METRICS & TARGETS Commitment to Decarbonisation In FY 2022, CLI’s carbon emissions reduction targets were approved by the SBTi for a 1.5°C scenario. This target is in line with the goals of the Paris Agreement to keep global temperature rise to 1.5°C in this century. CLI has also committed to Net Zero by 2050 for its Scope 1 and 2 emissions. As part of CLI, CLAS is aligned with these targets. Sustainability and climate-related performance metrics and targets are linked to the remuneration of all employees, including top management. The Balanced Scorecard framework for FY 2023 included both quantitative and qualitative targets relating to climate change. Since FY 2021, carbon emissions intensity reduction was introduced as a performance measure in CLI’s Performance Share Plan Awards, which was granted to members of senior management. Tracking our Environmental Performance Through CapitaLand’s Environmental Tracking System (ETS), a cloud-based platform that facilitates data tracking and benchmarking processes when identifying consumption patterns, CLAS has been monitoring the environmental performance (energy and water usage, carbon emissions, waste generated) of the properties in its portfolio, both the Ascott-managed and third partymanaged ones. The operations team of each property submits monthly data and uploads supporting documentation onto the platform. The aggregated data is then analysed to gauge consumption patterns better and help uncover opportunities and potential areas for further operational efficiency improvements. Energy and Carbon Emissions CLAS is committed to transiting to a low-carbon business and addressing climate change risks through the reduction of energy consumption and carbon emissions in its business. It tracks the carbon emissions of its properties via the ETS. To calculate its carbon emissions, CLAS takes guidance from the operational control approach as defined by the GHG Protocol Corporate Standard. CLAS discloses the carbon emissions of its properties in its sustainability reports, and the Scope 1 and 2 data has been externally assured since FY 2022. A focus area for CLI and CLAS is the tracking and disclosure of material Scope 3 categories in the next few years, especially supply chain emissions. CLAS’ disclosure of Scope 3 GHG emissions relating to its third-party managed properties can be found in Appendix B of this report. CLAS is aligned to CLI’s commitment to reduce its absolute Scope 1 and 2 emissions by 46% by 2030 (from a 2019 baseline), with an aim to achieve Net Zero by 2050. This target has been validated by the SBTi to be in line with a 1.5°C trajectory. As set out in the SMP, CLI also targets to reduce carbon emissions intensity by 72% and energy consumption intensity by 15% by 2030. In terms of the proportion of total electricity consumption from renewable sources, it aims to increase this to 45% by 2030. Over the next decade, as part of CLI’s roadmap to Net Zero, CLI and CLAS will continue to source globally for new ideas and technologies to achieve higher energy efficiency and intensify its renewable energy integration efforts. The third-party operators of CLAS’ properties have also made long-term commitments to reduce energy consumption and carbon emissions. For instance, Accor has committed to decarbonise all its operations and achieve Net Zero by 2050 – including a 46% emission reduction by 2030 (using 2019 as baseline), validated by the SBTi. Marriott aims to reduce its carbon intensity per square metre of conditioned space by 30% (using 2016 as baseline), and to achieve Net Zero by 2050. It also aims to source a minimum of 30% of its overall electricity from renewable energy by 2025. To reduce energy consumption, energy audits are conducted at CLAS’ properties. Following the energy audits, action plans are put in place, and solutions such as lighting retrofits, building automation systems, HVAC and plant upgrades are carried out. A smart occupancy detection system is being progressively rolled out at CLAS’ properties, with the objective of maximising energy efficiency and operational productivity. The system connects an occupancy sensor and smart thermostat to monitor and automatically control the air-conditioning temperature in guest rooms to save energy. In 2023, the total energy savings at the properties was approximately 913,900 kWh, translating into a reduction of 170.5 tonnes of carbon emissions, and bringing about cost savings of close to S$146,000. SUSTAINABILITY REPORT 2023 38
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