CDL's Journey Towards Sustainable Business Development

1/28/2019 Unit 7 Assignment - MT140 Introduction to
Management
https://purdueglobal.brightspace.com/d2l/le/content/76155/view
Content/6507023/View 1/2
This assignment consists of reading the following business
management scenario and composing a paper regarding
the use of teamwork to resolve a management problem.
This Assignment will be used to assess the following
Course Outcome MT140-1: Describe solutions to
management problems.
You are an owner and executive level manager of a
business with eight locations. Your strategic goal is to
expand this business over the next 5 years. While you are
pleased with the past performance of the business overall,
you have spent a great deal of time over the previous
months visiting the eight locations and addressing issues
and concerns of the various employees and location
managers. It has become obvious to you that you are
unable to devote the time and energy necessary to focus on
necessary executive level activities to take the business to
the next level. All of your time seems to be spent addressing
small problems within the existing locations. You have heard
that other businesses have successfully used a team
approach to management with good results. You have
decided to examine this option for your business, managers,
and employees.
After reading the scenario above and the section on self-
managed teams in your assigned textbook readings,

compose a paper in which you explain the difference
between traditional and team working environments. Then
explain how effective self-managed teams could be built
and successfully implemented within your business. Finally,
describe how these teams could contribute to the overall
effectiveness of your business.
Minimum Submission Requirements:
Your Assessment paper should be at least 2 full double-
spaced pages in length, using size 12-point font in
Assignment Details
1/28/2019 Unit 7 Assignment - MT140 Introduction to
Management
https://purdueglobal.brightspace.com/d2l/le/content/76155/view
Content/6507023/View 2/2
spaced pages e gt , us g s e po t o t
Microsoft® Word®.
Be sure your paper is well written in paragraph form, with
correct spelling grammar and punctuation
Instructions:
· This is a group assignment with only 4 members. As discussed
and explained in the class, this assignment is a Case study.
· The students should read and analyze the Case study and
submit their report.

· The report should contain the following:
The Assignment should cover the following points:
1. Brief Overview (Describe the Company and issues discussed)
1. Situation Analysis (SWOT)
SMU Classification: Restricted

SMU366
CITY DEVELOPMENTS LIMITED: A JOURNEY IN
SUSTAINABLE
BUSINESS DEVELOPMENT
Companies with sustainability in their DNA are more resilient
and make a better business
model for success and long term growth. In the mid-1990s,
building sector was seen as
‘destroying before constructing’, CDL as a pioneering developer
was determined to change this
perception and committed to transforming our business strategy
to one that ‘conserves as we
construct’ for long term sustainability. From design,
construction, procurement, maintenance
and even user engagement, the entire cycle has been aligned
with environmental sustainability
in mind.
- Kwek Leng Joo, Managing Director, CDL1
It was January 2013, and Esther An, Head of CSR and General
Manager (Corporate Affairs) of
City Developments Limited (CDL), was busy in meetings with
the members of her CSR
Committee, planning key strategies for CDL’s proposed
sustainability framework for the coming
year. CDL was one of Singapore’s leading international
property and hotel conglomerates,
involved in real estate development and investment, hotel
ownership and management, facilities
management and the provision of hospitality solutions. The
group had developed over 22,000
luxurious and quality homes in Singapore, catering to a wide
range of market segments. In addition,

its London-listed subsidiary Millennium & Copthorne Hotels
plc owned and managed over 100
hotels spanning 70 locations in 19 countries.
CDL was widely recognised as a champion of sustainable
practices in Singapore. It was the first
company to be honoured with the President’s Social Service
Award and President’s Award for the
Environment in 2007. It was also the only developer to be
accorded the Built Environment
Leadership Platinum Award in 2009 and Green Mark Platinum
Champion Award in 2011 by the
Building and Construction Authority (BCA), the governing
authority for Singapore’s built
environment. CDL was the first Singaporean company to be
listed on all three of the world’s top
sustainability benchmarks - FTSE4Good Index Series since
2002, Global 100 Most Sustainable
Corporations in the World since 2010 and the Dow Jones
Sustainability Indexes since 2011. It was
a founding member of Singapore Compact for CSR, and one of
the pioneer Singapore signatories
of the United Nations Global Compact to lend support to the
advancement of responsible corporate
citizenship in Singaporean industry.
How could CDL reinforce the culture of sustainability that it
prided itself on? What could it do to
increase awareness of their sustainability vision in the
stakeholders? How would they influence
stakeholders to adopt sustainability best practices? These were
questions that An hoped to find
solutions for in the meetings with her CSR team.
1 Kwek Leng Joo, Managing Director, CDL, company
presentation, January 15, 2013.

