At CDL, it’s full steam ahead on the sustainability train
Property developer wants to break barriers for sustainability practices, and get the local community in on the ride
AN OLD train carriage has arrived outside City Square Mall and will soon serve as the venue for a sustainability exhibit and workshop space.
The entity behind this initiative is not a non-profit organisation or a government body. Instead, it is a property developer – but one with a reputation for sustainability.
City Developments Limited (CDL), one of Singapore’s largest real estate groups, designed City Square Mall as the country’s first eco-mall, and is now installing an exhibition area outside it. It will open towards the end of 2024.
Developed in collaboration with Just Keep Thinking – a social media channel focused on science, nature and sustainability – the CDL Eco Train will feature eco-themed displays and a workshop space for various eco programmes.
Why is a property developer supporting a sustainability exhibition? The answer to that question is the reason CDL was named Impact Enterprise of the Year in the large enterprise category at the 2024 Sustainability Impact Awards.
Jointly presented by The Business Times and UOB, the award recognises businesses and individuals who have had a positive impact on the environment and community.
CDL, which has built a name for its green buildings, is taking its sustainability focus further into the community and advocating for awareness and greener practices.
“In the early days, people thought we were crazy for prioritising sustainability; but now that the climate agenda is mainstream and climate change poses a significant danger to our planet and our lives, we are seen as visionary because we started so early,” said Sherman Kwek, CDL’s group chief executive officer.
“From adopting smart design to using sustainable materials to incorporating innovative technology, it’s been a long journey that hasn’t always been smooth. We’ve faced many struggles and pushback, but this recognition inspires us to work harder towards our net zero goals.”
Early start
The group started embracing sustainability around 30 years ago, led by its late deputy chairman Kwek Leng Joo.
He spearheaded many environmental projects – including the world’s first green library for children at the National Library Building; and the CDL Green Gallery, an educational hub that showcases Singapore’s sustainability efforts.
CDL has also used its leading market position to educate homebuyers on how they can adopt a more eco-friendly lifestyle.
Since 2004, the group has distributed Green Living Guides to homeowners who bought units in condominiums developed by CDL. The guides encourage them to actively use the green features and facilities within their homes and common areas.
The group’s condominiums are designed to be water and energy-efficient, with extensive greenery.
Kwek said: “As a green developer, urban greenery and landscaping are key differentiators for CDL’s developments. Our new residential developments devote over 40 per cent of site area to landscaping and communal facilities incorporating innovative designs and features, surpassing regulatory requirements.”
In 2014, CDL’s Tree House condominium was awarded the Guinness World Record for having the largest vertical garden in the world.
The Bukit Timah condominium has a 24-storey green wall that reduces the building’s heat absorption by up to 3 degrees Celsius, allowing it to achieve more than 2.4 million kilowatt-hours (kWh) in energy savings annually.
As technology advances, so have CDL’s practices. At Irwell Hill Residences, a CDL-developed condominium, carbon dioxide mineralisation technology was applied during the construction of the clubhouse last year.
Carbon dioxide was injected into fresh concrete mixtures, helping to reduce embodied carbon – the amount of carbon emitted during the construction of a building – in its concrete products.
To ensure its greening process never stops, CDL has been working with startups to pilot new technologies that will bring it closer to its goal of achieving net zero carbon for the operation of buildings under its direct control by 2030.
The group has partnered the Singapore University of Technology and Design to pilot a distributed carbon capture solution at Republic Plaza that directly removes carbon dioxide from the air.
The results collected will contribute towards improving the smart decarboniser system, and the solution could possibly be scaled up commercially.
“We collaborate with industry players and policymakers to co-develop policies and accelerate impact investing in proptech funds, startups and scale-ups to pilot innovative technologies targeted at sustainable building and climate solutions,” said Kwek.
CDL’s approach extends beyond new buildings to old ones, and beyond its property development business to its corporate actions.
“The building and construction sector accounts for about 40 per cent of global carbon emissions, which is very substantial,” Kwek said.
