Sustainability Management

CapitaLand Mall Trust's sustainability journey started with humble corporate social responsibility programmes. Over the years, they have expanded to become part of our business strategy. We continually strengthen our sustainability focus and outreach to balance our long-term growth with good governance, responsible business policies and practices as well as environmental respect. That is why we have prepared this report in accordance to the Global Reporting Initiative (GRI) Standards: Core option and in compliance with SGX requirements.

As wholly owned subsidiaries of CapitaLand, the Manager and Property Managers of CapitaLand Mall Trust (CMT) firmly uphold CapitaLand's core values and sustainability commitment. Having to manage the largest shopping mall footprint in Singapore, we are cognisant of the impact that our properties have on the community we operate in.

We conscientiously monitor building efficiency to lower carbon emission intensity, enhance workplace health and safety, and deepen stakeholder engagement. We leverage technology to elevate operational and environmental efficiency across our properties, achieving intensity reductions of 24.7% for energy, 43.6% for carbon emission and 18.8% for water, compared to base year 2008.

Community engagement was heightened during the year with a broader selection of themes and mall events. These ranged from art exhibitions and school competitions, to programmes and roadshows on climate change. Together with CapitaLand Hope Foundation (CHF), we raised more than S$66,500 for young beneficiaries from various special schools. We also share CapitaLand's vision to nurture future generations and contribute actively towards causes supported by CHF including My Schoolbag, a programme for underprivileged schoolchildren.

We aspire to deliver long-term value to our stakeholders. In addition to the many accolades affirming our corporate achievements, CMT is also included in several established sustainability indices. We remain firmly committed to the longterm success of our sustainability efforts to improve the economic, environmental and social wellbeing of future generations.

We will continue to further our environmental, social and governance agenda by incorporating innovative measures, strengthening work processes and upholding high standards of accountability and transparency. Building lasting partnerships with our stakeholders will provide the impetus for greater success.

I take this opportunity to thank all our stakeholders who have joined us on this meaningful journey.

Tony Tan Tee Hieong
Chief Executive Officer

Introduction

Sustainability Commitment

As a CapitaLand-sponsored REIT, CMT is managed by wholly owned subsidiaries of CapitaLand, which include the Manager as well as Property Managers who oversee daily property operations. The teams behind the Manager and Property Managers are responsible for property and portfolio operations in CMT. The Manager and the Property Managers abide by CapitaLand's sustainability framework, policies and guidelines, as well as ethics and code of business conduct.

CMT's sustainability objectives and strategies are aligned with CapitaLand's credo, 'Building People, Building Communities.'. CMT upholds this approach and implements it across human capital strategies, asset and portfolio strategies, operations management, stakeholders' engagements and community development. CMT maintains high standards of corporate governance and transparency to safeguard Unitholders' interests.

As a testament of its relentless efforts to strengthen environmental, social and governance (ESG) standards, CMT is listed in the FTSE4Good Developed Index, FTSE4Good ASEAN 5 Index, iEdge ESG Leaders Index, iEdge ESG Transparency Index, STOXX® Global ESG Leaders and Global ESG Governance Leaders. CMT retained its 5 Star rating in the 2018 Global Real Estate Sustainability Benchmark (GRESB) Real Estate Assessment.



Board Statement

CMT is committed to sustainability and incorporates the key principles of environment, social and governance in setting out its business strategies and operations.

The Board sets CMT Group's risk appetite, which determines the nature and extent of material risks that CMT is willing to take to achieve its strategic and business objectives. The risk appetite incorporates ESG factors such as fraud, corruption and bribery, environment, health and safety.

The Board also approves the executive compensation framework based on the principle of linking pay to performance. CMT's business plans are translated to both quantitative and qualitative performance targets, including sustainable corporate practices, and are cascaded throughout the organisation.

Our Report

About This Report

CMT reinforces its commitment to sustainability and this report has been prepared in accordance with the GRI Standards: Core option. CMT supports the United Nations (UN) Global Compact which CapitaLand is a signatory to the Global Compact Network Singapore. CMT also references the United Nations (UN) Sustainable Development Goals and have supported towards these goals through various initiatives and programmes. The GRI Content Index and the 10 UN Global compact principles can be found on pages 82 to 85 of the CMT Annual Report 2018.

Reporting Scope and Period

This report covers CMT's portfolio of 15 quality properties (including one development project), located strategically in the suburban areas and downtown core of Singapore from 1 January to 31 December 2018, unless otherwise indicated. The report forms part of CMT's Annual Report 2018, a copy of which can be downloaded from www.cmt. com.sg.

Feedback

CMT welcomes feedback from stakeholders which is essential for continual improvement in our sustainability journey. Please send your comments and suggestions to ask-us@cmt.com.sg.

