OUR POLICIES & OBJECTIVES

• Identify opportunities in managing its property portfolio to deliver long-term benefits
• Identify and respond to climate change risks
• Transit to low-carbon business
• Reduce energy consumption and transit to renewable energy sources
• Reduce water consumption, encourage use of recycled water and rainwater harvesting
• Manage waste through construction efficiency and increase rate of recycling
• Manage biodiversity to contribute positively to the natural environment
• Engage stakeholders to play their part

ACCOUNTABILITY

• REIT and BU CEOs are Environment, Health and Safety (EHS) Champions
• ISO 14001-certified Environmental Management System (EMS) ensures accountability of relevant managers and all staff
• Set key performance targets linked to remuneration for all staff, and performance tracked via the online CapitaLand Environmental Tracking System (ETS)

OUR APPROACH & IMPLEMENTATION

Environmental Management System (EMS)

• Ensure legal compliance
• Identify environmental aspects and manage impact
• Sustainable Building Guidelines – includes the updated Environment, Health and Safety Impact Assessment (EHS IA) and stakeholder consultation
• Appoint ISO 14001-certified main contractors or conduct EMS legal compliance on site
• Environmentally sustainable operations – EMS Standard Operating Procedures

Key Performance Indicators

• Green rating targets set for new buildings and major refurbishments
• Green existing property portfolio
• Eco-efficiency targets: improve performance through tracking of energy and water usage, waste generation and carbon emissions
• Stakeholder engagement

MANAGING OUR ENVIRONMENTAL FOOTPRINT

CapitaLand’s Environmental Management System (EMS) is a key tool in managing CICT’s environmental footprint across the portfolio. This EMS is integrated with CapitaLand’s Occupational, Health and Safety Management System (OHSMS) to form CapitaLand’s Environmental, Health and Safety Management System (EHSMS). CapitaLand’s EHSMS is audited by a third-party accredited certification body to ISO 14001 and ISO 45001 standards. ISO 14001 and ISO 45001 are internationally recognised standards for the environmental management of businesses and occupational health and safety management of businesses respectively.

Environmental, Health and Safety Policy

CICT is committed to protecting the environment and upholding the occupational health and safety (OHS) of everyone in the workplace*, and will:

• Carry out exemplary Environmental, Health and Safety practices to minimise pollution and health and safety risks
• Seek continual improvement on its Environmental, Health and Safety performance
• Comply with pertinent legislations and other requirements
• Implement the CapitaLand Sustainable Building Guidelines and Occupational Health and Safety programmes
• This policy is readily available to all employees, tenants, suppliers, service providers and partners.

* This includes implementing the EHSMS.

Risk Management of Environmental Aspects and Impact

Climate change risks and opportunities are also identified and mitigated through CICT’s ERM framework and the externally certified ISO 14001 EMS. As part of the certified EMS, new or updated legal requirements are reviewed quarterly and compliance is evaluated annually. Risk management of environmental aspects and impacts involves identifying and managing significant environmental aspects of our business operations that can potentially have a negative impact on the environment. The EMS provides a systematic approach to assess the significance of each environmental aspect and impact based on factors such as the likelihood of the occurrence, severity of the impact and control measures implemented. CICT strives to minimise impacts such as resource depletion, carbon emissions and waste generation, by setting environmental targets such as green building rating targets; carbon emissions, energy and water reduction targets; and stakeholder engagement activities. The targets are linked to the remuneration for staff including top management.

Training and Awareness Programmes

Employees attend training and awareness programmes to facilitate effective implementation of CapitaLand’s EHSMS. In 2021, 21.5% of employees attended EHS-related training, clocking over 1,640 training hours. New employees are introduced to CapitaLand’s EHS policy and EHSMS. In light of COVID-19, more digital learning sessions were conducted in 2021.

Internal and External Audits

CapitaLand has in place an internal audit system to ensure the conformance and effective implementation of its EMS to ISO 14001 international standards. External audits are conducted annually by a third-party accredited certification body.

