 • CDL Office — City House, Levels 3, 4 & 22 • One Shenton (Green Mark for Office Interior) • Orchard Hotel • CDL Office — Republic Plaza, Level 36 (Green Mark • Parc Emily for Office Interior) • Residences @ Evelyn • City Square Shophouses at Jalan Besar • Savannah CondoPark • Millennium Residences @ Sukhumvit, Bangkok • The Sail @ Marina Bay • Monterey Park Condominium • Tribeca • New Tech Park (sold in November 2013) Green Mark Certified • Butterworth 33 • Manulife Centre Management Office (Office Interior) • City Serviced Offices at Tampines Grande • Pantech 21 (sold in November 2013) (Office Interior) • 7 & 9 Tampines Grande Management Office • City Serviced Offices at City House (Office Interior) (Office Interior) • Central Mall Management Office (Office Interior) • The Pier at Robertson • Fuji Xerox Towers Management Office (Office Interior) Green Mark Pearl • City House (Prestige) • 11 Tampines Concourse • Central Mall (Office Tower) • 7 & 9 Tampines Grande (Prestige) • Manulife Centre

* Includes subsidiaries and associated companies ** Project managed by CDL SDG GOAL 8 DECENT WORK AND ECONOMIC GROWTH

REMUNERATION HUMAN AND WELFARE RIGHTS

66 FAIR LABOUR WORKPLACE EQUAL PRACTICES HEALTH AND SAFETY OPPORTUNITY

BUILDING OUR PEOPLE HUMAN CAPITAL

An organisation is often said to be In line with our corporate In 2016, CDL brought together 24 only as good as its people. The level environmental, health and safety of our key builders and consultants of commitment, skillset and quality (EHS) Policy, key performance to sign the ‘Pledge Towards Vision of employees is therefore critical to indicators (KPIs) were identified with Zero Through Safe Design–Safe a company’s success. targets established and reviewed Practices–Safe Culture’, in support annually to monitor our EHS of the Construction Industry We believe in building engaging performance. This is to ensure that Workplace Safety and Health (WSH) careers so that our employees we achieve a consistently high EHS Actions Plans. This followed two can grow with the company. Our standard across the organisation. similar rounds of pledge signing Human Resource (HR) policies More details on our EHS Policy can initiated by CDL in 2010 and and initiatives are geared towards be found on page 34. 2014. More information on CDL’s creating a competent, caring and advocacy of health and safety along inclusive workplace. It aims to foster As early as 2003, we received the our value chain can be found on human development and well- Occupational Health and Safety page 84. being, drive employee productivity Assessment System (OHSAS) and satisfaction, and reward stellar 18001 certification for the As a result of various safety initiatives performance. Through proactive successful implementation of the and engagement programmes with engagement, talent development and management system at all our our builders and their workers, we retention, fair labour practices and property developments. In 2016, we have maintained zero fatalities and competitive remuneration, we strive implemented an EHS Management occupational diseases at CDL’s to remain as an employer of choice. System that covers 100% of our construction sites in 2016. key operations in Singapore and we achieved the OHSAS 18001 Beyond caring for our direct Year Fatalities Occupational certification in March 2017. employees, we recognise that Diseases workers at our construction sites and commercial properties are Safety at Construction Sites 2016 Zero Zero vital to our day-to-day operations. 2015 Zero Zero 67 While they may not operate directly All our builders are required to have within our immediate realm of an accredited safety and health 2014 Zero Zero responsibility, this has not prevented management system. This is a pre- us from being a strong advocate requisite in the tenderer shortlisting The Accident Frequency Rate to guide and influence our builders process. We actively engage our (AFR)1 and Workplace Injury Rate and contractors to care for workers’ builders and consultants on health (WIR)2 at CDL’s construction sites safety, health and well-being along and safety matters through risk also remained way below the our value chain. reviews and their EHS performances construction industry average. are monitored through our CDL 5-Star EHS Assessment System. HEALTH AND SAFETY We recognise that skilled labour In addition to workplace safety, shortage will continue to pose a we place great emphasis on challenge as we uphold workplace the health and well-being of safety and health standards through our employees, customers and our management system. Through suppliers. Ergonomics, stress, and a combination of rewards and anxiety significantly impact work penalties, we hope to heighten quality, employee satisfaction and awareness and minimise safety retention, which ultimately affect breaches at all our construction sites. organisational performance.

1 AFR refers to the number of workplace accidents per million manhours worked. Figures used are accident-based. For details, please refer to www.mom.gov.sg. 2 WIR refers to the number of fatal and non-fatal workplace injuries per 100,000 persons employed. Figures used are victim-based. For details, please refer to www.mom.gov.sg. HUMAN CAPITAL

AFR at Construction Sites: WIR at Construction Sites: No. of workplace accidents per million No. of fatal and non-fatal workplace manhours worked injuries per 100,000 persons employed CDL Industry Average CDL Industry Average

2.1 2.0 594 564 1.7 1.7 1.7 481 451 467

0.72 0.66 184 0.53 178 182 0.24 74 0.14 44

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

There were 10 reportable workplace great emphasis in influencing create awareness on the importance related accidents sustained by our contractors to uphold a safe of a safe and healthy workplace to male workers at our construction and healthy work environment for prevent future occurrences. sites in 2016. Our builders received workers in our managed buildings. four fines for workplace safety and 16.5% of the employees at our health related non-compliance. For the year in review, there were corporate office are involved Even though the accidents and no fatalities, incidents of injury or in workplace health and safety non-compliance are a result of occupational diseases involving the committees. Initiatives and activities 68 lapses in our builders’ site practices, workers of our key contractors3 at planned by these committees CDL is fully committed to working CDL managed properties. are part of a continual process with them to continually improve to protect and promote the safety and health conditions at the Safety at Corporate Office health, safety, and well-being construction sites. of all employees, and hence the In 2016, there were zero fatalities sustainability of our workplace. More details on CDL’s engagement and occupational diseases involving programmes with builders to uphold our employees in our corporate Healthier Workplace health and safety standards at our office. However, there were six construction sites can be found on reportable injuries with loss of work- To promote healthy living, active page 79 to 80. days. One of which was a non-work lifestyle and emotional well-being related injury. In addition, there was amongst CDL’s employees, our Safety at Managed Properties one injury notified without loss of HR department and employee- work day. led Workplace Health Programme Facilities management and Committee organised an array of maintenance are vital in delivering Due to the relatively small workforce activities in 2016. efficient, reliable and prompt in our corporate office, the safety services expected by our statistics may seem much higher commercial tenants and retail than the industry average of Real customers, as well as ensuring Estate activities reported by the the operational efficiency of our local WSH Institute4. By proactively commercial assets which contribute tracking and taking accountability to our bottom line. We therefore of reportable incidents, it helps to

3 Key contractors in our managed buildings provide cleaning, security services and mechanical and engineering support. 4 Based on 2016 statistics provided by WSH Institute. For more information, please visit www.wsh-institute.sg. Number of Work-related Lost-time Injuries Reported in Corporate Office: 5

3 2 5.7 54 1,193 Female Male AFR ASR WIR

Over the past three years, the average workers to alternative areas of work, Health-related Programmes number of medical leave taken per implementing shorter work weeks, 1. Free annual basic health employee per year have maintained at temporary layoffs, flexible work screenings for all employees approximately four days. arrangements, and managing wage during work hours costs through a flexible wage system. In 2016, we have started to review 2. Discounted health screening the Accident Severity Rate (ASR)5 of In the event of termination or programmes for the family our employees at corporate office to employee resignation, a minimum members of our employees evaluate the number of work days lost notice period of one to three months 3. Bi-monthly healthy snacks to as a result of accidents. needs to be fulfilled, depending on promote better consumption the employee’s job grade. Due to habits Going forward, we have established operational requirements, middle and KPIs to measure health and safety senior management are required to 4. Regular lunch time talks across our corporate office and core provide a notice period of two and on joint pain management, operations in Singapore, including three months respectively. cancer fighting diets, project developments and property 69 hypertension prevention and and facilities management. Specific Our Employees personal grooming health and safety goals and targets 5 Fitness classes including yoga, have been incorporated under As at 31 December 2016, CDL has pilates, stair-climbing, dragon our new CDL Future Value 2030 a total 413 employees. Close to boating, bowling, table tennis, blueprint on page 15. 7% of our employees are hired on jogging and futsal permanent contract basis.

JOB CREATION Assistance for Emotional AND EMPLOYMENT Total Number of Well-being Employees CDL’s Employee Assistance CDL adheres to the Tripartite Programme (EAP) provides support Guidelines on Managing Excess 429 420 413 for issues concerning work, Manpower issued by the Ministry of family matters, and interpersonal Manpower (MOM) and its tripartite relationships. Employees can be partners, Singapore National assured of confidentiality when Employers Federation and the they call the EAP hotline manned National Trades Union Congress. The by a third-party psychologist. company supports and shares a similar philosophy as the Tripartite Guidelines, which strongly encourage companies to manage excess manpower and consider reorganisation as a last resort. The Guidelines also suggest providing company retraining programmes 2014 2015 2016 for workers, redeployment of

5 ASR refers to the number of man days lost to workplace accidents per million manhours worked. Figures used are accident-based. For details, please refer to www.mom.gov.sg. HUMAN CAPITAL

Number of Full-time Employees Number of Permanent Employees Total: 407 Total: 380 286 121 269 111 Female Male Female Male

Number of Part-time Employees Number of Temporary Employees Total: 6 Total: 33 3 3 20 13 Female Male Female Male

93% of the Heads of Departments (HODs) are Singaporeans or Gender of HODs (%) Employee Turnover Rate (%) Permanent Residents, hired from our Female Male CDL National Average local community. In 2016, 40% of 40% 24.3 our HODs were female. 22.8 22.4*+

Employee Retention 15.9 15.3 15.8 CDL’s successful employee 30 engagement is evident from our HODs 70 employees’ length of service. The average tenure of our employees is about 9.4 years and more than 55% of our employees have been with 60% 2014 2015 2016 CDL for more than five years. CDL’s * Computation of annual employee turnover is based on cumulative monthly attrition rate employee turnover rate of 15.8% derived from the number of resignations for the continued to remain significantly 12 18 month / headcount for the month found on the Ministry of Manpower website. lower than the national average of Female Male 22.4% in 2016. *+ Using National Average as at 2016

