CapitaLand Investment commits to Net Zero by 2050
Achieves cumulative utilities cost avoidance of S$320 million through reduction in carbon emissions, energy and water intensities
CapitaLand Investment Limited (CLI) has elevated its commitment to sustainability by aiming to achieve Net Zero emissions by 2050. To realise this commitment, CLI aims to reduce its absolute scope 1 and 2 greenhouse gas emissions by 46%, up from 28%, by 2030 from a 2019 base year. These new targets to reduce greenhouse gas emissions are validated by the Science Based Targets initiative (SBTi) to limit global warming to 1.5°C, in accordance with the goals of the Paris Agreement. CapitaLand is one of the few Singapore-based companies to have SBTi-approved carbon targets aligned to the 1.5°C scenario for its extensive global operations.
The new Net Zero commitment builds on existing sustainability targets outlined in CapitaLand’s 2030 Sustainability Master Plan unveiled in October 2020. This includes accelerating the transition to a low-carbon business, improving water conservation and resilience, and enabling a circular economy.
CLI announced its Net Zero commitment today in tandem with the publication of its 13th Global Sustainability Report which covers its 2021 sustainability performance. CLI is on track to attain its Net Zero commitment as well as its 2030 Sustainability Master Plan targets.
Mr Lee Chee Koon, Group Chief Executive Officer, CLI, said: “Sustainability is at the core of everything we do, and science-based climate action is imperative. We are cognisant of our responsibility to not only contribute to Singapore’s Net Zero carbon goals, but also transition to a low-carbon business in the communities we operate in across the world. Achieving our new ambition to attain Net Zero by 2050 requires a myriad of initiatives and we will continue to regularly report our sustainability performance and impact. CapitaLand’s sustainability journey started over 20 years ago and today, we are well-recognised as a global sustainability leader in the real estate industry. We appreciate the trust and support from our stakeholders as we continue to do good and do right, as we do well.”
Ms Lynette Leong, Chief Sustainability Officer, CLI said: “In our pathway to Net Zero, we have integrated environmental, social and governance (ESG) factors and the targets in our 2030 Sustainability Master Plan into CLI’s investment, procurement and operational processes. We pioneered a proprietary return-on-sustainability metric that includes interest rate savings from our sustainability-linked loans and utilities cost avoidance to measure the value created through our sustainability efforts. The interest savings, together with the S$50 million CapitaLand Innovation Fund, back the test-bedding and implementation of new sustainability-related technologies sourced globally through our annual CapitaLand Sustainability X Challenge (CSXC) and other ground-up initiatives, and which in turn accelerate the achievement of our sustainability targets. To further demonstrate our commitment, sustainability and climate-related performance targets are also linked to our senior management’s remuneration.”
CLI’s carbon mitigation strategy towards Net Zero by 2050 is prioritised as such:
- Reducing energy use and improving energy efficiencies through innovative building designs and engineering solutions. This includes optimising and upgrading key building systems to lower on-site electricity consumption. CLI will also source for groundbreaking sustainability technologies globally through the CSXC.
- Intensifying its deployment and use of on-site renewable energy where feasible.
- Purchasing green power in markets where legislation allows for it.
- Using renewable energy certificates only as a last resort.
CLI’s Sustainability Report Highlights
CLI’s 2021 Global Sustainability Report details its journey, outcomes and progress towards achieving its sustainability targets and is externally assured to AA 1000 Assurance Standard. Highlights include:
- Achieved cumulative utilities cost avoidance of S$320 million due to operational efficiencies.
- Achieved a 52% reduction in water consumption intensity and a 43% reduction in energy consumption intensity per square metre (sqm), exceeding its 2030 Sustainability Master Plan target by 7 and 8 percentage points respectively.
- Achieved a 54% reduction in carbon emissions intensity.
- Achieved green building certifications for 48% of CLI’s global portfolio by sqm.
- CLI and its real estate investment trusts and business trusts have raised close to S$7 billion cumulatively through sustainable financing.
- Set a shadow internal carbon price since 3Q 2021 to gauge the environmental costs of each investment’s greenhouse gas emissions and take appropriate mitigation measures accordingly.
- Maintained a diverse global workforce comprising 85 nationalities and 40% of senior management being women.
- Achieved over 410,000 total training hours and ranked as the top employer in the real estate sector in the Randstad Employer Brand Research Award 2021 – Singapore.
- Garnered commitment from 100% of CLI’s contractors and vendors to abide by CapitaLand’s Supply Chain Code of Conduct to meet stringent environmental, health and safety requirements.
In 2021, CLI increased its use of renewable energy to about 4.3% (47,800 MWh) of its total electricity consumption. This helped to mitigate about 28,960 tonnes of carbon emissions, equivalent to electricity use in 10,608 households annually. This was attributed to 21 properties in Singapore, China, Australia, Belgium, India, United Kingdom and seven business parks in India that were fully or partially powered by renewable energy via on-site renewable energy systems or the purchase of full green power or partial green power. CLI aims to increase its total electricity consumption from renewable energy sources to 35% by 2030.
CapitaLand recognised for its leadership in sustainability globally
CapitaLand’s leadership and efforts in sustainability continue to be recognised by the industry as well as prestigious international indices and benchmarks such as the ‘Global 100 Most Sustainable Corporations in the World Index’ and ‘Dow Jones Sustainability World Index’ for 10 years, and ‘Global Real Estate Sustainability Benchmark’ for four years.
CapitaLand was recognised for its comprehensive sustainability strategies and outcomes guided by its 2030 Sustainability Master Plan. This includes its industry-first and innovative initiatives such as CSXC, the first global sustainability-focused innovation challenge for the built environment sector by a Singapore-headquartered real estate company. Six selected innovations from the inaugural CSXC are being piloted at CapitaLand’s properties in Singapore and the United States. These promising innovations can be further scaled to boost CapitaLand’s efforts to meet its 2030 Sustainability Master Plan targets and make an impact on the wider built environment. The second CSXC 2022 is currently underway and has received over 340 submissions from more than 50 countries.
CapitaLand has also set up a S$50 million innovation fund and the Smart Urban Co-Innovation Lab to foster more industry collaborations, engaging over 700 companies to catalyse more urban solutions.