This case was written by Professor Hwang Soo Chiat and
Havovi Joshi at the Singapore Management University. The case
was prepared solely to provide material for class discussion.
The authors do not intend to illustrate either effective or
ineffective handling of a managerial situation. The authors may
have disguised certain names and other identifying
information to protect confidentiality.
Copyright © 2013, Singapore Management University Version:
2013-08-29
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This document is authorized for educator review use only by
ABIRAMI DEVI SIVAKUMAR, Jubail University College until
Mar 2019. Copying or posting is an infringement of copyright.
[email protected] or 617.783.7860

SMU-13-0001 CDL: A Journey in Sustainable Business
Development
CDL

CDL was founded in 1963, with the purpose of acquiring,
developing and selling property. The
company went public in the same year, and its shares were
listed on what was then known as the
Malayan Stock Exchange. In 1965, CDL completed its first
housing project in Johor Bahru,
Malaysia, and also launched its first condominium, Clementi
Park, in Singapore. This was followed
by the 1966 launch of its first high-rise residential development
in Singapore, City Towers. In 1972,
the Hong Leong Group acquired a controlling interest in CDL
and embarked on strategic
diversification into commercial and industrial developments.
CDL then acquired more investment
and development properties such as Tanglin Shopping Centre,
Katong Shopping Centre, and
Queensway Shopping Centre and The Arcade. It thus emerged
as a major property developer in
Singapore. The company soon after ventured into the hotel
business.
The 1990s witnessed a period of rapid expansion and
regionalisation. CDL’s hospitality arm,
Millennium & Copthorne Hotels plc (M&C), which was the first
Singaporean company to be listed
on the London Stock Exchange, expanded to become one of the
largest hotel owners and operators
in the world.
These milestones saw CDL embark on a substantial growth path,
and in 2010, the group’s profit
before tax surpassed the S$1 billion (US$0.8 billion2) mark.
By end 2012, CDL had an extensive global network that
included over 300 subsidiaries and
associated companies across more than 80 locations in 20

countries. Further, five companies were
listed on the stock exchanges in New Zealand, Hong Kong,
London and Philippines.
For the financial year ending 31 December 2012, CDL recorded
revenue of US$2.72 billion with
profit after tax of US$699 million.3
Sustainability in Singapore
An commented:
CSR is fast becoming a licence to operate in some areas. For
example, in 2005 the ‘Green
Mark’ was launched. But in 2008, the basic certification level
of Green Mark was made
mandatory that any new development must meet that standard.
In 2005, the BCA Green Mark Scheme was launched by the
Singapore government as an initiative
to drive Singapore's construction industry towards more
environment-friendly buildings. It was
intended to “promote sustainability in the built environment and
raise environmental awareness
among developers, designers and builders when they started
project conceptualisation and design,
as well as during construction”.4
Then in 2009, in another key development, the Singapore
government, in consultation with its
people, came out with a Sustainability Blueprint. It defined
sustainable development for Singapore
2 US$1 = S$1.23 as at January 18, 2013.
3 Ibid.
4 Building & Construction Authority, About BCA Green Mark

Scheme,
http://www.bca.gov.sg/greenmark/green_mark_buildings.html,
accessed March 2013.
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Development
as growing the city state in a way that: 5
• Was efficient: develop with less resources and waste
• Was clean: develop without polluting our environment
• Was green: develop while preserving greenery, waterways and
our natural heritage

Listed companies were encouraged to adopt sustainability
reporting, with the release of the
Singapore Exchange Policy Statement on Sustainability
Reporting in June 2011, which stated that
“(I)ssuers should assess and disclose the environmental and
social aspects of their organisational
performance, in addition to the financial and governance aspects
that are already part of the
customary and regulatory disclosure practiced”.
In May 2012, the Monetary Authority of Singapore stated that
sustainability should be considered
as part of corporate governance and directors ought to consider
sustainability issues, such as
environmental and social factors, as part of their strategic
formulation (refer to Exhibit 1 for
regulatory developments in Singapore).
However, Christie Lee, Manager, Corporate Social
Responsibility, CDL commented, “The push to
CSR is still not that big in Singapore. In fact, many companies
have little understanding of CSR
and sustainability.”
Corporate Social Responsibility (CSR) at CDL
This is CDL’s 50th anniversary. In 1999, our MD spearheaded
the work improvement plan,
which involved all the CDL staff. The idea was that we must
brainstorm within the organisation.
We talked about global warming then, and we recognised that
energy, particularly increasing
electricity costs, was a key issue. At that time, there was no
green mark or any real push from
the government. So it was our own initiative to cut down our

carbon footprint. We were the
pioneer and the first to receive the Green Mark Gold award for
existing buildings in 2005.
- Anthony Goh, Deputy General Manager, Property & Facilities
Management
The seeds for CDL’s endeavours in developing new benchmark
for CSR excellence can be traced
to almost fifty years ago to the mid-sixties, based on its
founder’s firm belief that the success of the
company should be shared with the community. However, it was
years later, around the mid-1990s,
that the company’s CSR vision:
“To be a leader in business and a champion of CSR”,
along with its CSR Mission:
“To be a responsible corporate citizen who believes in creating
value for stakeholders, conducting
sustainable business practices, caring for the community and
protecting the environment”,
was integrated with its business and operations.
5 Singapore Government, Sustainable Singapore,
http://app.mewr.gov.sg/web/contents/ContentsSSS.aspx?ContId
=1291, accessed
January 2013.
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CSR was promoted after taking into account a broad range of
stakeholder engagement from several
parties such as CDL’s investors, customers, employees,
contractors, suppliers and the community
(refer to Exhibit 2 for the CSR Philosophy). Soon after, the
company also began to develop and
adopt international benchmark and standards for reporting,
which led to further awards and
achievements (refer to Exhibit 3 for CDL’s sustainability
rankings, benchmarking and awards).
In 2005, CDL became a founding committee member of
Singapore Compact for CSR, which was
(and continued to be) a national society promoting CSR among
the business community through