BENEFITS AND WELFARE pro-family legislation. Mothers maternity leave. Three eligible male and fathers whose children are employees used their paternity Beyond competitive remuneration, Singapore Citizens at birth get to leave benefits. we take care of our employees enjoy maternity leave of 16 weeks through comprehensive welfare and paternity leave of two weeks 93 CDL employees (28 male, 65 and benefits schemes, including but respectively, as advocated by the female) with at least one Singapore not limited to insurance coverage, government. CDL also provides Citizen child under the age of seven medical, and dental benefits for eligible employees with childcare were entitled to six days of paid our full-time employees. Part- leave and extended childcare leave. childcare leave in 2016. In addition, time employees also enjoy similar 39 employees (nine male, 30 benefits on either a full or pro- Male employees are also entitled female) with at least one Singapore rated basis, thereby promoting a to shared parental leave whereby Citizen child aged seven to 12 years conducive environment should they can choose to share one week were entitled to two days of paid employees decide to take on part- of the 16 weeks of maternity leave, extended childcare leave in 2016. time arrangements to cope with subject to the agreement of the their personal needs. mother, if the mother qualifies for Flexible Work Arrangements Government-Paid Maternity Leave. Pro-family Benefits CDL also provides flexible work In 2016, 14 eligible female CDL arrangements for employees with CDL provides benefits and adopts employees utilised their maternity special family needs to manage their welfare practices in line with benefits and all 14 employees personal and work commitments the Singapore government’s returned to work after their more effectively. Full-time employees can convert to Environmental, Social and • Asset Enhancement working part-time, and enjoy similar Governance (ESG)-Linked CPF members have the choice benefits as full-time employees on Remuneration to decide for themselves how to a full or pro-rated basis. In 2016, six invest their CPF savings and what employees worked on a part-time CDL recognises that inclusion risks to accept, to ensure their arrangement. of appropriate ESG issues within financial security executive management goals and incentive schemes is an important CDL assists employees in making FAIR REMUNERATION factor in promoting greater monthly contributions which are recognition of and accountability in deducted from their monthly CDL’s compensation packages are our CSR practices. Since 2015, CDL has gross salaries and deposited into aligned with internal parity and established stronger linkages between their CPF accounts, as required by market benchmarks. CDL offers employee and executive remuneration law. For staff aged 55 and below, fair and competitive remuneration and our corporate sustainability beyond employees’ contribution of packages based on employees’ performance. ESG indicators that are 20%, CDL contributes an additional performance, expected roles and aligned with global standards such 17% as an employer, making a total responsibilities. This is to ensure as ISO 26000, ISO 140001 and GRI monthly contribution of 37% to the that we remain competitive in Standards, to name a few, have been employee’s CPF account. attracting talent which is key to our incorporated in the individual goals sustained growth. CDL also has a setting of all employees, including Our comprehensive HR practices well-structured and open annual senior management. and policies can be found on performance appraisal system www.cdlsustainability.com which is reviewed periodically Central Provident Fund (CPF) and enhanced to ensure open Scheme and Contributions • Human Rights communication between employees • Learning and Development and their reporting officers. The CPF is a comprehensive social • Talent Acquisition and Retention security savings plan which aims • Diversity and Equal Opportunity Performance-based Appraisal to provide working Singaporeans and Permanent Residents with a As a company committed to measure of financial security and MOVING FORWARD meritocracy, our rewards and confidence in their old age. CPF 71 compensation policies emphasise contribution is computed based From 2017, CDL will be on employees’ performance. on a percentage of the employee’s implementing the Balanced This is judged not only on what monthly salary and varies with the Scorecard management system employees achieve in the review employee’s age. that enables our organisation to set, period, but also on how it is track, and achieve our key business achieved. Our employees received Savings in the Ordinary Account strategies and objectives. The four regular performance and career earn a minimum risk-free interest perspectives – financial, customer, development reviews in 2016. of 2.5% guaranteed by Government, internal control, learning and Our performance management while savings in Special, Medisave, growth – of the Balanced Scorecard process was reviewed periodically and Retirement Accounts will earn are necessary for today’s business to incorporate employees’ feedback 4% per annum. CPF funds can be executives and managers to better and enhancements to the system. used for the following purposes: plan, implement, and achieve business success. Competitive Remuneration • Retirement Plan To ensure sufficient savings to In addition, CDL will also Remuneration is recommended see CPF members through their implement the SAP SuccessFactors by the HR Department and the retirement Performance and Goals, as well as Group General Manager’s Office, the Compensation module. The and approved by the Remuneration • Healthcare Plan Performance and Goals module Committee which consists of To ensure sufficient savings to will help employees and managers members from the CDL Board meet members’ medical needs in align individual goals to company of Directors. Salary benchmarks their old age business objectives, which supports against market surveys are the Balanced Scorecard initiative. conducted to ensure relevancy • Home Ownership Plan The Compensation module will of CDL’s salaries with the industry To ensure a property that is fully provide the organisation with a tool and overall market. An external paid-up when members retire for communicating and reinforcing consultancy firm was engaged the philosophy and guidelines of to conduct a biennial Employee • Family Protection incentivising performance. Engagement Survey to gather Several schemes and insurance employees’ opinions and feedback, plans such as the Dependents’ including their perception of CDL’s Protection Scheme, Home remuneration and reward system. Protection Scheme, catastrophic medical insurance scheme and even severe disability insurance scheme to protect CPF members and their families SDG GOAL 17 PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT

COMMUNITY EMPLOYEES

GOVERNMENT AGENCIES AND CUSTOMERS REGULATORS

INVESTORS, BUILDERS AND ANALYSTS AND SUPPLIERS MEDIA BUILDING OUR COMMUNITIES SOCIAL & RELATIONSHIP CAPITAL

To CDL, social and relationship utmost importance in supporting capital is an intangible asset built the company’s sustained growth. Through active through the partnerships forged As such, we invest considerable with our stakeholders to generate resources in building strategic engagement, we have shared value for all. Through active People, Private and Public (3P) fostered goodwill with engagement, we have fostered collaborations. These collaborations our stakeholders and goodwill with our stakeholders aim to benefit our business and and strengthened our social stakeholders, as well as deliver strengthened our social license to operate in domestic and positive impact for our community license to operate international markets. and environment in support of in domestic and both global and national goals for Our leadership and track record in sustainable development. international markets. eco-developments and corporate citizenship have put CDL on the Our stakeholders are those who global map of sustainability. This has have a considerable influence on our helped us attract not only like-minded business, and whom our business partners and investors, but also a has a significant impact on. We have growing pool of consumers who identified employees, customers, consider responsible practices vitally builders and suppliers, and investors important. The trust we have built as our key stakeholders. Other with our stakeholders goes beyond stakeholders include regulators and our shores to help CDL gain foothold key government agencies, non- as we expand our global footprint. governmental organisations (NGOs), the media, and our community. Anticipating and meeting the needs Our stakeholder groups are clearly of our stakeholders are thus of defined on page 16. 73

STAKEHOLDER ISSUES OF INTEREST

Stakeholder Engagement Platforms Issues and Concerns Addressed in our Groups Sustainability Report Employees • Regular dialogue sessions, • Corporate direction and • Organisational Capital town halls and forums growth plans • Human Capital fronted by Senior • Job security • Social and Management • Remuneration and benefits Relationship Capital • CDL 360 – Company intranet • Career development and • Daily news bulletin training opportunities • Staff Connect – • Workplace health and safety an inter-department • Labour and human rights committee that organises • Work-life balance company-wide activities to • Employee volunteerism foster work-life balance and reinforce team spirit • Frequent employee activities • Biennial Employee Engagement Survey • Employee Assistance Programme (counselling service) • Employee grievance handling procedures • City Sunshine Club (CSC) – employee volunteering platform

*102-40, 102-42, 102-43, 102-44 SOCIAL & RELATIONSHIP CAPITAL

Stakeholder Engagement Platforms Issues and Concerns Addressed in our Groups Sustainability Report Customers Homebuyers • Quality and workmanship • Manufactured Capital • Integrated customer and • Design and features • Social and call centre • Product safety Relationship Capital • TOP* welcome parties • Defects rectification • Natural Capital • Green Living Guides • Customer service and • Defects management experience tracking app • Resource efficiency and • Post-TOP customer utility savings satisfaction surveys • Environmental conservation • Show suites feedback Tenants • Green building and office • Manufactured Capital • CDL Green Lease interior certifications • Social and Partnership Programme • Green leases Relationship Capital • CDL Green Lease • Workplace safety and health • Natural Capital Ambassadors • Management of facilities • Green fitting out kits • Customer service and • Project: Eco-Office kits experience • Recycling programme • Resource efficiency • 1°C Up campaign • Environmental • Healthy Workplace management, education Ecosystem and advocacy • Health screenings • Annual tenant satisfaction surveys • Tenant engagement/ 74 networking events Builders and • Policies including climate • Legal compliance • Organisational Capital suppliers change, environmental, • Quality and design • Manufactured Capital health and safety (EHS), • Safety of infrastructure and • Human Capital human rights and managed facilities • Social and universal design • Productivity Relationship Capital • Supplier Code of Conduct • Innovation • Natural Capital • Green procurement • Workers health and safety specifications • Labour practices and welfare • CDL 5-Star EHS assessment • Human rights • Quarterly seminars and • Social inclusion peer sharing • Resource and waste • Annual EHS Awards management • Annual CDL EHS Cup • Sustainable procurement soccer league • Declaration of EHS commitment through letter and pledge-signing • EHS risk assessments at concept, design and construction stages • Construction vision casting • Biannual vendor evaluation

* In Singapore, the Commissioner of Building Control will issue the TOP to a building project when it is completed. A building can only be occupied when a Certificate of Statutory Completion or TOP is granted.

*102-40, 102-43, 102-44 Stakeholder Engagement Platforms Issues and Concerns Addressed in our Groups Sustainability Report Investors, • Annual General Meetings • Growth trajectory • Financial Capital analysts and • Biannual financial results • Acquisitions and expansion • Organisational Capital media briefings and webcasts • Market diversification • Social and • Quarterly financial results • Risk management Relationship Capital • Presentations • Corporate governance • Regular analyst and investor • ESG indicators meetings • Climate change and carbon • Post-results luncheons pricing strategies • Non-deal roadshows • Sustainability performance • Conferences, meetings and and tracking site visits • Reporting standards • Media releases and interviews • Advocating green • Annual reports consumerism and lifestyles • Integrated sustainability reports • Quarterly publications, e.g. City News • Company website and email alerts • Sustainability microsite • Project launches • Timely response to environmental, social and governance (ESG) rating agencies and analysts • Global sustainability rankings and indices Government • Senior management • Development of green • Manufactured Capital agencies and representation on boards of buildings • Social and 75 regulators various industry bodies • Programmes to cultivate Relationship Capital • Participation in tri-sector responsible workplace and sustainability-related practices consultations and dialogues • Advocating green • Long-standing partnership consumerism and lifestyles of various national • Sharing of industry best programmes practices • Thought leadership in • Regulatory development support of public policies towards low-carbon and regulations pertaining economy to sustainability, green • Promoting sustainability buildings and reporting reporting in Singapore • Advocating ESG integration with financial reporting • Promoting workplace health and safety Community • Public communications • Social inclusion • Social and plan with residents within • Ethical marketing practices Relationship Capital a 100-metre radius of our • Proactive communication new developments on CDL’s development plans • Builders’ contact details and construction works displayed at construction • Environmental conservation sites for public feedback • Youth development • Participation in sustainability- • Promoting the arts related conferences/forums • Helping the elderly and • Consultation and dialogues children in need with academics, NGOs and • Sustainability thought- business associations leadership and advocacy • Annual reports • Integrated sustainability reports • Company website • Corporate advertisements • Collaborations with charity and NGOs partners for community development • Universal design for homes and offices