Managing Sustainability

Management Structure

The management is responsible for the Environmental, Health and Safety (EHS) performance. The management is supported by the heads of various relevant departments of the Manager and Property Managers, within the Group. The Manager and Property Managers identify and review material issues which could have significant impact to CMT's business and operations, as well as other issues derived through regular stakeholder engagements. This team regularly meets to develop, set and review the management approach to sustainability.

The management joins the representatives from CapitaLand's business units (BUs) who form the Sustainability Steering Committee (SSC) which oversees the Environment Sustainability and Social Sustainability work teams to ensure the continued progress and improvement in the areas of ESG. The SSC supports members of CapitaLand's top management who constitute a Sustainability Council which oversees sustainability management.

Financial Performance

CMT delivered a set of creditable results for financial year 2018 despite challenges in the retail industry. The resilient performance is a testament to the quality of CMT's portfolio, which is underpinned by its attractive locations and diverse tenant mix. For detailed financial results and performance, please refer to the following sections of the CMT Annual Report 2018 - Financial Highlights (pages 2 to 3), 2018 Highlights (page 4), Financial Review (pages 98 to 101) and Financial Statements (pages 142 to 226).

Enterprise Risk Management (ERM)

As an integral part of corporate governance, a comprehensive ERM framework enables CMT to proactively identify, assess, manage and communicate risks in an integrated, systematic and consistent manner.

The Board of Directors of the Manager (Board) is responsible for the governance of risks across CMT and its subsidiaries (CMT Group). It is assisted by the Audit Committee which provides oversight of risk management at the Board level. The Board approves CMT Group's risk appetite which determines the nature and extent of material risks that the Manager is willing to take to achieve the group's business objectives and corporate strategy.

Details on ERM can be found on pages 52 to 55 of the CMT Annual Report 2018.

Stakeholder Engagement

The Manager and Property Managers engage stakeholders regularly to identify and review material issues which could have significant impact to CMT's business and operations.

Stakeholders include those who are most directly affected by, or most directly affect our operations. Our stakeholders comprise shoppers, tenants, investors, employees, suppliers and communities.

We engage the various stakeholders on a regular basis and these interactions facilitate continuous improvements in all areas of our operations. They are key to CMT's long-term success. We seek to address their concerns through multiple engagement channels outlined in the table on pages 64 and 65 of the CMT Annual Report 2018.

Shoppers

Tenants

Investors

To understand our shoppers' needs and improve the appeal of our malls To understand our tenants' needs and concerns as well as help drive shopper traffic to our malls To create an informed perception of CMT, manage investors' expectations and promote a positive investment environment
Engagement methods
  • Marketing and promotional events
  • Loyalty programmes Online and mobile platforms
  • Social media
  • Shopper survey
  • Focus group study
Engagement methods
  • Informal tenant gatherings
  • Tenant shop openings
  • Biz+ Series events
  • Joint promotions and strategic partnerships
  • Green leases
  • Value added initiatives by centralisation and leveraging technology
  • Tenant satisfaction survey
Engagement methods
  • Annual general meetings
  • SGXNet announcements
  • Annual reports, webcasts, results briefings to analysts and media
  • Website updates
  • Roadshows, conferences and meetings
  • Tours of CMT's properties
    Key topics
  • Omni-channel shopping
  • Experiential shopping
  • New retail concepts
  • Family-friendly facilities
  • Easy access to public transport
    Key topics
  • Open new shops or malls
  • Learn from successful companies
  • Share knowledge and keep abreast of market trends
  • Enhance operational efficiency
    Key topics
  • Business performance
  • Business expectations and strategies
  • Economic, social and environmental concerns

Employees

Suppliers

Communities

To develop a high performance work culture that embraces diversity and teamwork To be a fair and reasonable buyer of goods and services and share industry best practices To contribute to the communities in which we operate
Engagement methods
  • Informal and formal staff communications
  • Recreational and team building activities
  • Employment engagement surveys
  • Performance appraisals
  • Training courses
Engagement methods
  • Term contractor / vendor evaluation system
  • Standard operating procedures, guidelines and house rules for compliance
  • Share CapitaLand's EHS policy with suppliers
  • Share CapitaLand Supply Chain Code of Conduct with suppliers
  • Collaborate with suppliers to handle EHS challenges
Engagement methods
  • Employee volunteerism
  • Collaboration with CapitaLand Hope (CHF) Foundation to donate to non-profit organisations
  • Management of ESG issues
  • Corporate social responsibility programmes
    Key topics
  • Communicate business strategies and developments
  • Reward and recognition
  • Training and development
  • Employee wellness
    Key topics
  • Fair and reasonable treatment
  • Ensure alignment with EHS objectives
    Key topics
  • Philanthropy
  • Environment
Materiality

The Manager and Property Managers engage stakeholders through various programmes and channels to identify and assess material ESG issues which significantly impact business operations and stakeholders. The Group-wide Risk and Control Self- Assessment exercise provides the framework for the identification, assessment and documentation of material risks and corresponding internal controls. Engagement channels include member representations in government agencies, participation at conferences, responding to sustainability surveys and benchmarks as well as CMT's support of the Corporate Governance Conference by Securities Investors Association (Singapore) (SIAS).

