CDL: Amendments to pages 73 and 74 of Annual Report for Financial Year Ended 31 December 2016

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CITY DEVELOPMENTS LIMITED

Announcement Details

Annual Reports and Related Documents

SUBJECT: AMENDMENTS TO PAGES 73 AND 74 OF THE ANNUAL REPORT FOR FINANCIAL YEAR ENDED 31 DECEMBER 2016

With reference to the CD-Roms containing the Annual Report for Financial Year ended 31 December 2016 ("AR 2016") of City Developments Limited (the "Company"), which were dispatched to shareholders of the Company on 27 March 2017, the Company wishes to inform that there were some tabulation adjustment and reinstatement to a few numerals relating to energy usage and Greenhouse Gas (GHG) emissions as set out in charts numbered 2, 3 and 4 appearing on pages 73 and 74 of AR 2016. The revised pages, which are part of the Sustainability Board Statement, are annexed to this announcement.

Shareholders may also refer to the updated PDF version of AR 2016 which has been uploaded on the Company's website, www.cdl.com.sg and on Singapore Exchange Limited's website, www.sgx.com

By Order of the Board

Enid Ling Peek Fong Company Secretary 27 March 2017

Additional Details

31/12/2016

CDL_AR_Amended pages.pdf Total size =50K

27/03/2017 17:13:33

http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=Announcem...

3/27/2017

Strengthening Sustainability-centric Capitals

Financial Capital

CDL assesses its market performance beyond short-term gains and the financial bottom line, and firmly believes in a balanced triple bottom line for long-term growth and value creation for shareholders.

Highlights of CDL's FY2016 financial performance can be found on page 12.

Organisational Capital

The Board and Management are committed to good business ethics, a strong culture of responsibility and an effective control system.

Natural Capital

Natural resources are finite and their availability directly affects CDL's bottom line and capacity to create safe and efficient spaces for its customers.

Since 1995, CDL has put in place a host of policies, best practices and initiatives to mitigate our environmental impact.

In 2016, CDL achieved 27% reduction in energy use intensity across the entire company, exceeding its 25% target set for 2030.

Aligning with Singapore's national commitment to the Paris Agreement, CDL has voluntarily raised its Greenhouse Gas (GHG) emissions intensity reduction targets from 25% to 38% by 2030 against baseline year 2007. In 2016, CDL has reduced GHG emission intensity by 22%, on track to achieving the original target set for 2020.

1. Energy Used in CDL's Core Business: Projects, PFM, Corporate Office

   • Corporate Governance

     CDL has a comprehensive set of Corporate Policies and Guidelines in place. These include the Code of Business Conduct and Ethics, as well as policies on Anti-corruption, Whistle-blowing, Human Rights etc. They are available on the corporate website and intranet, and disseminated to all employees for annual e-declaration. More information on CDL's Corporate Governance practices and guidelines can be found on pages 34 to 61.

     62,647 61,398

     5,074
     55,743	7,051	8,160	7,679
     46,965	45,937	47,336

     5,838

     56,213

     54,629

     54,651

     55,550

     Energy Used (MWh)

     596 581

     613

     554 535

   • Risk Management

     Since 2002, CDL has established an Enterprise Risk Management

     2012

     2013 2014 2015 2016

     Energy Used (MWh)

     (ERM) framework to identify, assess, monitor, manage and review significant business risks regularly. A Control Self- Assessment (CSA) programme implemented across CDL's core business operations further promotes ownership and accountability in proactively assessing risks, and inculcates good governance. The CSA programme was expanded to key local subsidiaries and CDL plans to introduce it to overseas operations in 2017.

     329

     422

     440

     999

     1,025

     More information of CDL's ERM can be found on pages 62 to 66. Material ESG risks are also listed on page 72.

     CDL Construction Sites

     CDL Commercial and Industrial Buildings CDL Corporate Office

     54,629

     54,651

     55,550

     458,931*

     457,799*

     460,521

2. Energy Used in CDL and 6 Key Subsidiaries

   31,500

   35,255

   41,358

   • Brand and Reputation

   Beyond our policies, processes and tacit knowledge, CDL values the trusted brand image and positive reputation gained through its sustainability track record and achievements which are listed on page 25.