*102-40, 102-43, 102-44 SOCIAL & RELATIONSHIP CAPITAL

STAKEHOLDER e-posters of employee activities, On the other hand, our key ENGAGEMENT CSR News, webcasts of financial subsidiaries CBM Pte Ltd and The results briefings and Annual General Tower Club are both unionised, Employees Meetings, as well as circulars via CDL providing their workforce with a 360, employees are informed of the channel for collective bargaining. Organisational knowledge and Company’s business developments innovation – key factors to building and activities. For more information, Advocating Greener Employee our competitive advantage – are please refer to page 31. Lifestyles built and achieved through a stable workforce. Consistent engagement Managing Employee Grievances To promote greener habits among of employees forms the foundation employees, CDL organises regular of CDL’s long-term strategy for CDL has policies to address and in-house environment-related talks human capital development. Our resolve employee grievances in a and activities, with various lifestyle initiatives to recruit and retain prompt, fair, and impartial manner. angles and hands-on components. employees and develop their Employees are guided by the Code Examples of such engagement competencies are addressed in the of Business Conduct and Ethics, and activities organised in 2016 include Human Capital section, from pages the Whistle-blowing Policy. an Earth Hour movie screening, 69 to 71. The following sections will soap making workshop and lunch focus more on our key internal staff The latter deals with and protects time talk on climate change. engagement initiatives. the confidentiality of employees who whistle-blow on the Company’s Customers Regular Communication and Survey accounting, financial reporting, internal controls, and auditing matters. Our ability to remain financially CDL conducts an Employee viable is very much dependent on Engagement Survey biennially to Our Employee Grievance Handling customer satisfaction and our ability measure employee satisfaction Policy includes a comprehensive and to meet customer demand for our 76 and gather feedback. The survey structured three-stage procedure. products and service. As such, CDL provides insights into employee- Employees can escalate their regularly engages homebuyers related concerns including training grievances first to their immediate and tenants to understand their and development, pay and benefits, supervisor or Heads of Departments concerns and needs. as well as employee engagement (HOD), followed by the Human and empowerment. Resource (HR) Department. If the Delivering Exceptional Customer grievance remains unresolved, a Experience Our Company intranet – CDL 360 Board of Inquiry consisting of the provides an interactive platform Group General Manager, a HR In 2001, CDL was the first property for employees to receive and representative, and a neutral member developer to set up an integrated share information more readily of the Senior Management Team customer and call centre. We and promptly, and contains key (SMT) will investigate and propose a believe that word-of-mouth information such as employment final resolution. All discussions are is one of the primary factors terms, benefits, and corporate documented in a Grievance Lodge behind purchasing decisions, and policies. The intranet encourages Form and a follow-up report. customers who receive a positive employees to connect and discuss experience from us will become work-related issues or topics Respecting Freedom of Association advocates of our brand. of interest, building stronger and Collective Bargaining Rights relationships within the organisation. From the first step into a CDL show CDL respects all employees’ suite to the handover of keys, we Through regular communication fundamental rights to freedom aim to provide the support that sessions such as dialogue with Senior of association and the right to be homebuyers require to make their Management and internal platforms members of trade unions. Although purchasing process a pleasant comprising various working CDL is not a unionised company, we experience. Customers can committees, CDL ensures that are guided by the Industrial Relations easily contact us through various employees’ views are always heard. Act which allows trade unions channels, mainly the hotline, site Through the dissemination of City to represent our employees for offices, and through our website. News – CDL’s quarterly publication collective bargaining, providing our Customer-specific information that provides updates on corporate employees with an avenue to seek on the progress status of projects happenings, daily news bulletins, redress for disputes. under construction and related

*102-41 correspondence are also available For homebuyers, an online customer system, and the value that can be on a secured online platform. satisfaction survey is administered generated for both the Company and at least six months after handover our tenants. We have a structured approach to measure their experience across to review feedback and resolve various touch points and to solicit At City Square Mall, sustainable complaints. Follow-up actions feedback and suggestions on project solutions to improve toilets with high are then closely monitored design, apartment features, as well as usage have also been implemented. and reviewed regularly at inter- facilities and amenities. Such upgrading initiatives have departmental meetings. helped enhance the value and Tenants at CDL’s commercial marketability of the properties. Engaging Homebuyers on properties are also surveyed Sustainable Living annually. Through the feedback In 2016, customer satisfaction received, we can better understand surveys were conducted for two of In 2004, CDL launched the Let’s customers’ expectations and identify our residential developments and Live Green! eco-home initiative for areas for continual improvements. an average of 24.2% of homebuyers our newly completed residential Some of our product refinement and participated. Our homebuyers were properties. As part of the initiative, service engagement initiatives have surveyed on levels of satisfaction homeowners receive a Green Living originated from customer feedback. with their entire experience, ranging Guide, designed specifically to from a property’s finishes and provide eco-friendly tips for a green For example, progressive upgrading workmanship, overall construction lifestyle. It also contains information of toilets was in the pipeline for our quality, green features provided in on the green features found in industrial buildings in 2016 following the home, facilities and landscaping the individual property units and feedback from tenants of City at common areas, and management the common areas. In 2016, 1,640 Industrial Building. To cater to the of defects rectification. Green Living Guides were distributed needs of a tenant whose clients are to homeowners. predominantly wheelchair bound, The average satisfaction level plans had also been made for one amongst all homebuyers surveyed 77 Measuring Customer Satisfaction to of the ground floor toilets in City was 70% in 2016. In addition, 71% of Improve Service Delivery Industrial Building to be converted to homebuyers have indicated that they a handicap-friendly one. As a result would recommend CDL properties To improve our service delivery, CDL of our efforts to listen and respond to their friends and relatives. reviews customer satisfaction through to our tenants’ feedback, the tenant formalised surveys. Our target is to satisfaction of our industrial buildings Apart from existing homebuyers, achieve a 70% satisfaction rate from hit 100% for the first time. The CDL also solicits feedback from our homebuyers. For tenants, we aim excellent relationship reflected by potential homebuyers who visit our to attain a satisfaction rate of 80% for the high satisfaction level showcases projects’ show suites. Respondents’ our office/retail tenants and 70% for the effectiveness of our feedback feedback on the quality and finishes industrial tenants.

Homebuyers’ Satisfaction Tenants’ Satisfaction Average overall level Average level of satisfaction – Office (%) Industrial (%) Retail (%) of satisfaction (%) recommend to friends (%) 100 98 98 96 96 91 91 93 93 93 93 94 88 87 85 83

70 71 66 65 68 66 60 62 60

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

*102-44 SOCIAL & RELATIONSHIP CAPITAL

of the show suites, apartment deferment at homeowners’ request, Green Lease Partnership Programme configuration preferences, and or unavailability of required materials in 2014. As part of the Programme, a service standards, are invaluable to due to delayed shipment. digital energy monitoring portal was our design refinement and project jointly developed with Tuas Power planning process. As a result of our Customer Service to enable our tenants to track and Department’s attention to addressing better manage their energy usage. As part of the quality assurance feedback on defects, we have process, homebuyers are provided received positive feedback from In addition to the “green fit-out” with a proper platform to give homebuyers complimenting staff guide issued to all tenants, we feedback on defects in their unit. for their high service standards. created a dedicated team of CDL Defects reported are rectified within 73% of the homebuyers from our Green Lease Ambassadors to guide 30 days, where possible. annual customer satisfaction surveys tenants on how they can create indicated their satisfaction with the more environmentally-friendly CDL’s Customer Service Department defects management. premises by adopting sustainable introduced the Novade Track app practices, designs, materials, fittings, for homeowners in 2015. This defect Safeguarding Customer Privacy equipment, and lighting fixtures. management app simplifies the More importantly, the Ambassadors process of reporting and tracking CDL protects the privacy and helped identify energy-saving defects by allowing homeowners confidentiality of our customers’ opportunities to lower tenants’ to lodge defect reports, submit information. In addition to internal operating costs. photos of the defect and track policies and procedures designed the rectification work through to safeguard customer information, As of end 2016, more than 95% their mobile phones. The data CDL does not divulge or sell such of our tenants have pledged their on the reported defects are then personal information to third parties commitment to the CDL Green shared with contractors, making for marketing or promotional Lease Partnership Programme by rectification follow-ups more purposes. Our approach to personal signing a Green Lease Memorandum 78 efficient. At the end of the process, data management is spelt out in the of Understanding as part of lease homeowners may sign off on the CDL Personal Data Policy which is renewal. CDL aims to achieve a rectification works via the app after publicly accessible on our website 100% participation in our green a joint inspection with our Customer and outlined on page 34. lease for both new and renewal Service Officers. agreements within a year. All employees are guided by CDL’s Having a consolidated portal with Code of Business Conduct and Several of our tenants have also all defect reports increases the Ethics, and the Company will mete taken the initiative to further productivity and accuracy of data, out strict disciplinary action for any their green journey by achieving as CDL employees are now not breach of customer confidentiality. the Green Mark Office Interior required to input defects manually, In 2016, there were zero complaints certification. In recognition of as is the traditional method of regarding breach of customer CDL’s sterling efforts in engaging its defect management. It also ensures privacy or loss of customer data. tenants to go green, BCA conferred a better customer experience and CDL with three out of five Green higher service standard due to Engaging Tenants on Resource Mark Pearl Awards at their annual the ease of reporting and tracking Efficiency BCA Awards in 2016. CDL has throughout the whole process. consistently been the top winner of Findings from the Building and this category since its inception. For In 2016, the Novade Track app was Construction Authority (BCA) more information, please refer to implemented for Jewel@Buangkok, Building Energy Benchmarking page 60. Lush Acres and Echelon – projects Report 2016 have shown that tenant that obtained TOP in 2016. electricity usage accounts for close Promoting a Healthier Workplace to 50% of electricity consumption for Tenants As at 31 December 2016, close in office and retail buildings. To to 60% of defects reported were support our commercial tenants’ Since 2014, CDL has been rectified within 30 days. For defects efforts in reducing energy conducting complimentary health- not rectified within 30 days, many consumption and environmental screenings for tenants at selected were often due to reasons such as footprint, we implemented the CDL commercial buildings to provide them with the convenience of ensuring good EHS practices along with ISO 26000. To recognise having the health checks conducted our value chain, CDL and 24 of exemplary workers who live the at their workplace. our key builders and consultants safety message and inspire fellow once again came together in 2016 colleagues to be more safety- In 2016, CDL collaborated with to sign the “Pledge Towards Vision conscious, the Safe Worker Award the Health Promotion Board (HPB) Zero Through Safe Design – Safe was launched in 2014. In the same for the Workplace Well-being Practices – Safe Culture”. year, we launched the CDL EHS Partnership to offer a series of Cup soccer league with the aim of weekly health related activities and Measuring Performance through promoting a healthy lifestyle and programmes for office tenants. As of CDL 5-Star EHS Assessment System fostering camaraderie amongst end February 2017, more than 1,450 our builders’ workers. The league office workers have benefitted from Since 2001, the CDL 5-Star received favourable response and the series of healthy living activities. EHS Assessment System – an has since been held annually. independent audit tool to assess, Builders and Suppliers measure, and improve the main Upholding Workers’ Welfare and builders’ EHS management and Well-being CDL proactively influences and performance, has been in place to engages key stakeholders in our ensure a comprehensive, audited, Although CDL does not directly value chain to embrace safe and and appraised EHS approach. All supervise the workforce of our environmentally-friendly designs as CDL builders undergo quarterly EHS contractors’, their welfare and well- well as operational best practices inspections and audits conducted being are still a priority to us. With throughout the life cycle of our by an independent EHS audit firm that, we have put in place measures developments. recognised by the Ministry of to ensure that our operations and that Manpower (MOM), and are appraised of our significant suppliers are not Managing EHS along the on a scale of one to five stars. involved in unethical labour practices Value Chain Results are then presented to the such as child or forced labour. A management and site supervisors of human rights clause on the prohibition 79 Prior to the awarding of a contract, the builders and project consultants of child labour has been included in CDL places considerable emphasis during the quarterly CDL 5-Star all health and safety specifications to on the EHS culture and track EHS Seminars. These seminars are contractors since 2012. record of potential suppliers and a valuable platform to promote contractors. In key operations like sharing of best practices and peer While onsite workers’ housing is not project development and property learning to encourage better EHS encouraged, we accept that there management, major suppliers and performance amongst the builders. may be circumstances under which builders must meet the EHS pre- this is necessary. As such, following qualification criteria of appropriate In 2005, the CDL 5-Star EHS Award the issuance of our Corporate bizSAFE certification. Almost 100% was introduced to recognise builders Statement on Human Rights in of the consultants and main builders who have excelled in the CDL 5-Star 2012, workers’ housing conditions of CDL developments in 2016 EHS Assessment System over a one- was subsequently evaluated using have obtained both ISO14001 and year period. The Assessment System the CDL 5-Star EHS Assessment OHSAS18001 certifications. and Awards have been instrumental System, where applicable, after a in influencing CDL’s builders and trial run and refinement of criteria. Since 2008, CDL has voluntarily consultants to monitor and improve The current assessment criteria committed itself as a founding their EHS performance. follow requirements mandated by signatory to the “Pledge for Zero relevant government agencies and – A CEO Commitment Charter”, The Awards comprise the CDL EHS goes beyond local compliance1 to an initiative by the Workplace Excellence Award and the CDL ensure that in instances where there Safety and Health Council. In Productivity Excellence Award, are onsite workers’ housing, workers 2010, we amplified our efforts which was introduced in 2011 in are treated with dignity and respect. by inviting our main builders and support of Singapore’s national Workers’ dormitories and facilities have consultants to collectively pledge productivity drive. In 2012, the to meet the minimum requirements their commitment to raise EHS CDL Workers’ Welfare Award was stipulated in our guidelines. standards at the worksites. To introduced as part of our continuous reinforce our commitment to efforts to align business practices