CMT has developed a list of critical and emerging ESG issues based on the likelihood and potential impact on our business and society. Priority is given to the critical issues while the emerging ones are actively monitored for future focus.

Environment

Social/ Labour Practices

Governance

Critical
  • Energy efficiency
  • Climate change and emissions reduction
  • Water management
Critical
  • Occupational health and safety
  • Employment
  • Stakeholder engagement
  • Supply chain management
Critical factors
  • Compliance
  • Business ethics
  • Product and services
    Emerging
  • Building materials
  • Construction and operational waste
  • Biodiversity
    Emerging
  • Diversity
  • Human rights
UN Sustainable Development Goals (SDGS)

The UN SDGs call on companies everywhere to advance sustainable development through the investments they make, the solutions they develop, and the business practices they adopt. In doing so, the goals encourage companies to reduce their negative impacts while enhancing their positive contribution to the sustainable development agenda. Some of CMT's key efforts and programmes in relation to the key SDGs are highlighted below.

  1. SDG1 No Poverty includes targets such as ensuring equal rights to economic resources. SDG2 Zero Hunger includes targets such as ending all forms of malnutrition. Both targets are in line with CHF's work to provide education, healthcare and shelter for underprivileged children.
Key Performance Indicators

To measure its performance, CMT has incorporated the following key performance indicators and 2019 targets.

  1. Projects with gross floor area (GFA) of more than 2,000 square metres.
Governance

We are committed to the highest level of corporate governance and transparency in our policies and processes. We see governance as essential in delivering sustainable value and success in our business and to ensuring that the interests of Unitholders are safeguarded.

CMT has been a signatory to the Statement of Support Towards Excellence in Corporate Governance initiated by SIAS. In addition to being a member of SIAS, CMT is a member of the Financial Industry Disputes Resolution Centre Ltd (FIDReC), Investor Relations Professionals Association (Singapore) (IRPAS) and REIT Association of Singapore (REITAS).

CMT has received recognition in corporate governance emerging as the winner in the Singapore Corporate Governance Award, REITs & Business Trusts category at the SIAS 18th Investors' Choice Awards. CMT was ranked first for the REIT and Business Trust category in the Singapore Governance and Transparency Index conducted by the NUS Business School's Centre for Governance, Institutions and Organisations.

For details on CMT's Corporate Governance, please refer to pages 27 to 51 of the CMT Annual Report 2018.

Compliance

The Manager is committed to ongoing improvement in corporate governance. It has developed and, on an ongoing basis, maintains sound and transparent policies and practices to meet the specific business needs of CMT and to provide a firm foundation for a trusted and respected business enterprise. The Manager remains focused on complying with the substance and spirit of the principles of the Code of Corporate Governance 2012 (Code) while achieving operational excellence and delivering CMT's longterm strategic objectives. The Board of Directors is responsible for the Manager's corporate governance standards and policies, underscoring their importance to the Manager.

CMT adheres to the policies, guidelines and practices relating to Dealing with Interested Persons, Dealings in Securities, Code of Business Conduct, Communicating with Shareholders amongst others. For details on CMT's policies, guidelines and practices, please refer to pages 27 to 51 of the CMT Annual Report 2018.

No incidents on material non-compliance with laws and regulations relevant to the REIT, the Manager or the Property Managers. This includes regulations and industry codes concerning marketing communications and PDPA. We target zero incident of material non-compliance with laws and regulations in the upcoming year.

Business Ethics

For details on CMT's Business Ethics, please refer to pages 48 to 49 of the CMT Annual Report 2018.

There was zero incident with regards to corruption. We target zero incident of confirmed cases of corruption in the forthcoming year.

Products and Services - Customer Health and Safety

CMT values customer health and safety and endeavours to ensure that security at the properties is our priority. During the year, there were several initiatives implemented at our properties to enhance the health and safety of our customers.

We constantly innovate and improve our operations and shopping experience by leveraging technology and collaborating with strategic partners. In 2018, three of the properties embarked on a smarter generation pest control approach through the deployment of rodent sensors at strategic locations to monitor and narrow down the source of any rodent activity quickly. This has minimised the reliance on manpower on site to carry out periodic checks and ad-hoc flushing.

Our continuing partnerships with various government agencies such as Singapore Police Force, Singapore Civil Defence Force and Ministry of Manpower are essential in promoting a safe and secure workplace. In 2018, we supported an initiative funded by Infocomm Media Development Authority and Vi Dimensions. This is an automatic surveillance monitoring project that uses artificial intelligence to identify abnormalities by analysing security information.

