I am pleased to share CICT's Sustainability Report 2022, which provides an overview of our progressive strategic approach and achievements in integrating sustainability into the way we do business.
We are committed to continually improve reporting standards in line with recommendations by the Global Reporting Initiative and the Task Force on Climate-Related Financial Disclosures. We focus on eight key United Nations Sustainable Development Goals most aligned with CapitaLand’s 2030 Sustainability Master Plan (SMP).
One of the key focus areas of the SMP is building the resilience of assets through decarbonisation efforts to mitigate climate change.
CICT is aligned with CapitaLand Investment’s (CLI) science-based targets set out in the 2030 SMP that is in line with a 1.5°C scenario1, which will translate to Net Zero by 2050, and enhance its focus on social indicators.
Our commitment to Net Zero is a group-wide initiative, from Board to management and employees. This means that the remuneration of management and employees is tied to sustainability performance targets in addition to financial targets.
We will continue to innovate and leverage technologies to accelerate our transition to Net Zero. We strive to achieve this by improving operational efficiency, resource allocation and, where possible, using renewable energy in our properties.
We adopt a holistic approach to identify and mitigate our carbon footprint across the real estate life cycle, including investment and operations, which is in line with the CapitaLand Sustainable Building Guidelines.
For example, each property’s green journey will be evaluated for all new investments. CICT also adopts CLI's internal carbon price, which was implemented in 2021, to quantify climate-related risks and opportunities.
In addition, we look to achieve a 100% green-rated portfolio for our operational properties by 2030. As we plan for green capital expenditure in asset plans, we will strive to achieve a balance between greening assets and revenue generation.
In our drive to achieve Net Zero, we leveraged CapitaLand Sustainability X Challenge (CSXC), which was inaugurated in 2020. This global sustainability-focused initiative welcomes emerging and innovative technological solutions globally to address environmental challenges and drive decarbonisation. We have since initiated two pilot projects in selected properties from CSXC 2021, where testing is still ongoing. In CSXC 2022, we identified two other winning innovations relating to water leak detection and optimisation of water meter accuracy which will be tested at our properties.
In addition, we have expanded our recycling efforts to food waste management and implemented trials for food waste treatment to produce bio-organic fertiliser and grey water at Tampines Mall and Funan.
Operationally, we are exploring more renewable sources of energy. As part of our efforts to implement the photovoltaic system at IMM Building, 3,633 solar panels (11,960 sq m) have been installed on the roof of IMM Building in December 2022. Another 672 solar panels (1,760 sq m) will be installed in the second phase of this project in 1H 2023. Together, the estimated annual renewable energy to be generated is approximately 2.9 GWh.
We established a Green Finance Framework in February 2022 that outlines the criteria and guidelines which underpin CICT's green financing transactions. As of 31 December 2022, about 30% of CICT's group borrowings are sustainability-linked or green financing.
At CICT, we embrace fairness, diversity and inclusivity. Aligned with CLI, we are committed to the 10 principles of the United Nations Global Compact, which underpin the way we do business.
CICT adopts the CapitaLand Supply Chain Code of Conduct, which sets out the requirements for business integrity and ethics, such as anti-bribery and corruption, labour laws and human rights, health and safety, and environmental management. In 2022, 100% of our contractors and vendors had committed to abide by CapitaLand’s Supply Chain Code of Conduct.
Diverse talents power our workplace, and we were ranked in the Top 10 in Singapore for Gender Equality in 2022 by Equileap. In 2022, 57% of our employees are female and 62% of our management team are female. Employees between the 30 and 50 age group accounted for 65% of the workforce.
Employee training and development are key to building a future-ready workforce. Our employees achieved more than 13,430 training hours in 2022, a win-win for CICT and employees.
Enhancing the occupational health and safety of our stakeholders is integral to our business. Health and safety continue to be a key part of our sustainability initiatives and community activities that ensures our stakeholders and communities benefit from the use of our properties.
To encourage greener transportation modes, we have allocated around 1,000 bicycle bays and green parking lots with charging stations across our properties. In addition, we have rolled out 75 electric vehicle charging stations in our portfolio in collaboration with Singapore Power Mobility and Bluecharge. End-of-trip facilities are also provided for tenants who cycle to work in some properties where they can enjoy the convenience of bicycle parking, basic bicycle maintenance and shower facilities.