1 Local legislations mandate that quarters on construction sites have to meet the technical requirements of relevant government agencies, such as the Singapore Civil Defence Force (SCDF), National Environment Agency (NEA) and BCA, to ensure safe and hygienic living conditions. More details can be found at www.mom.gov.sg. SOCIAL & RELATIONSHIP CAPITAL

CDL’s appointed builders are expected In April 2016, CDL announced In 2016, CDL Senior Management to exceed compliance of local labour new management appointments and IR team met with over 200 laws. They are responsible for taking including an Investor Relations institutional shareholders and all necessary measures to provide safe, (IR) head. The establishment of potential investors in Singapore, clean, and dignified living and working a dedicated IR function reflects Hong Kong and Japan. In addition, conditions, without risks to the our commitment to enhance our CDL has facilitated over 30 site visits workers’ health. For instance, vector engagement with investors and is to our developments in Singapore, and pest control programmes must synergistic with ongoing efforts to China and UK for fund managers be in place, and site offices and toilets enrich our organisational structure and analysts. must be equipped with basic amenities and management systems. such as electricity, water, adequate Government Agencies and lighting, and proper ventilation. In recognition of CDL’s commitment Regulators to corporate governance disclosure In our selection of consultants and and practices, CDL was presented CDL is committed to being fully suppliers, we place considerable the Most Transparent Company compliant with regulations and in emphasis on their EHS culture Award for the Real Estate category at many instances has gone beyond and track record. Upon their the Securities Investors Association compliance. Our robust policies appointment, the top management (Singapore) Investors’ Choice and procedures ensure that all of these qualified firms pledge their Awards 2016. The Company was our activities and operations EHS commitment, which also serves also ranked 10th in the Singapore comply with existing regulatory as a further reminder for them to Governance and Transparency Index requirements through constant work with CDL to ensure high EHS 2016, out of 631 Singapore Exchange- monitoring, evaluation, and auditing standards at all our projects. listed companies evaluated. of our EHS management systems.

In 2016, there were zero incidents and In line with CDL’s commitment to Over the years, CDL has been grievances of child and forced labour achieving corporate transparency, recognised as a standout for 80 being reported at CDL construction our Senior Management holds best practices in green buildings, sites and managed buildings. briefings with analysts and the media sustainability, innovation, and on CDL’s half-year and full-year productivity through our use For more information on CDL’s financial results. Financial statements of technologies that have gone Human Rights Policy, please refer to and presentation slides from the results beyond compliance. page 35. briefings are also available on SGXNET and CDL’s website. Live webcasts of Feedback and Experience-Sharing Investors and Analysts our biannual financial results briefings have been made available since 2016. In order to weigh in and give In light of recent developments in CDL also facilitates accurate and timely feedback on proposed regulatory sustainability reporting locally and notification of material information to changes that impact our businesses, the rise of responsible financing investors, via an email alert subscription CDL actively participates in globally, businesses worldwide are system on the CDL website. stakeholder consultations organised experiencing the impact of the by key government agencies. growing demand for transparency In addition, our Senior Management Engaging regulators and relevant and accountability. Apart from takes an active role in IR, engaging industry bodies not only cushions growing company earnings and with investors through platforms such the company from the cost of maximising shareholder returns, as non-deal roadshows, conferences regulatory alignment, it also enables CDL prioritises quality and timely and one-on-one meetings. CDL to be attuned to industry communication of our ESG challenges, placing us in a better performance to engage investors position to capture existing and and analysts. future opportunities for growth. Regulatory Initiatives CDL – Engaging Key Stakeholders Sustainability Reporting Ahead of SGX’s new sustainability reporting regulation announced in 2016, CDL had already been the first Singapore organisation to The Singapore Exchange (SGX) introduced produce a Global Reporting Initiative (GRI) checked sustainability in June 2016 Sustainability Reporting on a report in 2008. Since then, CDL has gone one step further and in “comply or explain” basis. 2015, became the first property developer in Singapore to adopt an Integrated Reporting approach for its Sustainability Report. Effective from any financial year ending on or after 31 December 2017, companies listed on Due to our experience and leadership in sustainability reporting, the SGX will have to publish a sustainability CDL has been actively supporting various efforts to promote the report on five primary components: reporting guidelines, sharing our best practices and the benefits of material ESG factors, policies, practices and reporting at workshops and events. performance, targets, sustainability reporting framework and a Board statement.

Water Prices in Singapore As a business and a leader in sustainability, CDL was involved in various consultation sessions and dialogues in support of water Water prices will increase by 30% in 2017 for conservation. Engaging tenants and stakeholders in conserving the first time in 17 years. resources and water has always been part of our stakeholder outreach programme. The increase will be implemented in two phases, first in July 2017, and second in July 2018. Businesses will also experience a 10% water conservation tax on NEWater.

Twin Chute Pneumatic Waste CDL has always been an early adopter of green technologies. In Collection System 2008, Parc Emily, a CDL development, was the first residence in 81 Singapore to be equipped with the twin-chute PWCS. The Twin Chute Pneumatic Waste Collection System (PWCS) is an eco-friendly waste CDL has hosted several visits at its projects to share the management system that utilises air suction challenges of implementing the system and residents’ feedback. to convey general waste and recyclable In January 2017, Mr Masagos Zulkifli, Minister for the Environment waste separately. and Water Resources and Dr Amy Khor, Senior Minister of State, Ministry of the Environment and Water Resources and Ministry The entire refuse disposal and removal of Health visited The Palette, one of the latest completed CDL process is clean, odourless and vector-free, developments to feature the PWCS. and requires less manpower to manage, reducing costs while encouraging recycling.

Corporate Political Contributions election. Employees who intend to on various industry bodies and be involved in any political party are civil society organisations. Moving As outlined in our Anti-corruption required to declare and seek top forward, CDL will continue to partner Policy, CDL has a corporate stance management’s approval. the industry and form collaborations against using the Company’s in support of the Singapore resources to make donations Trade and Industry Associations government’s agenda of becoming to political parties and political a smart and sustainable city. associations, or to candidates To further the sustainability cause and/or election agents in a at home and abroad, CDL’s Senior parliamentary or presidential Management has been represented SOCIAL & RELATIONSHIP CAPITAL

Organisation CDL Representation Asia Society Policy Institute Mr Grant Kelley, Council Member Asian Civilisations Museum Mr Sherman Kwek, Member Advisory Board Asian Corporate Governance Association Ms Esther An, Member Corporate Discussion Group

Business Council for Sustainable Ms Esther An, Founding Member Development Singapore Caring for Climate: United Nations’ (UN) initiative Signatory since 2008 for Business Leadership on Climate Change Diversity Action Committee Singapore Mr Sherman Kwek, Committee Member

Global Compact Network Singapore Ms Esther An, Member Management Committee GRI Corporate Leadership Group for Integrated Ms Esther An, Member Reporting GRESB Benchmark Committee Ms Esther An, Member Asia Real Estate Benchmark Committee Real Estate Developers’ Association of Singapore Mr Chia Ngiang Hong, Second Vice President (REDAS)

Royal Institution of Chartered Surveyors (RICS) Ms Esther An, Steering Group Member and UN Global Compact Best Practices Toolkit for Real Estate Sector Singapore Chinese Chamber of Commerce Mr Sherman Kwek, Council Member 82 and Industry Singapore Green Building Council Mr Chia Ngiang Hong President: March 2015 to March 2017 Immediate Past President: Current Singapore Institute of Directors Corporate Nominees: Mr Eric Chan, Ms Catherine Loh, Ms Enid Ling Singapore International Chamber of Commerce Ms Catherine Loh, Member Corporate Governance and Regulatory Committee Singapore Management University Ms Esther An, Industry Partner mentor Managing Sustainability module Sustainable Stock Exchanges, Ms Esther An a UN organised initiative Green Finance Advisory Group UN Global Compact Signatory since 2005

UN Environment (UNEP) – Finance Initiative Ms Esther An, Member Property Working Group Urban Land Institute Ms Esther An, Steering Committee Member Women’s Leadership Initiative (Singapore) Workplace Safety and Health Council (WSHC) Mr Daniel T’ng, Chairman WSHC (Facilities Management) Workgroup Mr Daniel T’ng, Member WSHC (Construction and Landscape) Committee World Green Building Council Founding Member Organisation

Ms Esther An, Member Corporate Advisory Board Young Women’s Leadership Connection (YWLC) Ms Esther An, Mentor YWLC Mentorship Programme The Community and sustainable outcomes. For vicinity of a construction site are over two decades, these initiatives considered key stakeholders, CDL has nurtured a robust relationship have enabled us to engage our and we understand that building with the communities we operate employees, their families and activities at construction sites might in, going beyond shaping cityscapes stakeholders as volunteers, offering pose some inconvenience to this to contributing towards community ideas, expertise, manpower and community. Aside from complying building. This has generated strong time to serve the community. These with applicable legal requirements, social capital and goodwill for CDL. collaborative initiatives need to be we require builders at our Through our sustained outreach long-term and consistent to achieve construction sites to communicate programmes in four focus areas – the desired impact, and many of with the community and offer environmental conservation, youth our community and environmental avenues where the residents can development, the arts, and caring for projects are sustained efforts that give comments and feedback. the less fortunate – we aim to deliver span many years. a lasting and positive impact on Prior to the start of key the communities. In line with good governance, construction stages, our builders CDL exercises due diligence conduct surveys where feedback is Our Community Investment Strategy in evaluating every request collected, compiled and analysed, for donation, sponsorship or and concerns are addressed. As As a listed company, CDL is mindful partnership. We assess the track an avenue for further feedback, of the prudent use of funds and record, quality of management, contact details are displayed on accountability to shareholders and and organisational governance of banners around the construction investors. Taking a value and impact charities and community partners site, alongside other information creation approach, our community via various channels including their required by regulations. investment strategy aims to create annual reports. Furthermore, for value for our brand and business and accountability, all charities and CDL has had a public communications at the same time generate positive community partners are required plan for the community within a 100m impact on the wider community and to submit reports on their social radius of our development plans for a the environment at large. and environmental impact of their land parcel in place since 2014. As part programmes, as well as use of funds of efforts to keep the local community 83 Community investment for CDL and resources. informed, flyers containing project has grown from a strong tradition details and the construction schedule of philanthropy and charity, to a Managing Community Impact are distributed. Measures to reduce dynamic strategy that initiates and the impact of construction work on supports community outreach In construction and development, the surroundings also continue to be programmes with developmental residents who live in the immediate a priority.

Spotlight

Community Spring Cleaning

Due warmer and wetter conditions, mosquito breeding is a key public health concern in Singapore due to the faster breeding and maturation cycles of the Aedes mosquito.