Engaging Tenants to Go Green

Beyond developing environmentally sustainable properties, and operating them according to best practices, CICT understands the vital role that end-users of its buildings play. Collaboration with tenants is becoming more important to influence and support their sustainability goals. A green clause is implemented across all leases in its retail properties and for new leases in its office properties in Singapore where tenants are to support green initiatives by the landlord including proper disposal of waste. For all its properties in Singapore, a green fit-out guide is given to new tenants to encourage adoption of greener fit-outs, lighting efficiency requirements and promote green practices and behaviour.

SUSTAINABLE DEVELOPMENTS AND ASSETS

CapitaLand Sustainable Building Guidelines

CICT refers to CapitaLand’s Sustainable Building Guidelines (SBG), an in-house guide developed since 2007, to ensure environmental considerations are incorporated in all stages of its properties’ life cycles – from feasibility, design, procurement, construction, operation to redevelopment. It also covers developments and refurbishments. The SBG is regularly reviewed to ensure continuous improvement, with a focus on four key objectives of minimising carbon footprint and energy consumption, water management, reducing generation of waste and promoting biodiversity in the life cycles of its developments.

Mitigating Climate Change Challenges and Identifying Opportunities through Design

As countries rally for action to mitigate climate change, we expect more stringent regulations and increased expectations from stakeholders. By adopting the SBG, CICT aims to future-proof its developments by addressing the risks of climate change right from the investment or design stage. Every project is studied in detail and appropriate measures are adopted in consideration of climate change. The SBG also sets guidelines for buildings to be less energy reliant. For example, setting green building certification targets above statutory requirements, as well as encouraging the use of renewable energy, whenever possible.

Environment Health and Safety Impact Assessment (EHS IA)

A key component of the SBG is the mandatory EHS IA which is conducted during the feasibility stage of an investment into operational asset and development project. Significant findings of the EHS IA and their cost implications, if any, are incorporated in the investment paper and submitted to the Board of Directors for approval. The EHS IA considers Environment, Health and Safety risks and opportunities upfront and identify mitigating measures. The Environment aspect covers areas such as floods, biodiversity, air quality, noise, connectivity, heritage and resources. There are no properties in the portfolio located within protected areas and no material biodiversity risk has been identified.

Green building ratings help affirm the quality of CICT’s properties. They serve as an external validation that key environmental aspects have been considered in CICT’s project design, development and operations. With targets set from the early stage of design and development, green buildings, with a lower lifecycle carbon footprint through the adoption of sustainable design and materials, are more resource efficient.

The minimum target certification for our new developments in Singapore is Building and Construction Authority (BCA) Green Mark Gold^PLUS. CICT is committed to actively renew and maintain our green certifications and achieve minimum BCA Green Mark certification for all properties. The Trust has also set a target to green all its existing properties outside Singapore by 2030 with each achieving minimum certification level by a green rating system administered by a national government ministry/agency or a Green Building Council recognised by World Green Building Council (WGBC). As at 31 December 2021, all of CICT’s properties are green rated.

We are committed to building safe, accessible, vibrant and quality real estate developments to enhance the lives of our stakeholders and communities around our properties.

Our social integration criteria, which factor universal design considerations include:

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

These design considerations are also integrated with CapitaLand’s Sustainable Building Guidelines (SBG) to ensure that they are considered from the start of the project development process. For its new projects in Singapore, a target has been set to achieve at least a UD Mark Gold certification as assessed by Singapore’s Building & Construction Authority (BCA).

Universal design considerations ensure that public spaces in our properties are accessible to users of different age groups and varying abilities. These include:

• Seamless connectivity to the external surroundings, such as bus stops, adjacent buildings, streets and sidewalks
• Barrier-free access from accessible (handicapped) parking lots and family parking lots to lift lobbies
• Sheltered and barrier-free drop-off areas
• Accessible (handicapped) and family lots
• Designated pedestrian lanes in car parks
• Amenities such as accessible toilets, lifts and nursing rooms
• Atrium spaces, libraries and play areas for children

CICT’s 22 operating properties in Singapore either offer direct access to public transport hubs or are close to MRT stations, bus stops and taxi stands.

All our properties have at least one facility for disability access. These include accessible alighting and boarding bays, lifts, parking lots and public toilets. Our properties are also guide-dog friendly.