awareness dialogue and workshops. In the same year, it also
became one of the founding Singapore
signatories of the United Nations (UN) Global Compact to lend
support to the advancement of
responsible corporate citizenship in Singapore.
By 2011, CDL had been selected as an index component in the
Dow Jones Sustainability Indexes
(worldwide and in Asia Pacific), which were the first global
indices to track the financial
performance of leading sustainability-driven companies
worldwide. It thus was the only Singapore
property developer to be listed on both the Dow Jones
Sustainability Indexes and FTSE4Good
Index Series. CDL was also the only Singapore company to be
ranked amongst the ‘Global 100
Most Sustainable Corporations in the World’ for three
consecutive years (refer to Exhibit 4 for
Global 100 methodology).
In 2012, CDL became one of the five founding members of the
Business Council for Sustainable
Development (BCSD) in Singapore – which had been
established as a membership organisation
comprising leading local businesses and the regional arms of
international companies, with the
objective “to work with businesses locally to help foster
economic development in harmony with
environmental preservation and social development”.6
CDL’s CSR Strategy
CDL had a well-developed and rejuvenating corporate strategy
which was entrenched in the triple
bottom line approach. This implied developing properties that
were sustainable, functional and

financially marketable.
The three pronged approach was as follows:
• Developing quality and environmentally sustainable properties
(refer to Exhibit 5)
• Managing properties in a cost efficient and energy efficient
way (refer to Exhibit 6)
• Influencing stakeholders through outreach initiatives, working
closely with government
agencies and non-governmental organisations (refer to Exhibit
7)
There were many reasons that CDL’s CSR strategy was
successful. The company clearly had a
passion for CSR, which was far beyond legislative requirement.
Allen Ang, Deputy General
Manager, Projects commented:
At the project departments, our role is to develop residential
and commercial properties and
hand them over to our customers on time, within budget and in
good quality. We define the
sustainability context ‘as conducting responsible business
operations at a level over and above
6 wbcsd, Peter Bakker launches Business Council for
Sustainable Development Singapore, November 6, 2012,
http://www.wbcsd.org/Pages/EDocument/EDocumentDetails.asp
x?ID=15143&NoSearchContextKey=true, accessed January
2013..
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Development
the statutory and regulatory requirements’. We are very mindful
of the impact that our
development activities have on the environment. Globally, one
third of greenhouse gases are
contributed by the building sector. Large amounts of energy and
water are consumed, and
construction generates a lot of wastes, noise and dust. How do
we mitigate this, and how do we
address the safety and health of the workers? We approach all
these concerns and more with a

very integrated approach. From planning to design, and right
through to procurement and
construction - our job is to ensure that as we build, the impact
of our operations on the
environment, health and safety (or EHS), is mitigated.
We have very stringent ‘Green Procurement guidelines’ that
covers sustainable design and
construction. In the procurement of our contractors and
consultants, they must be committed to
upholding high EHS standards. Our contractors must not have
any fatalities as well for the past
1 year. Similarly, we have stringent requirements for the
procurement of suppliers and
materials: materials with green label, “green” concrete, energy
efficient air-conditioners, etc.
that we use for projects. These materials and equipment may be
more expensive than the
normal ones, however we believe that besides mitigating the
potential impact on the
environment, the use of such materials and equipment will also
translate into tangible benefits
for the end users.
In the area of social impact on account of employees’ health and
safety too, the company
clearly aspired to make a strong positive impact on its
stakeholders.
A Culture of Leadership
At CDL, we recognise that we are living in an interdependent
world. Business leadership will
not be sustained without stewardship in both social and
environmental aspects. CSR is not a
theory but an important management approach to achieve good

triple bottom line, do good and
do well at the same time for long term sustainability. If applied
strategically, practising CSR
will certainly add value to the business and achieve long term
growth and sustainability.
Currently, the uptake of CSR amongst Singapore companies
remains slow as many still see CSR
as a cost. Based on our humble experience at CDL, we see CSR
as an investment and we have
indeed reaped tremendous benefits in both tangible and
intangible ways. Most importantly, we
are happy to say that while we operate to meet the needs of the
present, we are not
compromising the ability of our future generations to meet their
needs.
- Esther An, Head of CSR and General Manager (Corporate
Affairs), CDL
Ang commented:
We were among the very first to adopt the ‘Green Mark’
scheme. This stems from our top
management’s commitment and firm advocacy of EHS. They
have clearly supported the
implementation of green design and features in our projects,
agreeing to allocating 2-5%
construction costs of a new development for such features and
innovations in our
developments…. We have a very open and supportive top
management in terms of innovation
and CSR. As a market leader, we believe we must do things that
others don’t do. This
differentiates us. And what others do, we must do better. That’s
how we started this EHS
journey and began driving innovations in every of our