CDL is committed to being a responsible corporate citizen. We influence and strongly encourage our builders to embark on their own CSR and EHS initiatives in their construction activities. In addition to regular vector control programmes at the construction site, many of our main builders have also gone an extra mile to build greater trust and better rapport with the residents in the neighbouring community, and ensuring a cleaner environment. Site Activities HAUS@SERANGOON • Providing cleaning services to Ling Kwang Home for Senior Citizens and GARDEN Singapore Cheshire Home • Celebrating Chinese New Year with senior citizens from Singapore Cheshire Home The Brownstone • Cleaning of drainage and tidying up at nearby residents’ area • Clearing of rubbish in areas surrounding construction site • Clearing of pedestrian public access path, public carpark and jogging path D’Nest • Removing of debris in surrounding area that may become mosquito breeding sites • Oiling in secluded areas and in bushes • Levelling off uneven ground to prevent water collection Coco Palms • Spring cleaning of neighbouring blocks • Public drain maintenance • Informing surrounding community of construction progress and status SOCIAL & RELATIONSHIP CAPITAL

Helping the Less Fortunate through Employee Volunteerism Employee Volunteer Manhours

3,907* Apart from monetary donations to charitable causes, 2,944 CDL has always believed in engaging our stakeholders 2,664 2,482 through active employee volunteerism to complement our 2,079 philanthropic giving and deliver greater impact. Since 1999, CDL’s dedicated employee volunteer arm, CSC has been reaching out to the less fortunate and underprivileged. In 2016, we achieved an employee participation rate of 2012 2013 2014 2015 2016 76% and a total of 2,482 volunteer manhours. * The significant variance in employee volunteer manhours in 2012 was due to employee participation in a company-wide community event in celebration of CSC’s 10th anniversary.

Influencing our Value Chain

Key Initiatives Impact 12th CDL 5-Star EHS Awards CDL reiterated its commitment towards Construction Industry Workplace Safety and Health Action Plans through the signing of the “Pledge Towards Vision Zero Through Safe Design – Safe Practices – Safe Culture” with 24 of its key builders and consultants. Witnessed by Mr Sam Tan, Minister of State for the Prime Minister’s Office and Ministry of Manpower, it marked the first time that a developer in Singapore has galvanised collective action along its supply chain to support the Plans.

To further promote excellence in EHS practices, various recognition 84 awards were also given out to exemplary builders and workers.

Workplace Well-being Partnership To promote a healthier work environment amongst its office tenants, with HPB CDL partnered the HPB to offer a series of weekly health-related activities and programmes.

The initiative consisted of regular fitness activities and workouts, health education sessions on how to live a healthier life, and healthy cooking sessions that give participants tips on cooking healthier meals. As of end February 2017, 1,456 office workers have benefited from this.

“Let’s Live Green!” Homebuyer CDL actively encourages its homebuyers to adopt low carbon and eco-friendly Outreach lifestyles. In 2016, 1,640 specially-customised “Let’s Live Green!” guides, containing information and instructions such as the energy-saving features in their new homes, were distributed during the handover of apartment units.

Promoting a Low-Carbon and Zero-Waste Society

Key Initiatives Impact EcoBank – a CDL & Eco-Business For the second year running, the EcoBank campaign aims to promote a zero- Initiative waste nation by raising awareness on responsible consumption and disposal. With the support of tenants, customers and partners, about 10,800kg of pre-loved items were collected from seven CDL-managed buildings.

Through a three-day charity bazaar and an online and on-site auction, the initiative raised more than $35,000 for disadvantaged children under the care of the Children’s Charities Association (CCA). Over 230 CDL employees, students and volunteers from CCA and the National Environment Agency put in close to 1,800 volunteer hours to help achieve this. Key Initiatives Impact Clean & Green Singapore In support of Singapore’s clean and green vision, CDL has continued to support the annual carnival jointly organised by 10 government agencies. Through a CDL-branded Eco-Home exhibit, more than 20,000 visitors picked up everyday tips on green living.

Reduce @ North West – CDL has partnered the North West Community Development Council “North West Power Up Scheme” since 2015 in a scheme to help needy families defray their electricity bills while raising awareness amongst the community. The awareness programme has since reached out to 131,000 households. CDL will be contributing up to $100,000 over three years, helping 210 low-income households that have signed up for a six-month energy audit in 2015 and 2016 to defray utilities costs.

Advocating Best Practices in Sustainability

Key Initiatives Impact Promoting Sustainability Thought As an early adopter of sustainability and pioneer of Singapore’s green building Leadership movement, CDL’s Senior Management are often invited to share its value- driven sustainability strategy at high-level conferences and student lectures.

In 2016, CDL’s CEO and Chief Sustainability Officer were invited to speak at 43 key events, notable ones include: • Business & Climate Summit 2016 85 • Green Growth & Business Forum 2016 • International Green Building Conference 2016 • IR Magazine Awards & Conference South East Asia 2016 • Principles of Responsible Investment in Person Conference 2016 • Responsible Business Forum 2016 • SGX Briefing for CEOs on Sustainability Reporting • SGX Briefing on Financial Stability Board’s Task Force on Climate- Related Financial Disclosures

Nurturing Sustainability Champions of Tomorrow

Key Initiatives Impact CDL-Compact Singapore Young Into its sixth year, this annual competition seeks to nurture youths to CSR Leaders Award 2016 become future sustainability champions. This has become highly relevant as the global call for climate actions and sustainable development agenda is at an all-time high. The programme benefitted close to 470 students, with a record sign-up from 101 student teams in 2016.

CDL E-Generation Challenge 2016 Themed “Make The SMART Move”, the annual eco-race aims to raise awareness amongst the youths of the need for “smart-eco” choices for a more sustainable future. The Challenge attracted 360 youth participants in 2016.

Since its launch in 2010, the Challenge has reached out to some 2,560 youth participants, with an expanded outreach via social media networks. SOCIAL & RELATIONSHIP CAPITAL

Key Initiatives Impact My Tree House – World’s 1st Green Built using eco-friendly and recycled materials, My Tree House boasts an Library for Kids eco-centric book collection, interactive green features and programmes which enable children to learn and discover about our natural environment, especially during their formative years.

In 2016, My Tree House received a visitorship of over 312,500. Some 5,830 children attended 145 educational activities organised by National Library Board.

Youth-led Programmes – Local and Through the CDL-Singapore Management University (SMU) Young CSR Overseas Leaders Fund and direct sponsorships, CDL has supported a total of 16 youth-led projects and Community Involvement Programmes which contributed to social-environmental causes in the local and neighbouring communities. Over 510 youth leaders and volunteers directly benefitted from CDL’s support.

These youth-led events, in partnership with leading educational institutions, have reached out to about 120,000 youths in 2016: • SMU Challenge 2016 • National University of Singapore (NUS) Geography Challenge 2016 • NUS Goes Lite 2016 organised by NUS SAVE (Students Against Violation of the Earth) • Keep Them e-Live 2016 organised by Nanyang Technological University (NTU) Earthlink 86 • NTU Asian Business Case Challenge – Sustainable Enterprise Challenge 2016

Developing Singapore’s Arts Scene

Key Initiatives Impact 6th CDL Singapore Young Inaugurated by CDL’s late Deputy Chairman Mr Kwek Leng Joo and in line Photographer Award 2016 with CDL’s long-standing commitment to develop the arts and youths in Singapore, this competition aims to discover local photography talents. In 2016, the competition saw a four-fold increase in participation rate with close to 1,600 entries received since it started 10 years ago.

6th CDL Singapore Sculpture Award Themed “Towards Zero Waste!”, the 6th edition of this biennial award draws inspiration from circular economy and Singapore’s vision of becoming a zero waste nation by 2030. The competition invites participants to design sculptures with residual materials from the construction of the Singapore Sustainability Academy. The winning sculpture will be displayed at the Academy, Singapore’s upcoming hub for sustainability capacity building, advocacy and networking. Caring for Our Community

Key Initiatives Impact Assisi Hospice Charity Fun Day 2016 Into its 13th year of support, CDL and its subsidiaries, including four hotels in Singapore, continued to contribute towards Assisi Hospice’s mission of providing compassionate and quality palliative care to the terminally ill adults and children. Close to $64,000 was raised for the charity event. Close to 250 CDL employees volunteered, while its subsidiary CBM Pte Ltd provided in-kind support in logistics, cleaning, waste management and security.

“Amazing Race” Fund-raising CDL collaborated with Zenith Optimedia and various media owners to Challenge for Arc Children’s Centre create an “Amazing Race” excursion in our “Bring Your Kids to Work” programme that raised $22,000 for the Arc Children’s Centre.

The Arc Children’s Centre helps children with cancer and other life- threatening illnesses. As a commitment for the donation, the children participating in the programme would have to finish the “Amazing Race”, instilling determination and charity in our children, while also contributing to a good cause.

“Bringing Cheer @ Bendemeer” As part of our community outreach, CDL partnered with HDB to – A collaboration with HDB refurbish the homes of 27 elderly staying in 1-room rental flats. The contributions included providing fresh coats of paints and general cleaning of flats, installation of curtains and sponsorship of household items such as electric fans, bed frames and mattresses, rice cookers and other household products. 87

LOOKING AHEAD Singapore, various government CDL hopes that a space entirely agencies and industry partners. dedicated to sustainability like the CDL has always encouraged Built with materials such as Cross SSA will help to build capacity and engagement and communication to Laminated Timber and Glued collaboration among businesses further sustainability in Singapore, Laminated Timber, the SSA is and supply chains, practitioners and as well as globally. In mid-2017, the first in Singapore to have its youths, academics and the industry, we are glad to be launching the construction materials be verified as well as solution providers and Singapore Sustainability Academy as from responsible sources by the adopters, harnessing the collective (SSA), located at the roof terrace Nature’s BarcodeTM system. knowledge and expertise of of City Square Mall. The Academy The Academy will focus on the key thought- and industry-leaders is the first major 3P ground-up areas of advocacy, building capacity through multiple training and initiative involving our main partner and collaboration, education and engagement initiatives. and operator of the premises, training, information and resource, Sustainable Energy Association of as well as user engagement. ISO 14064 REASONABLE ASSURANCE STATEMENT

The GHG Report for the calendar year 2016 prepared by: City Developments Limited 9 Raffles Place, Republic Plaza #36-00, Singapore 048619

have been verified by Lloyd’s Register Quality Assurance Ltd. (LRQA) in accordance with: ISO 14064-3:20061

as conforming to the requirements of: ISO 14064-1:20062

The assurance has been formed on the basis of a reasonable level of assurance and at a materiality of the professional judgment of the Verifier

Scope of GHG emissions (Tonnes CO2e) 88 Direct GHG emissions (Scope 1) 5,324 Energy indirect GHG emissions (Scope 2, Location-based) 25,023

Other indirect GHG emissions (Scope 3) (From electricity transmission losses, local and 1,268 international courier services, employee commuting, business air travel (excluding the influence of radiative forcing) and hotel accommodations, water supply and water treatment [excluding water treatment for property development & project management sites]).

Note 1: Scope 2, Location-based and Scope 2, Market-based are defined in the GHG Protocol Scope 2 Guidance, 2016

Date: 29 March 2017

Tan Wee Heok LRQA Lead Verifier On behalf of Lloyd’s Register Quality Assurance Ltd., 1 Fusionopolis Place, #09-11 Galaxis, Singapore 138522

This summary is not valid without the full Assurance Statement attached on pages 89 to 90 to which it applies.