To encourage greener transportation modes, the Trust has allocated around 1,000 bicycle bays as well as green parking lots with charging stations across our properties. Plans are also underway to roll out more electric vehicle charging stations in our portfolio in collaboration with Singapore Power Mobility. For tenants who cycle to work, shower facilities are available in some properties.

We have also continued the partnership with BlueSg on electric car-sharing at six of our malls, namely Clarke Quay, Funan, Lot One Shoppers’ Mall, Plaza Singapura, Tampines Mall and Westgate.

OPERATIONAL EFFICIENCY

Portfolio Resilience And Resource Efficiency

The efficient use of environmental resources such as energy and water, responsible waste management and consideration of the surrounding community, contribute to the operational efficiency and long-term sustainability of CICT’s real estate portfolio. This will build resilience throughout CICT’s operations and futureproof its real estate portfolio to guard against climate change risks and avoid premature obsolescence. In the long term, we believe this will be a differentiating factor for CICT in the markets that it has a presence in.

The usage of environmental resources in CICT’s portfolio is closely monitored as part of our eco-efficiency objectives and long-term sustainability. Energy and water consumption, waste generation and carbon emissions at our properties are monitored via CapitaLand’s Environmental Tracking System (ETS). All Property Managers are required to submit monthly reports with supporting documentary evidence through the ETS. The system’s control and monitoring tool allows the Property Managers to conduct analysis against set targets and past trends to facilitate a better understanding of consumption patterns and identify potential areas for improvement.

Targets

CICT is aligned with CapitaLand’s science-based targets set out in CapitaLand’s 2030 Sustainability Master Plan as we transit to a low-carbon business. CapitaLand’s revised carbon emissions intensity reduction target is computed from the approved science-based target, to better track our day-to-day operational efficiency.

Carbon Emissions

CICT seeks to address the challenges of climate change by reducing our energy usage and carbon footprint across our business operations. Our focus is on minimising greenhouse gas emissions from our properties.

Scope 2 emissions¹ in 2021 made up 63,885 tonnes. This is a 2.8% increase from 2020 for Singapore operating properties. For 2021, carbon emissions intensity for the Singapore operating properties was 4.52 kgCO₂e/m², representing a 50.3% reduction compared to base year 2008. This was a slight increase from 2020’s restated carbon intensity of 4.40 kgCO₂e/m² or a 51.5% reduction compared to base year 2008.

Scope 1 emissions from adhoc diesel consumption was 321 tonnes for Singapore operating properties. Scope 3 emissions from assets under development or upgrading was 3,214 tonnes, contributing about 4.8% of total overall carbon emissions. There was no business travel via air by CICT employees in FY 2021 due to the pandemic.

Footnote:
⁽¹⁾ This is computed mostly from purchased electricity consumption under scope 2 as defined by the Greenhouse Gas (GHG) Protocol (operational control approach) and using individual country CO² emission factors retrieved from the International Energy Agency (IEA) Statistics – CO² emission factors from fuel combustion 2020 edition.

Energy

In 2021, CICT reported 178,560,000 kWh of energy consumption for the landlord-controlled areas in the Singapore operating properties and 8,260,000 kWh for CapitaSpring and 21 Collyer Quay, which were assets under development/upgrading that used a mix of purchased energy and diesel for its energy requirements. The overall energy usage for landlord’s consumption was 2.2% higher year-on-year largely attributable to a low base due to the circuit breaker in 2020 and slightly improved business activities despite the on-off restriction measures experienced in 2021.

With the inclusion of district cooling energy in the energy intensity computation, CICT’s 2021 energy intensity was a 32.8% reduction compared to base year 2008 versus the 2020 restated 33.9% reduction compared to base year 2008 for Singapore operating properties.

Tenants’ consumption was 162,644,000 kWh. This excluded tenants’ consumption at Plaza Singapura as tenants were billed directly, 21 Collyer Quay, which was undergoing upgrading works, as well as CapitaSpring as the building obtained temporary occupation permit in November 2021.

CICT also recorded direct fuel consumption of around 824,000 kWh resulting from usage of diesel for generator operations.