developments, so as to be a leader in our
field. Every project we want at least one innovation that no one
else has done. This is our
personal KPI - that we should be a leader in our field. An
example of one such innovation is the
implementation of a home energy management system for one of
our developments that helps
the home owner monitor their overall energy consumption and
control their air-conditioner
units individually through their I-pads.
Organisational Structure as a key CSR Enabler
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In 2008, CDL formally established a framework listing CDL’s
significant CSR issues and the core
stakeholders involved. In a significant CSR development, it
established the CSR Committee to
better align its CSR initiatives with the company’s business
strategy. The CSR committee
comprised senior managers from the company, and reported
directly to the Managing Director
Kwek Leng Joo. It was responsible for CDL’s CSR Key
Performance Indicators (KPIs) and targets,
and formulating and managing programmes to improve its social
and environmental performance
in the areas of focus. These key CSR areas of focus were the
Environment, Employee Relations,
Corporate Governance and Risk Management, Stakeholder
Relations and Community.
The culture is such that missing a KPI is not deemed a failure,
but a case for providing positive
reinforcement.
Excellent Reporting and Communication Standards
CDL was one of the few companies in Singapore that produced
dedicated sustainability reports.
The report was externally validated by Ere-S, a consulting
company that specialised in business
sustainability and provided services in the domains of
sustainability reporting, sustainability report
assurance, stakeholder engagement and CSR training. CDL’s SR
was also GRI certified.7
CDL’s sustainability report clearly measured its performance in
terms of “achieving business

excellence while maintaining good social and environmental
performance”. The report touched
upon various dimensions in each of these three spheres –
financial, environment and social (refer to
Exhibit 8 for an extract of CDL’s sustainability report 2012).
CDL also ensured that their contractors had in place a
comprehensive sustainability monitoring and
reporting system. Every month contractors had to submit the
EHS performance of their respective
worksites for monitoring purposes. CDL’s project managers
would monitor the EHS performance
of their respective projects individually. At the departmental
level, various sub-committees headed
by their project managers monitored and championed the
various aspects related to EHS, such as
energy consumption and workplace safety & occupational
health.
CDL had also started carbon accounting 8 , and were the fore-
runner in the industry. Project
managers provided the collated EHS performance from
worksites to CDL’s EHS manager. At the
corporate level, the EHS manager consolidated and monitored
all CO2 data for reporting purposes.
Interestingly, even while managing their database of reports,
CDL was driven to ‘go green’. As Ms
Foo Chui Mui (Assistant General Manager, Customer Relations)
commented, “We have really cut
down on the use of paper. Over the years, we have cut down our
paper consumption. For instance,
only the final report is retained, and that too is kept at a shared
drive to maintain transparency while
keeping everyone on the same page”.

Training as a means to ensure adherence to CSR standards
When CDL started to embark on the sustainability journey,
there was a general lack of knowledge
and acceptability of sustainability by the consultants,
contractors and other stakeholders. CDL had
to source for information and build up its knowledge from the
internet and other sources.
Workshops were then conducted with its stakeholders to obtain
their buy-in to go green by pitching
7 For further details on the GRI sustainability reporting
requirements, refer to
https://www.globalreporting.org/resourcelibrary/G3.1-
Sustainability-Reporting-Guidelines.pdf.
8 Carbon accounting is a subset of sustainability accounting,
emphasising the management and reporting of carbon emissions.
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Development
the fact that they were also partners in the project.
CDL continued to conduct quarterly EHS training. Both internal
and external experts were invited
to conduct talks on topics which included waste management,
water and energy conservation, and
other related issues.
CDL also conducted monthly Complex Management meeting
where experts were invited to share
their views, new innovative products, and other pertinent ideas.
Further, Mabel Wong, Senior
Manager, Property & Facilities Management commented, “More
than half of our PFM managers in
charge of operations are Green Mark managers”.
CDL’s Commitment to CSR
Multiple drivers for CSR continue to strengthen globally. Total
assets managed under Carbon
Disclosure Project have grown dramatically from US$4.5
trillion in 2003 to US$78 trillion in
March 2012 with 235 companies responding in 2003 compared
to 3,715 in 2011. The growing
climate change-related regulations make CSR not simply a
“good to have” item but a licence to
operate. It is becoming more apparent that companies who have

yet to embrace the significance
of sustainability issues have placed themselves in an
increasingly vulnerable position, putting
their operations at risk, if they have limited expertise and
contingency plans to manage the fast
emerging social, political and economic scenarios. In the face of
a changing business
environment and mind-set, it is a matter of time before the turn
of tide occurs.
- Kwek Leng Joo, Managing Director, CDL9
CDL was clearly committed to maintaining and advocating
commitment towards corporate social
responsibility. This often went far beyond what competition did.
In an interesting example of the
same, Ang said:
We are probably the only developer in Singapore who conducts
a bio-diversity impact study for
undeveloped sites with existing natural habitats and sites in
close proximity to natural habitats,
before the site is being developed. At our ‘Rainforest Executive
Condo”, a biodiversity impact
study was conducted when the site was purchased in 2011. In
the course of the site assessment,
a nest belonging to a pair of nesting white-bellied sea eagles
was discovered on an existing tree.
We were advised that the tree where the nest was located should
not be retained due to its poor
condition, so we called on experts from the Bird Park to advise
us on the appropriate measures
to be taken. Eventually, we worked with the main contractor to
re-sequence their construction
and work around the existing tree until the young offspring
hatched and grew strong enough to