1 ISO 14064:2006 Greenhouse gases — Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions 2 ISO 14064:2006 Greenhouse gases — Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals Assurance Statement related to Ultimately, the GHG report has o Commercial Buildings GHG Report for Calendar Year 2016 been approved by, and remains the – Central Mall Office Tower prepared for City Developments responsibility of CDL. located at 1, Magazine Limited, Road, Singapore 059567 9, Raffles Place, Republic Plaza LRQA’s Approach – Palais Renaissance #36-00, Singapore 048619 located at 390 Orchard Our verification has been conducted Road, Singapore 238871 Terms of Engagement in accordance with ISO 14064– – Tampines Grande located 3:2006, ‘Specification with guidance at 7 & 9 Tampines Grande, This Assurance Statement has been for validation and verification of Singapore 528735 prepared for City Developments greenhouse gas assertions’ to provide Limited. reasonable assurance that the GHG o Property Developments & data as presented in the GHG report Project Management Sites Lloyd’s Register Quality Assurance has been prepared in conformance – D’nest located at 131 Ltd. (LRQA) was commissioned by with ISO 14064– 1:2006, Pasir Ris Grove, Singapore City Developments Limited to assure ‘Specification with guidance at the 518130 its GHG Report for the calendar organizational level for quantification – Coco Palms located year 2016, (hereafter referred to as and reporting of greenhouse gas at Pasir Ris Heights, “the GHG report”) for its Singapore emissions and removals’. Singapore 518074 Operations. – The Criterion located To form our conclusions, the at Yishun Street 51, The GHG report relates to direct assurance engagement was Singapore 767996 GHG emissions, energy indirect undertaken as a sampling exercise GHG emissions and other indirect and covered the following activities: • reviewed processes related to 89 GHG emissions (from electricity the control of GHG emissions transmission losses, local and • conducted site tours of the data and records; international courier services, following: “Corporate Office”, employee commuting, business “Commercial Buildings”, • reviewed the GHG report for air travel (excluding the influence “Industrial Buildings” and conformance with ISO 14046- of radiative forcing) and hotel “Property Developments & Project 1:2006; accommodations, water supply and Management Sites” located at the water treatment [excluding water following addresses: • interviewed key personnel treatment for property development responsible for the management & project management sites]), o Corporate office located at 9, of GHG data and information and summarised in Table 1 on the Raffles Place, Republic Plaza, for the preparation of the GHG next page. #36-00, Singapore 048619 report at the above facilities;

Management Responsibility o Industrial Buildings • verified, on a sampling basis, the – Tagore 23 Warehouse historical GHG emissions data The management of CDL was located at 23, Tagore and records included in the GHG responsible for preparing the GHG Lane, Singapore 787601 report back to source for the report and for maintaining effective – Cideco Industrial calendar year 2016; internal controls over the data Complex located at 50, and information disclosed. LRQA’s Genting Lane, Singapore • verified the emission factors used responsibility was to carry out an 349558 that included ‘operating margin for assurance engagement on the – City Industrial Building electricity grid’ factoring upstream GHG report in accordance with our located at 71, Tannery fugitive methane emissions, contract with CDL. Lane, Singapore 347807 transmission & distribution losses, purchase of goods and services (water supply), diesel, petrol, refrigerant gases, business air travel, hotel accommodation and employee commuting with the source reference and confirmed its appropriateness. ISO 14064 REASONABLE ASSURANCE STATEMENT

Level of Assurance & Materiality

The opinion expressed in this Assurance Statement has been formed on the basis of a reasonable level of assurance and at a materiality of the professional judgment of the verifiers.

LRQA’s Opinion

Based on LRQA’s approach, the total direct GHG emissions, energy indirect GHG emissions and other indirect GHG emissions (from staff business travel by air from and to Singapore) as disclosed in the GHG report and as summarized in Table 1 below are materially correct, and the GHG report has been prepared in conformance with ISO 14064-1:2006.

Recommendation

CDL should enhance the robustness of data quality control to prevent errors and improve the data accuracy.

Dated: 29 March 2017

Tan Wee Heok LRQA Lead Verifier On behalf of Lloyd’s Register Quality Assurance Ltd., 1 Fusionopolis Place, #09-11 Galaxis, Singapore 138522 90 LRQA reference number: SNG6034635

Table 1. Summary of CDL GHG report for the Calendar Year 2016

Scope of GHG emissions (Tonnes CO2e) Direct GHG emissions (Scope 1) 5,324

Energy indirect GHG emissions (Scope 2, Location-based) 25,023

Note 1: Scope 2, Location-based and Scope 2, Market-based are defined in the GHG Protocol Scope 2 Guidance, 2016

This Assurance Statement is subject to the provisions of this legal section:

This Assurance Statement is only valid when published with the Report (GHG Report) to which it refers. It may only be reproduced in its entirety.

Lloyd’s Register Group Limited, its affiliates and subsidiaries, including Lloyd’s Register Quality Assurance Limited, and their respective officers, employees or agents are, individually and collectively, referred to in this Legal Section as ‘Lloyd’s Register’. Lloyd’s Register assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant Lloyd’s Register entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.

Due to inherent limitations in any internal control, it is possible that fraud, error, or non-compliance with laws and regulations may occur and not be detected. Further, the verification was not designed to detect all weakness or errors in internal controls so far as they relate to the requirements set out above as the verification has not been performed continuously throughout the period and the verification carried out on the relevant internal controls were on a test basis. Any projection of the evaluation of control to future periods is subject to the risk that the processes may become inadequate because of changes in conditions, or that the degree of compliance with them may deteriorate.

The English version of this Assurance Statement is the only valid version. Lloyd’s Register assumes no responsibility for versions translated into other languages.

In the case of any conflict between the English and any local language versions of this legal section, the English version shall prevail. INDEPENDENT LIMITED ASSURANCE STATEMENT

The auditor’s responsibility Reporting criteria

Our responsibility in performing As a basis for the assurance our limited assurance activities is engagement, we have used relevant to the Management of CDL only criteria in the Global Reporting and in accordance with the terms Initiative (GRI) Standards for of reference agreed with them. sustainability reporting and the We do not accept or assume Construction & Real Estate Sector any responsibility for any other Supplement. We consider these purpose or to any other person or reporting criteria to be relevant and Independent Limited organisation. Any reliance any such appropriate to review the Report. Assurance Statement to third party may place on the Report the Management of City is entirely at their own risk. Assurance standard used and Developments Limited level of assurance (‘CDL’) Our review was limited to the information on the select indicators Our limited assurance engagement We have performed limited set out within the Report from has been planned and performed assurance procedures in relation to 01 January 2016 to 31 December in accordance with the ISAE 30001 CDL’s Sustainability Report 2017 (‘the 2016 and our responsibility does Assurance Engagement Other Than Report’) as detailed in the ‘Subject not include: Audits or Reviews of Historical Financial Matter’ below. Information. We have also considered • Any work in respect of the Global Reporting Initiative (GRI) The management’s sustainability information reporting standards in conducting our responsibility published elsewhere in CDL’s limited assurance procedures. 91 annual report, website and CDL’s Sustainability Report 2017 has other publications, A limited assurance engagement been prepared by the Management • Sustainability information prior to consists of making enquiries and of CDL, who is responsible for the 01 January 2016 and subsequent applying analytical and other collection and presentation of the to 31 December 2016, and limited assurance procedures. Our information and for maintaining • Management’s forward looking procedures were designed to provide adequate records and internal statements such as targets, plans a limited level of assurance and as controls that are designed and intentions. such do not provide all the evidence to support the sustainability that would be required to provide a reporting process. There are Our multi-disciplinary team has reasonable level of assurance. currently no legally prescribed the required competencies and requirements in Singapore relating experience to conduct this assurance The procedures performed depend to the preparation, publication and engagement. Our professionals have on the assurance practitioner’s verification of sustainability reports. experience in both assurance skills judgement including the risk of and in the applicable subject matter material misstatement of the specific including environmental, social and activity data, whether due to fraud financial aspects. or error. While we considered the effectiveness of Management’s internal controls when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

1 International Federation of the Accountants’ International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (ISAE3000) INDEPENDENT LIMITED ASSURANCE STATEMENT

Scope of work

We have been engaged by the Management of CDL to perform limited assurance on selected indicators in the Report as set out in Subject Matter below.

Subject matter

The Subject Matter and GRI disclosures for our limited assurance engagement are as follows:

(A) GRI General Disclosures

Category GRI General Disclosure “Shall” requirements under each disclosure Reporting practice GRI 102-46 Defining report content and a. An explanation of the process for defining the report content and topic Boundaries the topic Boundaries. b. An explanation of how the organization has implemented the Reporting Principles for defining report content. 6.1 When compiling the information specified in Disclosure 102-46, the reporting organization shall include an explanation of how the Materiality principle was applied to identify material topics, including any assumptions made. GRI 102-47 List of material topics a. A list of the material topics identified in the process for defining report content. Governance GRI 102-18 Governance structure, including a. Governance structure of the organization, including committees committees responsible for of the highest governance body. decision-making on economic, b. Committees responsible for decision-making on economic, environmental, and social topics environmental, and social topics.

GRI 102-29 Identifying and managing a. Highest governance body’s role in identifying and managing economic, environmental and economic, environmental, and social topics and their impacts, social impacts risks, and opportunities – including its role in the implementation 92 of due diligence processes. GRI 102-32 Highest governance body’s role a. The highest committee or position that formally reviews and in sustainability reporting approves the organization’s sustainability report and ensures that all material topics are covered.

(B) GRI Topic-Specific Disclosures

Top 10 GRI Topic-Specific Disclosure “Shall” requirements under each disclosure Material Issues 1. Employee Health GRI 403-1 Workers representation in formal a. The level at which each formal joint management-worker health and Safety joint management–worker and safety committee typically operates within the organization. health and safety committees b. Percentage of workers whose work, or workplace, is controlled by the organization, that are represented by formal joint management-worker health and safety committees. GRI 403-2 Types of injury and rates of injury, a. Types of injury, injury rate (IR), occupational disease rate (ODR), occupational diseases, lost days, lost day rate (LDR), absentee rate (AR), and work-related fatalities, and absenteeism, and number of for all employees, with a breakdown by: work-related fatalities i. Region; ii. Gender. b. Types of injury, injury rate (IR), and work-related fatalities, for all workers (excluding employees) whose work, or workplace, is controlled by the organization, with a breakdown by: i. Region; ii. Gender. c. The system of rules applied in recording and reporting accident statistics. 2.2 When compiling the information specified in Disclosure 403-2, the reporting organization shall: 2.2.1 Indicate whether minor (first-aid level) injuries are included or excluded in the injury rate (IR); 2.2.2 Include fatalities in the injury rate (IR); 2.2.3 In calculating ‘lost days’, indicate: 2.2.3.1 Whether ‘days’ means ‘calendar days’ or ‘scheduled work days’; 2.2.3.2 At what point the ‘lost days’ count begins (for example, the day after the accident or three days after the accident). 2. Anti-corruption GRI 205-1 Operations assessed for risks b. Significant risks related to corruption identified through the risk and Anti-fraud related to corruption assessment.