We recognise that as buildings become more energy efficient, the reduction in energy intensity inevitably becomes less significant. Collaboration with tenants becomes all the more important. A green clause is implemented for leases in majority of the Singapore portfolio where tenants are to support green initiatives implemented. In addition, a green fit-out guide, along with other materials are included in the handover kit which are given to new tenants. This is to encourage tenants to adopt green fit out and promote green practices and behaviour.

For the German assets, Gallileo and Main Airport Center reported a total energy consumption of about 16,124,000 kWh including district heating for the whole building. Gallileo did not record any energy consumption as it was leased to a single tenant who used renewable energy.

Renewable Energy

CICT has more than 1,700 m² of solar panels at Bedok Mall, Bugis Junction, JCube, and Asia Square Tower 2. These solar panels have helped our properties to tap around 119,000 kWh of renewable energy source.

Water

The main water source for CICT’s portfolio is from Public Utilities Board (PUB), Singapore’s national water agency.

In 2021, CICT’s total water consumption (including recycled water) amounted to around 1,526,000 m³ from the Singapore operating properties including assets under development/upgrading, CapitaSpring and 21 Collyer Quay. Excluding projects under works, the 2.9% increase year-on-year was largely attributable to a slight increase in business activities compared to 2020.

As a result, CICT’s 2021 water intensity for operating properties inched up to 0.104 m³/sqm/month, representing a 3.6% year-on-year increase and a 40.9% reduction compared to the base year 2008.

To reduce water consumption, we also utilised recycled water such as harvested rainwater and NEWater for plant irrigation, hi-jetting of car park decks, the cooling towers and sprinkler systems across our Singapore operating properties. Twelve of CICT’s operating properties used about 590,000 m³ of recycled water or 40.2% of the total water consumption in 2021. We adopt stringent monitoring of the consumption and water intensity to ensure that fluctuations are duly accounted for and issues are promptly addressed.

For our German assets, Gallileo reported about 19,000 m³ of water consumption in 2021. Water consumption data for Main Airport Center was not available at time of reporting.

Like-for-like Consumption Change on Year-on-Year Basis

CICT reported a year-on-year increase in the like-for-like change⁽¹⁾ in consumption across carbon emissions, energy and water for the 20 Singapore operating assets which excludes 21 Collyer Quay and CapitaSpring (under asset enhancement and redevelopment works). The slight increase across the like-for-like portfolio was largely due to a slight increase in business activities in 2021 compared to 2020.

Waste Management

CICT is committed to the proper disposal of waste generated at our properties. We consolidated waste data for 22 Singapore operating properties in 2021. The collection and disposal of waste at these properties are being carried out by licensed contractors for recyclable waste.

About 20,688 tonnes of non-recyclable waste and 2,557 tonnes of recyclable waste were collected in 2021. Recyclable waste is 11.0% of total waste collected, and comprised approximately 1,897 tonnes of paper, 25 tonnes of plastic, 29 tonnes of metal, 10 tonnes of glass and 595 tonnes of other materials.

At CICT, we encourage and support our stakeholders’ waste recycling efforts, by placing recycling bins in our operational properties. In 2021, National Environment Agency (NEA) appointed ALBA Group as the designated electronic waste (e-waste) disposal vendor for all retail properties and no data was shared. The office properties continued the partnership with Cimelia Resource Recovery for e-waste collection and a total of 8.1 tonnes was collected in 2021 from our Singapore operating properties.

For 2021, Gallileo and Main Airport Center recorded around 207 tonnes of waste collected. Details of the breakdown was not available at time of reporting.

Conservation Measures

CICT continues to implement various energy and water conservation measures which focus on regular maintenance and innovation to achieve operational savings as well as improving waste management. The measures are listed in the tables below.

Energy

Water

Waste

Reporting Scope

In 2021, the COVID-19 pandemic continued to evolve with a significant increase in infection rate and the rise of the Delta variant. While countries moved towards vaccinating the population, the safe management measures such as dining capacity limits and return to office restrictions continued to remain in place. In Singapore, the restrictions capped the shopper traffic at malls as well as workers’ return to office as working from home was the default in the last two quarters of 2021. This impacted the footfall and physical occupancy, resulting in lower consumption of energy and water in 2021. A similar trend was observed in Frankfurt, Germany.