Environment

CMT is committed to environmental sustainability and the enhancement of value as a real estate owner. By leveraging technologies and analytics in optimising the usage of energy, water as well as waste management across our properties, we believe that we can manage our business more efficiently and create long-term value for all stakeholders.

To align the understanding of our commitments in our everyday business, we continually keep abreast of developments in our industry and engage our stakeholders.

We cultivate our stakeholder relationships through regular and systematically planned forms of dialogue such as conferences, workshops, roadshows and surveys.

Managing our Environmental Footprint

CapitaLand's Environmental Management System (EMS) is a key tool in managing CMT's environmental footprint across its entire portfolio. The EMS, together with CapitaLand's Occupational Health and Safety Management System (OHSMS) are integrated as CapitaLand's Environmental, Health and Safety Management System (EHSMS) that complies with ISO 14001 and OHSAS 18001 standards. ISO 14001 and OHSAS 18001 are internationally recognised standards for the environmental management and occupational health and safety management of businesses respectively.

Environmental, Health and Safety Policy

CMT is committed to protecting the environment and upholding the occupational health and safety (OHS) of everyone in the workplace, and will:

  • Carry out exemplary EHS practices to minimise pollution as well as health and safety risks
  • Seek continual improvement on its EHS performance
  • Comply with relevant legislations and other requirements
  • Implement CapitaLand's Sustainable Building Guidelines (SBG) and OHS programmes

This policy is readily available to all employees, tenants, suppliers and service providers. Since 2012, all business functions such as property management and property development for CMT's properties are EHS certified.

Risk Management of Environmental Aspects and Impacts

As part of the certified EMS, new or updated legal requirements are reviewed quarterly and compliance is evaluated annually.

CapitaLand's EMS provides a systematic process to manage environmental impact and to continuously improve its environmental performance. A key element is to identify and manage significant environmental aspects of its business operations that can potentially have a negative impact on the environment. The significance level of each environmental aspect and impact is assessed using a risk assessment technique based on factors comprising the likelihood of the occurrence, severity of the impact and control measures implemented.

CMT strives to minimise environmental impact in areas such as resource depletion, carbon emissions and waste generation. This is done by setting environmental targets such as green building rating targets, carbon emissions, energy and water usage reduction targets, participating in stakeholder engagement activities, as well as implementing various measures to achieve them.

Training

To facilitate effective implementation of CapitaLand's EHSMS, training and awareness programmes are planned and conducted for all staff. New staff are introduced to the EHSMS and EHS policies as well as briefed on their roles.

Internal and External Audits

CapitaLand has in place an internal audit system to ensure the conformance and effective implementation of its EHSMS to international standards. External audits are conducted annually by a third-party accredited certification body.

Sustainable Developments and Assets

Building and Construction Authority (BCA) Green Mark certifications help assure and demonstrate the quality of CMT's properties. These ratings serve as an external validation that key environmental aspects have been considered in CMT's project design, development and operations.

Green Building Rating

Green building rating targets are set from the early stage of design and development. Green buildings have a lower lifecycle carbon footprint through the adoption of sustainable design and materials and are more resource efficient.

The minimum target certification for our new development is Green Mark GoldPLUS. In support of the Singapore Government's Green Building Master Plan, CMT is committed to achieving Green Mark certification for all properties by 2020. As at 31 December 2018, 13 of our operating properties have achieved at least a Green Mark Gold certification.

Property Award Category Year of Award
Westgate Platinum 2018
Bedok Mall Platinum 2017
Bugis Junction Platinum 2017
Bugis+ Platinum 2017
Junction 8 Platinum 2017
JCube Platinum 2016
Bukit Panjang Plaza GoldPLUS 2017
Raffles City Singapore GoldPLUS 2017
IMM Building GoldPLUS 2016
Lot One Shoppers' Mall Gold 2016
Plaza Singapura Gold 2016
The Atrium@Orchard Gold 2015
Tampines Mall Gold 2013

Environmental Impact Assessment

A key component of the SBG is the mandatory Environmental Impact Assessment (EIA). An EIA is carried out during the feasibility stage of any development project. The significant findings of the EIA and their cost implications, if any, are incorporated in the investment paper submitted to the Board of Directors for approval.

The EIA focuses on identifying any environmental threats or opportunities related to the project site and its surroundings, covering areas such as floods, biodiversity, air quality, noise, connectivity, heritage and resources.

Our Environmental Commitments

Leveraging CapitaLand's Environmental Tracking System (ETS), we track energy and water usage, waste collection and disposal, as well as carbon emissions for our operating properties.

The management team of each property submits monthly data and uploads supporting documentation into ETS. The data is analysed to facilitate a better understanding of consumption patterns and identify areas for eco-efficiency improvements.

