CapitaLand Investment (CLI) has taken a significant step towards climate resilience by launching its first standalone Climate Resilience Report, which adheres to the recommendations set forth by the Task Force on Climate-related Financial Disclosures (TCFD). This report marks a comprehensive analysis of CLI’s diverse portfolio, consisting of over 480 properties across 20 countries and various asset classes.
Since 2017, CapitaLand has been actively aligning its climate-related disclosures with the TCFD’s guidelines, focusing on key areas such as governance, strategy, risk management, and metrics and targets. By embracing these recommendations, CapitaLand demonstrates its commitment to addressing climate risks and enhancing its resilience in the face of climate change.
This is CLI’s third climate scenario analysis and the first time it has analysed its properties on a global portfolio level under three scenarios where global temperatures rise by up to 1.5°C, 2°C and 3°C by 2100. A quantitative and qualitative analysis was conducted, covering physical and transition risks. Coastal flooding was identified to potentially pose the most significant risk to CLI across all three scenarios as compared to other physical risks such as fluvial flooding, tropical cyclones, extreme cold, extreme heat and wildfire. Globally, most of CLI’s properties already have flood control measures in place such as flood barriers, sensors and water level pumps. Floods are highlighted in due diligence reports for new investments and plans are in place to integrate climate change resilience into the design, development and management of properties. CLI will continue to regularly update its flood emergency response plans to strengthen its resilience against flood risk.
Transition risks analysed include potentially more stringent regulations, changes in electricity prices and increased expectations from stakeholders. Carbon price shifts are one of the more significant transition risks that may impact the global portfolio. CLI has outlined a decarbonisation strategy in its 2030 Sustainability Master Plan (SMP) to ensure the adoption of measures to minimise carbon emissions and reduce CLI’s exposure to future carbon price shifts.
Vinamra Srivastava, CLI’s chief sustainability and sustainable investments officer said, “CLI’s third climate scenario analysis is our widest in coverage and deepest in impact assessment thus far. It allows us to gain critical insights on the extent of impact of the various physical and transition risks through a top-down approach – from a global portfolio level, across each of our real estate investment trusts (REITs) and business trusts as well as countries, down to the property level. This further guides us in making more informed decisions on directing our green capital expenditure towards parts of the business with significant risk exposure, building resilience and reducing vulnerability of identified properties. We are prioritising our measures on managing the key climate-related risks and opportunities and enhancing sustainability considerations into our business strategies, as we work towards achieving our 2050 net zero target for our Scope 1 and 2 emissions.”“This Climate Resilience Report that is aligned to TCFD also demonstrates our focus to increase governance and enhance our disclosures, policies and practices to international standards. We recognise the urgency of climate action, and have refreshed CLI’s 2030 SMP last year to provide greater clarity on the pathways to achieve our sustainability goals. We are continuing our journey to step up our environmental, social and governance (ESG) efforts as we grow our business,” added Srivastava.