be able to fly off on their own.
The culture was such that a virtuous circle of sustainability
appeared to have been established,
where each employee was pushing themselves and the other to
achieve newer heights. Wong
commented, “We are all always aligning ourselves to the
corporate mission, and personal KPIs are
set for our department far beyond what is required. We have to
keep updating our KPIs annually …
We all walk the talk, all the way from top-down”.
Balancing the Costs with Tangible Benefits
9 Kwek Leng Joo, Managing Director, CDL, “Sustainability
Report 2012, “Director’s Presentation”, http://media.corporate-
ir.net/media_files/IROL/60/60774/CDL_Sustainability_Report_
2012_Final.pdf, accessed January 18, 2013.
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To truly grow as a business, we need to develop the right
balance between financial
performance, environmental stewardship and social engagement.
- CDL Sustainability Report, 201210
CDL perceived some very tangible benefits of its sustainability
initiatives. For instance, there was
an estimated S$19.7 million (US$16 million 11 ) in annual
energy savings for 37 Green Mark
Awarded Buildings during the time period 2008-11. Similarly,
the buyers of residential properties
too typically enjoyed substantial energy and water savings. An
example was the ‘Oceanfront @
Sentosa Cove’ which was the first private residential
development to be awarded the BCA Green
Mark Platinum in 2007, demonstrating savings of 30% in energy
and water. Similarly, it was found
that residents could enjoy average annual energy savings of up
to SG$1,000 (US$ 813 12 ) on
account of energy efficient air-conditioners in their apartments.

There were clearly distinct benefits of going green for the real
estate sector.13 To begin with, the
company expected average expected savings of 10% in
operating expenses and 17% in energy
consumption from the retrofitting, and commercial buildings
could increase their capital value by
about 2%. Second, the investment in achieving Green Mark
certification was not high, and the cost
of the retrofit as a percentage of the current market value of the
property was about 0.5% for retail
and 1% for offices. Finally, the upfront cost of retrofitting
energy inefficient buildings could be
recovered within seven years.
However, it was recognised that there was a clear cost
associated with going green, which has to be
managed. Lenny Tan, Assistant Manager, Projects commented,
“Construction costs have risen
steadily over the years. This is a challenge that we need to work
around while maintaining our
philosophy and commitment towards sustainability”.
Ang elaborated:
With the market getting more competitive, we have to strategize
how to achieve cost
effectiveness for our green investment. One of the most
effective strategies is to adopt passive
low energy architectural design. Buildings should be designed
to minimise external heat gain
and maximise day-lighting and natural ventilation. This concept
is always emphasised to our
architects as a first point of consideration. We influence and
educate these architects to adopt
our philosophy.

Tan further added:
We have an EHS risk register that cuts across the design and
construction phases. The
individual project manager prepares an EHS risk assessment at
the start of every new project to
assess the impact of the development activities on the
neighbours and other impacts related to
safety, energy efficiency, road traffic, etc. This is then handed
over to the consultant to address
and mitigate the risks in their design. Any residual risk not
addressed in the design is then
highlighted to the contractor to be properly addressed in their
construction stage risk
assessment. The consultants and the contractors are also
required to present their EHS risk
assessments to the project teams and our internal colleagues and
explain their strategy to
mitigate the EHS risks identified.
10 City Developments Ltd, Sustainability Report 2012,
2012_Final.pdf, accessed January 2013.
11 US$1 = S$1.23 as at January 18, 2013.
12 Ibid
13 Joint study by the Building & Construction Authority and the
Department of Real Estate, NUS, in collaboration with the top
six real
estate consultancy firms, September 2011.
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The Singapore government had commenced handing out a
number of grants to promote
sustainability. However as Goh commented, “We have ‘missed
out’ on some grants as we do
(sustainability initiatives) before the grants are available. We
are doing it for the general good and
we are way ahead of the pack. So this becomes our KPI – to
strive for further improvement each
year”.
Enabling Competitive Advantage - Reputational

CDL believed that practising CSR had helped differentiate their
branding and product, particularly
given the company’s long standing commitment and consistent
approach towards encouraging the
same. An clarified, “We take a long term view in our CSR
commitment & practices for
sustainability - financial, social and environmental. However,
given the low level of
green consumerism as at date, the competitive advantage of a
green product or green home or space
were still limited. But with the increased awareness of climate
change, we are seeing some progress
in the preference of green products”.
Catherine Loh, Deputy General Manager, Head, Corporate
Secretarial Services stated that, “Being
a high profile listed company, our reputation especially as a
CSR advocate and pioneer is at risk
every day, whether arising from internal or external factors in
connection with the implementation
of our strategies in our day-to-day operations. With the increase
in the number of our stakeholders,
we are constantly aware that our risk management policies and
practices have to be continually
reviewed and updated in a timely manner, to safeguard the
interests of our stakeholders, our assets
and our reputation”.
CSR at CDL: What Next?
In 2010, in an effort to embrace a holistic approach to CSR and
go beyond compliance initiatives,
CDL undertook a self-assessment of its CSR performance. This
was based on the principles of ISO
26000: Guidance on Social Responsibility, which included

