27
Dear Stakeholders, At CCT, our pursuit for excellence is underpinned by our commitment to sustainable business objectives and practices. For the second consecutive year, we are pleased to present the highlights of our continuous efforts in this sustainability report, in accordance with the principles set out by the Global Reporting Initiative G3.1 reporting framework. Benchmarking our business and operations to international best practices in the industry, we integrate sustainable practices into our areas of focus relating to corporate governance, risk management, environment stewardship, workplace health and safety, people and the community, and products and services. As wholly-owned subsidiaries of CapitaLand, both we (the Manager) and the property managers of CCT are also aligned with CapitaLand’s core values and commitment to sustainability. In upholding corporate governance, we continue to maintain a high ratio of independent directors on the Manager’s Board of Directors. Since 2013, about half of our Board members, including the Chairman, have been independent. In line with our green philosophy, all our eligible properties have achieved Green Mark certification from the Building and Construction Authority (BCA), with numerous attaining the top accolades of Green Mark Platinum and Gold. The newest property in our portfolio that achieved temporary occupation permit on 18 December 2014, CapitaGreen, is our first development project. Designed for a sustainable future, this Grade A, BCA Green Mark Platinum building incorporates energy-saving technologies and modern features that raise engineering efficiency. CapitaGreen was also conferred the BCA Universal Design Mark Gold PLUS (Design) to recognise the building’s barrier-free and user-friendly features that have been designed for people of all ages and abilities. Additionally, we continually introduce energy-efficient improvements when we embark on asset enhancement initiatives at our existing properties. Adopting a customer-centric approach, we are committed to service excellence. During the year, we gathered feedback for improvements via individual interviews with our tenants to develop a holistic customer experience. Staying ahead of potential emergencies such as severe haze or Ebola outbreak, we also implemented precautionary measures including test drills to safeguard our tenants and enhance our preparedness. We actively engage our tenants throughout the year via events such as our bi-annual “Healthy Treats”, annual “CCT Eco Race” and the Christmas charity drive, “Gifts of Joy”. This year, CCT Eco Race, which promotes eco-friendly practices among our tenants, was organised in partnership with BCA, and renowned premium car maker, BMW Asia, for its newly launched electric vehicles. We also collaborated with LASALLE College of the Arts to collect recycled bottles from our tenants for festive decorations at one of CCT’s properties, Wilkie Edge. Furthering our green message, we rolled out a mobile exhibition that was publicly displayed on rotation at all our properties. The exhibition showcased CCT’s green efforts and promoted better green awareness and conduct among our tenants. We continue to actively support local and global causes with a green theme, from similar programmes organised by CapitaLand to the World Wide Fund for Nature’s (WWF) Earth Hour. Overall, our efforts in driving sustainability have contributed to CCT’s growth. Since CCT’s listing in May 2004, it has grown its total deposited properties and market capitalisation from S$2.0 billion and S$1.1 billion respectively, to S$7.6 billion and S$5.2 billion respectively as at 31 December 2014. In particular, we achieved a distributable income of S$249.2 million and a DPU of 8.46 cents in financial year 2014, bettering the previous year’s performance by 6.4% and 3.9% respectively. Indeed, our green efforts are instrumental in shaping our sustainable practices and set a strong foundation for a green mindset. As we forge ahead into the second decade of growth, we are looking forward to further strengthening our sustainability efforts and engagement with our stakeholders to influence greater participation in green actions. Lynette Leong Chin Yee Chief Executive Officer Sustainability Report 52 | CapitaCommercial Trust Annual Report 2014

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Page 1: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

Dear Stakeholders,

At CCT, our pursuit for excellence is underpinned by our commitment to sustainable businessobjectives and practices. For the second consecutive year, we are pleased to present the highlightsof our continuous efforts in this sustainability report, in accordance with the principles set out by theGlobal Reporting Initiative G3.1 reporting framework.

Benchmarking our business and operations to international best practices in the industry, weintegrate sustainable practices into our areas of focus relating to corporate governance, riskmanagement, environment stewardship, workplace health and safety, people and the community,and products and services. As wholly-owned subsidiaries of CapitaLand, both we (the Manager) andthe property managers of CCT are also aligned with CapitaLand’s core values and commitment tosustainability.

In upholding corporate governance, we continue to maintain a high ratio of independent directors onthe Manager’s Board of Directors. Since 2013, about half of our Board members, including theChairman, have been independent.

In line with our green philosophy, all our eligible properties have achieved Green Mark certificationfrom the Building and Construction Authority (BCA), with numerous attaining the top accolades ofGreen Mark Platinum and Gold. The newest property in our portfolio that achieved temporaryoccupation permit on 18 December 2014, CapitaGreen, is our first development project. Designedfor a sustainable future, this Grade A, BCA Green Mark Platinum building incorporates energy-savingtechnologies and modern features that raise engineering efficiency. CapitaGreen was also conferredthe BCA Universal Design Mark GoldPLUS (Design) to recognise the building’s barrier-free anduser-friendly features that have been designed for people of all ages and abilities. Additionally, wecontinually introduce energy-efficient improvements when we embark on asset enhancementinitiatives at our existing properties.

Adopting a customer-centric approach, we are committed to service excellence. During the year, wegathered feedback for improvements via individual interviews with our tenants to develop a holisticcustomer experience. Staying ahead of potential emergencies such as severe haze or Ebolaoutbreak, we also implemented precautionary measures including test drills to safeguard our tenantsand enhance our preparedness.

We actively engage our tenants throughout the year via events such as our bi-annual “HealthyTreats”, annual “CCT Eco Race” and the Christmas charity drive, “Gifts of Joy”. This year, CCT EcoRace, which promotes eco-friendly practices among our tenants, was organised in partnership withBCA, and renowned premium car maker, BMW Asia, for its newly launched electric vehicles. We alsocollaborated with LASALLE College of the Arts to collect recycled bottles from our tenants for festivedecorations at one of CCT’s properties, Wilkie Edge.

Furthering our green message, we rolled out a mobile exhibition that was publicly displayed onrotation at all our properties. The exhibition showcased CCT’s green efforts and promoted bettergreen awareness and conduct among our tenants. We continue to actively support local and globalcauses with a green theme, from similar programmes organised by CapitaLand to the World WideFund for Nature’s (WWF) Earth Hour.

Overall, our efforts in driving sustainability have contributed to CCT’s growth. Since CCT’s listing inMay 2004, it has grown its total deposited properties and market capitalisation from S$2.0 billion andS$1.1 billion respectively, to S$7.6 billion and S$5.2 billion respectively as at 31 December 2014. Inparticular, we achieved a distributable income of S$249.2 million and a DPU of 8.46 cents in financialyear 2014, bettering the previous year’s performance by 6.4% and 3.9% respectively.

Indeed, our green efforts are instrumental in shaping our sustainable practices and set a strongfoundation for a green mindset. As we forge ahead into the second decade of growth, we are lookingforward to further strengthening our sustainability efforts and engagement with our stakeholders toinfluence greater participation in green actions.

Lynette Leong Chin Yee

Chief Executive Officer

Sustainability Report

52 | CapitaCommercial Trust Annual Report 2014

Page 2: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

INTRODUCTION

Corporate Profile

Listed on SGX-ST, CapitaCommercial Trust is Singapore’s premier commercial REIT and it is the

largest by market capitalisation as at 31 December 2014. We aim to own and invest in quality

income-producing properties and real estate-related assets in the commercial space.