In line with CapitaLand's long-term targets for the reduction of energy and water intensities, our longterm targets for our operating properties (using 2008 as base year) are as follows:

  • Reduce energy intensity by 20.0% by 2020
    Reduce energy intensity by 25.0% by 2030
  • Reduce water intensity by 20.0% by 2020
    Reduce water intensity by 30.0% by 2030

Energy Efficiency

CMT reduced its energy intensity measured in kilowatts-hour per square metre (kWh/m2) by 24.7% from base year 2008. In 2018, energy usage for operating properties was approximately 128,349 MWh compared to 137,058 MWh in 2017. CMT is on track to achieving its 2030 energy intensity reduction target and the aim for 2019 is to maintain or reduce energy intensity compared to 2018.

In support of the annual Earth Hour campaign on 24 March 2018, all non-essential lights were turned off at CMT's properties.

CMT continues to implement various energy conservation measures which focuses on innovation to reduce energy consumption. The measures are listed in the table on page 72 of the CMT Annual Report 2018.

Climate Change and Emissions Reduction

CMT is committed to address climate change risks through the reduction of its energy consumption. Improving energy efficiency represents the largest and most cost-effective way to mitigate those emissions.

CMT's carbon emissions in 2018 was approximately 50,508 tonnes. Emission intensity declined to 6.09 kgCO2/m2 from 7.01 kgCO2/m2 a year ago. The improvement represented a 43.6% reduction in carbon emission intensity compared to 2008. In 2019, CMT aims to maintain or reduce carbon emissions intensity compared to 2018 intensity.

Most of CMT's properties are located close to or integrated with mass rapid transit (MRT) stations and bus interchanges. This allows easy access to the surrounding communities and facilities via walkways which are mostly covered/sheltered. In addition, to reduce carbon emissions, CMT's properties are provided with bicycle lots to encourage shoppers and tenants to use greener modes of transport. There are about 350 bicycle lots across the CMT's properties.

CMT has more than 1,400 square metres of solar panels at Bugis Junction, JCube and Bedok Mall. These solar panels have helped our malls to tap 76,318 kWh of renewable energy source.

Life Cycle Management

CapitaLand's SBG is an in-house guide developed to ensure environmental considerations are factored in at all stages of a project from feasibility study, design, procurement, construction to operations.

Mitigating Climate Change Challenges and Identifying Opportunities through Design

As countries rally for action to mitigate climate change, more stringent regulations may be expected and companies will face increased expectations from stakeholders. By adopting the SBG, CMT aims to future-proof its developments by addressing the risks of climate change right from the design stage.

Every project is studied in detail, and appropriate measures are adopted in consideration of climate change. The SBG also sets guidelines for buildings to be less energy reliant, for example, setting green building certification targets above statutory requirements, as well as encouraging the use of renewable energy, whenever possible.

The SBG is regularly reviewed to ensure continuous improvement, with a focus on four key objectives of minimising carbon footprint and energy consumption, water management, waste management and promoting biodiversity in the life cycle of its developments. Enhancements since inception include higher green building certification requirements, use of certified wood and design for accessibility.

Water Management

CMT is committed to reducing water usage and preventing water pollution. Water usage and discharge for each property are monitored and checked regularly.

In 2018, CMT's water usage was approximately 1.5 million m3. This included approximately 0.5 million m3 of NEWater. Water intensity was reduced by 18.8% compared to 2008. The decline was attributed to the remote monitoring of water usage across all properties. This allows us to identify and respond promptly to exceptions such as leakages and ad hoc operations in an effective manner.

CMT's water efficiency target for 2019 is to maintain or reduce water intensity compared to 2018 intensity.

Waste Management

The collection and disposal of waste at all CMT's properties are carried out by National Environment Agency licensed contractors. In 2018, we collected 24,530 tonnes of waste, a reduction of 3.7% compared to a year ago.

CMT aims to manage waste at its properties responsibly. As waste generated at its properties is mostly from tenants, CMT engages its stakeholders through various means to minimise and recycle waste. Recycling bins are made available at all CMT's properties.

CapitaLand partnered with StarHub to roll out e-waste recycling bins at CMT's properties to encourage shoppers and tenants to adopt e-waste recycling and address the increasing environmental and health concerns posed by improper handling of e-waste. The malls involved in this initiative are Bugis+, Bedok Mall, IMM Building (IMM), JCube, Junction 8, Lot One Shoppers' Mall (Lot One), Plaza Singapura, Raffles City Singapore and Tampines Mall. It is also a natural progression of our waste recycling journey which started in 2008 with recycling bins for paper, metal and plastic provided in our malls. In 2018, the total e-waste collected was 18.5 tonnes.

