CMT recognises that sustainability can power innovation, and with this we are able to open up new and innovative possibilities that better serve the needs of our stakeholders, without compromising the environment for future generations.
Sustainability is integral to our business, and CMT is committed to sustainable policies and practices.
We are heartened to have received numerous awards recognising our efforts and achievements in corporate governance, transparency, sustainability and investor relations. The management of environmental, social and governance (ESG) issues are critical to create a sustainable future for CMT, our stakeholders and the society.
CMT is pleased to publish its Sustainability Report, which has been prepared in accordance with the Global Reporting Initiative (GRI) Standards and in compliance with SGX requirements.
As we build on the momentum of our sustainability journey, we will strengthen our engagement with key stakeholders, as well as improve our sustainability efforts, performances, measures and activities with the ultimate goal of building a sustainable business for the future.
Tony Tan Tee Hieong
Chief Executive Officer
As a CapitaLand-sponsored REIT, CMT is managed by wholly owned subsidiaries of CapitaLand, which include the Manager as well as Property Managers who oversee daily property operations. The teams behind the Manager and Property Managers are responsible for property and portfolio operations in CMT. The Manager and the Property Managers abide by CapitaLand's sustainability framework, policies and guidelines, as well as ethics and code of business conduct.
CMT's sustainability objectives and strategies are aligned with CapitaLand's credo, 'Building People, Building Communities'. CMT upholds this approach and implements it across human capital strategies, asset and portfolio strategies, operations management, stakeholders' engagements and community development. CMT upholds high standards of corporate governance and transparency to safeguard Unitholders' interests.
In recognition of its efforts, CMT is listed in the FTSE4Good Developed Index, FTSE4Good ASEAN 5 Index, S&P International Environmental & Socially Responsible Index, Dow Jones Sustainability World Diversified Index, SGX ESG Leaders Index and SGX ESG Transparency Index. CMT was also recognised as the Regional Sector Leader of Asia (Retail - Listed) in the 2017 Global Real Estate Sustainability Benchmark (GRESB) Real Estate Assessment. This is a testament to our continuous efforts to strengthen our ESG standards.
CMT is committed to sustainability and incorporates the key principles of environment, social and governance in setting out its business strategies and operations.
The Board sets CMT Group's risk appetite, which determines the nature and extent of material risks that CMT is willing to take to achieve its strategic and business objectives. The risk appetite incorporates ESG factors such as fraud, corruption and bribery, environment, health and safety.
The Board also approves the executive compensation framework based on the principle of linking pay to performance. CMT's business plans are translated to both quantitative and qualitative performance targets, including sustainable corporate practices, and are cascaded throughout the organisation.
CMT reinforces its commitment to sustainability and this report has been prepared in accordance with the GRI Standards: Core option. The GRI Content Index can be found at the end of the sustainability section.
In the development of our report, we were careful to consider each of the GRI Reporting Principles, as follows:
This report covers CMT's portfolio of 16 quality properties located strategically in the suburban areas and downtown core of Singapore from 1 January to 31 December 2017, unless otherwise indicated.
Feedback from stakeholders is welcome as it enables continual improvement in our sustainability journey. Please send your comments and suggestions to email@example.com.
The management is responsible for the Environmental, Health and Safety (EHS) performance. The management is supported by the heads of various relevant departments of the Manager and Property Managers, within the Group. The Manager and Property Managers identify and review material issues which could have significant impact to CMT's business and operations, as well as other issues derived through regular stakeholder engagements. This team regularly meets to develop, set and review the management approach to sustainability. This year, the team has been involved in developing the focus on the sustainability efforts, developing performance indicators and setting targets. Existing management approaches have also been reviewed for suitability.
The management joins the representatives from CapitaLand's business units (BUs) who form the Sustainability Steering Committee (SSC) which oversees two work teams to ensure the continued progress and improvement in the areas of ESG. The SSC supports members of CapitaLand's top management who constitute a Sustainability Council which oversees sustainability management.
For detailed financial results and performance, please refer to the following sections of the CMT Annual Report 2017 - Financial Highlights (pages 2 to 3), 2017 Highlights (page 4), Financial Review (pages 90 to 93) and Financial Statements (pages 138 to 216).
As an integral part of corporate governance, a comprehensive ERM framework enables CMT to proactively identify, assess, manage and communicate risks in an integrated, systematic and consistent manner. Details on ERM can be found on pages 47 to 50 of the CMT Annual Report 2017.
The Manager and Property Managers identify and review material issues which could have significant impact to CMT's business and operations, as well as other issues derived through regular stakeholder engagements. Our stakeholders are important to CMT's long-term success. We interact with many key stakeholders on a regular basis and these interactions facilitate continuous improvements in all areas of our operations. We seek to engage stakeholders' concerns through multiple forms of engagement, as outlined in the table below. Stakeholders discussed here include stakeholders who are most directly affected by, or those most directly affect our operations.
|To understand our shoppers' needs and improve the appeal of our malls||To understand our tenants' needs and concerns as well as help drive shopper traffic to our malls||To create an informed perception of CMT, manage investors' expectations and promote a positive investment environment|
|To develop employees to achieve their optimal levels, align their personal goals with company performance and create a positive work environment for them||To be a fair and reasonable buyer of goods and services and share industry best practices||To contribute to the communities in which we operate|
In 2017, we carried out our first materiality assessment, with support from an external consultant. We considered a number of aspects when determining the ESG factors relevant to us. These aspects were:
Our assessment involved a three-step process of first identifying and collecting a host of factors that might be material to us, prioritising this list during a materiality prioritisation session involving representation from across departments as well as senior management. Finally, we validated selected material ESG factors with the board of directors.
