Introduction

City Developments Limited (CDL) is a global real estate company listed on the Singapore Exchange, with a presence in 29 countries and regions. It manages over 47,000 homes, 23 million square feet of floor space and owns 152 hotels with 44,000 rooms. In FY2020, revenue was S$2.1 billion, and net profit was S$114.1 million. CDL employs over 8,600 people worldwide. The group leverages a diversified asset base and sustainable growth strategy to deliver long-term shareholder value.

Historical drivers and evaluation

CDL was founded in 1963 and became a public company in 1963. Since the 1970s, it has diversified through investments and acquisitions. A key turning point was the 1995 adoption of “Conserving as We Construct”, aligning business activities with global sustainability goals. CDL has pioneered green building in Singapore, including the first Green Mark certified building in 2005. The company has set measurable goals, including 80% green buildings by gross floor area by 2030 and a 59% reduction in carbon emissions intensity from 2007 levels.

Key innovations include the Acoustic Friendly Ventilation Window (AFVW) which enhances air flow efficiency while reducing noise, and the anti-microbial disposable film to protect high-touch areas. CDL has also piloted bifacial photovoltaic panels at City Square Mall and developed predictive maintenance technologies. These projects support Singapore’s climate goals and the company’s wider sustainability agenda.

Sustainability disruption

CDL has conducted annual materiality assessments since 2014 to review economic, environmental, social and governance (EESG) issues. In 2020, a special assessment identified heightened expectations due to the COVID-19 pandemic. Key material issues include innovation, wellness and health, product and service quality, energy efficiency, stakeholder partnerships, and climate resilience.

CDL discloses against the SASB Real Estate Sector Framework. It has highlighted risks from carbon tax, water pricing, and stricter building regulations. Climate change poses risks of stranded assets and productivity loss from extreme weather. However, opportunities exist in low-carbon building and healthy building demand.

Strategic response

CDL’s Future Value 2030 Sustainability Blueprint, introduced in 2017, aligns with 14 UN SDGs. It sets targets across climate action, resource management, stakeholder engagement, and governance. CDL’s GET strategy—Growth, Enhancement and Transformation—launched in 2018, sharpens business performance, expands the asset portfolio, and strengthens resilience.

The ESG strategy is built on four pillars: Integration, Innovation, Investment, and Impact. CDL integrates ESG across all business functions and governance structures. It invests in R&D, digitalisation, and stakeholder engagement, while amplifying its social and environmental contributions.

SDG investments

The real estate sector is resource-intensive, and CDL has committed to net zero operational carbon for new and existing wholly owned assets by 2030. Pathways include expanding renewable energy use, adopting green technologies such as carbon capture, energy storage, and hydrogen, and collaborating across value chains. CDL is part of the WorldGBC Net Zero Carbon Buildings Commitment and engages in partnerships to scale sustainable building solutions.

Assessing sustainability outcomes and financial results

CDL secured a S$250 million SDG Innovation Loan from DBS Bank in 2019, the first sustainability-linked loan in Singapore tied to innovative solutions. Loan conditions require CDL to meet sustainability performance targets verified by independent assessors.

The company’s impact investment project, digiHUB, integrates building systems to optimise energy use and improve occupant experience. CDL also measures avoided carbon emissions from projects and tracks green building performance. CDL has received strong endorsement from 13 global sustainability indices, including Dow Jones Sustainability Indices, FTSE4Good, MSCI ESG, and Bloomberg Gender-Equality Index.