CapitaLand Investment further increases focus on reducing Scope 3 carbon emissions as part of decarbonisation journey

CLI continues to intensify efforts to reduce Scope 1 and 2 emissions through on-the-ground actions and innovation

CLI Global Sustainability Report 2023

CapitaLand Investment Limited (CLI) has included three new Scope 3 categories deemed material to its business – Purchased Goods and Activities, Fuel and Energy Related Activities and Upstream Transport and Distribution – and has expanded the scope of the Capital Goods category to include in response to the latest developments. assessing the full inventory of Scope 3 emissions, emissions hotspots and key decarbonization levers across the value chain, as outlined in the 15th Global Sustainability Report. CLI also strengthened its reporting in existing categories, such as tenant consumption, enabling improved initiatives with tenants and the supply chains. The broader scope reaffirms CLI’s commitment to action on its sustainability goals and targeted implementation progress, mapped out by its 2030 Sustainability Master Plan (SMP).

(1) CLI owned real estate as of December 31, 2022. CapitaLand’s consistent recognition by international indices such as GRESB reinforces CapitaLand’s position as a global leader in real estate sustainability. Sustainability is at the heart of everything we do at CLI and we will continue to grow our business responsibly as we strengthen CLI as one of the leading publicly traded real estate investment managers worldwide.

Mr. Vinamra Srivastava, Chief Sustainability & Sustainable Investments Officer of CLI, said:

“Sharpening our focus on Scope 3 emissions is critical as they account for the majority of CLI’s total greenhouse gas emissions. With tenant emissions being the largest contributor to Scope 3, we are pleased to have increased green leases with tenants in China and Singapore from 43% a year ago to 57% by the end of December 2023, and we will continue to do so globally. We are stepping up collaboration with tenants and working to strengthen our supply chain management through several initiatives, such as piloting sustainable construction innovations crowdsourced from our global CapitaLand Sustainability , social and governance (ESG)-related capacity building programs for selected critical suppliers in an ESG due diligence check conducted by us. In 2023, these supply chain suppliers achieved an improved ESG score after completing the program. Our continued focus on sustainability through on-the-ground actions and reporting delivers on our vision to be the preferred global real estate manager creating sustainable positive impact.”

CapitaLand’s consistent recognition by international indices such as GRESB strengthens CapitaLand’s position as a global leader in sustainability in real estate. Sustainability is at the heart of everything we do at CLI and we will continue to grow our business responsibly as we strengthen CLI as one of the leading publicly traded real estate investment managers worldwide.

Intensified efforts to reduce Scope 1 and 2 emissions

In addition to expanding Scope 3 emissions disclosures, the report highlights the progress it has made in reducing Scope 1 and 2 emissions intensity and managing climate-related risks as it pursues its Net Zero targets . It expanded its deployment of renewable energy by commissioning its first 21-megawatt captive solar power plant in Tamil Nadu, India, to power its assets there. The expanded use of green energy to 44 properties in Singapore, China, India, Australia, Belgium, Germany, India, Japan, Indonesia and the United Kingdom, as well as ten business parks in India, also reduced a total of 41,000 tonnes of CO2 emissions. emissions, which corresponds to the annual emissions of more than 8,900 petrol cars. CLI will continue to scale up its sustainable sourcing efforts, further advance the transition to clean energy sources and reduce the environmental footprint of its assets.

Through asset enhancement initiatives (AEIs), CLI has achieved a 13.4% reduction in energy intensity compared to 2019, despite a growing portfolio. With 60% of buildings in its global portfolio achieving a green rating by 2023, CLI aims to achieve 100% certification by 2030. Additionally, 46% of CLI properties were certified as LEED Gold and higher or equivalent.

Earlier this year, CLI also published its first Climate Resilience Report, based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The report includes a climate scenario analysis of 480 properties across 20 countries and different asset classes, highlighting CLI’s recognition and transparency of the urgency of climate action.

Innovation as a key lever in decarbonizing the economy

In 2023, CLI worked with tenants for the first time to test innovations from its CSXC in their properties. CSXC has seen more pilots focused on reducing energy and water use. Ten innovations shortlisted for CSXC 2023 are being tested in four countries, bringing the total to 30 innovations in seven countries since 2021. Initiatives such as the CSXC and the CapitaLand Innovation Fund (CIF) demonstrate how innovation and sustainability partnerships play a key role in CLI’s decarbonization journey.

Leadership in fund management and sustainable finance

While CLI focuses on global real asset management, it strives to integrate ESG considerations into every stage of the fund management lifecycle. Guided by the 2030 SMP, CLI develops bespoke ESG strategies that ensure funds meet the highest standards of responsible investing – from fund product development to capital raising, investments, asset management and exits. CLI conducts a comprehensive Environmental, Health and Safety (EHS) Impact Assessment for each new investment to ensure sufficient capital expenditure is allocated to the identified asset to achieve the desired ESG outcomes.

CLI aims to be a leader in sustainable finance, which is made possible through valued strategic partnerships with financial partners. In 2023, CLI and its listed real estate investment trusts (REITs) and corporate trusts secured S$4.5 billion in sustainable financing, bringing the total since 2018 to S$16.1 billion. Interest savings from sustainability-linked loans were channeled back into investments in decarbonising the economy.

CLI’s efforts to reduce carbon emissions are recognized by leading global indices

Through strategic initiatives aimed at reducing the carbon footprint of all its operations, implementing innovative solutions and embracing renewable energy sources, CLI has significantly mitigated its environmental impact while improving operational efficiency. These proactive measures, in addition to the efforts made to publish robust reports detailing actions and findings, have earned CapitaLand recognition for the twelfth year in prestigious global sustainability indices such as the Dow Jones Sustainability World Index and a five-star rating from GRESB Real Estate Assessment for eight years. Such inclusion underlines CLI’s commitment to environmental stewardship and strengthens its position as a leader in the sustainable property management industry.

Release ID: 89131948

Should there be any errors, concerns or inconsistencies arising from the contents of this press release that require attention or if any press release should be removed, please contact us immediately at [email protected] (it is important to note Please note that this email is the authorized channel for such matters; sending multiple emails to multiple addresses will not necessarily expedite your request). Our efficient team will be at your disposal within 8 hours for timely assistance, taking necessary action to resolve identified issues or provide guidance in the removal process. We prioritize providing accurate and reliable information.