GRI 205-2 Communication and training a. Total number and percentage of governance body members that about anti-corruption policies the organization’s anti-corruption policies and procedures have and procedures been communicated to, broken down by region. b. Total number and percentage of employees that the organization’s anti-corruption policies and procedures have been communicated to, broken down by employee category and region. Top 10 GRI Topic-Specific Disclosure “Shall” requirements under each disclosure Material Issues 2. Anti-corruption GRI 205-2 Communication and training c. Total number and percentage of business partners that the and Anti-fraud about anti-corruption policies organization’s anti-corruption policies and procedures have and procedures been communicated to, broken down by type of business (cont.) partner and region. Describe if the organization’s anti-corruption policies and procedures have been communicated to any other persons or organizations. d. Total number and percentage of governance body members that have received training on anti-corruption, broken down by region. e. Total number and percentage of employees that have received training on anti-corruption, broken down by employee category and region. GRI 205-3 Confirmed incidents of a. Total number and nature of confirmed incidents of corruption. corruption and actions taken b. Total number of confirmed incidents in which employees were dismissed or disciplined for corruption. c. Total number of confirmed incidents when contracts with business partners were terminated or not renewed due to violations related to corruption. d. Public legal cases regarding corruption brought against the organization or its employees during the reporting period and the outcomes of such cases. 3. Product Quality GRI 417-1 Requirements for product and a. Whether each of the following types of information is required by and Responsibility service information and labelling the organization’s procedures for product and service information and labelling: ii. Content, particularly with regard to substances that might produce an environmental or social impact; CRE8 Type and number of sustainability 2.1 Report the type and number of mandatory and voluntary certification, rating and labelling sustainability certification, rating or labelling schemes in at least schemes for new construction, one of the following ways: management, occupation and – Total number of assets that have achieved a certification, redevelopment rating or labelling within a portfolio (buildings and construction projects), and level of certification attained; or – Percentage of assets certifications, ratings or labels achieved within a portfolio. 2.2 Report building operational performance improvements that result from the introduction of the certification, rating or labelling 93 schemes compared to the design specification using any of the criteria of the certification, rating or labelling schemes. 4. Legal Compliance GRI 307-1 Non-compliance with a. Significant fines and non-monetary sanctions for non-compliance environmental laws and with environmental laws and/or regulations in terms of: regulations i. Total monetary value of significant fines; ii. Total number of non-monetary sanctions; iii. Cases brought through dispute resolution mechanisms. b. If the organization has not identified any non-compliance with environmental laws and/or regulations, a brief statement of this fact is sufficient. GRI 419-1 Non-compliance with laws and a. Significant fines and non-monetary sanctions for non-compliance regulations in the social and with laws and/or regulations in the social and economic area in economic area terms of: i. Total monetary value of significant fines; ii. Total number of non-monetary sanctions; iii. Cases brought through dispute resolution mechanisms. b. If the organization has not identified any non-compliance with laws and/or regulations, a brief statement of this fact is sufficient. c. The context against which significant fines and non-monetary sanctions were incurred. 5. Customer/ Public GRI 416-2 Incidents of non-compliance a. Total number of incidents of non-compliance with regulations Health and Safety concerning the health and safety and/or voluntary codes concerning the health and safety impacts impacts of products and services of products and services within the reporting period, by: i. Incidents of non-compliance with regulations resulting in a fine or penalty; ii. Incidents of non-compliance with regulations resulting in a warning; iii. Incidents of non-compliance with voluntary codes. b. If the organization has not identified any non-compliance with regulations and/or voluntary codes, a brief statement of this fact is sufficient. 2.1 When compiling the information specified in Disclosure 416-2, the reporting organization shall: 2.1.1 Exclude incidents of non-compliance in which the organization was determined not to be at fault; 2.1.2 Exclude incidents of non-compliance related to labelling. Incidents related to labelling are reported in Disclosure 417-2 of GRI 417: Marketing and Labelling; 2.1.3 If applicable, identify any incidents of non-compliance that relate to events in periods prior to the reporting period. 6. Supplier Health GRI 403-1 Workers representation in formal See above Material Issue 1. Employee Health & Safety. and Safety joint management–worker health and safety committees GRI 403-2 Types of injury and rates of injury, See above Material Issue 1. Employee Health & Safety. occupational diseases, lost days, and absenteeism, and number of work-related fatalities INDEPENDENT LIMITED ASSURANCE STATEMENT

Top 10 GRI Topic-Specific Disclosure “Shall” requirements under each disclosure Material Issues 7. Economic GRI 201-1 Direct economic value generated a. Direct economic value generated and distributed (EVG&D) on Contribution to and distributed an accruals basis, including the basic components for the organization’s global operations as listed below. If data are Society presented on a cash basis, report the justification for this decision in addition to reporting the following basic components: i. Direct economic value generated: revenues; ii. Economic value distributed: operating costs, employee wages and benefits, payments to providers of capital, payments to government by country, and community investments; 2.1 When compiling the information specified in Disclosure 201-1, if the reporting organization shall, if applicable, compile the EVG&D from data in the organization’s audited financial or profit and loss (P&L) statement, or its internally audited management accounts. GRI 201-3 Defined benefit plan obligations a. If the plan’s liabilities are met by the organization’s general and other retirement plans resources, the estimated value of those liabilities. d. Percentage of salary contributed by employee or employer. e. Level of participation in retirement plans, such as participation in mandatory or voluntary schemes, regional, or country-based schemes, or those with financial impact. 8. Energy Efficiency GRI 302-3 Energy intensity a. Energy intensity ratio for the organization. b. Organization-specific metric (the denominator) chosen to calculate the ratio. c. Types of energy included in the intensity ratio; whether fuel, electricity, heating, cooling, steam, or all. d. Whether the ratio uses energy consumption within the organization, outside of it, or both. 2.5 When compiling the information specified in Disclosure 302-3, the reporting organization shall: 2.5.1 Calculate the ratio by dividing the absolute energy consumption (the numerator) by the organization- specific metric (the denominator); 2.5.2 If reporting an intensity ratio both for the energy consumed within the organization and outside of it, report these intensity ratios separately. 94 GRI 302-4 Reduction of energy a. Amount of reductions in energy consumption achieved as a consumption direct result of conservation and efficiency initiatives, in joules or multiples. b. Types of energy included in the reductions; whether fuel, electricity, heating, cooling, steam, or all. c. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it. d. Standards, methodologies, assumptions, and/or calculation tools used. 2.7 When compiling the information specified in Disclosure 302-4, the reporting organization shall: 2.7.1 Exclude reductions resulting from reduced production capacity or outsourcing; 2.7.2 Describe whether energy reduction is estimated, modelled, or sourced from direct measurements. If estimation or modelling is used, the organization shall disclose the methods used. GRI 302-5 Reductions in energy a. Reductions in energy requirements of sold products and services requirements of products and achieved during the reporting period, in joules or multiples. services b. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it. c. Standards, methodologies, assumptions, and/or calculation tools used. 2.9 When compiling the information specified in Disclosure 302-5, the reporting organization should: 2.9.1 If subject to different standards and methodologies, describe the approach to selecting them; 2.9.1 Refer to industry use standards to obtain this information, where available (such as fuel consumption of cars for 100 km at 90 km/h). 9. Customer GRI 102-43, Approach to stakeholder a. The organization’s approach to stakeholder engagement, and Tenant limiting the engagement including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was Engagement scope to “results undertaken specifically as part of the report preparation process. of customer satisfaction surveys” 10. Environmental GRI 304-2 Significant impacts of activities, a. Nature of significant direct and indirect impacts on biodiversity Impact Assessment products, and services on with reference to one or more of the following: biodiversity iv. Reduction of species; and Mitigation v. Habitat conversion.

* The above subject matter only covers operations owned and managed by CDL’s Singapore headquarters, excluding subsidiaries. For the indicators covered in our scope of assurance, all quantitative assertions and certain qualitative assertions have been assured, to the extent disclosed by CDL. What we did to form our 4. Interviews with employees and of the Institute of Singapore conclusions management (CSR, Human Chartered Accountants and Code Resources, Property & Facilities of Professional Conduct and The procedures performed aim to Management, Environment Ethics for Public Accountants verify the plausibility of information. Health & Safety, Customer and Accounting Entities. Our EY We designed our procedures in order Service, Internal Audit, Enterprise independence policies prohibit any to state whether anything has come Risk Management, Projects, financial interests in our clients that to our attention to suggest that the Administration, Corporate would or might be seen to impair Subject Matter detailed above has not Secretarial Services) to independence. Each year, partners been reported in accordance with understand key sustainability and staff are required to confirm their the reporting criteria cited earlier. In issues related to the select compliance with the firm’s policies. order to form our conclusions we indicators and processes for the undertook the steps below: collection and accurate reporting Observations and areas for of performance information. improvement 1. Inquiries with CDL’s CSR team to 5. Obtain documentation through Our observations and areas a. Understand principal business sampling methods to verify for improvement will be raised operations, assumptions, estimations in an internal report to CDL’s b. Appreciate key sustainability and computations made by Management. These observations issues and developments, management in relation to the do not affect our conclusions on the c. Map out information flow for concerned subject matters in Report set out below. sustainability reporting and the Report. the controls on information Conclusion collation, 6. Checking that data and 95 d. Identify data providers with statements had been correctly Based on the procedures performed their responsibilities, and transcribed from corporate and evidence obtained, nothing has e. Recognise the likelihood systems and / or supporting come to our attention that causes us of possible manipulation of evidence, into the Report. to believe that the information in the sustainability data. Report was not presented fairly, and 7. Obtain various certifications, calculated in all material respects 2. Undertake site visits to one audit reports and financial in accordance with the reporting project site, two CDL-managed statement report in relation to criteria detailed above. properties, and CDL’s offices. the concerned subject matters in the Report. 3. Conduct process walk-through of systems and processes for Our independence data aggregation and reporting, with relevant personnel to EY has provided independent Ernst & Young LLP understand the quality of checks assurance services in relation to Signed for Ernst & Young LLP by and control mechanisms, CDL’s Sustainability Report 2017. K Sadashiv assessing and testing the Partner, Climate Change and controls in relation to the In conducting our assurance Sustainability Services concerned subject matters in engagement we have met the Singapore, 5 May 2017 the Report. independence requirements GRI CONTENT INDEX

GRI STANDARDS DISCLOSURES

GRI Disclosure Disclosure Page reference and reasons Externally Standard Number Title for omissions, if applicable Assured (Y/N) GENERAL DISCLOSURES Organisational Profile 102-1 Name of the organization 1 N 102-2 Activities, brands, products, and services 3, AR 2016 (22, 80-81) N 102-3 Location of headquarters 3 N 102-4 Location of operations 3, AR 2016 (22, 80) N 102-5 Ownership and legal form 3, AR 2016 (22) N GRI 102: 102-6 Markets served 3, AR 2016 (22, 80) N General 102-7 Scale of the organization 69, AR 2016 (81, 121-122) N Disclosures 2016 102-8 Information on employees and other workers 67-70 N 102-9 Supply chain 79-80 N 102-10 Significant changes to the organization and its supply chain 4-9, 27-29, AR 2016 (14-21) N 102-11 Precautionary Principle or approach 37-39, AR 2016 (62-66) N 102-12 External initiatives 31-32, 34-36, 40-41 N 102-13 Membership of associations 82 N Strategy GRI 102: 102-14 Statement from senior decision-maker 4-9 N General 102-15 Key impacts, risks, and opportunities 5-9, 20-21 N Disclosures 2016 96 Ethics and Integrity GRI 102: 102-16 Values, principles, standards, and norms of behavior 31-37 N General 102-17 Mechanisms for advice and concerns about ethics 33-34, 37, 76 N Disclosures 2016 Governance 102-18 Governance structure 11, AR 2016 (26-33) Y (91-95) 102-19 Delegating authority 11 N 102-20 Executive-level responsibility for economic, environmental, 11 N and social topics 102-21 Consulting stakeholders on economic, environmental, and 31-32 N social topics 102-22 Composition of the highest governance body and its 11, AR 2016 (26-33) N committees 102-23 Chair of the highest governance body AR 2016 (41-42) N 102-24 Nominating and selecting the highest governance body AR 2016 (35, 40-45) N 102-25 Conflicts of interest AR 2016 (35, 40-42) N 102-26 Role of highest governance body in setting purpose, values, 31, 37-39 N and strategy 102-27 Collective knowledge of highest governance body AR 2016 (38 - 39) N 102-28 Evaluating the highest governance body’s performance AR 2016 (45 - 46) N GRI 102: General 102-29 Identifying and managing economic, environmental, and 37-39, AR 2016 (51-53) Y (91-95) Disclosures social impacts 2016 102-30 Effectiveness of risk management processes 37-39, AR 2016 (51-53) N 102-31 Review of economic, environmental, and social topics AR 2016 (36-37) N 102-32 Highest governance body’s role in sustainability reporting 22 Y (91-95) 102-33 Communicating critical concerns 33-34, 76 N 102-34 Nature and total number of critical concerns 33-34, 37, 73-76 N 102-35 Remuneration policies AR 2016 (47-50) N 102-36 Process for determining remuneration 71, AR 2016 (47-48) N 102-37 Stakeholders’ involvement in remuneration 71, AR 2016 (47-50) N 102-38 Annual total compensation ratio Not disclosed due to the N commercial sensitivity given the highly competitive human resource environment. 102-39 Percentage increase in annual total compensation ratio Not disclosed due to the N commercial sensitivity given the highly competitive human resource environment. GRI Disclosure Disclosure Page reference and reasons Externally Standard Number Title for omissions, if applicable Assured (Y/N) GENERAL DISCLOSURES Stakeholder Engagement 102-40 List of stakeholder groups 16, 73-75 N GRI 102: 102-41 Collective bargaining agreements 76 N General 102-42 Identifying and selecting stakeholders 16-17, 73 N Disclosures 2016 102-43 Approach to stakeholder engagement 16-17, 73-75 Y (91-95) 102-44 Key topics and concerns raised 73-75, 77 N Reporting Practice 102-45 Entities included in the consolidated financial statements 3, AR 2016 (22, 80) N 102-46 Defining report content and topic Boundaries 16-17 Y (91-95) 102-47 List of material topics 18-19 Y (91-95) 102-48 Restatements of information 22 N 102-49 Changes in reporting 22-23 N GRI 102: General 102-50 Reporting period 22 N Disclosures 102-51 Date of most recent report 22 N 2016 102-52 Reporting cycle 22 N 102-53 Contact point for questions regarding the report 23 N 102-54 Claims of reporting in accordance with the GRI Standards 22-23 N 102-55 GRI content index 96-100 N 102-56 External assurance 23, 91-95 N