About This Report

This report contains a full year’s data from 1 January to 31 December 2014 and covers CCT’s

properties and joint venture projects in Singapore, unless otherwise indicated. It is developed in line

with the Global Reporting Initiatives (GRI) G3.1 Guidelines. The GRI Index defines the reporting

elements and indicators that provide a comprehensive and balanced review of the Trust’s

sustainability disclosures. The framework driven report, first developed as part of our 2013 Annual

Report, is produced annually as part of the Trust’s annual report which can be downloaded from

www.cct.com.sg.

In an effort to enhance our policies, systems and results, we encourage our stakeholders to send

comments and suggestions concerning our sustainability disclosures to [email protected].

Sustainability Commitment

CCT is managed by the Manager and Property Managers. As wholly-owned subsidiaries of

CapitaLand, the Manager and Property Managers adopted the ethics and code of business conduct

upheld by CapitaLand that stem from its credo of “Building People. Building Communities.” The

sustainability policies guide decision making with regard to business strategies and the daily

operations of its commercial properties, and are aimed at raising the economic, environmental and

social well-being of its stakeholders.

Top Management Support and Staff Involvement

The CapitaLand Group spearheads initiatives in the areas of environment, social and governance,

helmed by CapitaLand’s Sustainability Management framework that comprises its Executive

Management Committee (EMC) which is led by the President & Group CEO with CEOs from the

various Strategic Business Units (SBUs). The latter are appointed as SBU Environmental, Health and

Safety (EHS) Champions responsible for the EHS performance within the business units.

The EMC receives support from CapitaLand’s Sustainability Steering Committee which oversees the

Environment Sustainability and Social Sustainability work teams. The work teams are made up of

representatives from the business units and are responsible for driving initiatives with support from

various departments.

CapitaLand’s Core Values

Respect

We believe in mutual trust and respect at all levels. This is fundamental to a high-performance culture

that embraces diversity and teamwork as One CapitaLand.

Integrity

We embrace the highest standards of integrity. We have the courage to do what is right, and earn the

trust of all our stakeholders.

Creativity

We constantly innovate to enhance value and stay ahead.

Excellence

We pursue excellence and persevere in everything we do.

Scaling New Heights | 53

Page 3: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

Stakeholder Engagement

Stakeholder Objectives

Stakeholder

Needs/Interest

Selected Examples of

our Response

Employees Employer of choice 1. Regular engagement

2. Learning and

development

3. Fair and competitive

human resource

policies

4. Equitable system of

recognition and

rewards

5. Safe and healthy

working environment

1. Quarterly

communication

session by senior

management

2. Biennial Employee

Engagement Survey

(EES)

3. Focus on

occupational health

and safety

Investors Choice investment Long-term sustainable

distribution and total

returns

1. Proactive portfolio

and assets

management

2. Prudent capital

management

3. Committed to

corporate

governance

4. Disciplined approach

to acquisition

5. Identification and

mitigation of

environmental, health

and safety risks

Customers Landlord of choice 1. Reliable landlord

2. Quality and well-

maintained office

space

3. Safe working

environment

4. Positive customer

experience

1. Efficient design for

office space

2. Green Mark certified

buildings

3. Seven CCT buildings

conferred Fire

Excellence/Safety

awards from the

National Fire and

Civil Emergency

Preparedness

Council

4. Biennial customer

satisfaction survey

5. Tenants’ engagement

activities

6. Regular meet up

sessions with major

tenants

7. Quarterly newsletter,

your CapitaLetter

Sustainability Report

54 | CapitaCommercial Trust Annual Report 2014

Page 4: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

Stakeholder Objectives

Stakeholder

Needs/Interest

Selected Examples of

our Response

Supply chain –

suppliers,

vendors,

contractors

1. A fair and

reasonable

employer of

goods and

services

2. Acquire

knowledge of

best industry

practices

1. Fair and reasonable

treatment

2. Recognition for

exceeding standards

in CCT properties

and projects

1. Customer feedback

system

2. Set up Standard

Operating

Procedures (SOPs)

for compliance

3. Work hand-in-hand

to handle

challenging

situations

4. Term contractor/

vendor evaluation

system

Business

Partners

Build joint ventures

to benefit from best

practices and expert

knowledge

1. Fair and reasonable

actions and dealings

2. Win-win partnerships

1. Regular meetings

2. Invited to corporate

and milestone events

Community Contribute to the

community we

operate in

Environmentally and

socially responsible

organisation

1. Customers and

employees

participation in

engagement events

2. Promote awareness

of environmental

sustainability through

the annual Eco Race

3. Introduce a charity

focus through the

annual Eco Race

4. Collect “Gifts of Joy”

for underprivileged

children during

Christmas

Scaling New Heights | 55

Page 5: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

Focus Areas of Sustainability and the Assessment and Feedback Process

Governance Environment Social

Product

Responsibility

Annual general

meeting for

Unitholders

Conducted Enterprise

Risk Management

annually

Conducted internal

audit

Participation in

Investor Relations

Professionals

Association (IRPAS)

CapitaLand’s Green

Buildings Guidelines:

– Environmental

Impact & Universal

Design Assessments

(EIA & UDA)

– Building Information

Modelling (BIM)

Environmental

Tracking System

Continual pursuit to

upgrade Green Mark

certification for

properties

Trained employees to

be Green Mark facility

managers

ISO 14001 certified

Environmental

Management System

(EMS)

People

Quarterly

communication with

staff

Externally conducted

biennial Employee

Engagement Survey

OHSAS 18001

Certified

Occupational Health

& Safety (OHS)

Management System

Community

Annual CCT Eco

Race to promote

“green” awareness

Facebook for Eco

Race participants

Second edition of

“Gifts of Joy”

collection for

underprivileged

children

Customer satisfaction

survey on buildings

and services

Singapore Service

Class

Financial Performance

The Trust achieved strong financial results in 2014, as detailed in CCT Annual Report 2014. Please

refer to Financial Highlights, pages 1 to 3; Financial Review, pages 86 to 88; and Financial

Statements, pages 114 to 177.

GOVERNANCE

CCT’s management executes its policies and processes governed by the highest standards of

corporate governance and transparency in accordance to the Principles of the Code of Corporate

Governance 2012. This adherence to high standards of corporate conduct remains in the interests

of our Unitholders and is pivotal to the Trust’s continued success. Further details on our corporate

governance performance in 2014 can be found on pages 28 to 46 of the Annual Report.

Enterprise Risk Management (ERM)

As part of good corporate governance and resource management, CCT operates a proactive and

comprehensive ERM framework that enables the identification, communication and management of

risks and exposures through integrated, systematic and consistent methods. Decision-making and

business processes undergo prudent risk assessment as instituted by the Manager, thereby

enhancing risk awareness.

Sustainability Report

56 | CapitaCommercial Trust Annual Report 2014

Page 6: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

Sustainability risks identified by the Trust include fraud and corruption risks, human capital risks and

property management risks. For further details on ERM, please refer to pages 47 to 49 of the Annual

Report.

