Green Financing: Making Business Sense of Sustainability

Transcription

1 Green Financing: Making Business Sense of Sustainability ULI Asia Pacific Summit By Esther An Chief Sustainability Officer 6 June 2017

2 About City Developments Limited Singapore s property pioneer since 1963; listed international property and hotel conglomerate with global network across 26 countries Group revenue - S$3.9B (FY 2016); Market Cap - S$9.9B (2 May 2017) Built over 40,000 homes & owns over 18 million square feet of floor area of office, industrial, retail, residential and hotel space globally London-listed subsidiary Millennium & Copthorne Hotels plc (M&C) owns and manages over 130 hotels one of the largest hotel chains in the world 1 st SG company to be listed on 4 global sustainability benchmarks: DJSI, FTSE4Good, Global 100 World s Most Sustainable Corporations & MSCI Only SG company on Global 100 for 8 consecutive years & ranked top real estate & management company* Asia s Top Property Developer Asia Sustainability Ranking since 2014 BCA Awards: Green Mark Pearl Prestige (since 2015) / Green Mark Platinum Champion (2011) / Built Environment Leadership (Platinum) (2009) / Quality Excellence Award Quality Champion (Platinum) (since 2013) *2016 & 2017

3 Over 20 Years of Sustainability Integration Driving Innovation & Future-proofing Business Transforming Business Model & Embedding Sustainability in Operations Aligning with Global Best Practices & Sustainability Reporting Integrated Approach Transformed business strategy: Conserve as we Construct Integrated CSR into Corp Vision, Mission & Operations 2001: EHS 5-Star Assessment 2002: 1 st Eco Condo in SG; Listed on FTSE4Good; launch Project Eco-Office 2003: EHS Policy; 1 st to achieve ISO & OHSAS : CSR report in AR 2004: Let s Live Green! 2005: Signatory to UNGC; Founding member of Global Compact Network Singapore 2008: Published SG s 1 st GRI- Checked Sustainability Report 2009: 1 st Eco-mall in SG; 1 st Carbon Neutral Development in APAC; 1 st to win BCA Built Env. Leadership (Platinum) 2009: 1 st Developer to win BCA Green Mark Champion (Platinum) 2010: Listed on Global : 1 st developer to set Carbon Reduction Targets & CC Policy (2015) 2011: Listed on DJSI 2012: CNA Green Luminary Award 2014: Asia Sustainability Ranking Asia s TOP Developer 2014: Game changing technologies PPVC 2015: ISO EMS certified & 14064GHG 1 st Green Lease Partnership Enhanced Vision: Building Value for Tomorrow, Today Established the CDL Future Value 2030 Blueprint Launched 1 st Green Bond in Singapore Aligned material ESG issues with the Sustainable Development Goals 1 st private developer to adopt the GRI Standards and the Integrated Reporting approach 1 st to win BCA Green Mark Pearl Prestige Award Winner of inaugural Special Recognition Award at the Singapore Corporate Awards s 2010s 2015 Present

4 Sustainability-Focused Value Creation Model CDL Future Value 2030 Blueprint

5 The Tree House Condo Guinness World Record for Largest Vertical Garden (Apr 14 Jun 15) Benefits of Green Investment Drives Innovation Strong Brand Business Growth Goodwill New Financing Stream

6 Green Building Innovations & Product Differentiation Investing 2-5% of construction cost of a new development in green design/features/methods for more than a decade Since 2011: set min. target for all new development to be GM Gold PLUS certified Over 80 GM certified properties 7 & 9 Tampines Grande 11 Tampines Concourse City Square Mall LEED Gold Cert & Most Extensive Solar Panels in a Comm Dev t (2009) The Brownstone Asia Pacific's 1 st CarbonNeutral Dev t (2009) Tree House Singapore's 1 st Eco-mall (2009) D Nest Largest PPVC Application (TOP 2018) Guinness World Record: Largest Vertical Garden (Apr 14 Jun 15) Singapore Book of Records: Largest Solar Panel (2013)