CICT reports the consumption trend for the last three years: 2019¹ , 2020² and 2021³. Due to the effects of the pandemic, the 2020 and 2021 data are anomalies.

For reporting year 2021, CICT’s Singapore operating properties comprise 22 properties across retail, office and integrated developments. Of which, some of the assets have changes in status:

• One George Street was divested on 9 December 2021 (but recorded full year data);
• Part of Six Battery Road was in the midst of its asset enhancement initiative for 2021;
• 21 Collyer Quay obtained Temporary Occupation Permit (TOP) for its enhancement works on 1 October 2021; and
• CapitaSpring, which was under development obtained TOP on 15 November 2021.

By definition, Scope 1 emissions refer to direct emissions from activities controlled by CICT, Scope 2 emissions are indirect emissions associated with its consumption of purchased energy while Scope 3 emissions are indirect emissions from activities not controlled by CICT. Our footprint is calculated in accordance with the Greenhouse Gas (GHG) Protocol⁴.

CICT’s Scope 1 data is derived from usage of diesel on an adhoc basis and excluded from carbon emissions intensity. Scope 2 data covered the purchased energy consumption relating to the operations. Scope 3 data included all purchased energy and diesel consumption for assets under development/upgrading, namely 21 Collyer Quay (1 January 2021 to 30 September 2021) and CapitaSpring for 2021.

The two German assets, Gallileo and Main Airport Center are third-party managed, and reported consumption data for energy, district heating, water and waste data for 2021 where available. Data which was not available as at the time of reporting were excluded.

All intensity data⁵ for landlord-controlled areas excluded assets under stabilisation or assets that do not have the full year consumption data for the reporting year.

Our stakeholders’ occupational health and safety (OHS) are of utmost importance. An effective OHS management system is part of risk management and enhances productivity, morale and well-being. CICT aims to provide a safe and secure environment at the properties to optimise both retail and office experiences.

CICT adopts CapitaLand’s Occupational Health and Safety Management System (OHSMS), which has been externally audited by a third-party accredited certification body to International Organization for Standardization (ISO) 45001 standards, a recognised international standard for OHS Management Systems. The framework involves identifying and reviewing OHS hazards, assessing their risks, establishing policies, ensuring accountability, developing action plans and engaging stakeholders.

We are committed to ensuring a high OHS performance. Guided by an existing robust OHS Management System, we strive to reduce occupational injury rates with the aim to achieve zero harm.

OUR POLICIES & OBJECTIVES

• Reduce occupational injury rates with the aim to achieve zero harm
• Provide a robust OHS Management System
• Meet or exceed OHS legal requirements
• Promote a culture of individual ownership and responsibility for OHS management
• Seek proactive support and participation from stakeholders, including top management, employees, contractors, suppliers and tenants
• Drive continuous improvement in OHS performance

ACCOUNTABILITY

• BU CEOs are accountable for their OHS performance
• The ISO 45001 OHS Management System secures the accountability of relevant managers and staff KPIs linked to remuneration of all employees:
  • OHS performance of employees
  • Stakeholder engagement

OUR APPROACH & IMPLEMENTATION

Environmental Management System (EMS)

• Legal compliance
• Identify hazards & risk assessment through regular Hazards, Identification and Risk
• Assessments (HIRA)
• Sustainable Building Guidelines – Design for Safety (DfS) to manage health and safety risks throughout the buildings’ life cycles
• Safe operations – OHS Standard Operating Procedures (SOPs) to minimise the incidence of hazards such as poor ergonomics or falling from height
• Training and awareness to facilitate effective implementation and partnerships with stakeholders to create a safe work environment
• Appoint OHSAS 18001/ ISO 45001 certified main contractors or carry out OHS legal compliance audit on-site
• Give preference to OHSAS 18001/ ISO 45001 certified supply chain (vendors/ suppliers); in Singapore, non-OHSAS 18001/ ISO 45001 certified supply chain (vendors/ suppliers) are encouraged to achieve bizSAFE Level 3 and above

Key Performance Indicators

• OHS performance of staff
• Stakeholder engagement