Materiality
CLAS identifies and prioritises material ESG factors that are most relevant and significant to CLAS and its stakeholders. We adopt a double materiality approach, considering issues which are material from either the impact perspective or financial perspective, or both.
Potentially material ESG issues arising from activities across CLAS' value chain (including potential risks and opportunities in the immediate and longer-term) are primarily identified via ongoing engagement with its stakeholders and reviews of sources including investor questionnaires, as well as ESG surveys, global sustainability benchmarks such as S&P Global's Corporate Sustainability Assessment, GRESB and standards such as SASB.
CLAS has a regular review, assessment and feedback process in relation to ESG topics. Identified material issues are reported in its corporate risk register through the annual group-wide Risk and Control Self-Assessment exercise, which identifies, assesses and documents material risks and the corresponding internal controls to manage those risks.
Identified material ESG issues are then prioritised based on the likelihood and potential impact of issues affecting the business continuity of CLAS. For external stakeholders, priority is given to issues important to the community and applicable to CLAS. For FY 2024, the material ESG topics were approved by CLI's Executive and Sustainability Committee and endorsed by CLAS' Boards.
Prioritisation of Material ESG Issues
Prioritisation of Material ESG Issues
Critical
Environmental
- Climate change and carbon emissions reduction
- Energy Efficiency
- Water Management
Social
- Occupational health and safety
- Human capital
- Stakeholder engagementi
- Products and servicesii
- Supply chain management
- Diversity (Boards and staff)
Governance
- Risk managementiii
- Business ethics
Moderate and Emerging
Environmental
- Waste management
- Biodiversity
Social
- Human rightsiv
- This includes green leases and tenant engagement on ESG matters.
- This includes products and services promoting customer health and safety, and green certified buildings.
- This includes consideration of compliance, economic performance and cybersecurity.
- This relates to CLAS' zero tolerance stance towards child/forced labour.
Sustainability Master Plan (SMP) Targets
BUILD
Portfolio Resilience & Resource Efficiency
Low Carbon Transition
- Achieve Net Zero emissions by 2050 for Scope 1 and 2 greenhouse gas (GHG) emissions
- Reduce
Absolute Scope 1 and 2 GHG Emissions by
46%1
Carbon emissions intensity by
72%1
Energy consumption intensity by
15%1
- Achieve 45% of total electricity consumption from renewable sources
- Work towards setting new Scope 3 carbon emissions reduction target
Water Conservation and Resilience
-
Reduce water consumption intensity in our day-to-day operations by
15%1
Waste Management and Circular Economy
Reduce waste intensity in our day-to-day operations by
20%1
Achieve
25%
Recycling rate in our day-to-day operations
Note 1: Using 2019 as a base year
ENABLE
Thriving & Future-Adaptive Communities
Social Impact
- Contribute to communities' social well-being through outreach initiatives by staff and CapitaLand Group's philanthropic arm, CapitaLand Hope Foundation (CHF)
Human Capital Development
≥40%
Female representation in senior management
≥80%
Staff engagement score2
≥80%
Staff to attend one ESG training
Health and Wellness
- Foster a safety culture with zero fatality, permanent disability and major injury
- Incorporate social integration design features in properties
- Implement wellness related initiatives and certifications for physical assets
Customer and Supplier Partnerships
- Green leases for new and renewal of leases; work with tenants to improve their sustainability performance
- Achieve high level of customer satisfaction
- Contractors and vendors to abide by CapitaLand's Supply Chain Code of Conduct
- Zero tolerance to child labour/forced labour
Note 2: Staff engagement with at least 85% participation
STEWARD
Responsible Business Conduct and Governance
Environmental
- Ensure sustainability targets are integrated into CLI Performance Share Plan & Balanced Scorecard framework to determine executive remuneration and KPIs
- At least 85% staff to attend one compliance related training
Social
- ESG reporting aligned and externally assured to international standards
Governance
- Identify, assess and manage sustainability risks and opportunities
- Ensure sustainability risks and opportunities are managed in line with overall risk appetite and strategy
