CapitaLand Limited (CapitaLand) announced on Thursday that it has been listed in the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific) for 2013 to 2014.
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The Singapore-listed real estate developer was also named both the Regional Sector Leader for Asia and the Global Sector Leader in the ‘Diversified’ property category of another international list, the Global Real Estate Sustainability Benchmark (GRESB).
This is the third time the company has received this regional leader recognition from the industry-wide reporting, which recently published its annual survey.
This is also the second consecutive year that CapitaLand has been listed in the DJSI World, which is a renowned resource on sustainability investing.
Lim Ming Yan, CapitaLand president and group chief executive officer, said, “We are honoured to be listed in the DJSI World and DJSI Asia Pacific again this year. As one of the first real estate companies in Asia to be listed in both indices, we will continue our sustainability drive to stay ahead of global trends for the benefit of our stakeholders.”
“An integral part of our business, a focus on sustainability is ingrained in every decision made in various stages of our real estate value chain - from designing and conceptualising a project, building, to operating it in a responsible and ethical manner,” added Mr Lim, while acknowledging the growing traction of sustainable investing around the world.
From global market to real estate benchmark
Compared to the Dow Jones Sustainability Indices that was started in 1999 and reviews the largest 2,500 companies listed on the S&P Global Broad Market Index, the GRESB survey began in 2011 in the Netherlands to check and measure the environmental impact of the real estate sector.
It serves as a tool for companies in the industry to gauge their sustainability efforts, allowing them to improve targets and implement better operations.
GRESB, in naming CapitaLand as a Global Sector Leader, deemed the company as most sustainable among the 74 real estate firms and funds assessed in Asia.
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Sustainability is integral to our business. We will continue our group-wide efforts to develop and operate our properties in a ‘green’ manner, engage our stakeholders in our sustainability drive and contribute to the well-being of our employees
Lim Ming Yan, CapitaLand Group CEO
According to the UK Green Building Council, the global built environment accounts for 40 to 50 per cent of natural resources use, 20 per cent of water use, 30 to 40 per cent of energy use and about a one-third of carbon dioxide emissions.
In this year’s report, GRESB noted a significant reduction in energy and water consumption and greenhouse gas emissions, for the period of 2011 to 2012. Energy use went down by 4.8 per cent, water by 1.2 per cent, and emissions by 2.5 per cent.
This is based on sustainability data gathered from 543 real estate companies and private funds from 46 countries around the world. These entities, amounting to US$1.6 trillion in gross asset value, are nominated by institutional investors to participate in the survey, said GRESB.
The survey is a set of about 50 questions that covers seven different sustainability aspects: management, policy and disclosure, risks and opportunities, monitoring and environment management system, performance indicators, building certification and benchmarking, and stakeholder engagement. This leads to the overall score on sustainability performance.
CapitaLand is recognised as outstanding in this regard, said GRESB. As a regional sector leader, the firm scored high compared to other companies in Asia. It also signifies that their practices are best in the field, which the rest of the industry can emulate, they added.
Mr Lim was equally pleased with this recognition, as with the company’s inclusion in the DJSI World. He said, “This achievement attests to our commitment to sustainability across our multi-sector real estate portfolio spanning over 110 cities in more than 20 countries worldwide.”
CapitaLand’s diversified property portfolio consists of residential housing and offices, shopping malls, serviced residences and mixed developments. Their core markets are primarily in Singapore and China.
“Sustainability is integral to our business. We will continue our group-wide efforts to develop and operate our properties in a ‘green’ manner, engage our stakeholders in our sustainability drive and contribute to the well-being of our employees and the community in a responsible and ethical way,” added Mr Lim.
Other Asian firms that participated in the survey include K. Raheja from India, Japan Excellent, Inc, Japan Prime Realty Investment Corporation, and Majid Al Futtaim Properties from the United Arab Emirates, among others.