ENVIRONMENT

Committed to environmental sustainability, CCT implements energy efficient practices, resource

conservation, waste management and innovative technologies in its buildings, thereby creating value

for stakeholders while enhancing its green footprint.

At CCT, it is the responsibility of each employee to lower the environmental footprint and report

environmental issues such as complaints and non-compliances. Employees are enabled in their

sustainability efforts by the CapitaLand Sustainability Structure, while the ISO 14001 certified EMS

ensures accountability.

Environmental Issues

The Sustainability Steering Committee manages the key environmental issues that affect business

strategy and operations. The Property Managers and Manager of CCT proactively seek to raise

operational efficiency by conserving resources, lowering greenhouse gas emissions and reducing

waste. The Trust adheres to CapitaLand’s Green Buildings Guidelines which safeguards

environmental factors throughout the stages of a property’s life cycle, whether it is undergoing

development or asset enhancement.

In 2014, the environmental protection expenditure for operational properties due to ISO 14001 and

OHSAS 18001 certification was maintained at about S$8,000. This is similar to 2013 as the

certification is an annual exercise. For property under construction, CapitaGreen’s consultancy fee

of S$0.5 million for Green Mark certification has been incurred progressively since 2011 and is

expected to be fully expensed in 2015.

Key

Environmental

Issues Targets Performance for 2014

Operational

Efficiency

• Using 2008 as the base

year to reduce energy and

water usage psm by 15%

by 2015 and 20% by 2020.

• Achieved 17.7% and 18.8%

reduction in energy and water

usage psm respectively.

Resource

Consumption

Management

• All new development

projects to meet Green

Mark Platinum certification.

• Achieved Green Mark Platinum

for CapitaGreen.

• To achieve Green Mark

certification for all CCT

properties.

• Achieved Green Mark GoldPLUS

and above certification for 67%

of CCT properties. Achieved

Green Mark certification for all

CCT properties except for Bugis

Village (No appropriate criteria

under current Green Mark

categories).

Scaling New Heights | 57

Page 7: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

Key

Environmental

Issues Targets Performance for 2014

Stakeholder

Engagement

• Organise outreach activities

to promote and engage

stakeholders in

sustainability efforts.

• Organised third Eco Race to

advocate carbon monitoring and

offsetting to participating

tenants.

• Participated in i Light Marina

Bay and WWF’s Earth Hour 2014.

Supply Chain

Management

• Appoint contractors and

service providers who

comply with local

government and other legal

requirements.

• Appoint ISO 14001 and

OHSAS 18001 certified main

contractors or OHS legal

compliance on site.

• Give preference to OHSAS

18001 certified vendors/

suppliers; non-OHSAS

18001 certified vendors/

suppliers encouraged to

achieve certification of

BizSAFE Level 3 and above.

• For CapitaGreen, the main

contractor is both ISO 14001

and OHSAS 18001 certified.

• Non-certified OHSAS 18001

certified vendors/suppliers

engaged by CCT are minimally

BizSAFE Level 3 and above.

Energy Consumption

CCT has set a target to reduce its energy usage per square metre for its portfolio by 15% by 2015

from baseline year 2008, and to achieve a 20% reduction by 2020. The Trust employs an

Environmental Tracking System to monitor the electricity consumption for operational properties,

which was 38,827,998 kilowatt hour (kWh) for 2014. We achieved savings of 17.7% psm across our

portfolio, exceeding the target of 15% by 2015.

For property under construction, CapitaGreen’s direct energy consumption through diesel usage for

2014 was 520,674 litres, while indirect energy consumption through electricity usage measured

878,640 kWh. The development’s increases in electricity consumption from 2013 correspond with

heightened construction activity at the site as the project nears completion. CapitaGreen obtained its

TOP on 18 December 2014.

Energy Efficiency

CCT tracks and reduces energy consumption across its properties through energy efficiency

measures and controls. To conserve energy and raise efficiency, existing chillers and cooling tower

fans were upgraded with variable speed drives or optimised while chilled water and condenser water

pumps were upgraded. Other efforts include the introduction of auto tube cleaning system for chillers

and energy efficient light fittings for car parks.

Sustainability Report

58 | CapitaCommercial Trust Annual Report 2014

Page 8: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

During the year, CCT supported i Light Marina Bay 2014, Asia’s biennial sustainable light art festival

that encourages buildings in the vicinity to conserve energy during the festival. Twenty Anson, One

George Street and Wilkie Edge participated in the event which ran from 7 to 30 March. The Trust also

supported Earth Hour 2014 on 29 March with 10 properties joining the effort. Although it was under

construction at the time, CapitaGreen also observed Earth Hour by turning off all non-essential lights.

Annual Electricity Saving1

(psm)

TARGET (Using 2008 as the base year)

15% BY 2015

4.7%

8.9%

11.8%

14.8%17.7%

2010 2011 2012 2013 2014

Annual Electricity Consumption y-o-y

(’000 kWh)

40,837 40,178 38,828

51 580879

2012 2013 2014

Operational properties

2012 cumulative GFA: 3.9 million sqm

2013 cumulative GFA: 4.0 million sqm

2014 cumulative GFA: 4.0 million sqm

Property under construction

1 Raffles City Tower’s data is included from 2012 onwards.

Scaling New Heights | 59

Page 9: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

CapitaGreen: New Milestones in Construction, Sustainability and Design

CapitaGreen marked its completion with the receipt of its TOP on 18 December 2014. The

development was accelerated by innovative construction solutions that reduced construction

time to 36 months instead of the usual 40 months. These included the use of larger piles in the

foundation and a top-down construction method that allowed the three-storey basement car

park and the 40-storey super structure to be built concurrently. In addition, the building is the

first in Singapore to use Supercrete, an ultra high-strength concrete, which saved both energy

and manpower.

The iconic 40-storey Grade A office development represents a new achievement in CCT’s focus

on sustainable buildings, with a range of modern eco-friendly features – from energy-efficient

glass on the facade to efficient chillers and rainwater harvesting systems.

At the same time, the building incorporates a universal design that ensures ease of access and

way–finding for customers. In addition to an advanced lift system, art installations as visual cues

for better navigation as well as family-friendly and handicapped-friendly features facilitate

mobility and efficiency. CapitaGreen also features an underground pedestrian network that

enhances accessibility to the surrounding areas for tenants and the public regardless of

weather conditions.

For its achievements in sustainability and design, CapitaGreen was awarded BCA’s Green Mark

Platinum certification in 2012 and Universal Design Mark GoldPLUS (Design) in 2013.

Water Consumption

The majority of water consumed at CCT properties is distributed by PUB, Singapore’s national water

agency. CCT also uses recycled water in cooling towers and sprinklers systems in our operational

properties to lower water consumption. Total water consumption for operational properties and

property under construction in 2014 was 440,634 m3. Recycled water consumed by some of the

operational properties accounted for 148,755 m3 or about 40% of total water used in 2014.

We attained water consumption savings of 18.8% psm from our operational properties, with 2008 as

the base year. The main reason for the lower water consumption savings achieved in 2014 compared

to 2013 was the record-breaking dry spell that lasted from mid-January to mid-March 2014. More

water had to be purchased from PUB to maintain the daily activities in CCT’s properties during the

period. Nonetheless, the savings of 18.8% psm for operational properties has exceeded the target

of 15% by 2015.