7 Goodwill - Stakeholder & Community Engagement My Tree House World s 1 st Green Library for Central Public Library Green design / Construction: Use eco-friendly building materials e.g. energy-efficient LED lighting, refurbished bookshelves Approach: Tri-sector collaboration with 11 partners, including NLB Green programming: Over 400 eco-programmes since 2013 CDL Green Singapore Botanic Gardens Prefabricated method: installed within 24 hours, minimising environmental impact Use of Hempcrete: an ecofriendly biomaterial used for the first time in Singapore Solar panels on rooftop: Zero Energy & real time tracking of energy usage Zero Energy Singapore Sustainability Academy 3P Partnership between CDL and the Sustainable Energy Association of Singapore (SEAS) Aims to promote a low-carbon economy, resource efficiency, and sustainable practices among businesses and the community, in particular, youths. Zero-energy Academy will feature 3,160 sq ft of PV panels First in Singapore to have its construction materials, Cross Laminated Timber and Glued Laminated Timber verified by the Nature s Barcode TM system as coming from responsible sources

8 Urgent Climate Actions >> Green Financing United Nations Sustainable Development Goals 17 Goals aimed to end poverty, protect the planet, build resilient cities & communities, ensure safety, employment, prosperity for all Specific targets to be achieved over the next 13 years Governments expected to take ownership of the 17 goals Paris Agreement: Singapore s Nationally Determined Contribution Ratified the Paris Agreement in October 2016 and committed to Reduce its Emissions Intensity by 36% from 2005 levels by 2030 Stabilize emissions with the aim of peaking around 2030 Singapore Climate Action Plan & Sustainable Singapore Blueprint >> Stringent Regulations Reduce Greenhouse Gas emissions Develop initiatives to tackle the effects of climate change More stringent regulations e.g. water tariff & carbon tax Green Building: Ambitious Targets Globally & Nationally SG GB Master Plan: to green 80% of all buildings by 2030 vs below 40% currently WorldGBC: All new buildings & major renovations should be net zero starting from 2030, and 100% of buildings should be net zero by 2050

9 Green Financing: Rapid Growth & Great Opportunities Older buildings are far harder to green Complex planning, resources and investments required Greening buildings is capital intensive Green financing will allow developers to tap onto socially responsible investors looking for low-carbon and climate-resilient projects Asian countries are extremely vulnerable to climate risk and many are developing economies, requiring huge investments in green and climate-resilient infrastructure. o US$6 trillion needed annually, but financing gap of US$2-3 trillion o SE Asia: est US$110 billion a year needed for infrastructure through 2025 Source: Climate Bonds Initiative Source: Ideas for Action for a Long-Term and Sustainable Financial System 2017, Business and Sustainable Development Commission Fostering Green Finance in Asia, German Development Institute

10 Republic Plaza Green Bond Republic Plaza CDL s flagship building completed in 1996 Continuously upgraded to improve resource efficiency & performance BCA Green Mark Platinum building Annual savings of: More than 6 million kwh of energy 10,255 m 3 of water Total of $1.2million in operational cost First Green Bond by a Singapore Company Two year senior secured green bond Raised S$100 million at 1.98% fixed rate Refinancing of loan initially taken to construct and maintain Republic Plaza CDL hopes that the inaugural issuance will kick start the development of a green bond market in Singapore, and will also augment efforts by the financial industry towards responsible financing

11 Green Bond Issuance Process Research What Standards to use Green Bond Principles, Climate Bond Standard? Global Assessment requirement? What is the focus of assurance issuer s track record is important. Identification of Green Asset/Banker What types of green financing? What strategy and asset can qualify? Do we have supporting data evidence? Banker/Underwriter: bond size, structure, potential investor interest, pricing etc? Framework & Second Opinion External evaluation of track record Evaluation of Use of Proceeds, Project Evaluation and Selection Process, Management of Proceeds & Reporting Audit and Assurance External verification of data Examples of data audited: tenant electricity bills, cost savings of past projects, governance processes Data Compilation Intensive data compilation to show track record of company and corporate practices Data to show resource efficiency of green asset and future retrofit projects Climate Bonds Initiative Certification Submission of Climate Bond Information Form, Assurance report and Framework & Second Opinion Subject to approval of CBI Board Annual Allocation and Impact Reporting

12 BUILDING VALUE FOR TOMORROW, TODAY.