Accountability, Transparency, Ethical
Behaviour, Respect for Stakeholder Interests, Respect for the
Rule of Law, Respect for the
International Norms of Behaviour and Respect for Human
Rights. The core subjects listed by ISO
26000 were Organisational Governance, Human Rights, Labour
Practices, the Environment, Fair
Operating Practices, Consumer Issues and Community
Involvement & Development. Based on the
above results, CDL incorporated a Human Rights Corporate
Statement, enhanced its Employee
Engagement, Whistle-blowing Policy, Corporate Governance
and involvement in community
development projects.
It was important to An that CSR at CDL had to set new
benchmark in sustainable development by
doubling its efforts to meet stakeholders’ expectations, and
achieve global standards in
sustainability through innovation, rigorous assessment and
communication of the outcomes.14 New
programs had to be initiated to draw in a wider audience, and
the importance of CSR had to be
advocated and disseminated to a wider range of stakeholders.
Looking ahead, CDL remained firmly committed to CSR, and
aspired to bring it to the next level as
the environment and marketplace evolved rapidly. An and the
team were already strategizing the
14 Kwek Leng Joo, Managing Director, CDL, “Sustainability
Report 2012, “Director’s Presentation”, http://media.corporate-
2012_Final.pdf, accessed January 18, 2013.
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right move to achieve the above.
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EXHIBIT 1: REGULATORY DEVELOPMENTS IN
SINGAPORE

In May 2012, the Monetary Authority of Singapore (MAS)
released the ‘Code of Corporate
Governance’. The following is an extract of the 16 principles
listed therein:
1. Every company should be headed by an effective Board to
lead and control the company. The
Board is collectively responsible for the long-term success of
the company. The Board works
with Management to achieve this objective and Management
remains accountable to the Board.
2. There should be a strong and independent element on the
Board, which is able to exercise
objective judgement on corporate affairs independently, in
particular, from Management and 10%
shareholders. No individual or small group of individuals
should be allowed to dominate the
Board's decision making.
3. There should be a clear division of responsibilities between
the leadership of the Board and the
executives responsible for managing the company's business. No
one individual should
represent a considerable concentration of power.
4. There should be a formal and transparent process for the
appointment and re-appointment of
directors to the Board.
5. There should be a formal annual assessment of the
effectiveness of the Board as a whole and
its board committees and the contribution by each director to
the effectiveness of the Board.
6. In order to fulfil their responsibilities, directors should be

provided with complete, adequate
and timely information prior to board meetings and on an on-
going basis so as to enable them
to make informed decisions to discharge their duties and
responsibilities.
7. There should be a formal and transparent procedure for
developing policy on executive
remuneration and for fixing the remuneration packages of
individual directors. No director
should be involved in deciding his own remuneration.
8. The level and structure of remuneration should be aligned
with the long-term interest and risk
policies of the company, and should be appropriate to attract,
retain and motivate (a) the
directors to provide good stewardship of the company, and (b)
key management personnel to
successfully manage the company. However, companies should
avoid paying more than is
necessary for this purpose.
9. Every company should provide clear disclosure of its
remuneration policies, level and mix of
remuneration, and the procedure for setting remuneration, in the
company's Annual Report. It
should provide disclosure in relation to its remuneration
policies to enable investors to
understand the link between remuneration paid to directors and
key management personnel,
and performance.
10. The Board should present a balanced and understandable
assessment of the company's
performance, position and prospects.

11. The Board is responsible for the governance of risk. The
Board should ensure that
Management maintains a sound system of risk management and
internal controls to safeguard
shareholders' interests and the company's assets, and should
determine the nature and extent of
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the significant risks which the Board is willing to take in
achieving its strategic objectives.
12. The Board should establish an Audit Committee ("AC") with
written terms of reference which
clearly set out its authority and duties.

13. The company should establish an effective internal audit
function that is adequately resourced
and independent of the activities it audits.
14. Companies should treat all shareholders fairly and
equitably, and should recognise, protect and
facilitate the exercise of shareholders' rights, and continually
review and update such
governance arrangements.
15. Companies should actively engage their shareholders and
put in place an investor relations
policy to promote regular, effective and fair communication
with shareholders.
16. Companies should encourage greater shareholder
participation at general meetings of
shareholders, and allow shareholders the opportunity to
communicate their views on various
matters affecting the company.
Source: Monetary Authority of Singapore, Code of Corporate
Governance, May 2012,
http://www.mas.gov.sg/regulations-and-financial-stability...
3May2012.ashx, accessed March 2013.
EXHIBIT 2: THE CSR PHILOSOPHY – COMMITMENT TO
KEY STAKEHOLDERS
CDL had articulated its CSR commitment to the following key
stakeholders:
Our Commitment to Stakeholders: As a responsible corporation,
it is our goal to be transparent
and accountable to our stakeholders who have an interest in our

operations.
Our Customers: To offer quality and innovative products,
unsurpassed service and value for
money.
Our Investors: To maintain profitability and achieve optimum
returns for their investments.
Our Employees: To maximise their potential and care for their
personal well-being and career
development.
Our Contractors and Suppliers: To select based on quality work
and their ability to complement
our commitment to environment, health and safety.
The Community: To serve the community we operate in so as to
create a better place for all,
especially caring for the less fortunate, enhancing youth
development, promoting the arts and
conserving the environment.
Source: CDL “CSR Philosophy”, January 2013,
http://www.cdl.com.sg/app/cdl/social_responsibility/our_csr_ph
ilosophy.xml, accessed 11 January 2013.
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ilosophy.xml