TOPIC-SPECIFIC STANDARDS Legal Compliance GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 33-37, 56, 76 N Approach 2016 103-3 Evaluation of the management approach 33-37, 56, 76 N GRI 206: Anti- 206-1 Legal actions for anti-competitive behavior, anti-trust, and 37 N 97 competitive monopoly practices 2016 GRI 307: 307-1 Non-compliance with environmental laws and regulations 56 Y (91-95) Environmental Compliance 2016 GRI 418: 418-1 Substantiated complaints concerning breaches of customer 78 N Customer privacy and losses of customer data Privacy 2016 GRI 419: 419-1 Non-compliance with laws and regulations in the social and 37, 56 Y (91-95) Socioeconomic economic area Compliance 2016 Anti-corruption and Anti-fraud GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 14-15, 33, 35, 37, 76 N Approach 2016 103-3 Evaluation of the management approach 33, 35, 37, 76 N 205-1 Operations assessed for risks related to corruption 33 Y (91-95) GRI 205: Anti- 205-2 Communication and training about anti-corruption policies 37 Y (91-95) corruption and procedures 2016 205-3 Confirmed incidents of corruption and actions taken 37 Y (91-95) Product Quality and Responsibility GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 61, 76-78 N Approach 2016 103-3 Evaluation of the management approach 61, 76-78 N 417-1 Requirements for product and service information and 59, 61 Y (91-95) labeling GRI 417: 417-2 Incidents of non-compliance concerning product and 37 N Marketing and service information and labeling Labelling 2016 417-3 Incidents of non-compliance concerning marketing 37 N communications GRI Sector CRE 8 Type and number of sustainability certification, rating and 31, 40, 65 Y (91-95) Disclosures: labeling schemes for new construction, management, Construction occupation and redevelopment and Real Estate GRI CONTENT INDEX

GRI Disclosure Disclosure Page reference and reasons Externally Standard Number Title for omissions, if applicable Assured (Y/N) TOPIC-SPECIFIC STANDARDS Employee Health and Safety GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 14-15, 67-69 N Approach 2016 103-3 Evaluation of the management approach 67-69 N 403-1 Workers representation in formal joint management–worker 68 Y (91-95) health and safety committees 403-2 Types of injury and rates of injury, occupational diseases, 68-69 Y (91-95) GRI 403: lost days, and absenteeism, and number of work-related Occupational fatalities Health and Safety 2016 403-3 Workers with high incidence or high risk of diseases related 68 N to their occupation 403-4 Health and safety topics covered in formal agreements with Disclosure is not applicable as N trade unions CDL is not a unionised company. GRI Sector CRE 6 Percentage of the organization operating in verified 31, 67, 79-80 N Disclosures: compliance with an internationally recognized health and Construction safety management system and Real Estate Customer/Public Healthy & Safety GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 61-62 N Approach 2016 103-3 Evaluation of the management approach 61-62 N GRI: 416: 416-1 Assessment of the health and safety impacts of product and 61-62 N Customer service categories Health and 416-2 Incidents of non-compliance concerning the health and 37 Y (91-95) Safety 2016 safety impacts of products and services Economic Contribution to Society 103-1 Explanation of the material topic and its Boundary 17, 19 N GRI 103: 103-2 The management approach and its components 4-9, 25, 27-29, 84-87, AR 2016 N 98 Management (14-21) Approach 2016 103-3 Evaluation of the management approach 4-9, 25, 27-29, 84-87, AR 2016 N (14-21) 201-1 Direct economic value generated and distributed 25-26, 84-87, AR 2016 (121-122) Y (91-95) 201-2 Financial implications and other risks and opportunities due 20-21, 43, 59-63, AR 2016 (64- N GRI 201: to climate change 66) Economic Performance 201-3 Defined benefit plan obligations and other retirement plans 70-71 Y (91-95) 2016 201-4 Financial assistance received from government CDL is not at liberty to disclose N this information as the Company is bound by confidentiality. 202-1 Ratios of standard entry level wage by gender compared to Disclosure is not applicable N local minimum wage as there is no minimum wage system in Singapore. Furthermore, CDL’s direct GRI 202: hires are skilled technical and Market professional employees whose Presence 2016 pay is not linked to particular laws concerning minimum wage. 202-2 Proportion of senior management hired from the local 70 N community GRI 203: 203-1 Infrastructure investments and services supported 59-64 N Indirect 203-2 Significant indirect economic impacts 14-15, 44, 46-55, 59-64, 84-87 N Economic Impacts 2016 GRI Disclosure Disclosure Page reference and reasons Externally Standard Number Title for omissions, if applicable Assured (Y/N) TOPIC-SPECIFIC STANDARDS Supplier Health and Safety GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 14-15, 67-68, 79-80 N Approach 2016 103-3 Evaluation of the management approach 14-15, 67-68, 79-80 N 403-1 Workers representation in formal joint management–worker 68 Y (91-95) health and safety committees 403-2 Types of injury and rates of injury, occupational diseases, 67-69 Y (91-95) GRI 403: lost days, and absenteeism, and number of work-related Occupational fatalities Health and Safety 2016 403-3 Workers with high incidence or high risk of diseases related 67-68 N to their occupation 403-4 Health and safety topics covered in formal agreements with Disclosure is not applicable as N trade unions CDL is not a unionised company. Customer and Tenant Engagement GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 76-79 N Approach 2016 103-3 Evaluation of the management approach 76-79 N GRI 102: 102-43 Approach to stakeholder engagement 16-17, 73-75 Y (91-95) General Disclosures 2016 Energy Efficiency GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 14-15, 49-51 N Approach 2016 103-3 Evaluation of the management approach 14-15, 49-51 N 302-1 Energy consumption within the organization 50-51 Y (88-90) 302-2 Energy consumption outside of the organization 50-51 N GRI 302: 302-3 Energy intensity 50-51 Y (91-95) Energy 2016 99 302-4 Reduction of energy consumption 50-51 Y (91-95) 302-5 Reductions in energy requirements of products and services 49, 59-60 Y (91-95) 305-1 Direct (Scope 1) GHG emissions 46 Y (88-90) 305-2 Energy indirect (Scope 2) GHG emissions 46 Y (88-90) 305-3 Other indirect (Scope 3) GHG emissions 46 Y (88-90) GRI 305: 305-4 GHG emissions intensity 47 N Emissions 2016 305-5 Reduction of GHG emissions 14, 45 N 305-6 Emissions of ozone-depleting substances (ODS) Disclosure is not material to CDL. N 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other Disclosure is not material to CDL. N significant air emissions GRI Sector CRE 1 Building energy intensity 50 N Disclosures: CRE 3 Greenhouse gas emissions intensity from buildings 47 N Construction CRE 4 Greenhouse gas emissions intensity from new construction 47 N and Real Estate and redevelopment activity Environmental Impact Assessment and Mitigation GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 43 N Approach 2016 103-3 Evaluation of the management approach 43 N 304-1 Operational sites owned, leased, managed in, or adjacent to, Disclosure is not applicable as N protected areas and areas of high biodiversity value outside CDL’s development projects are protected areas not located within protected areas. 304-2 Significant impacts of activities, products, and services on 43 Y (91-95) GRI 304: biodiversity Biodiveristy 2016 304-3 Habitats protected or restored Disclosure is not applicable as N CDL’s development projects are not located within protected areas. 304-4 IUCN Red List species and national conservation list species 43 N with habitats in areas affected by operations GRI CONTENT INDEX

GRI Disclosure Disclosure Page reference and reasons Externally Standard Number Title for omissions, if applicable Assured (Y/N) TOPIC-SPECIFIC STANDARDS Materials GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 44-45 N Approach 2016 103-3 Evaluation of the management approach 44-45 N 301-1 Materials used by weight or volume 44 N GRI 301: 301-2 Recycled input materials used 44 N Materials 2016 301-3 Reclaimed products and their packaging materials Disclosure is not applicable for N CDL’s operations in Singapore. Water GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 51-52 N Approach 2016 103-3 Evaluation of the management approach 51-52 N 303-1 Water withdrawal by source 53 N GRI 303: Water 303-2 Water sources significantly affected by withdrawal of water 51-53 N 2016 303-3 Water recycled and reused 53 N GRI Sector CRE 2 Building water intensity 53 N Disclosures: Construction and Real Estate Effluents and Waste GRI 103: 103-1 Explanation of the material topic and its Boundary 17, 19 N Management 103-2 The management approach and its components 54-55 N Approach 2016 103-3 Evaluation of the management approach 54-55 N 306-1 Water discharge by quality and destination 52-53 N 306-2 Waste by type and disposal method 55 N 306-3 Significant spills Disclosure is not applicable for N the real estate and construction 100 GRI 306: industry in Singapore. Effluents and 306-4 Transport of hazardous waste Disclosure is not applicable for N Waste 2016 CDL’s operations in Singapore. 306-5 Water bodies affected by water discharges and/or runoff Disclosure is not applicable N as CDL’s operations do not significantly affect any water bodies. This report may contain forward-looking Produced by City Developments Limited. statements that involve assumptions, risks No reproduction, in part or in whole, of the report and uncertainties. Actual future performance, may be made without prior permission of the outcomes and results may differ materially from editor. those expressed in forwardlooking statements as a result of a number of risks, uncertainties and Company registration number: 196300316Z assumptions. Representative examples of these www.cdl.com.sg factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other developments or companies, shifts in customer demands, customers and partners, expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits In line with CDL’s commitment to environmental and training costs), governmental and public responsibility, this report is printed on 270gsm policy changes and the continued availability of Toccata Extra White and 120gsm Green Forest financing in the amounts and the terms necessary which are FSCTM-certified papers. to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. Building Value For Tomorrow, Today