CRCT is part of CapitaLand Group (Group) and its sustainability strategy is aligned to the Group. Details can be found in the CapitaLand Sustainability Report which will be available in May 2017.
The Group’s sustainability strategy is aligned with its credo of ‘Building People. Building Communities.’. It is committed to improving the economic and social well-being of its stakeholders through the execution of development projects and management of its operations. In a rapidly changing business landscape, it actively embraces innovation to ensure commercial viability without compromising the environment for future generations.
The Group upholds high standards of corporate governance and transparency to safe guard shareholders’ interests. It has in place an adequate and effective Enterprise Risk Management framework to enhance its business resilience and agility. The Group’s proactive approach towards environmental, health and safety (EHS) management, which incorporates universal design into its developments, ensures that its properties are future-proof and sustainable. Policies and guidelines are put in place to ensure the efficient use of energy, water and other resources.
The Group’s integrated human capital strategy aims to recruit, develop and motivate employees to drive growth for the Group. Community development is an important component of its commitment to sustainability. It focuses on providing support to enhance the lives of underprivileged children through corporate philanthropy and employee volunteerism.
CapitaLand is one of the first companies in Singapore to voluntarily publish its annual Sustainability Report, before the Singapore Exchange published its Sustainability Reporting Guidelines. It adopted the Global Reporting Initiative (GRI) Reporting Guidelines as this framework is internationally recognised. For more details on the Group’s sustainability management and performance, please refer to the upcoming CapitaLand Limited Global Sustainability Report 2016. This report will continue to apply the Guiding Principles of the International Integrated Reporting Framework, ISO 26000:2010 Guidance on Social Responsibility. It will reference the United Nations (UN) Sustainable Development Goals, and be externally assessed to the AA1000 Assurance Standard. It will cover the Group’s global portfolio and employees, including CRCT.
Top Management Commitment and Staff Involvement
The Group's sustainability management comes under the purview of its Sustainability Council which comprises members of CapitaLand's top management. It is supported by a Sustainability Steering Committee, which oversees two work teams to ensure the Group's continued progress and improvement in the areas of environment, social and governance. The Sustainability Steering Committee and work teams comprise representatives from all business units.
CapitaLand is a signatory to the UN Global Compact and its Global Sustainability Report will serve as its Communication on Progress, which will be made available at www.unglobalcompact.org when published.
For its efforts, CapitaLand is listed in the Global 100 Most Sustainable Corporations in the World, Sustainability Yearbook, Dow Jones Sustainability World Index and Asia Pacific Index, Global Real Estate Sustainability Benchmark (Regional Sector Leader for Asia, Diversified), FTSE4Good Index Series, FTSE4Good ASEAN 5, MSCI Global Sustainability Indexes, STOXX® Global ESG Leaders Indices, Channel NewsAsia Sustainability Ranking and SGX Sustainability Indices.
Top Management Commitment and Staff Involvement
The Group’s sustainability management comes under the purview of its Sustainability Council, comprising members of CapitaLand’s top management. It is supported by a Sustainability Steering Committee which oversees two work teams to ensure the Group’s continued progress and improvement in the areas of environment, social and governance (ESG). The Sustainability Steering Committee and work teams comprise representatives from all business units.
The Group has a regular review, assessment and feedback process in relation to ESG topics. Key to this is an annual Group-wide Risk and Control Self-Ass essment exercise which entails the identification, assessment and documentation of material risks and corresponding internal controls. Such material risks include fraud and corruption, environmental, health and safety, and human capital risks which are ESG-relevant. Other existing channels for feedback to ensure relevance of issues include:
Through regular stakeholder engagement, the Group identifies and reviews material issues that are most relevant and significant to the Group and its stakeholders. For the Group, priorities are ranked based on the likelihood and potential impact of issues affecting business continuity and development. For external stakeholders, priority is given to issues important to society and applicable to the Group. The Group therefore prioritises its sustainability efforts and reporting on issues that are most important to its business and stakeholders.
CRCT does not have employees as an external manager, CapitaLand Retail China Trust Management Limited (CRCTML), manages it. The employees of CRCTML form part of the headcount of the Group.
The Group actively engages its employees through various avenues, including regular communication sessions held by senior management, for effective flow of information and alignment of business goals and objectives across all levels of workforce. Since the 2015 Employee Engagement Survey (EES), 169 focus group meetings were organised across 18 countries and various follow up actions were taken.
The Group conducts regular resident satisfaction surveys in all its serviced residences and tenant surveys in its shopping malls and office buildings. The feedback obtained is reviewed and relevant followup actions are taken to improve serviced residence tenants’ experience and improve service levels to tenants.
Supply Chain Management
The Group proactively engages contractors and suppliers on areas relating to quality of work and commitment to EHS. For more information, please refer to the EHS sub-section.