Development
EXHIBIT 3: CDL’S 2012 SUSTAINABILITY RANKINGS &
BENCHMARKING
2008 2009 2010 2011 2012
Sustainability Rankings &
Benchmarks
Asian Sustainability Rating % 66 76 74 81 NA

Carbon Disclosure Project Participated since 2007, and
disclosure to the public since 2009
Dow Jones Sustainability Indexes Listed since 2011
FTSE4Good Index Series Listed since 2002
Global 100 Most Sustainable
Corporations in the World (ranking)
NA NA 81 100 62
Singapore Quality Class Certified since 2009
Sustainability Commitments &
Certifications
Anti-Corruption & Compliance
Declaration
Signatory since 2009
Caring for Climate Statement Signatory since 2008
Securities Investors Association
Singapore – Corporate Governance
Statement of Support
UN Global Compact Signatory since 2005
ISO 9001 (15 CDL buildings) Signatory since 2007

ISO 14001 Property Development &
Project Management
ISO 14001 Corporate Management &
Operations
OHS 18001 Property Development &
Project Management
OHS 18001 Property Management Signatory since 2011
Sustainability Reporting
Global Reporting Initiative C B+ B+ B+ A+
AA1000 Assurance Standard NA - Type 2 Type 2 Type 2
ISO 26000: 2010 Guidance on Social Strategic Alignment since
2009
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Responsibility
Source: CDL, Sustainability Report 2012,
http://www.cdl.com.sg/sustainabilityreport2012/impacts_srbac.h
tml,
accessed February 2013.
EXHIBIT 4: THE 2013 GLOBAL 100 METHODOLOGY
The Global 100 was considered to be the most extensive data-
driven corporate sustainability
assessment in the world. It was an annual project launched in
2005 by Corporate Knights, a
Toronto-based media company, with the annual Global 100
announced each year during the World
Economic Forum in Davos.
For the 2013 Global 100 selection for instance, the methodology
used was to first consider all
companies that had a market capitalization exceeding US$2
billion as of Oct 1, 2012. Then four
screens were employed, based on the companies' sustainability
disclosure practices, financial health,
product category and financial sanctions. Companies that passed

all four screens would constitute
the 2013 Global 100 Shortlist. They would then get assessed on
12 key performance indicators
(KPIs). The Global 100 would finally comprise the highest
ranking companies in the shortlist,
subject to each industry group's cap.
In 2012, Unicore, the global materials technology group based
in Belgium, was ranked the most
sustainable company in the world.
According to Doug Morrow, vice president of research at
Corporate Knights, “Sustainability is
recognizing that a corporation’s long-term interests are
intellectually and financially consistent with
resource efficiency, proactive health and safety practices, and
responsible leadership”.15 Toby
Heaps, editor-in-chief of Corporate Knights, added,
“Sustainability is when what is good for a
company is also good for the planet, and vice-versa. It means
creating more wealth than we destroy.
It means that a company is on balance increasing our overall
stock of wealth, grounded in human,
produced, financial, natural, and social capital”.
Source: Global 100,
http://www.global100.org/methodology/overview.html, accessed
February 2013.
15 Jacquelyn Smith, “The World's Most Sustainable
Companies,” Forbes, January 23, 2013,
http://www.forbes.com/sites/jacquelynsmith/2013/01/23/the-
worlds-most-sustainable-companies/3/, accessed March 2013.
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EXHIBIT 5: THE FIRST OF CDL’S THREE PRONGED CSR
STRATEGY
Develop: Internalising ‘Safe & Green’ Corporate Philosophy
• 5-Star EHS assessment to raise Builder’s EH standards since
2001. Independently appraised
and graded quarterly by independent auditors engaged by CDL.
• Established an EHS policy in 2003, incorporating measures to
mitigate impact through
CDL’s entire operations
• Investment of between 2% and 5% of each project’s
construction costs on green design
elements.

• Targets to achieve a minimum BCA Green Mark Gold Plus
Rating for all new
developments.
• Green Procurement Guidelines to influence our vendors and
suppliers at the corporate
office since 2008.
EXHIBIT 6: THE SECOND OF CDL’S THREE PRONGED CSR
STRATEGY
Manage: Optimising Water and Energy Efficiency
• Improve energy-efficiency
o Consumer buildings consume 30% of total energy in
Singapore.
o Air-conditioning takes up 65% within commercial buildings.
(Other areas of energy
consumption include lights 21%, lift/escalator 9% and others
5%)
• Regular energy audits in particular on aircon plants
o Preliminary site data and collection of data to understand the
chiller plant
performance and building load profile.
o Detailed audit
o Financial study for ROI
• Regular training of operations and management staff on
energy-efficiency, to be certified as
Green Mark managers, Green Mark facility managers &

certified Energy Managers.
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EXHIBIT 7: THE THIRD OF CDL’S THREE PRONGED CSR
STRATEGY
Influence: Awareness amongst Stakeholders through measures
as given below
• Contractors & Suppliers: Through EHS assessment systems,
review and peer learning
programs, CDL EHS Assessment Award
• Tenants & Business Community: 1degree C Up campaign,
recycling initiative
• Residential Customers: T.O.P Fairs
• Employees: Let’s Work Green! Campaign, Achieve ISO 14001
targets
• Community-at-large: CDL E-generation challenge, CDL-
Singapore Compact Young CSR