Water Efficiency

Apart from the use of recycled water in the cooling towers and sprinkler systems in our properties,

we also installed rain water storage tanks at Six Battery Road, Wilkie Edge, Golden Shoe Car Park

and CapitaGreen, where rain water collected is used in irrigation, condenser tubes cleansing and

hi-jetting of car park decks and ramps, among others. In the recent AEI at Capital Tower, a water

sub-meter was installed at the cooling tower and linked to the building management system for leak

detection. These initiatives help ensure water efficiency as they control and monitor water

consumption.

Sustainability Report

60 | CapitaCommercial Trust Annual Report 2014

Page 10: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

Annual Water Saving1

(psm)

TARGET (Using 2008 as the base year)

15% BY 2015

7.8%

15.3%

24.7%

21.7%

18.8%

2010 2011 2012 2013 2014

Higher Total Water Consumption y-o-y

(’000 m3)

339 358 372

38

53

69

2012 2013 2014

Operational properties

2012 cumulative GFA: 3.9 million sqm

2013 cumulative GFA: 4.0 million sqm 2014 cumulative GFA: 4.0 million sqm

Property under construction

1 Raffles City Tower’s data is included from 2012 onwards.

Scaling New Heights | 61

Page 11: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

Stable Recycled Water Consumption y-o-y

(’000 m3)

130

150 149

2

3 2

2012 2013 2014

Operational properties

− Capital Tower, Six Battery Road,

One George Street and Raffles City Tower

Property under construction

Greenhouse Gas Emission

During the year, we reduced total greenhouse gas emissions by 3% psm, from 20,0891 tonnes in 2013

to approximately 19,414 tonnes in 2014. This was achieved by improving energy efficiency at the

operational properties, optimising the use of equipment as well as upgrading and replacing existing

equipment. In addition, we have introduced electric vehicle charging stations for electric vehicles in

Capital Tower, Six Battery Road, One George Street and CapitaGreen to encourage car owners to go

green and reduce resource depletion and air pollution. In addition, indirect emissions from air

transport of employees for business activities saw a decline to about 31,793 kg, translating to 40%

reduction from 2013.

Waste Management

Of the nine operational properties in the CCT portfolio, waste data is only collected for seven

properties as not all waste collectors are able to furnish the recycled waste collected as requested.

CCT engages licensed contractors such as SembWaste to conduct waste collection and disposal for

the seven properties. Non-recyclable waste amounted to about 2,555 tonnes in 2014 compared to

2,361 tonnes in 2013. Recyclable waste was higher at 61.0 tonnes in 2014 compared to 2013’s 45

tonnes and comprised paper (55.6 tonnes), metal (0.5 tonnes) and others (4.9 tonnes). The increases

are due to the addition of Six Battery Road and Wilkie Edge whose waste consumptions were not

tracked in 2013. Non-recyclable waste comprising food and construction materials generated by

CapitaGreen was 9,881 tonnes and the total amount of paper recycled was about 1.2 tonnes. The

increases were in line with the rise in manpower and construction activity on site. Stakeholders are

encouraged to reduce, reuse and recycle waste. Recycling bins are installed across the Trust’s

operational properties for such efforts.

Resource Consumption Management

Green-rated buildings are more resource efficient to construct, operate and maintain, thus making

their targets ideal benchmarks to gauge effective resource consumption management. Given that all

CCT properties reside within Singapore, the Trust adopts the Green Mark Certification administered

by the BCA as a standard.

1 Figure has been restated

Sustainability Report

62 | CapitaCommercial Trust Annual Report 2014

Page 12: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

CapitaLand is committed to ensuring its existing portfolio attain at least a Green Mark certification by

2020, in accordance with Singapore’s Green Building Master Plan. CCT is aligned with this

commitment. All our eligible properties have been awarded the minimum of a Green Mark

certification, and we aim to improve on this to achieve Green Mark GoldPLUS across our portfolio. To

date, nine of CCT’s properties have received a total of 10 awards, with 67% of our properties attaining

GoldPLUS and above.

Sustainability Standards

Green Mark Award

CapitaGreen (obtained TOP on 18 December 2014) Platinum

Six Battery Road Platinum

Twenty Anson Platinum

Capital Tower Platinum

Six Battery Road Tenant Service Centre GoldPLUS (Office Interior)

One George Street GoldPLUS

Raffles City Singapore Gold

Wilkie Edge Gold

Golden Shoe Car Park GoldPLUS

HSBC Building Certified

Other Awards

CapitaGreen (obtained TOP on 18 December 2014) UD Mark GoldPLUS (Design)

Stakeholder Engagement

CCT leverages diverse communication channels and programmes to engage its stakeholders and

drive key environmental messages.

In furthering the environmental cause, CCT formed a “Green” team to share CapitaLand’s green

efforts, discuss methods to create environmentally friendly-offices and recommend tips to encourage

eco-friendly behaviour. Aimed at raising awareness among tenants on sustainability and responsible

green conduct, a four-panel mobile exhibition showcasing CCT’s green buildings and examples of

green actions was put on display at the lobbies of the Trust’s properties.

Scaling New Heights | 63

Page 13: CCT AR 2014 · Environmental Management System (EMS) People Quarterly communication with staff Externally conducted biennial Employee Engagement Survey OHSAS 18001 Certified Occupational

A Multi-faceted Engagement Approach on Environmental Issues

CCT adopts an all-encompassing approach to connect with its tenants through a wide range of

activities. One major event is the annual CCT Eco Race – CCT’s flagship initiative that is

designed to heighten awareness on environmental issues and sustainable practices.

Recognising that tenants contribute to almost half of a building’s total energy consumption, the

Trust aims to encourage them to lower consumption so as to improve each building’s total

energy performance. In the race’s Facebook, suggestions of simple green actions that one can

easily do in the office were offered to tenants.

Our third annual Eco Race took place in 2014 with BCA supporting us as an event partner for

the second year. The CCT Eco Race attracted 300 participants comprising tenants, BCA staff

and CapitaLand employees. The event was highlighted in the Global Real Estate Sustainability

Report 2014 as an innovative example of tenant engagement in Asia. This report is issued by

GRESB, an industry-driven organisation committed to assessing the sustainability performance

of real-estate portfolios and are relied upon by institutional investors to improve the

sustainability performance of their investments.

CCT also takes a serious view of EHS threats and maintains high vigilance at all times. The

Property Manager instituted precautionary measures and Standard Operating Procedures

(SOPs) to safeguard staff and tenants against severe haze conditions. These included the

distribution of N95 masks to all CCT tenants in June 2014; the closure of sky gardens, outdoor

terraces and automatic doors when PSI levels exceed 150; the installation of additional filters in

the air handling units and other ventilation systems; and the placement of haze kits at each

building’s concierge, tenant service centre and fire command centre. Tenants were informed of

the precautionary measures via a circular.

Addressing the threat of the Ebola epidemic, CCT purchased recommended personal

protection equipment and adjusted existing SOPs to better manage the threat. The latter

includes screenings for visitors at the main entrances of all its buildings should the need arise.

Aimed at better preparing staff, test drills were carried out with the service providers at a few

CCT properties.