The Group also adopts a strong stance against bribery and corruption. Third-party service providers and contractors can provide feedback via a dedicated email address, in addition to the regular feedback channels.
Investor and Media
For stakeholder engagement pertaining to investors and media, please refer to the section on Investor & Media Relations.
The Group has an integrated human capital strategy to recruit, develop and motivate employees. Continual learning is a fundamental building block for growth. A suite of training and development programmes include personal development courses and certified training programmes to equip employees with the necessary skills for better performance are made available.
The Group recognises that a positive work environment is essential to attract, motivate and retain talent. A total well-being programme is in place to promote personal development, healthy living and worklife harmony. Initiatives include a flexible medical and benefits plan, flexible work arrangements and employee engagement initiatives.
The Group recognises that the long-term success of the company is closely intertwined with the health and prosperity of the communities in which it operates. CapitaLand Hope Foundation (CHF), its philanthropic arm, was established in 2005. A registered charity in Singapore, CHF strongly believes in the importance of first investing in the fundamental needs of education, healthcare and shelter of underprivileged children to relieve them of hardship and help them to eventually break the poverty cycle. Every year, the Group allocates up to 0.5% of its net profit to CHF and also provides pro bono administrative support through various functional departments within the company.
CapitaLand is a strong advocate of volunteerism and was one of the first companies to formalise three days of Volunteer Service Leave for its staff. For more information on CHF, please visit www.capitalandhopefoundation.com.
CRCT continues to promote charity causes in benefit of the communities served by CRCT malls, and adopt green practices that contribute to sustainable development.
In 2016, “My Schoolbag”, CapitaLand’s key annual corporate social responsibility programme, took place for the seventh consecutive year in China. Staff from CRCT malls participated in the programme, helping to distribute new schoolbags and stationery worth about RMB1.59 million to about 17,000 first grade pupils from 200 schools, including 23 CapitaLand Hope Schools.
Besides My Schoolbag, CRCT malls held community activities throughout the year to champion different causes. For example, CapitaMall Grand Canyon spearheaded a donation drive to benefit Sunvillage, a not-for-profit welfare organisation that supports children of convicts. CapitaMall Xizhimen collaborated with the Red Cross Society of China on a first aid workshop, while CapitaMall Saihan held a mass yoga session at its Level 4 outdoor plaza to promote the importance of maintaining physical and mental health through exercise.
Environment, Health and Safety (EHS)
The Group is committed to protecting the environment and upholding the occupational health and safety of its employees. The EHS Management System is externally audited to achieve ISO 14001 and OHSAS 18001 certification across 15 countries. The EHS Policy can be found on www.capitaland.com/ sustainability.
The Group incorporated EHS key performance indicators linked to the remuneration of all staff, as well as top management. In 2016, the reduction of energy usage KWh/m2 in CRCT malls1 was 33.0% and the reduction in water usage in m3/m2 was 21.8% from the 2008 baseline. The Group will continue to implement energy and water conservation measures to ensure efficient operations and minimise resource wastage.
As part of CRCT’s commitment to operate its malls sustainably, CapitaMall Wangjing and CapitaMall Grand Canyon installed electric vehicle charging stations to bring greater convenience to the growing pool of electric vehicle owners who are committed to reduce their carbon footprint by adopting a greener mode of transportation. In addition, CRCT malls also supported efforts that spread the message on environmental conservation. To illustrate, CapitaMall Qibao partnered Shanghai Rendu Ocean Development Center to organise a beach clean-up event, in addition to hosting an exhibition at its premises to encourage shoppers to keep the environment clean and healthy. CapitaMall Saihan hosted a flash mob to help raise awareness of environmental issues.
To commemorate the 10th anniversary of World Wide Fund for Nature’s Earth Hour, CRCT malls organised a series of events that included the iconic ceremonies marking the turning off of façade and non-essential lights. At CapitaMall Xizhimen, shoppers wore Earth Hour-themed T-shirts that they had created with ecofriendly fluorescent paint to illuminate the night, while CapitaMall Minzhongleyuan hosted an unplugged music performance featuring percussion instruments.
CRCT malls also initiated activities that raised awareness on issues relating to public health and safety. These included safety awareness and risk review workshops with contractors to enhance their safety standards of working at heights, and exhibitions that reinforced lift and escalator safety protocols for contractors and the general public. CRCT malls also joined hands with the local authorities to conduct mass fire drills, which provided excellent opportunities for tenants to familiarise themselves with emergency procedures.
1 Excludes CapitaMall Xinnan which was newly acquired on 30 September 2016 and the master leased malls, namely CapitaMall Anzhen, CapitaMall Shuangjing and CapitaMall Erqi.