Sustainability is at the core of everything we do. We are committed to growing responsibly, delivering long-term economic value, and contributing to environmental and social well-being.
As we forge ahead, dealing with climate change remains an essential component of our work, whether in strategy development, decision making or enterprise risk management.
We will continually strengthen sustainability stewardship with our Sustainability Committee, which comprises senior management and diverse representatives in the organisation. As sustainability requirements evolve, we will regularly review and adapt our strategies to ensure we stay nimble and progress towards our targets.
The milestones that we have achieved in our sustainability efforts would not have been possible without all our stakeholders, who have been supporting us in our ambition.
TONY TAN TEE HIEONG
Chief Executive Officer
In line with CapitaLand Investment's (CLI) sustainability focus, CapitaLand Integrated Commercial Trust (CICT) has been incorporating its environmental, social and governance (ESG) performance in its annual report. Reinforcing our commitment to sustainability, CICT started its standalone Sustainability Report for financial year 2022 (FY 2022), which aims to provide a comprehensive overview of CICT’s approach in integrating sustainability into its policies, structure, management, and operations, as well as stakeholder engagement.
This report is prepared in accordance with the Global Reporting Initiative (GRI) Standards 2021. This report discloses its risk management framework based on the Monetary Authority Singapore (MAS) Guidelines on Environmental Risk Management for Asset Managers and is also in compliance with the Singapore Exchange Securities Trading Limited’s (SGX-ST) Listing Manual Rules 711A and 711B. The GRI Standards has been selected as it is an internationally recognised sustainability reporting framework that covers a comprehensive range of sustainability disclosures relevant to CICT’s business. This Report has also incorporated elements of the Value Reporting Foundation Integrated Reporting Framework and references the United Nations Sustainable Development Goals (UN SDGs). In this Report, CICT has also provided a work-in-progress update under the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and references the Sustainability Accounting Standards Board (SASB) real estate sector-specific standards.
As a CLI-sponsored Real Estate Investment Trust (REIT), CICT is managed externally by wholly owned subsidiaries of CLI which include the Manager (CICTML) and Property Managers who oversee the daily property operations. The Manager and Property Managers are responsible for the Trust, property and portfolio operations of CICT, and their respective teams are identified as employees of the Trust.
This Report covers CICT’s portfolio for the financial period from 1 January 2022 to 31 December 2022, unless otherwise indicated. As at 31 December 2022, CICT’s portfolio comprises 21 properties in Singapore, two in Frankfurt, Germany and three in Sydney, Australia.
In 2022, CICT completed the divestment of JCube on 10 March 2022 and the acquisitions of 66 Goulburn Street and 100 Arthur Street on 24 March 2022, 70.0% interest in CapitaSky on 27 April 2022, and 50.0% interest in 101-103 Miller Street and Greenwood Plaza on 21 June 2022.
Taking guidance from the operational control as defined by the Greenhouse Gas (GHG) Protocol1 Corporate Standard, the environmental performance of 22 Singapore properties comprising 11 retail properties, six office properties and five integrated developments which are under operational control have been covered in this Report. These properties are:
RETAIL: Bedok Mall, Bugis+, Bugis Junction, Bukit Panjang Plaza, CQ @ Clarke Quay, IMM Building, Junction 8, Lot One Shoppers' Mall, Tampines Mall, Westgate, JCube (divested on 10 March 2022)
OFFICE: Asia Square Tower 2, CapitaGreen, Capital Tower, CapitaSky (acquired 70.0% interest on 27 April 2022), Six Battery Road, which completed its AEI in September and 21 Collyer Quay
INTEGRATED DEVELOPMENT: CapitaSpring (45.0% interest), Funan, Raffles City Singapore, Plaza Singapura, The Atrium@Orchard
CICT reports the energy and water consumption and waste generation of the five overseas properties, where available, while the other environmental metrics are being tracked and monitored internally.
The Sponsor, CLI, is obtaining external assurance over its performance data and the Manager’s performance data is included as part of the Sponsor’s external assurance engagement.
The Sustainability Report 2022 is to be read in conjunction with Annual Report 2022 which can be accessed via www.cict.com.sg. In line with CLI’s commitment to environmental sustainability, the SR is only available online and not printed.
The Manager welcomes feedback as it continuously improves CICT’s sustainability performance and reporting. Stakeholders with questions or feedback are welcome to send them to firstname.lastname@example.org.