PEOPLE

The cornerstone of CCT’s success is its people. Although the Trust does not have employees, the

staff of the Manager and Property Managers form our headcount.

Human Capital

CCT has aligned its processes according to the principles of fair employment and equal

remuneration outlined by CapitaLand. CapitaLand has undertaken the Employers Pledge with the

Tripartite Alliance for Fair Employment Practices on behalf of the Group and adheres to five key

principles of fair employment:

• Recruit and select employees on the basis of merit, such as skills, experience and ability,

regardless of age, race, gender, religion or family status.

• Treat employees fairly and with respect and implement progressive human resource

management systems.

• Provide employees with equal opportunities for training and development based on their

strengths and needs to help them achieve their full potential.

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• Reward employees fairly based on their ability, performance, contribution and experience.

• Abide by labour laws and adopt Tripartite Guidelines which promote fair employment practices.

In 2014, there was no reported incidence of discrimination or human rights violation.

Workplace Diversity

CCT complies with CapitaLand’s policies on non-discriminatory employment practices. All job

opportunities are advertised in the public space via online job portals and newspapers in order to

attract the best talents. Selections are made solely on the basis of skill and abilities without regard

to age, gender, ethnicity or religion.

In 2014, permanent employees formed the majority of our workforce with less than 1% of staff working

on a part-time basis. By tracking manpower movement, we assessed that staff turnover for the year

was 11.7% compared to 10% in 2013. Every employee has to give minimum one month’s notice prior

to resigning. During the year, we retained 100% of male and female employees who went on parental

leave.

Work-life Balance

Our human resource (HR) policies are aimed at achieving a better work-life balance by allowing

employees flexibility in their work arrangements. Employees can opt for flexible hours, job sharing or

part-time work when it suits the job profile.

We also have a flexible benefits scheme which gives employees access to annual health screenings

and free flu vaccinations.

Learning & Development

Learning and development is an integral part of our organisational environment. Our CEO and

corporate Heads of Department meet on a monthly basis to identify and manage learning and

development, career planning and HR concerns.

About 3% of the 2014 payroll is allocated to the learning and development of employees, which

involved certified skills training programmes and personal development courses, as well as industry

seminars and conferences. Over the calendar year, 100%1 of employees joined in a minimum of one

learning event, with an average of 63.2 hours spent on training per employee. This is an improvement

of 32.2% compared to the average learning hours of 47.81 in 2013, reflecting our commitment

towards learning and development of employees. There is also a provision for full-time employees to

receive a maximum of 10 days of paid examination leave in a calendar year to sit for examinations

for sponsored or relevant training courses supported by the company.

In 2014, a group of employees under the Property Manager was selected to undergo a customised

training programme to enhance their communication skills in order to discharge their duties more

effectively.

1 Figures have been restated

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Trend of Average Learning Hours Per Employee – from 2010 to 2014

42.4

53.4 53.5

47.8

63.2

2010 2011 2012 20131

2014

Employee Mix by Gender

(%)

44% 44% 47%

56% 56% 53%

20121

20131

2014

Female Male

Employee Diversity by Age

(%)

About 59% of the employees are in the age groups of 30-49 years old

9% 7%

13%

24% 26%

22%

39% 37%37%

28% 30%

28%

2012 20131 2014

< 30 30 - 39 40 - 49 ≥ 50

1 Figures have been restated

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Employee Length of Service

(%)

More than 65% of the employees are working for more than 5 years with the company

9% 7%

12%

17% 16%

22%

47% 49%

39%

27% 28% 27%

2012 20131

2014

< 1 year 1 - <5 years 5 - <10 years ≥ 10 years

1

Rewarding Performance

To drive performance, CapitaLand’s total reward approach includes competitive compensation and

benefits, employee development and the creation of a positive work environment.

Our pay-for-performance policy supports a remuneration package that is benchmarked based on

total compensation. Employees participate in setting their performance goals for both team and

individual levels – an approach that clearly defines expectations of both performance and

compensation. All staff have access to regular performance feedback.

Legal Compliance

CCT complies with the provisions of the Singapore Government Central Provident Fund and

subscribes to the Flexible Benefits scheme. Under the latter, we provide a number of facilities

including personal accident insurance, group medical insurance, health screenings and free flu

vaccinations. CCT adheres to legislations concerning the welfare and rights of our employees.

Anti-Corruption Policy

The Manager and Property Managers exercise utmost integrity across the operations and in their

business conduct through a policy of strict financial discipline and zero tolerance for corruption,

while ensuring their functions and responsibilities are executed to the highest standards.

The Operation Compliance Unit (OCU) identifies and reviews common risks across the Group and

proposes improvements to business operations to circumvent bribery and corruption. The Manager’s

Operations Compliance Working Committee and Audit Committee receive quarterly reports on

business malpractice and investigates them, dealing stringently with offenders. Gaps in business

processes are also fixed.

Additionally, OCU conducts a Bribery and Corruption Risk Assessment involving all SBU

management across the Group to assess risks in business processes and execute strategies to

mitigate them.

1 Figures have been restated

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Our stringent anti-corruption policy is disseminated to staff and partners throughout the supply chain

via a comprehensive system. All service contracts and agreements with our suppliers and partners

contain mandatory anti-corruption clauses. All employees are given an email address to which they

can report any irregularities or business malpractice. Our policies and procedures on Business

Malpractice Incidents (BMIs) Reporting allow line and functional managers to report suspicious

behaviour directly to the CEO.

It is mandatory for every new hire to attend the CapitaLand Immersion Program (CIP) – a group-wide

programme organised by CapitaLand aimed at inculcating the core values and principles that direct

the Group’s operations. Anti-corruption policies and procedures is a compulsory module in the

programme that is conducted by the OCU. In 2014, 100% of all new employees of the Manager and

Property Managers attended the CIP. There were no cases of corruption reported during the year.

All employees have to attend the course, CapitaDNA: Strengthening Core Values, which is designed

to give them insights into the application of the core values in their respective work areas.

Staff Engagement

CCT values open communication. It exercises an open door policy that emphasises fair reviews and

efficient responses to employment concerns including workplace harassment, grievance handling

and whistleblowing.

Employees are able to highlight issues and share suggestions directly with HR or management via

a range of communication channels. The quarterly communication session is one such forum through

which SBU and CCT’s CEO and management team update employees on business results and

operational issues while addressing their work concerns.

Employees are updated on the Group’s recent developments through the quarterly e-newsletter,

“i-Connect”, while the CapitaLand intranet portal offers information on employment, benefits, ethics

and corporate governance. We ensure that employees receive adequate guidance, coaching and

counselling on career development and leadership. This is covered by the CapitaLand Counselling

and Advisory Panel (CAP) which consists of experienced leaders within the Group.

CapitaLand engages an independent consultancy firm to carry out a biennial Employee Engagement

Survey (EES) with the aim of assessing the commitment level and perception of the company among

staff. The last survey was conducted in 2012 and the next survey will be in 2015. Some of the

improvements arising from the findings of the previous surveys included regular feedback sessions

with management through various platforms, improving working conditions with flexible work

arrangements as well as career development opportunities through periodic reviews of job load and

job fit. Staff is selected to participate in focus groups to stretch their potential and develop other

competency levels.

