Dear Stakeholders,
2011 was a year of global
economic uncertainty with
significant financial turmoil
which has spilled over to
this year and continues to
dampen efforts to restore
confidence. This may also
prove to be distracting
for any government
whose focus remains on
the financial recovery of
the economy, taking time
and effort away from sustainability issues.
This is however not the case in Singapore where the Government has continued to introduce and revise various policies and guidelines across sectors, addressing the growing importance of issues pertaining to corporate governance, productivity, the environment, resource risks and labour matters amongst others. It is also of interest to observe that the General and Presidential Elections 2011 were noteworthy events as social media became a significant medium of communication. Perhaps, this may be the beginning of an emerging trend of active citizenry which may impact the landscape of stakeholder engagement in Singapore.
Multiple drivers for Corporate Social Responsibility (CSR) also continue to strengthen globally. Total assets managed under Carbon Disclosure Project have grown dramatically from US$4.5 trillion in 2003 to US$78 trillion in March 2012 with 235 companies responding in 2003 compared to 3,715 in 2011. The growing climate change-related regulations make CSR not simply a “good to have” item but a licence to operate. It is becoming more apparent that companies who have yet to embrace the significance of sustainability issues have placed themselves in an increasingly vulnerable position, putting their operations at risk, if they have limited expertise and contingency plans to manage the fast emerging social, political and economic scenarios. In the face of a changing business environment and mind-set, it is a matter of time before the turn of tide occurs.
For years, CDL has been proactively engaging the business community in CSR, and we are heartened to see increased interest and acceptance from our business peers, cognisant of the need to address more than just their financial performance.
With a corporate strategy already entrenched in the triple bottom line approach, CDL continued to leverage on our core business to set new benchmarks in sustainable development by doubling our efforts to meet stakeholders’ expectations and the global standards in sustainability through innovation, rigorous assessment and communication of the outcomes. 2011 was another exceptional year for CDL as our pre-tax profits surpassed the S$1 billion line for the second consecutive year and our steadfast commitment to embrace CSR has accorded us local and global recognition as a corporate beacon in sustainability. CDL is the only Singapore corporation to be listed on all three of the world's top sustainability benchmarks; the Dow Jones Sustainability Indexes, FTSE4Good Index Series and The Global 100 Most Sustainable Corporations in the World. Notably, CDL’s ranking on the Global 100 improved from 100th to 62nd position in 2012.
As Singapore’s leader of the built environment, championing green developments, CDL remains the private developer with the most Building and Construction Authority (BCA) Green Mark certified developments to date, comprising 62 certified developments of which 21 are of the highest Platinum tier. It is estimated that our 37 Green Mark certified buildings between 2008 and 2011 account for some S$19.7 million cost savings in electricity alone annually. We also remain committed to a 22% reduction in carbon emissions by 2020 from baseline year 2007, and to achieve a 25% reduction by 2030.
The theme for this year’s report — “Ideas, Initiatives and Impacts” — is timely. CDL started on our journey in sustainability more than a decade ago, in waters that were largely untried and untested. In the ensuing years, much has been achieved as noted in our four dedicated Sustainability Reports. However, as a responsible corporation, we must also constantly reassess ourselves to ensure our 3 "I"s remain strategic, sound and relevant. This year, the 3 "I"s take us back to the drawing board as we take a fresh step by step approach to the basic tenets that drive us towards sustainability.
Ideas represent the principles that guide us as we continue to align our activities based on our CSR vision and mission, focusing on issues that are material to our business with a firm grasp of long-term commitments for sustained success. Initiatives that we embark on create processes that result in actions that define who we are. Impacts succinctly measures our achievements, or lack thereof. Based on the results of our actions, we are inspired to improve ourselves to close the gap in our weak areas and accomplish even better results where our strengths lie. The 3 "I"s approach is simple, straightforward and thoughtful, yet often overlooked as we get caught up in the hustle and bustle of the daily running of the Company.
With this report, CDL is the first Singapore property developer to successfully publish a Level A+ Report using the Global Reporting Initiative (GRI) G3.1 guidelines as well as the first to use the Construction and Real Estate Sector Supplement (CRESS). The CRESS was only just released by GRI in September 2011 and the performance indicators included are better tailored to our industry for enhanced relevance and transparency.
CDL has continued to work on aligning the ISO 26000:2010, Guidance on social responsibility, with our business operations and have also actively addressed improvements in areas highlighted in 2010. We have also continued to externally assure our sustainability report in accordance with the AA1000AS 2008, which evaluates the reliability of our reported sustainability performance. Once again, our extensive subscription to internationally accepted sustainability guidelines and models reflect our commitment to benchmark performance towards greater transparency and disclosure.
In an era where business growth requires much more than just large-scale expansion and short-term profitability, CDL with 49 years of proven track record, will further strengthen the trust with stakeholders as we seek new sustainable business opportunities through product excellence and service innovation.
We continue the journey towards a sustainable future, where our business (生意), people (人) and nature (自然) grow together in harmony (和谐).
Kwek Leng Joo
Managing Director
June 2012