“We recognise the need to drive change by integrating environmental, social and governance (ESG) considerations into all aspects of our business operations.”
Kwek added that when the group renovates or redevelops existing assets, it strives to include green retrofits that will lower energy consumption, increase decarbonisation and achieve a higher level of green building certification.
In 2022, CDL also established a set of sustainable investment principles to evaluate investments against a detailed checklist of ESG factors – including impact on the environment and community.
Reaping rewards
As technology improves and buildings get better, the impact of green practices is becoming more tangible.
CDL’s newly launched condominiums Tembusu Grand and Lumina Grand were both awarded the Building and Construction Authority’s Green Mark Platinum Super Low Energy accolade.
This means both buildings have been designed to achieve at least 60 per cent energy savings compared with 2005 levels.
Newport Plaza, which is coming up on the former Fuji Xerox Towers site, has been recognised as Singapore’s first Green Mark Platinum Super Low Energy mixed-use development.
When completed, the development’s solar photovoltaic system will be able to meet about 30 per cent of the energy needs for Newport Plaza’s residential common areas.
The building’s green features are expected to translate into cost savings of about S$450,000 per year.
Cost savings are becoming sufficient to motivate property buyers to demand green features, although they may not be willing to pay more yet.
“Homebuyers have come to expect energy-efficient features in their new homes, leading to a shift in expectations,” Kwek said.
“Having said that, buyers are still very sensitive to home prices. Buying a home represents a very significant capital outlay for them, and it may take a while before we witness premiums for energy-efficient homes.”
Adoption of green practices is also becoming more common. Since 2017, all of CDL’s retail and office tenants have signed a green lease.
The green lease programme, which CDL has had in place since 2014, involves tenants committing to follow a set of green guidelines for their fitting-out works and operations.
Pushing ahead
In recent years, CDL has been working to reduce its Scope 3 emissions. These are emissions generated by its suppliers in the course of doing business with CDL.
CDL in May became the first real estate company to launch the SME Supplier Decarbonisation Queen Bee Programme, which will allow it to access carbon data from 100 of its suppliers.
Small and medium-sized enterprises that are part of the programme will be able to tap the expertise of the programme’s sustainability consultancy partner Global Green Connect to develop decarbonisation road maps and implement greenhouse gas reduction targets.
One of CDL’s suppliers on board the programme is local paint manufacturer Gush. It has mapped out each stage of its supply chain and identified opportunities to streamline its logistics processes to reduce carbon emissions.
“As a developer and client in the building value chain, we recognise our role in driving change in reducing carbon emissions among our suppliers, especially Scope 3 emissions,” said Kwek.
“Through the SME Supplier Decarbonisation Queen Bee Programme, we aim to enable our SME suppliers to build knowledge and IT platforms for carbon accounting and reporting.”
As part of its commitment to sustainability advocacy, CDL in July announced the opening of a 2,690 square foot annex at the Singapore Sustainability Academy.
The academy was opened in 2017 with several industry partners to provide a platform for the community to exchange knowledge and build partnerships in support of climate action.
It has hosted over 1,000 events and training sessions, welcomed over 35,000 visitors and engaged more than 100 partners.
The group sees value in generating more support for climate initiatives, especially among young people.
“As our leaders of tomorrow, our youth are concerned about the climate crisis and they are in the position to play a vital role in raising awareness and mobilising climate action,” said Kwek.
“The impact and consequences of today’s environmental policies and actions will predominantly affect future generations.”
Since 2011, CDL has co-organised an annual business case competition with sustainability advocate Global Compact Network Singapore (GCNS). Young people are given the opportunity to work on real business cases with companies, and come up with solutions for climate action.
Reflecting on the company’s journey, Kwek said: “Seeing our sustainability efforts make a tangible and positive difference to our planet has been meaningful.
“No single individual or corporation can possibly change the world on its own. National and global collaboration is required to stem the onslaught of climate change.”
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