Business Continuity

With the potential threats of natural disasters, epidemics, terrorism and information systems failure,

CCT has instituted a Business Continuity Plan (BCP) to mitigate risks of interruption and ensure rapid

recovery in the event of a crisis. Benchmarked to global and industry best practices, the BCP

facilitates the continued function of core business operations, limits financial and reputational

damage and shields our tenants from the negative effects of a disruption. The BCP adheres to

relevant laws and regulations.

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Occupational Health & Safety (OHS)

CapitaLand’s OHS Management System forms the foundation for CCT’s approach to workplace

safety, and is certified against the international OHSAS 18001 OHS Management System, with the

following commitments:

• Reduce occupational injury rates with the aim to achieve zero harm

• Meet or exceed OHS legal requirements

• Provide a robust OHS Management System

• Promote a culture of individual ownership and responsibility for OHS management

• Seek proactive support and participation from CapitaLand’s stakeholders including top

management, employees, contractors, suppliers and tenants

• Drive continuous improvement in OHS performance

To ensure quick response to an epidemic outbreak, CCT has in place a series of procedures as well

as an emergency response team on-call 24 by 7. The HR department regularly updates employees

with medical advice and travel alerts.

2014 saw an absentee rate of seven days compared to 6.2 days in 2013. There were three reported

incidents of work-related injuries in 2014 compared to none in 2013. The staff affected have since

resumed work and new SOPs and safety measures have been put in place to prevent recurrences.

COMMUNITY

CapitaLand believes that every business requires the community’s support for its continued success.

In contributing to community development. CapitaLand Hope Foundation (CHF) is established as a

philanthropic arm of CapitaLand, to take care of the needs of underprivileged children. CCT partners

CHF in corporate philanthropy and support our staff in participating in community development

initiatives as volunteers and collect funds through various activities. We embrace sustainable

business practices in our properties and continue to raise our stakeholders’ awareness of

sustainability through activities and communication channels.

Corporate Philanthropy

Donations

On 27 September 2014, CCT organised the CCT Eco Race to promote awareness of environmental

sustainability and raise funds for the underprivileged children of TOUCH Community Services. Some

300 participants from 30 organisations took part in the event which saw them race to complete eight

game stations around the Central Business District. The registration fee of S$10 per participant was

matched dollar for dollar by CHF and donated to the TOUCH Community Services to support the

education of its beneficiaries. The total amount donated from this initiative was S$5,930.00.

Employee Volunteerism

More than monetary donations, CHF encourages CapitaLand employees to participate in initiatives

that benefit the community. All staff are encouraged to volunteer for community service projects

through special schemes such as Volunteer Service Leave for up to three days, Volunteer No Pay

Leave and Volunteer Part-Time Work Arrangement. The latter two schemes allow employees longer

periods away from the office to join in CapitaLand’s 2014 community development projects.

In 2014, 25% of CCT employees spent 421 working hours volunteering in community development

projects – a improvement of 4% over the previous year and a testament to the strong spirit of altruism

within the Trust. Each volunteer who uses all three days of Volunteer Service Leave can select a

registered Singapore-based children’s charity to which CHF will donate S$500.00.

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CCT also partnered its tenants from five office buildings through the “Gifts of Joy” programme. The

charity drive saw the collection of 980 gifts which went to 480 children and youth beneficiaries of

Beyond Social Services. CapitaLand staff and CCT tenants formed a team of 120 volunteers who

spent two and a half days wrapping the items and distributing them to the homes of the beneficiaries.

This was the first year that tenants were invited to volunteer with us.

Tenant Engagement

We value our tenants as important business partners who contribute to our progress. With their

continued support, CCT is able to achieve its goals across the triple bottomline of people, planet and

profit.

Tenant Appreciation

In expressing our gratitude to our tenants for their support, we engaged the services of Jessie Lim,

a well-known local ceramic artist, to handcraft a unique range of fine porcelain bowls that each tenant

receives as a lease anniversary gift.

Treats are another avenue through which the Trust engages its tenants. The half-yearly engagement

saw tenants receive healthy treats such as bottles of Yakult in May and Nature Valley granola bars in

November. In celebration of CCT’s 10th anniversary, tenants across nine properties also received a

cable charger for mobile devices in May.

Going Green

CCT consistently involves tenants in its sustainability and environmental conservation efforts. The

third Eco Race organised in September 2014 drew participation from 30 tenant organisations. Then

during the Christmas season, the Trust rallied its tenants across six CCT properties to collect some

200 used plastic bottles. These were transformed into an aerial artwork named Anemone by students

from LASALLE College of the Arts and displayed at Wilkie Edge as the centerpiece of its festive

decorations.

The Trust is also a supporter of electric vehicles. In partnership with BMW Group Asia, it installed

electric vehicle public charging stations at five CCT properties, namely, Capital Tower, Six Battery

Road, One George Street, Raffles City Singapore and CapitaGreen. This move benefits CCT tenants

as well as the working community and visitors to the area.

PRODUCT RESPONSIBILITY

In the business of providing service and business space, CCT places keen emphasis on operational

excellence and product responsibility. To this end, we embark on AEIs to ensure premium work

environments. At the same time, we streamline processes and augment customer experience through

IT platforms. Our efforts provide easy access to our products and services, thereby driving

productivity and allowing our tenants to focus on their core businesses.

CCT adheres to CapitaLand’s OHS Management System to secure the health and safety impacts of

a building at the different stages of its life cycle.

Useful Enhancements

Works Promoting Efficiency and Security

AEIs are part of a business strategy through which CCT secures competitive edge and incorporates

innovative features such as security turnstiles, self-registration kiosks and Destination Control

System (DCS) for the lift system into its buildings. Both tenants and their guests benefit from the

enhanced arrival experience and improved building security. In addition, the DCS reduces waiting

and travelling time for lifts by efficiently distributing passengers to selected lifts based on the floors

they want to visit, resulting in fewer interval stops for every lift user. Such innovative features have

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been successfully implemented in the recent AEIs at Capital Tower and Twenty Anson. Moving

forward, innovation will be key consideration for CCT in new development projects as well as

enhancing the quality of existing properties. CapitaGreen is a beneficiary of some of these features

which were introduced at the design and development stage. Please refer to pages 60, 93 and 94 of

the Annual Report.

Online Car Park System

Implemented in 2013, the online car park system allows customers to make parking-related

transactions efficiently and conveniently. With the customers’ needs in mind, existing processes were

streamlined and simplified before the system was designed and developed. Currently, the system is

well-utilised by customers and new features to give customers more flexibility are being introduced.

In 2014, Capital Tower also came under the purview of this service. Moving forward, CapitaGreen’s

tenants are set to benefit from the system which, when it is put into service, will allow tenants the

choice of parking at CapitaGreen or Golden Shoe Car Park. It will also introduce Corporate Account

which features more self-help functions to facilitate the convenient planning and execution of tasks

by the tenant company administrator. The features of this system include:

• Additional payment mode by Bank Transfer

• Creation of multiple roles to facilitate communications/coordination within the tenant company

• Ability to apply and cancel multiple season parking space

• Viewing of payment history and retrieval of invoices

• Receipt of tax invoice via email upon successful payment

• Viewing and tracking of “entitled lots”

Customer Satisfaction

CCT relies on innovation to enhance customer experience and provide high quality office space that

caters to modern business needs. The Trust constantly reviews and introduces new initiatives to raise

customer experience, and values customer satisfaction as a key indicator of the quality of its portfolio

and services.