We developed a list of critical and emerging ESG factors, which are in line with CapitaLand. Critical factors are those that we feel deserve our immediate attention, and emerging factors are those we intend to actively watch for future focus. As such, the scope of this report will cover critical factors only.
Social/ Labour Practices
To measure its performance, CMT has incorporated the following key performance indicators and 2018 targets.
We are committed to the highest level of corporate governance and transparency in our policies and processes. We see governance as essential for the sustainable value and success of CMT and to be in the best interests of our Unitholders.
We continue our commitment to uphold high standards of corporate governance by being a signatory to the Statement of Support Towards Excellence in Corporate Governance initiated by the Securities Investors Association Singapore (SIAS). CMT received recognition in Corporate Governance winning the Singapore Corporate Governance Award, REITs & Business Trusts category at the SIAS 18th Investors' Choice Awards. CMT was ranked first for the inaugural REIT and Business Trust Category in the Singapore Governance and Transparency Index Award. This annual study was conducted by the NUS Business School's Centre for Governance, Institutions and Organisations.
For details on CMT's Corporate Governance, please refer to pages 23 to 46 of the CMT Annual Report 2017.
The Manager is committed to ongoing improvement in corporate governance. It has developed and, on an ongoing basis, maintains sound and transparent policies and practices to meet the specific business needs of CMT and to provide a firm foundation for a trusted and respected business enterprise. The Manager remains focused on complying with the substance and spirit of the principles of the Code of Corporate Governance 2012 (Code) while achieving operational excellence and delivering CMT's long-term strategic objectives. The Board of Directors is responsible for the Manager's corporate governance standards and policies, underscoring their importance to the Manager.
CMT adheres to the policies, guidelines and practices relating to Dealing with Interested Persons, Dealings in Securities, Code of Business Conduct, Communicating with Shareholders and many others. For details on CMT's policies, guidelines and practices, please refer to pages 23 to 46 of the CMT Annual Report 2017.
No incidents on material non-compliance with laws and regulations relevant to the REIT, the Manager or the Property Managers. This includes regulations and industry codes concerning marketing communications and PDPA. We target no incidents of material non-compliance with laws and regulations in the upcoming year.
For details on CMT's Business Ethics, please refer to pages 44 to 45 of the CMT Annual Report 2017.
There was no incidents with regards to corruption. We target for no incidents of confirmed cases of corruption in the forthcoming year.
Customer health and safety is of upmost importance to us. During the year, there were several initiatives implemented at our malls to enhance the health and safety aspects for our customers.
We constantly innovate and improve our operations and shopping experience by leveraging on technology and collaborating with strategic partners. In 2016, we partnered with Certis CISCO to set up a dedicated central monitoring and response centre. In 2017, we added three malls to the central monitoring and response centre. This solution manages the surveillance, intercom and car park barrier systems as well as monitors the fire alarms across a cluster of malls roundthe- clock. The smart use of technology enhances the realtime visibility and overall situation awareness and aids crisis management. It enables the deployment of security officers more effectively on the ground. By aggregating our needs, we enhance productivity, leverage on economies of scale and optimise the investment in technological infrastructure. This move is in line with our support of the national productivity drive which has seen us adopting innovative solutions to increase productivity not just for our mall operations, but also for our tenants.
We partnered with government agencies such as Singapore Police Force, Singapore Civil Defence Force and Ministry of Manpower to conduct SGSecure training so as to promote a safe and secure workplace.
We also participated in the Exercise Heartbeat event, an anti-terrorism exercise conducted by the Singapore Police Force at Clarke Quay.
CMT is committed to environmental sustainability and the enhancement of value as a real estate owner. By leveraging on technologies and analytics in optimising the usage of energy, water as well as waste management across our properties, we believe that we can manage our business better and create long-term value for all stakeholders.
To align the understanding of our commitments in our everyday business, we continually keep abreast of developments in our industry and engage our stakeholders.
We cultivate our stakeholder relationships through regular and systematically planned forms of dialogue such as conferences, workshops, roadshows and surveys.
CapitaLand's Environmental Management System (EMS) is a key tool in managing CMT's environmental footprint across its entire portfolio. The EMS, together with CapitaLand's Occupational Health and Safety Management System (OHSMS) are integrated as CapitaLand's Environmental, Health and Safety Management System (EHSMS) that complies with ISO 14001 and OHSAS 18001 standards. ISO 14001 and OHSAS 18001 are internationally recognised standards for the environmental management of businesses and occupational health and safety management of businesses respectively.
Environmental, Health and Safety Policy
CMT is committed to protecting the environment and upholding the occupational health and safety (OHS) of everyone in the workplace, and will:
This policy is readily available to all employees, tenants, suppliers and service providers. Since 2012, all business functions such as property management and property development for CMT's properties are EHS certified.
Risk Management of Environmental Aspects and Impacts
As part of the certified EMS, new or updated legal requirements are reviewed quarterly and compliance is evaluated annually.
CapitaLand's EMS provides a systematic process to manage environmental impact and to continuously improve its environmental performance. A key element is to identify and manage significant environmental aspects of its business operations that can potentially have a negative impact on the environment. The significance level of each environmental aspect and impact are assessed using a risk assessment technique based on factors comprising the likelihood of the occurrence, severity of the impact and control measures implemented.