Leaders Award, Singapore Young Photographer Award
• Investors: Sustainability Reports, Disclosure Surveys &
Listings, Emails, Website, etc
CDL also worked on engaging the community through some of
the following measures:
• Corporate & Social Partnership: Since 2005, CDL played an
active role in mentoring youth,
and supported six schools in Singapore
• BCA-CDL Green Sparks Competition: Promoting innovation
and raising awareness of
green business practices and solutions amongst students who
will be future practitioners in
the industry
• CDL-Singapore Compact Young CSR Leaders Award:
Promoting CSR amongst the youth
to promote the ways in which organisations implement CSR into
their daily operations.
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EXHIBIT 8: CDL’S REPORTING STANDARDS
Data disclosure was aligned with the seven core areas of ISO
26000
EXHIBIT 9: CDL’S SUSTAINABILITY REPORT 2012 –
SUMMARY OF KEY FINANCIAL, ENVIRONMENT &
SOCIAL IMPACT (IN US$ MILLION16)
Financial Highlights
Year ending
31 December 2012
Year ending
31 December 2011
Year ending
31 December 2010
Revenue 2726.0 2666.7 2522.8
Gross Profit 1350.4 1441.5 1343.9

Profit from Operations 747.9 916.3 804.9
Net Finance costs (32.5) (43.1) (26.8)
Profit before tax 780.6 923.6 867.5
Net income** 699.4 782.1 703.3
Capital Management
Year ending Year ending
31 December 2011 31 December 2010
16 US$1 = S$1.23 as at January 18, 2013.
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Cash & Cash equivalents (in US$ millions) 2,116 1,523
Net borrowings (in US$ millions) 1,476 1,907
Net gearing ratio (excludes fair value gains on
investment properties as the Group’s accounting
policy is to state its investment properties at cost less
accumulated depreciation and impairment losses)
0.21 0.29
Interest cover ratio (times) 21.8 21.3
Environmental Impact
Year ending
31 December 2011

Year ending
31 December 2010
Year ending
31 December 2009
Total Energy Used (k kWh) 66,230 71,708 61,496
Total Water Used (m3) 682,519 764,643 603,55817
Construction waste generated
at CDL worksites (kg/m2)
24.50 46.50 61.70
Total carbon emissions
(tonnes CO2)
31,589 34,221 30,924
Social Impact
Year ending
31 December 2011
Year ending
31 December 2010
Year ending
31 December 2009
Employee Turnover Rate (%) 14.4 13.7 10.7
Total CSR & Environment-

related training (hours)
3,287 3,694 >3,000
Employee Volunteerism
participation rate (%)
71% 60% 85%
Employee Volunteerism
participation rate (hours)
2,838 2,894 5,524
Accident Frequency rate18 0.11 0.23 0.38
Injury Rate 19 30 63 100
For a full copy of the report, refer to CDL Sustainability Report
2012,
http://www.cdl.com.sg/sustainabilityreport2012/pdf/report.pdf.
17 This figure included the water consumed at the CDL
corporate office, which had not been tracked until 2011.
18 Defined as number of workplace accidents per million
manhours worked at CDL worksites.
19 Defined as the number of fatal and non-fatal workplace
injuries per 100,000 persons employed at CDL Worksites.
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Source: City Developments Ltd, Sustainability Report 2012,
http://www.cdl.com.sg/sustainabilityreport2012/pdf/report.pdf.,
accessed April 2013.

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http://www.cdl.com.sg/sustainabilityreport2012/pdf/report.pdfSt
ructure BookmarksCITY DEVELOPMENTS LIMITED: A
JOURNEY IN SUSTAINABLE BUSINESS DEVELOPMENT
CDL Sustainability in Singapore Corporate Social
Responsibility (CSR) at CDL CDL’s CSR Strategy A Culture of
Leadership Organisational Structure as a key CSR Enabler
Excellent Reporting and Communication Standards Training as
a means to ensure adherence to CSR standards CDL’s
Commitment to CSR Balancing the Costs with Tangible
Benefits Enabling Competitive Advantage -Reputational CSR at
CDL: What Next? EXHIBIT 1: REGULATORY
DEVELOPMENTS IN SINGAPORE EXHIBIT 2: THE CSR

PHILOSOPHY – COMMITMENT TO KEY STAKEHOLDERS
EXHIBIT 3: CDL’S 2012 SUSTAINABILITY RANKINGS &
BENCHMARKING EXHIBIT 4: THE 2013 GLOBAL 100
METHODOLOGY EXHIBIT 5: THE FIRST OF CDL’S THREE
PRONGED CSR STRATEGY Develop: Internalising ‘Safe &
Green’ Corporate Philosophy EXHIBIT 6: THE SECOND OF
CDL’S THREE PRONGED CSR STRATEGY Manage:
Optimising Water and Energy Efficiency EXHIBIT 7: THE
THIRD OF CDL’S THREE PRONGED CSR STRATEGY
Influence: Awareness amongst Stakeholders through measures
as given below EXHIBIT 8: CDL’S REPORTING STANDARDS
EXHIBIT 9: CDL’S SUSTAINABILITY REPORT 2012 –
SUMMARY OF KEY FINANCIAL, ENVIRONMENT &
SOCIAL IMPACT (IN US$ MILLION16) Capital
Management

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