As an ongoing sustainability effort, CMT has partnered tenants in six of its malls to collect coffee waste for each building's landscape vendor to recycle as a plant fertiliser. A separate bin is provided specially for the collection of coffee waste. Depending on the volume, the landscape vendor collects the coffee waste from the recycling bin either weekly or bi-weekly.

CMT requires its main contractors to implement proper waste management procedures on site to minimise, manage and dispose construction waste efficiently.

CMT continues to leverage Building Information Modelling (BIM) technology to improve the design and construction process through more integrated project coordination. BIM performs clash detection before construction commences. It identifies situations where mechanical and electrical services clash with structural members. An early detection saves time and cost of remedial work and minimises material wastage.

Supply Chain Management

We work closely with our contractors and suppliers who are committed to high quality, environmental, health and safety standards. Contractors are only appointed upon meeting the group's stringent selection criteria, including environment, health and safety.

All main contractors appointed in 2018, for projects with gross floor area of more than 2,000 square metres, were ISO 14001 and OHSAS 18001 certified.

We ensure our suppliers or service providers are in compliance with local regulations. We share CapitaLand's EHS requirements and Supply Chain Code of Conduct with our suppliers or service providers when working in our properties. A majority of our contractors and service providers are minimum bizSAFE Level 3 certified.

Social

Our People

As an externally managed REIT, CMT has no employee and is managed by the Manager and Property Managers, which are wholly owned subsidiaries of CapitaLand.

The teams behind the Manager and Property Managers, of more than 450 employees, are responsible for CMT's property and portfolio operations in Singapore, and we recognise that people are our greatest asset contributing to the success of the business. Our workforce comprises mainly full-time and permanent staff who are based in Singapore.

Employment

Fairness and Diversity

CapitaLand has in place an integrated human capital strategy designed to recruit, develop and motivate employees. As wholly owned subsidiaries of CapitaLand, the Manager and Property Managers are committed to developing a high-performance work culture that embraces diversity and collaboration.

CMT upholds CapitaLand's commitment to be a workplace of choice for employees, and adheres to its policies on non-discriminatory employment practices and equal remuneration. We have adopted the five key principles of fair employment advocated by the Tripartite Alliance for Fair and Progressive Employment Practices. This is reflected in the Employers' Pledge for Fair Employment Practices signed by CapitaLand.

The five key principles of fair employment we adhere to include:

  • Recruit and select employees on the basis of merit (such as skills, experience or ability to perform the job), regardless of age, race, gender, religion, marital status and family responsibilities, or disability
  • Treat employees fairly and with respect and implement progressive human resource management systems
  • Provide employees with equal opportunity to be considered for training and development based on their strengths and needs to help them achieve their full potential
  • Reward employees fairly based on their ability, performance, contribution and experience
  • Comply with the labour laws and abide by the Tripartite Guidelines on Fair Employment Practices

We have a vibrant and competent team of employees in our workforce. New hires represented 11.0% of the total headcount in 2018. The workforce also comprises an almost equal ratio of male and female employees. Female employees are well represented in the middle and senior management levels. In 2018, close to 65.0% of the employees who are managers and above were female. Approximately 67.0% of the senior management, comprising those at Vice President level and above, were female.

To attract top talent, all job opportunities are advertised publicly via online job portals, with selections based wholly on individual merit. This is consistent with CapitaLand's non-discriminatory employment practices.

Human Rights

We support international human rights conventions, such as the Universal Declaration of Human Rights and the International Labour Organisation (ILO) Conventions, against coerced labour and discrimination in any form. Singapore has ratified 27 ILO Conventions covering four key areas of employment standards: child labour, forced labour, collective bargaining and equal remuneration. We have no acts of discrimination or human rights violation reported in 2018.

Positive Work Environment

We are committed to providing a positive and vibrant workplace that promotes personal development, good health and wellbeing, as well as a fulfilling career. In 2018, initiatives such as flexible hours and work arrangements, comprehensive medical benefits, and employee engagement programmes were implemented to foster a culture of high performance and work-life harmony. Part-time employees were entitled to the same benefits as their full-time colleagues, on a pro-rated basis.

We advocate a pay-for-performance philosophy to drive ownership of collective goals. This encourages a high-performance work culture, which supports the creation of long-term Unitholder value. We also adopt CapitaLand's robust performance management system to ensure that all employees receive regular performance and career development reviews.

Talent Management

We actively seek innovative, dynamic and talented individuals, both internally and externally, with the right experience level to support our growth. This is managed through the recruitment of talent across different career stages, from entry-level graduates to mid-career professionals and industry veterans. All new hires are required to undergo an orientation programme that helps them assimilate to CapitaLand's business operations, strategy, core values and management philosophy. We constantly build our management bench strength by identifying and developing high-potential talent as part of the regular succession planning process.