Focusing on Customer Centricity

Further strengthening its commitment towards delighting customers, the Trust saw the creation of a

Customer Experience Management team in 2014 – to focus on the overarching customer experience

framework and shaping of key experiences based on an understanding of customers’ needs and

expectations. Multiple projects to innovate and improve existing offerings and experiences were then

piloted by a Service Excellence taskforce. The members of the taskforce, from diverse functions and

backgrounds, come together to generate ideas and combine expertise to fulfill the customer-centric

objectives.

Building up Service Capabilities

With a better understanding of our customers’ expectations, an EQ Communications training

programme was designed and conducted in 2014 for a selected group of employees under the

Property Manager. With enhanced communication skills, they are more effective and better equipped

to meet and exceed our customers’ expectations.

Gathering Customer Insights

To understand our customers better, insights are gathered through different listening posts, including

surveys, one-on-one interviews, and customer research. These insights are used for shaping of

customer experiences, decision making, validating or innovating products and services, so as to

improve our performance and strengthen our position not only as a landlord of choice but also as the

preferred business partner.

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In 2014, we conducted one-on-one interviews with a select group of customers involving key

decision-makers. The interviews included questions on engagement, customer needs and service

level, among others. An annual survey was also conducted with customers at our properties to

monitor the quality of the amenities and facilities across our portfolio.

On a biennial basis, an in-depth customer survey is conducted to determine the various aspects of

our properties that generate customer loyalty and strategic improvement. The exercise also

measures the Trust’s performance in meeting customer expectations in service delivery while

assessing the competitive strengths and weaknesses of each factor so as to allocate resources

effectively. In 2013, we achieved an eQ Index of 75 out of a total score of 100 in accordance with

Nielsen’s Customer eQ model which is above the industry average of 73. The next survey will be

conducted in 2015.

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GRI INDEX

Indicator Description Cross Reference/Direct Answer

Strategy and Analysis

1.1 Statement from senior decision-maker CEO’s Message (pg 52)

1.2 Description of key impacts, risks and opportunities Governance (pg 28-46)

Enterprise Risk Management (pg 47-49)

Organisational Profile

2.1 Name of the organisation Corporate Profile (Inside front cover)

2.2 Primary brands, products, and/or services. Corporate Profile (Inside front cover)

2.3 Operational structure of the organisation, including

main divisions, operating companies, subsidiaries

and joint ventures.

Trust Structure (pg 5, 26)

Organisation Structure (pg 5)

2.4 Location of organisation’s headquarters. Corporate Information (Inside back

cover)

2.5 Number of countries where the organisation operates,

and names of countries with either major operations

or that are specifically relevant to the sustainability

issues covered in the report.

Corporate Profile (Inside front cover)

2.6 Nature of ownership and legal form. Corporate Profile (Inside front cover)

2.7 Markets served (including geographic breakdown,

sectors served, and types of

customers/beneficiaries).

Corporate Profile (Inside front cover)

2.8 Scale of the reporting organisation Corporate Profile (Inside front cover)

2.9 Significant changes during the reporting period

regarding size, structure, or ownership

Year in Brief 2014 (pg 27)

2.10 Awards received in the reporting period. Letter to Unitholders (pg 9)

Report Parameters

3.1 Reporting period About this Report (pg 53)

3.2 Date of most recent previous report (if any) CEO’s Message (pg 52)

About this Report (pg 53)

3.3 Reporting cycle (annual, biennial, etc.) About this Report (pg 53)

3.4 Contact point for questions regarding the report or its

contents.

About this Report (pg 53)

3.5 Process for defining report content. About this Report (pg 53)

3.6 Boundary of the report (e.g. countries, divisions,

subsidiaries, leased facilities, joint ventures,

suppliers).

About this Report (pg 53)

3.7 State any specific limitations on the scope or

boundary of the report

About this Report (pg 53)

3.8 Basis for reporting on joint ventures, subsidiaries,

leased facilities, outsourced operations, and other

entities that can significantly affect comparability

from period to period and/or between organisations.

About this Report (pg 53)

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Indicator Description Cross Reference/Direct Answer

3.9 Data measurement techniques and the bases of

calculations, including assumptions and techniques

underlying estimations applied to the compilation of

the Indicators and other information in the report.

Explain any decisions not to apply, or to substantially

diverge from, the GRI Indicator Protocols.

Environment (pg 57-62)

People (pg 64-69)

Product Responsibility (pg 70-72)

3.10 Explanation of the effect of any restatements of

information provided in earlier reports, and the

reasons for such re-statement

(e.g.mergers/acquisitions, change of base

years/periods, nature of business, measurement

methods).

Environment (pg 62)

People (pg 65-67)

3.11 Significant changes from previous reporting periods

in the scope, boundary, or measurement methods

applied in the report.

CEO’s Message (pg 52)

About this report (pg 53)

3.12 Table identifying the location of the Standard

Disclosures in the report.

GRI Index (pg 73-78)

3.13 Policy and current practice with regard to seeking

external assurance for the report.

None

Governance, Commitment and Engagement

4.1 Governance structure of the organisation, including

committees under the highest governance body

responsible for specific tasks, such as setting

strategy or organisational oversight.

Corporate Governance (pg 28-46)

Enterprise Risk Management (pg 47-49)

Investor Relations (pg 50-51)

4.2 Indicate whether the Chair of the highest governance

body is also an executive officer.

Board of Directors (pg 16,17-23)

Corporate Governance (pg 31-32)

4.3 For organisations that have a unitary board structure,

state the number and gender of members of the

highest governance body that are independent

and/or non-executive members.

Board of Directors (pg 16, 17-23)

Corporate Governance (pg 31-32)

4.4 Mechanisms for shareholders and employees to

provide recommendations or direction to the highest

governance body.

Sustainability Commitment (pg 53)

Stakeholders Engagement (pg 54-55)

Environment (pg 57-64)

People (pg 64-69)

Community (pg 69-70)

Product Responsibility (pg 70-72)

4.5 Linkage between compensation for members of the

highest governance body, senior managers, and

executives (including departure arrangements), and

the organisation’s performance (including social and

environmental performance).

Letter to Unitholders (pg 6-9)

Corporate Governance (pg 35-37)

Environment (57-64)

People (pg 64-69)

4.6 Processes in place for the highest governance body

to ensure conflicts of interest are avoided.

Corporate Governance (pg 28-46)

4.7 Process for determining the composition,

qualifications, and expertise of the members of the

highest governance body and its committees,

including any consideration of gender and other

indicators of diversity.

Board of Directors (pg 16, 17-23)

Corporate Governance (pg 31-34)

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Indicator Description Cross Reference/Direct Answer

4.8 Internally developed statements of mission or values,

codes of conduct, and principles relevant to

economic, environmental, and social performance

and the status of their implementation.