CMT strives to minimise environmental impact in areas such as resource depletion, carbon emissions and waste generation. This is done by setting environmental targets such as green building rating targets, carbon emissions, energy and water usage reduction targets, participating in stakeholder engagement activities, as well as implementing various measures to achieve them.
To facilitate effective implementation of CapitaLand's EHSMS, training and awareness programmes are planned and conducted for all staff. New staff are introduced to the EHSMS and EHS policies as well as briefed on their roles.
Internal and External Audits
CapitaLand has in place an internal audit system to ensure the conformance and effective implementation of its EHSMS to international standards. External audits are conducted annually by a third-party accredited certification body.
Building and Construction Authority (BCA) Green Mark certifications help assure and demonstrate the quality of CMT's properties. These ratings serve as an external validation that key environmental aspects have been considered in CMT's project design, development and operations.
Green Building Rating
Green building rating targets are set from the early stage of design and development. Green buildings have a lower lifecycle carbon footprint through the adoption of sustainable design and materials, and have lower resource consumption like energy, water and reduce waste in their operations.
The minimum target certification for our new development is Green Mark GoldPLUS.
CMT is committed to achieving Green Mark certification for all properties by 2020, in support of the Singapore Government's Green Building Master Plan. As at 31 December 2017, 14 of our operating properties have achieved at least a Green Mark Gold certification.
|Property||Award Category||Year of Award|
|Bukit Panjang Plaza||GoldPLUS||2017|
|Raffles City Singapore||GoldPLUS||2017|
|Lot One Shoppers' Mall||Gold||2016|
|Sembawang Shopping Centre||Gold||2016|
Environmental Impact Assessment
A key component of the SBG is the mandatory Environmental Impact Assessment (EIA). An EIA is carried out during the feasibility stage of any development project. The significant findings of the EIA and their cost implications, if any, are incorporated in the investment paper submitted to the Board of Directors for approval.
The EIA focuses on identifying any environmental threats or opportunities related to the project site and its surroundings, covering areas such as floods, biodiversity, air quality, noise, connectivity, heritage and resources.
Our Environmental Commitments
Leveraging on CapitaLand's Environmental Tracking System (ETS), we track energy and water usage, waste collection and disposal, as well as carbon emissions for our operating properties.
The management team of each property submits monthly data and uploads supporting documentation into ETS. The data is analysed to facilitate a better understanding of consumption patterns and identify areas for eco-efficiency improvements.
In line with CapitaLand's long-term targets for the reduction of energy and water intensities, our long-term targets for our operating properties (using 2008 as base year) are as follows:
CMT reduced its energy intensity measured in kilowattshour per square metre (kWh/m2) by 21.7% from base year 2008. CMT is on track to achieving its 2020 energy intensity reduction target and the aim for 2018 is to maintain or reduce energy intensity compared to 2017 intensity.
In support of the annual Earth Hour campaign on 25 March 2017, all non-essential lights were turned off at CMT's properties.
CMT continues to implement various energy conservation measures, some of which are listed below. It also focuses on innovation to reduce energy consumption.
CMT is committed to address climate change risks through the reduction of its energy consumption. Improving energy efficiency represents the largest and most cost-effective way to mitigate those emissions.
CMT's carbon emissions in 2017 was approximately 59,610 tonnes.
In 2018, CMT aims to maintain or reduce carbon emissions intensity compared to 2017 intensity.
Most of CMT's properties are located close to or integrated with mass rapid transit (MRT) stations and bus interchanges. This allows easy access to the surrounding communities and facilities via mostly covered/sheltered walkways. In addition, to reduce carbon emissions, CMT's properties are provided with bicycle lots to encourage shoppers and tenants to use greener modes of transport. There are about 360 bicycle lots across the CMT's properties.
CMT has more than 1,400 square metres of solar panels at Bugis Junction, Sembawang Shopping Centre, JCube and Bedok Mall. The solar panels have helped our malls to tap 75,875 kWh of renewable energy source.
Westgate was awarded 2nd runner up for Energy Efficient Building Award under the new and existing category at the annual ASEAN Energy Awards presented during the 35th ASEAN Ministers on Energy Meeting (AMEM) in Manila, Philippines.
CapitaLand's SBG is an in-house guide developed to ensure environmental considerations are factored in at all stages of a project from feasibility study, design, procurement, construction to operations.
As countries rally for action to mitigate climate change, more stringent regulations may be expected and companies will face increased expectations from stakeholders. By adopting the SBG, CMT aims to future-proof its developments by addressing the risks of climate change right from the design stage.
Every project is studied in detail, and appropriate measures taken in consideration of climate change. SBG also sets guidelines for buildings to be less energy reliant, for example, setting green building certification targets above legal requirements, and also encourages the use of renewable energy whenever possible.
The SBG is regularly reviewed to ensure continuous improvement, with a focus on four key objectives of minimising carbon footprint and energy consumption, water management, waste management and promoting biodiversity in the life cycle of its developments. Changes since inception include higher green building certification requirements, use of certified wood and design for accessibility.
CMT is committed to reducing water usage and preventing water pollution. Water usage and discharge for each property is monitored and checked regularly.
In 2018, CMT's water efficiency target is to maintain or reduce water intensity compared to 2017 intensity.