Our talent management programme addresses the development of organisational core competencies as well as position-specific competencies. During the annual performance and career development review, all employees are highly encouraged to openly discuss their performance and aspirations with their supervisors, as well as to identify any training needs.

Human Capital - Staff Profile

Fair Remuneration

Our people are offered comprehensive and competitive remuneration packages. These include short-term cash bonus and long-term equity-based reward plans such as restricted share and performance share programmes. Such equity-based reward plans help to strengthen the link between reward and performance, as well as to retain talent.

All CapitaLand employees enjoy a flexible benefits plan, paid maternity/paternity leave, and time off for volunteer work. A flexible benefits plan enables the employees to complement their personal medical and insurance needs with those provided by the company. Employees can also customise their benefits for themselves and their families.

To ensure that our remuneration packages are competitive, external human resource consultants are regularly engaged to benchmark our compensation and benefits packages against local industry peers. We also actively review our staff compensation strategies to ensure that they commensurate with market practice.

More than 60.0% of our employees has been with us for five years or longer. We conduct exit interviews with employees who have tendered their resignations as part of continuing efforts to improve retention policies and initiatives.

Learning and Development

CapitaLand encourages the cross fertilisation of talent and ideas and leverages on CapitaLand's Human Resource functions to develop our people. We are committed to talent development programmes that enable people to acquire the relevant knowledge and skills for business excellence and to reach their full potential.

CapitaLand allocates up to 3.0% of its annual wage bill towards learning and development programmes for employees. In line with its drive to upskill employees, CapitaLand conducts formal classroom training, and provides on-the-job exposure, mentoring and coaching, and opportunities for job rotation and overseas postings. Our employees have direct access to a year-long training calendar comprising a series of pre-evaluated training courses. CapitaLand has an in-house training hub, CapitaLand Institute of Management and Business (CLIMB), which supports the training and development needs of employees.

CapitaLand also has in place training roadmaps and a wide variety of courses to equip our teams with the skills and confidence to carry out their duties. In 2018, approximately 97.2% of employees attended at least one training event, and the average number of training hours completed by each employee exceeded 30 hours. Employees pursuing relevant courses are eligible for paid examination leave of up to 10 days per calendar year.

Job Security

CapitaLand is committed to providing meaningful jobs for its employees. The efforts and initiatives are in line with the Tripartite Guidelines on Managing Excess Manpower, which covers the retraining and redeployment of workers, the implementation of flexible work arrangements and a flexible wage system to manage wage costs. The guideline was jointly established by the Singapore Ministry of Manpower together with its tripartite partners, Singapore National Employers Federation and the National Trades Union Congress.

In the event of termination or employee resignation, there is a minimum notice period of one month that needs to be fulfilled, depending on the employee's job grade.

Freedom of Association

CapitaLand maintains a harmonious relationship with the Singapore Industrial & Services Employees' Union. CapitaLand abides by the Industrial Relations Act that allows representation of staff by trade unions for collective bargaining, thus providing them with an avenue to seek redress for any industrial disputes. CapitaLand works closely with the trade unions to create a conducive and productive work environment for the mutual benefit of employees and the company. Currently, more than 40.0% of our workforce are union members.

Re-employment Opportunities

CapitaLand has a re-employment policy in place for employees who have reached the current statutory retirement age of 62, to enable them to continue to work up to 65 years in the first instance and subsequently, up to 67 years old if they are still able and willing to continue contributing to CMT. In 2018, five employees were above the age of 62.

Ethics and Integrity

CapitaLand adopts a strong stance against bribery and corruption. In addition to complying with clear guidelines and procedures regarding the giving and receipt of corporate gifts, all employees are required to pledge their commitment to CapitaLand's core values, which includes upholding the highest standards of integrity.

CapitaLand's zero tolerance towards bribery and corruption is further reflected through the antibribery and anti-corruption provisions incorporated into its business contracts and agreements.

CapitaLand has established a whistle-blowing policy and other procedures to provide employees and business partners with well-defined, accessible and trusted channels for reporting suspected fraud, corruption, dishonest practices or other workplace improprieties. The whistle-blowing policy and procedures also allow for the independent investigation of any reported incidents and appropriate follow-up action, while assuring whistle blowers of protection from reprisals.

CapitaLand upholds a strict policy on ethical business conduct, which deals with issues such as confidentiality, conduct and work discipline, corporate gifts and concessionary offers. Clear policies and guidelines on how to handle workplace harassment and grievances are also in place.

CapitaLand's policies have helped to detect and prevent occupational fraud primarily in three ways:

First, we offer fair compensation packages, based on practices of pay-for-performance and promotion based on merit to our employees. We also provide various healthcare subsidies and financial assistance schemes to alleviate the common financial pressures our employees face.

Second, clearly documented policies and work procedures incorporate internal controls which ensure that adequate checks and balances are in place. Periodic audits are also conducted to evaluate the efficacy of these internal controls.