Corporate Profile (Inside front cover)

Sustainability Commitment (pg 53)

Environment (pg 57-64)

People (pg 64-69)

Community (69-70)

Product Responsibility (70-72)

4.9 Procedures of the highest governance body for

overseeing the organisation’s identification and

management of economic, environmental, and social

performance, including relevant risks and

opportunities, and adherence or compliance with

internationally agreed standards, codes of conduct,

and principles

Introduction (pg 53)

Corporate Governance (pg 36-38)

Enterprise Risk Management (pg 47-49)

Environment (pg 57)

People (pg 64-69)

Community (pg 69)

4.10 Processes for evaluating the highest governance

body’s own performance, particularly with respect to

economic, environmental, and social performance.

Corporate Governance (pg 33-34)

4.11 Explanation of whether and how the precautionary

approach or principle is addressed by the

organisation.

Corporate Governance (pg 36-40)

Enterprise Risk Management (pg 47-49)

Environment (pg 57, 64)

People (pg 64-69)

4.12 Externally developed economic, environmental, and

social charters, principles, or other initiatives to

which the organisation subscribes or endorses.

Stakeholder Engagement (pg 54-55)

Environment (pg 57-58)

People (pg 64-69)

4.13 Memberships in associations (such as industry

associations) and/or national/international advocacy

organisations in which the organisation: * Has

positions in governance bodies; * Participates in

projects or committees; * Provides substantive

funding beyond routine membership dues; or * Views

membership as strategic.

Represented by CapitaLand Limited in

various government agencies and non-

government organizations.

4.14 List of stakeholder groups engaged by the

organisation.

Stakeholder Engagement (pg 54-55)

4.15 Basis for identification and selection of stakeholders

with whom to engage.

Stakeholder Engagement (pg 54-55)

4.16 Approaches to stakeholder engagement, including

frequency of engagement by type and by stakeholder

group.

Stakeholder Engagement (pg 54-55)

Focus Areas of Sustainability (pg 56)

4.17 Key topics and concerns that have been raised

through stakeholder engagement, and how the

organisation has responded to those key topics and

concerns, including through its reporting.

Stakeholder Engagement (pg 54-55)

Focus Areas of Sustainability (pg 56)

Environment (pg 57, 63-64)

Community (pg 69-71)

Economic Performance Indicators

EC1 Information on the direct economic value generated

and distributed has been provided.

Financial Performance (pg 1-3, 86-88,

114-177)

EC3 Coverage of the organisation’s defined benefit plan

obligations.

People (pg 67)

EC4 Significant financial assistance received from

government.

No significant financial assistance

received from the government.

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Indicator Description Cross Reference/Direct Answer

EC8 Development and impact of infrastructure

investments and services provided primarily for

public benefit through commercial, in-kind, or pro

bono engagement.

Environment (pg 60)

Environmental Performance Indicators

EN3 Direct energy consumption by primary energy

source.

Environment (pg 58-59)

EN4 Indirect energy consumption by primary source. Environment (pg 58-59)

EN5 Energy saved due to conservation and efficiency

improvements.

Environment (pg 58-59)

EN6 Initiatives to provide energy-efficient or renewable

energy based products and services, and reductions

in energy requirements as a result of these initiatives.

Environment (pg 58)

EN7 Initiatives to reduce indirect energy consumption and

reductions achieved.

Environment (pg 58-60)

Operations Review (pg 93-94)

EN8 Total water withdrawal by source. Environment (pg 60-61)

EN10 Percentage and total volume of water recycled and

reused.

Environment (pg 60-61)

EN16 Total direct and indirect greenhouse gas emissions

by weight.

Environment (pg 62)

EN17 Other relevant indirect greenhouse gas emissions by

weight.

Environment (pg 62)

EN18 Initiatives to reduce greenhouse gas emissions and

reductions achieved.

Environment (pg 62)

EN21 Total water discharge by quality and destination. Waste water from operational properties

is discharged into the public sewerage

system. Waste water at the construction

site of CapitaGreen is recycled and re-

used for vehicular washing.

EN22 Total weight of waste by type and disposal method. Environment (pg 62)

EN23 Total number and volume of significant spills. There were no significant spills identified.

EN28 Monetary value of significant fines and total number

of non-monetary sanctions for non-compliance with

environmental laws and regulations.

There were no monetary value of

significant fines and non-monetary

sanctions for non-compliance with laws

and regulations.

EN30 Total environmental protection expenditures and

investments by type.

Environment (pg 57)

Social – Labour Practices

LA1 Total workforce by employment type, employment

contract, and region, broken down by gender.

People (pg 66-67)

LA2 Total number and rate of new employee hires and

employee turnover by age group, gender, and region.

People (pg 65)

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Indicator Description Cross Reference/Direct Answer

LA5 Minimum notice period(s) regarding significant

operational changes, including whether it is specified

in collective agreements.

People (pg 65)

LA7 Rates of injury, occupational diseases, lost days, and

absenteeism, and number of work-related fatalities by

region and by gender.

People (pg 69)

LA10 Average hours of training per year per employee by

gender, and by employee category.

People (pg 66)

LA12 Percentage of employees receiving regular

performance and career development reviews, by

gender.

People (pg 67)

LA13 Composition of governance bodies and breakdown of

employees per employee category according to

gender, age group, minority group membership, and

other indicators of diversity.

Board of Directors (pg 16, 17-23)

People (pg 66-67)

LA14 Ratio of basic salary and remuneration of women to

men by employee category, by significant locations

of operation.

People (pg 64-65)

LA15 Return to work and retention rates after parental

leave, by gender.

People (pg 65)

Social – Human Rights

HR4 Total number of incidents of discrimination and

corrective actions taken.

People (pg 65)

HR6 Operations and significant suppliers identified as

having significant risk for incidents of child labour,

and measures taken to contribute to the effective

abolition of child labour.

Environment (pg 58)

People (pg 64-65)

HR7 Operations and significant suppliers identified as

having significant risk for incidents of forced or

compulsory labour, and measures to contribute to the

elimination of all forms of forced or compulsory

labour.

Environment (pg 58)

People (pg 64-65)

Social – Society

SO1 Percentage of operations with implemented local

community engagement, impact assessments, and

development programs.

Environment (pg 57, 60)

Community (pg 69-70)

SO2 Percentage and total number of business units

analysed for risks related to corruption.

People (pg 67-68)

SO3 Percentage of employees trained in organisation’s

anti-corruption policies and procedures.

People (pg 67-68)

SO4 Actions taken in response to incidents of corruption. People (pg 67-68)

SO8 Monetary value of significant fines and total number

of non-monetary sanctions for non-compliance with

laws and regulations.

There were no monetary value of

significant fines and non-monetary

sanctions for non-compliance with laws

and regulations.

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Indicator Description Cross Reference/Direct Answer

Social – Product Responsibility

PR1 Life cycle stages in which health and safety impacts

of products and services are assessed for

improvement, and percentage of significant products

and services categories subject to such procedures.

Product Responsibility (pg 70)

PR3 Type of product and service information required by

procedures and percentage of significant products

and services subject to such information

requirements.

Product Responsibility (pg 70-71)

PR5 Practices related to customer satisfaction, including

results of surveys measuring customer satisfaction.

Product Responsibility (pg 71-72)

PR9 Monetary value of significant fines for non-

compliance with laws and regulations concerning the

provision and use of products and services.

There were no significant fines for non-

compliance with laws and regulations for

contractors/consultants.

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