In 2017, the decline in water intensity was attributed to the monitoring of remote water usage across all properties. This allows us to identify and respond promptly to exceptions such as leakages and ad hoc operations in an effective manner.
The collection and disposal of waste at all CMT's properties are carried out by National Environment Agency licensed contractors. In 2017, we collected 25,485 tonnes of waste.
CMT aims to manage waste at its properties responsibly. As waste generated at its properties is mostly from its tenants, CMT engages its stakeholders through various means to minimise and recycle waste. Recycling bins are made available at all CMT's properties.
CapitaLand partnered with StarHub to roll out e-waste recycling bins at 10 of our malls to encourage shoppers and tenants to adopt e-waste recycling and address the increasing environmental and health concerns posed by improper handling of e-waste. The malls involved in this initiative are Bugis+, Bedok Mall, IMM Building (IMM), JCube, Junction 8, Lot One Shoppers' Mall (Lot One), Sembawang Shopping Centre, Plaza Singapura, Raffles City Singapore and Tampines Mall. It is also a natural progression of our waste recycling journey which started in 2008 with recycling bins for paper, metal and plastic in our malls.
CMT requires its main contractors to implement proper waste management procedures to minimise, properly manage and dispose of construction waste.
CMT continues to leverage on Building Information Modelling (BIM) technology to improve the design and construction process through more integrated project coordination. BIM performs clash detection before construction, identifying situations where mechanical and electrical services will clash with structural members. This detection saves time and cost of remedial work and minimises material wastage.
We work closely with our contractors and suppliers who are committed to high quality, environmental, health and safety standards. Contractors are only appointed upon meeting the group's stringent selection criteria, including environment, health and safety.
All main contractors appointed in 2017, for projects with GFA of more than 2,000 square metres, were ISO 14001 and OHSAS 18001 certified.
We ensure our suppliers or service providers are in compliance with local regulations. We share our EHS requirements with our suppliers or service providers when working in our properties. A majority of our contractors and service providers are minimum bizSAFE Level 3 certified.
As an externally managed REIT, CMT has no employees and is managed by the Manager and Property Managers, which are indirect wholly owned subsidiaries of CapitaLand.
The teams behind the Manager and Property Managers, of more than 400 employees, are responsible for property and portfolio operations in Singapore, and identified as an integral to CMT's success. Our workforce comprises mainly of full-time and permanent staff who are based in Singapore.
Fairness and Diversity
As wholly owned subsidiaries of CapitaLand, the Manager and Property Managers have a common goal of developing a high performance culture that embraces diversity and teamwork.
We are committed to be a workplace of choice for employees. CapitaLand has in place an integrated human capital strategy designed to recruit, develop and motivate employees. It adopts stringent principles of fair employment and equal remuneration. CapitaLand has signed the Employers' Pledge for Fair Employment Practices with The Tripartite Alliance for Fair and Progressive Employment Practices. CapitaLand adheres to five key principles of fair employment:
We have a team of vibrant, motivated and qualified workforce. New hires represented 15.1% of the total headcount in 2017.
Our workforce comprises an almost equal proportion of male and female employees. The female employees are well represented at the middle and senior management levels. For the past three years, more than half of the managerial employees were female. In 2017, about 61.1% of senior management, comprising those at Vice President level and above, were female. The workforce includes two female staff who are on part-time contracts.
As per CapitaLand's non-discriminatory employment practices, to attract top talent, all job opportunities in the Manager and Property Managers are advertised publicly via online job portals with selections based entirely on merit. Skill and ability are the key criteria in the selection process.
As part of CapitaLand, one of the common goals is to uphold the spirit of international human rights conventions, such as the Universal Declaration of Human Rights and the International Labour Organisation (ILO) Conventions, against coerced labour and discrimination in any form. Singapore has to date ratified 20 ILO Conventions covering four key areas of employment standards: child labour, forced labour, collective bargaining and equal remuneration.
We have no acts of discrimination or human rights violation reported in 2017.
Positive Work Environment
We are committed to provide our staff with a positive and vibrant workplace that promotes personal development, good health and well-being as well as a rewarding career, which in turn results in a high-performance culture and work-life harmony. Initiatives include flexible hours, a flexible medical and benefits plan, flexible work arrangements and employee engagement initiatives. Part-time employees are entitled to the same benefits on a pro-rata basis.
We advocate a pay-for-performance philosophy to drive ownership of collective goals, leading to a high-performance culture which creates long-term Unitholder value. The robust performance management system ensures that all employees receive regular performance and career development reviews.
We believe it is important to integrate and engage staff across Singapore through regular communication.
Staff communication sessions by senior management are conducted annually. During these staff communication sessions, information on financial results and key business focus is shared with employees.
These sessions include a question and answer session, where employees can ask questions and management seeks to gather feedback from them.
CapitaLand's intranet is a valuable platform to keep employees informed about the recent developments, including details on employment terms, benefits and practices as well as ethics and code of business conduct policies.
We actively seek innovative, dynamic and talented employees both internally and externally to strengthen our bench strength and to support our growth. As part of our talent management strategy, talents are recruited at different points in their careers, from entry-level graduates to mid-career professionals and industry veterans. We have a systematic programme for all new hires to learn more about our business operations, strategy, core values and management philosophy. We continually build our management bench strength through identification of high potential talents as part of the regular succession planning process.
Our talent management programme comprises a set of organisational core competencies as well as position specific competencies. As part of the annual performance and career development review, all employees can openly discuss their performance and future aspirations with their supervisors as well as to identify any training needs.
