Singapore – 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 percent, up from 28 percent, by 2030 from a 2019 base year. These new targets to reduce greenhouse gas emissions are validated by the Science Based Targets initiative1 (SBTi) to limit global warming to 1.5°C, in accordance with the goals of the Paris Agreement2. 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 Plan3 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 on 31 May 2022 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 remuneration.”
CLI’s carbon mitigation strategy towards Net Zero by 2050 is prioritised in the following order:
1. 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.
2. Intensifying its deployment and use of on-site renewable energy where feasible.
3. Purchasing green power in markets where legislation allows for it.
4. Using renewable energy certificates only as a last resort
1 The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling organisations to set science-based emissions reduction targets.
2 In 2020, CapitaLand was the first real estate company in Asia (excluding Japan), and in Singapore to have its carbon emissions reduction targets by SBTi for a ’well-below 2 degrees Celsius’ scenario
3 For more information on CapitaLand’s 2030 Sustainability Master Plan, visit www.capitaland.com/sustainability.