   177

   186

   209

   1,780

   1,872

   1,932

   244

   CDL CBM CDLHT CSO Le

   Grove

   Tower Club

   M&C*

   2014 2015 2016

   * Oct - Sep data.

   BUILDING VALUE TARGETING GROWTH 73

   SUSTAINABILITY BOARD STATEMENT

3. GHG Emissions from CDL's Core Business: Projects, PFM, Corporate Office

   CDL Corporate Office

   2,858

   27,743

   CDL Commercial and Industrial Buildings

   3,027

   1,264

   2,640

   23,239

   CDL Construction Sites

   Emissions (tonnes CO2e)

   21,130

   22,346

   4447

   52 38

   291

   151

   276

   270

   642	614 546	2,525	1,022	1,118	1,316
   1,703	1,401	572	658	187	104	71	66

   262

   4,289 5,241 4,468

   2013

   2014

   2015

   2016

   2013

   2014

   2015

   2016

   2013

   2014

   2015

   2016

   Scope 1 Scope 2 Scope 3

4. GHG Emissions from CDL and 6 Key Subsidiaries

Emissions (tonnes CO2e)

7,363

22,428

2014

16,634

59,200

262,918

6,557

23,734

2015

7,690

14,467

60,543

296,906

7,146

24,817

2016

7,091

58,021

273,257

98 148

80

801

60,938

911

132

103

17,568

216

948 503

2,147

30 2,772 8

53 9

31,808

38 4 22 11

1,270 58

1,528@

1 21 7

29,125

CDL

CBM CDLHT CSO

Le Tower M&C*

CDL

CBM CDLHT CSO

Le Tower M&C*

CDL

CBM CDLHT CSO

Le Tower

M&C

Grove Club

Scope 1 Scope 2 Scope 3

Grove Club

* Oct - Sep data. @ Excluding emissions from waste disposed.

Grove Club

Since 2010, CDL has practiced Biodiversity Impact Assessments for new development sites on a voluntary basis. For Forest Woods condominium launched in 2016, CDL voluntarily conducted an environment study similar in scope to an Environment Impact Assessment. The three-month study was tailored to determine the environmental baseline of the brownfield site, and to understand the environmental impacts that may arise from demolition and construction activities.

Environmental indicators such as the wind, lighting and shading effect of the new development; water quality, air quality, noise production, waste management from the construction activities, and the biodiversity of existing flora and fauna were studied. 36 species of animals and 31 species of plants were identified, with the Black Morinda trees observed to be the rarest in Singapore.

Manufactured Capital

CDL's commitment to quality, innovation and green building has strengthened its manufactured capital, enhancing brand equity and creating greater value for customers and investors.

CDL was awarded the Quality Excellence Award - Quality Champion (Platinum) by the Building and Construction Authority (BCA) in 2016, the only developer to have received this highest honour for four consecutive years.

Over the years, CDL's green building efforts have translated to tangible benefits for CDL and our customers. A saving of $16 million was achieved as a result of the energy-efficient retrofitting

CITY DEVELOPMENTS LIMITED

74 ANNUAL REPORT 2016

and initiatives implemented for eight office buildings from 2012 to 2016, directly benefiting CDL's financial bottom line.

Since 2011, CDL has set a minimum target for all its new developments to be certified BCA Green Mark GoldPLUS, beyond the mandatory Green Mark certification level. Today, more than 70% of CDL's portfolio of 86 Green Mark certified developments and office interiors are rated Green Mark GoldPLUS and Platinum - the highest tier certification.

Beyond green infrastructure, proactive steps were taken to promote eco-friendly behaviour amongst tenants. On top of providing a real-time digital energy monitoring portal to help tenants better control and manage energy usage, CDL further introduced a 1% electricity rebate for tenants who attained 2% savings over the previous quarter's bill.

As of end 2016, over 95% of existing tenants have pledged their commitment to the CDL Green Lease Partnership Programme by signing a Green Lease Memorandum of Understanding.

The health and safety of homebuyers, tenants and community in the vicinity are of utmost importance to CDL. Great emphasis is placed on the structural stability of CDL's buildings, fire safety compliance, and the integrity of building materials to ensure high safety standards. Qualified professionals like resident engineers and technical supervisory staff are engaged to ensure projects are built in accordance with building regulations and codes. Builders are expected to meet CDL's high standards of quality, safety and sustainability.