We offer all employees comprehensive and competitive remuneration packages. These include short-term cash bonus and long-term equity-based reward plans such as restricted share and performance share programmes. Such equity-based reward plans help to strengthen the link between reward and performance, as well as to retain talent.
All employees receive staff benefits including a flexible benefits plan and leave entitlements for maternity/paternity and volunteer reasons. We recognise that employees have diverse needs, and a flexible benefits plan enables them to complement their personal medical and insurance needs with those provided by the company. Employees can thus customise their benefits for themselves and their families.
To ensure that we can continue to attract and retain talent, we regularly engage external human resource consultants to benchmark our compensation and benefits packages against other peers and industries in Singapore. We also constantly review the compensation strategies for staff.
Almost 53.3% of employees have been with us for five years or longer. We also conduct interviews with the resigning employees as part of its continuing efforts to improve its retention policies and initiatives.
Learning and Development
We believe in talent cross-fertilisation and leverage on CapitaLand's Human Resource function to build people. As part of career development and to nurture employees' capability and personal traits, CapitaLand has formal classroom trainings, on-the-job exposure, mentoring/coaching and opportunities for job rotation as well as overseas postings.
In line with our belief that continual learning is a fundamental building block of growth, we offer comprehensive training and development programmes for employees to acquire relevant knowledge and skills to achieve business excellence.
In 2017, about 3.7% of our annual payroll was allocated for programmes relating to employee learning and growth. We have in place training roadmaps and a wide variety of courses, ranging from project financing and real estate to soft skill subjects such as communications and presentation skills. Staff have direct access to a year-long training calendar, which comprises a series of pre-evaluated training courses. CapitaLand has an in-house training hub, CapitaLand Institute of Management and Business (CLIMB) which serves the training and development needs of staff.
Approximately 99.2% of staff attended at least one training event, and the average number of training hours completed by each employee for the year was more than 61 hours, above the recommended guide of 40 hours per annum. We encourage employees to upgrade themselves by attending courses or obtaining professional qualifications relevant to their work. Employees are granted paid examination leave for their studies. For full-time staff, examination leave is up to 10 days per calendar year.
CapitaLand is committed to providing meaningful jobs for its employees. This is in line with the Tripartite Guidelines on Managing Excess Manpower issued by the Singapore Ministry of Manpower together with its tripartite partners, Singapore National Employers Federation and the National Trades Union Congress.
These guidelines also suggest various arrangements such as providing company retraining programmes for workers, redeployment of workers to alternative areas of work, implementing flexible work arrangements and managing wage costs through a flexible wage system.
In the event of termination or employee resignation, there is a minimum notice period of one month that needs to be fulfilled, depending on the employee's job grade.
Freedom of Association
CapitaLand maintains a harmonious relationship with the Singapore Industrial & Services Employees' Union. In Singapore, CapitaLand is guided by the Industrial Relations Act that allows representation of staff by trade unions for collective bargaining, thus providing them with an avenue to seek redress for any industrial disputes. CapitaLand and the trade unions enjoy a cordial working relationship, promoting positive working conditions and improving productivity for the mutual benefit of employees and the company. Currently, 44.4% of our workforce are union members.
CapitaLand has a re-employment policy in place for employees who have reached the mandatory retirement age of 62 but are still able and willing to continue working for the company. In 2017, we have seven employees who were above retirement age.
Ethics and Integrity
CapitaLand adopts a strong stance against bribery and corruption. In addition to clear guidelines and procedures for the giving and receipt of corporate gifts and concessionary offers, all employees are required to make a declaration on an annual basis where they pledge to uphold CapitaLand's core values and not to engage in any corrupt or unethical practices. This serves as a reminder to all employees to maintain the highest standards of integrity in their work and business dealings.
CapitaLand's zero tolerance policy towards bribery and corruption extends to its business dealings with third parties. Pursuant to this policy, CapitaLand requires that certain agreements incorporate anti-bribery and anti-corruption provisions.
A whistle-blowing policy and other procedures are put in place to provide employees and parties who have dealings with CapitaLand with well defined, accessible and trusted channels to report suspected fraud, corruption, dishonest practices or other improprieties in the workplace. It also allows for the independent investigation of any reported incidents and appropriate follow up action. Substantiated whistleblowing cases are reported quarterly to the CapitaLand Audit Committee and shared with the Risk Champions regularly.
CapitaLand adheres to an ethics and code of business conduct policy which deals with issues such as confidentiality, conduct and work discipline, corporate gifts and concessionary offers. Clear policies and guidelines on how to handle workplace harassment and grievances are also in place.
The policies implemented aim to help to detect and prevent occupational fraud in mainly three ways. First, we offer fair compensation packages, based on practices of payfor- performance and promotion based on merit, to our employees. We also provide various healthcare subsidies and financial assistance schemes to alleviate the common financial pressures our employees face. Second, clearly documented policies and work procedures incorporate internal controls which ensure that adequate checks and balances are in place.
Periodic audits are also conducted to evaluate the efficacy of these internal controls. Finally, we seek to build and maintain the right organisational culture through CapitaLand's core values, educating our employees on good business conduct and ethical values.
To instill CapitaLand's core values and principles, new hires undergo the CapitaLand Immersion Programme which includes a mandatory module on anti-corruption policies and procedures. Employees were retrained to see how these values can apply to their daily work.
CMT's occupational health and safety target for the forthcoming year is for zero work-related injury resulting in staff permanent disability or fatality.
CapitaLand aims to provide a work environment that is safe and contributes to the general well-being of the employees.
In Singapore, CapitaLand implemented a Total Well-Being Programme to promote health and well-being of its staff. We regularly organise recreational, team building events and brainstorming workshops to reinforce organisational cohesiveness as part of our concerted efforts to engage our workforce. In 2017, activities such as complimentary health screenings, free flu vaccinations and health-related activities were organised to encourage a well-balanced and healthy lifestyle among employees. Recreational activities also included CapitaLand Family Day, a movie day, a durian feast, an annual teambuilding event and an annual dinner party. Regular exercise sessions such as yoga and Zumba classes, are organised to promote an active lifestyle. Tips on healthy living and exercise were updated on the CapitaLand's intranet.
We also supported annual national campaign 'Eat with Your Family Day' in May 2017 by giving employees time off to leave offices earlier to dine with their families.
To provide our employees with a better work-life balance, we have a flexible work arrangement policy which permits flexible working hours, working from home or part-time work arrangements.
Occupational Health and Safety
All employees are expected to take ownership of OHS issues, and encouraged to be proactive in reporting all OHS-related incidences alongside non-compliance and non-conformities.
In 2017, we recorded an absentee rate of 6.8 days. In terms of work-related injuries, there were two reported incidents in 2017 versus one case in 2016. The affected staff have since returned to work. We have further tightened our safety measures and standard operating procedures.
We have a duty of care to ensure occupational health and safety of all employees and monitor our operations to ensure safety risks are controlled.
We complied fully with OHS laws and regulations in Singapore. During the year, we reported zero staff workrelated permanent disability or fatality.
In 2018, our OHS target is for zero incident resulting in staff permanent disability or fatality.
As satellite hubs, CMT's malls are strategic channels to engage the local community through activities held in partnership with government and community organisations that promote heritage, healthy living, environmental sustainability and other community causes.
We are committed to building safe, accessible, vibrant and quality developments to enhance the lives of members of the community around all our operations. Our social integration criteria include:
These design considerations are integrated into the CapitaLand's SBG to ensure that they are considered from the start of the project development process. Universal design considerations ensure that public spaces in our projects are accessible to users of different age groups and varying abilities. These include:
All our properties have at least one disability access enabled facility. These facilities include accessible alighting and boarding bays, lifts, parking lots and public toilets. Our shopping malls are guide-dog friendly.
During the year, we collaborated with a number of non-profit organisations to bring various activities and events into our malls to promote heritage, community causes, healthy living and the environment.
Bukit Panjang Plaza partnered neighbouring schools and community groups to celebrate Racial Harmony Day with a series of fun activities that fostered community bonding and social cohesion. The event featured multi-cultural and modern dance performances by students and interest groups, as well as heritage booths that taught the making of traditional malay bunga manggar and chinese calligraphy.
In conjunction with the Singapore Heritage Festival, Junction 8 partnered with the National Heritage Board on a 3D national monuments exhibition. A selection of Singapore's landmarks was featured in the exhibition. Shoppers experienced the history of important communities and pioneering leaders behind the landmarks by wearing 3D glasses.
To commemorate 50 years of national service in Singapore, Westgate hosted the NS50 Army Open House roving exhibition during the June school holidays. The open house included videos and interactive displays that chart the evolution of national service and recognise the contributions of national serviceman, attracting over 22,000 visitors. The event was graced by former President Mr Tony Tan.
Bedok Mall supported the fostering service roadshow conducted by Ministry of Social and Family Development to spread the awareness of foster families. The mall also supported the roadshow by the National Silver Academy which offered various initiatives and platforms where third agers can self-discover and enhance different dimensions of wellness in their journey of positive ageing.
Bugis+ was the venue sponsor for the sports charity event organised by Operation Guardian Angel. CrossFit athletes gathered together to perform a short workout in exchange for donations by the friends and families of the athletes. The proceeds received were pledged towards the Downs Syndrome Association (Singapore).
JCube hosted the 'I Quit' roadshow that aimed to increase awareness, engage smokers to quit smoking and stay smoke free for 28 days.
Lot One hosted BigHearts Community Carnival organised by Citi-YMCA Youth for Causes together with St Luke's Hospital to raise funds for the hospital. Carnival activities included game booths, sale of handicrafts made by patients and volunteers, health talk on dementia and tote bag workshop.
The Children's Cancer Foundation also held a fundraising event through sale of handmade tulips, collar pins and tote bags at Lot One. Shoppers were invited to fold cranes with encouragement messages forÏ the children suffering from cancer. Student performers from the Eusoff Hall National University of Singapore also lent their voices at Lot One to raise funds for MINDS Clementi, a training and development centre for persons with intellectual disability.
In conjunction with International Women's Day, Raffles City Singapore encouraged shoppers to donate their unwanted lipsticks, of which CapitaLand Hope Foundation, the charity arm of CapitaLand, donated S$2 for each lipstick collected, in aid of Very Special Arts Singapore. Cultural Medallion's recipient Chng Seok Tin, a visually-impaired multiple award-winning printmaker, sculptor and multi-media artist, created an art installation with these lipsticks for display.
CapitaLand's key annual corporate social responsibility programme 'My Schoolbag', held for the ninth consecutive year, reached out to over 1,000 underprivileged children from low-income families. To bring across the message of a cohesive environment at our malls and to promote inclusivity among shoppers with diverse backgrounds and needs, the programme also included special needs children from MINDS, Rainbow Centre, Dyslexia Association of Singapore, Society for the Physically Disabled, Association for Persons with Special Needs and Metta School. The beneficiaries were treated to a half-day edutainment at four malls namely IMM, Junction 8, Lot One, and Tampines Mall. Staff volunteers guided them through activities where they learnt about money management and home-grown plants used in local food. BCA also supported the programme with two musicals 'The School in the Glass City Musical' and 'Safety in Lifts and on Escalators' where the beneficiaries were educated on environmental sustainability and safety practices in buildings.
Bukit Panjang Plaza hosted Health Promotion Board's (HPB) Eat, Drink, Shop Healthy Challenge where shoppers won prizes by downloading the Healthy 365 app and scanning the QR code on receipts from participating stores.
HPB organised the KidZPop PlayFest at IMM to promote responsible snacking habits and active lifestyle among kids. Participants learnt to achieve a healthier lifestyle through fun activities, such as a larger-than-life 'Snacks & Ladders' game and the ice cream maker role-play supported by KidZania.
Tampines Mall was the venue partner for the HPB's National Steps ChallengeTM mini-walk event where participants assembled at the mall for a mass workout, 3-kilometre walk around Tampines Central and fun activities. Participants were excited as they hunted for clues at selected stores, which are HPB's Healthier Dining Programme partners, to win prizes.
To promote a healthier lifestyle amongst shoppers, Bukit Panjang Plaza, IMM, JCube, Junction 8, Lot One and Tampines Mall hosted regular week day fitness sessions at the community plazas, in collaboration with the local community clubs, community development councils, fitness centres and HPB. These include workouts such as aerobics, Bollywood dancing, kickboxing, yoga and Zumba.
In conjunction with Get Active! Singapore, a week-long sporting bash in celebration of National Day, an immersive multi-media fitness experience was set up within a geodesic dome at Raffles City Singapore. Participants cycled through space and time with the aid of a panoramic display that changes scenery as they pedalled on the stationary bikes, encouraging shoppers to exercise regularly.
Most of our properties are conveniently located close to transport hubs such as MRT stations and bus interchanges. This allows easy access to the surrounding communities and facilities. Free shuttle bus services are also available at some of our properties. Bicycle parking facilities are also provided at many of our properties.
JCube, IMM and Westgate introduced bike sharing pick up and parking zone at the malls to provide convenience to the shoppers and encourage utilisation of green transport.
To communicate the message in a bigger way on climate change and promote the usage of green transport, Plaza Singapura invited shoppers to use their pedal power on stationary bikes to light up a mini clock tower as part of the Live Out Your Tsum-sational Adventure carnival in March 2017. While pedaling, the mileage on the stationary bikes were recorded. In celebration of Earth Hour, the mileage clocked by shoppers at Plaza Singapura were combined with that contributed by shoppers in other CapitaLand malls across Singapore, China, Malaysia, Japan and India, which held different cycling-related events to achieve the target distance of 40,075 kilometres collectively, equivalent to the Earth's equatorial circumference.
Programme for Tenants
Biz+ Series 2017, a tenant engagement programme comprising seminars, workshops and networking sessions, was themed on Millennials and Phygital. Retail Future 2017 entitled 'Capturing the Millennial Dollar' held in May 2017 brought together speakers from IBM, Sephora, TBWA and local millennial entrepreneurs to share case studies in engaging millennials, the appeal of the sharing retail economy and new market initiatives that merge the digital and physical worlds to create a seamless offline-and-online experience. Two other seminars focusing on millennial customer loyalty and phygital technology such as augmented reality and artificial intelligence applications in retail were also organised to inspire retailers to innovate.
A CEO breakfast roundtable session titled 'Magnify the in-store experience' was organised in September 2017 where leaders of various retail brands came together for a lively discussion on phygital trends and innovations.
The UN SDGs call on companies everywhere to advance sustainable development through the investments they make, the solutions they develop, and the business practices they adopt. In doing so, the goals encourage companies to reduce their negative impacts while enhancing their positive contribution to the sustainable development agenda.
Some of CMT's key efforts and programmes in relation to the key SDGs are highlighted below.
GRI Standards Content Index for 'In accordance' - Core
|102-1||Name of the organisation||CapitaLand Mall Trust|
|102-2||Activities, brands, products, and services||Corporate Profile, page 1|
|102-3||Location of headquarters||Back page|
|102-4||Location of operations||Corporate Profile, page 1|
Property Portfolio, page 15
|102-5||Ownership and legal form||Trust Structure, page 9|
|102-6||Markets served||Corporate Profile, page 1
Property Portfolio, page 15
|102-7||Scale of the organisation||Property Portfolio, page 15|
|102-8||Information on employees and other workers||Our People, page 74
Data collected to be accurate as at 31 December 2017
|102-9||Supply chain||Stakeholder Engagements, page 62
Key Performance Indicators, page 65
Supply Chain Management, page 74
|102-10||Significant changes to organisation and its supply chain||No significant changes|
|102-11||Precautionary principle or approach||CMT does not specifically address the principles of the Precautionary approach|
|102-12||External initiatives||CMT subscribes to the UDCG and the UNSDGs|
|102-13||Membership of associations||Investor and Media Relations, page 51
Governance, page 66
Stakeholder Engagement, page 78
|102-14||Statement from senior decision-maker||CEO's Message, page 58
Board Statement, page 59
|Ethics and Integrity|
|102-16||Values, principles, standards, and norms of behaviour||CEO's Message, page 58
Board Statement, page 59
|102-18||Governance structure||Management Structure, page 61|
|102-40||List of stakeholder groups||Stakeholder Engagements, page 62 - 63|
|102-41||Collective bargaining agreements||Freedom of Association, page 76|
|102-42||Identifying and selecting stakeholders||Stakeholder Engagements, page 61 - 63|
|102-43||Approach to stakeholder engagement||Stakeholder Engagements, page 61 - 63|
|102-44||Key topics and concerns raised||Stakeholder Engagements, page 62 - 63|
|102-45||Entities included in the consolidated financial statements||Financial Review, page 90 - 93
Notes to the Financial Statements, page 155
|102-46||Defining report content and topic Boundaries||About this report, page 60
Materiality, page 64
Within the organisation:
Within and outside of the organisation:
|102-47||List of material topics||Materiality, page 64|
|102-48||Restatements of information||See data charts|
|102-49||Changes in reporting||No significant changes in reporting|
|102-50||Reporting period||1 January 2017 - 31 December 2017|
|102-51||Date of most recent report||17 February 2017|
|102-53||Contact point for questions regarding the firstname.lastname@example.org|
|102-54||Claims of reporting in accordance with GRI Standards||In accordance with Core|
|102-55||GRI content index||www.cmt.com.sg|
|102-56||External assurance||We have not sought external assurance on this report specifically, however, our Sponsor does seek assurance and data is shared between the two entities|
|103-1||Explanation of the material topic and its boundary||Materiality, page 64
Management Structure, page 61
See each material factor section
|103-2||The management approach and its components|
|103-3||Evaluation of the management approach|
|201-1||Direct economic value generated and distributed||Message to Unitholders, page 5 - 6
Financial Review, page 90 - 94
|205-3||Confirmed incidents of corruption and actions taken||Business Ethics, page 45 - 46, 66|
|302-1||Energy consumption within the organization||Energy Efficiency, page 69
Climate Change and Emissions Reduction, page 70
Only energy consumed is purchased electricity or from our own PV systems
Data collected from utility bills
|302-4||Reduction of energy consumption||Energy Efficiency, page 69|
|G4-CRE1||Building energy intensity||Energy Efficiency, page 69|
|303-1||Water withdrawal by source||Water management, page 71 - 72
Only water used is from public utilities and
NEWater. Data is collected from utility bills.
|G4-CRE2||Building water intensity||Water management, page 71|
|305-2||Energy indirect (Scope 2) GHG emissions||Climate Change and Emissions Reduction, page 70 - 71|
|305-4||GHG emissions intensity||Climate Change and Emissions Reduction, page 70 - 71|
|305-5||Reduction of GHG emissions||Climate Change and Emissions Reduction, page 70 - 71|
|G4-CRE3||Greenhouse gas (GHG) emissions intensity from buildings||Climate Change and Emissions Reduction, page 70 - 71|
|Occupational Health and Safety|
|403-2||Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities||Occupational Health and Safety, page 78
Occupational diseases not included due to
|G4-CRE6||Percentage of the organisation operating in verified compliance with an internationally recognised health and safety management system||Occupational Health and Safety, page 78|
|Training and Education|
|404-1||Average hours of training per year per employee||Learning and Development, page 76|
|404-3||Percentage of employees receiving regular performance and career development reviews||Learning and Development, page 76|
|413-1||Operations with local community engagement, impact assessments, and development programs||Our community, page 78
Community Causes, page 79
Healthy Living, page 80
|Supplier Social Assessment|
|414-1||New suppliers screened using social criteria||Stakeholder Engagements, page 62
Key Performance Indicators, page 65
Supply Chain Management, page 74
|Customer health and safety|
|416-2||Incidents of non-compliance concerning the health and safety impacts of products and services||Products and Services - Customer Health and Safety, page, 66|
|419-1||Non-compliance with laws and regulations in the social and economic area||Compliance, page 23 - 46, 66|
|UNGC Principle||How we align||More details|
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights
Principle 2: make sure that they are not complicit in human rights abuses
|As part of CapitaLand, one of the common goals is to uphold the spirit of international human rights conventions, such as the Universal Declaration of Human Rights and the International Labour Organisation (ILO) Conventions, against coerced labour and discrimination in any form. Singapore has to date ratified 20 ILO Conventions covering four key areas of employment standards: child labour, forced labour, collective bargaining and equal remuneration.||Refer to page 66, 74 - 77|
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect of employment and occupation.
|We are committed to be a workplace of choice for employees. CapitaLand has in place an integrated human capital strategy designed to recruit, develop and motivate employees. It adopts stringent principles of fair employment and equal remuneration. CapitaLand has signed the Employersâ Pledge for Fair Employment Practices with The Tripartite Alliance for Fair and Progressive Employment Practices.||Refer to page 74 - 77|
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; and
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
|We are committed to environmental sustainability and the enhancement of value as a real estate owner. By leveraging on technologies and analytics in optimising the usage of energy, water as well as waste management across our properties, we believe that we can manage our business better and create long-term value for all stakeholders.||Refer to page 67 - 73|
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
|We adopt a strong stance against bribery and corruption.||Refer to page 66|