Finally, we seek to build and maintain the right organisational culture through CapitaLand's core values, educating our employees on good business conduct and ethical values.

To instill CapitaLand's core values and principles, all new hires are required to undergo the CapitaLand Immersion Programme which includes a mandatory module on anti-corruption policies and procedures. Employees are retrained on how the core values and principles can apply to their daily work.

Occupational Health and Safety (OHS)

CMT strives to achieve zero work-related injuries through the adoption of OHS practices.

All employees are expected to take ownership of OHS issues, as well as proactively report all OHSrelated incidents alongside non-compliance and non-conformities.

CMT maintains occupational health and safety by regularly monitoring our operations to ensure that all workplace safety risks are properly controlled. Our OHS policies and practices are in compliance with prevailing OHS laws and regulations in Singapore.

In 2018, we reported a staff absentee rate of 7.5 days and achieved zero work-related fatality or permanent disability. However, three work-related injuries were recorded during the year. The injured employees have since returned to work and we have tightened our safety measures and standard operating procedures to prevent similar incidents in future. The steep increases in severity and lost-day rates were attributed mainly to one of the employees who was granted extended medical and hospitalisation leave.

Staff Well-Being

CapitaLand aims to provide a safe work environment that contributes to the general well-being of its employees.

In Singapore, this is carried out through a Total Well- Being Programme to promote health and well-being of all staff. CMT supports the programme by engaging its workforce through regular health and recreational activities, team-building events and brainstorming workshops. We also have a flexible work arrangement policy that permits flexible work hours, working from home or part-time work arrangements for our workforce.

In 2018, activities such as complimentary health screenings, free flu vaccinations and health-related activities were organised to encourage a wellbalanced and healthy lifestyle among employees. Recreational activities included the CapitaLand Family Day, a movie day, a durian feast, an annual team-building event and an annual dinner party. Yoga and Zumba classes were also organised to promote an active lifestyle. Tips on healthy living and effective exercise were published through CapitaLand's intranet. In May, CMT supported the annual national campaign, 'Eat with Your Family Day', by encouraging employees to leave their offices earlier to dine with their families.

Stakeholder Engagement

Social Integration

As satellite hubs, CMT's properties are strategic channels for community engagement. We are committed to building safe, accessible, vibrant and quality developments to enhance the lives of communities around our operations.

Our social integration criteria, which factor universal design considerations include:

  • Ensuring accessibility in the built environment to people of different age groups and varying mobility
  • Enhancing connectivity to public transport, roads, amenities and between buildings
  • Providing community spaces as public gathering points

These design considerations are integrated into the CapitaLand's SBG to ensure that they are considered from the start of the project development process. Universal design considerations ensure that public spaces in our properties are accessible to users of different age groups and varying abilities. These include:

  • Seamless connectivity to the external surroundings, such as bus-stops, adjacent buildings, streets and sidewalks
  • Barrier-free access from accessible (handicapped) and family parking lots to lift lobbies
  • Sheltered and barrier-free drop-off areas
  • Accessible (handicapped) and family lots
  • Designated pedestrian lanes in car parks
  • Amenities such as accessible toilets, lifts and nursing rooms
  • Atrium spaces, libraries and play areas for children

All our properties have at least one facility for disability access. These include accessible alighting and boarding bays, lifts, parking lots and public toilets. Our properties are also guide-dog friendly.

Our Community

During the year, we collaborated with non-profit and government organisations to promote healthy living, environmental sustainability and community causes through activities at our malls.

CapitaLand is a strong advocate of volunteerism and was one of the first companies to formalise three days of Volunteer Service Leave (VSL) for its employees. In recognition of our employee's social contribution, CHF donates S$500 to an approved Institution of a Public Character in Singapore or international nonprofit organisation when the three days of VSL are utilised within the year.

Community causes

Adopt a Plant

A Christmas charity event at Bedok Mall where shoppers donated $10 for a mini plant festive gift raised S$21,085 for the Movement for the Intellectually Disabled of Singapore (MINDS) and Very Special Arts Singapore, with CHF matching all donations dollar-for-dollar.

Share the Blessings

A charity road show at Lot One organised in collaboration with CHF, MediaCorp and SG Cares. The event raised over S$45,400 for needy families under the care of Fei Yue Family Service Centre (Choa Chu Kang), with CHF matching all donations dollar-fordollar. The event was held in support of the national movement of SG Cares to build a more caring and inclusive home for the underprivileged Singaporeans.

Ribbon Community Art Exhibition

A visual showcase of the talent and creativity of inmates organised by the Yellow Ribbon Project and Singapore Art Museum at Raffles City Singapore. A total of 78 artworks by inmates from the Visual Arts Hub and Institution A4 were exhibited at this event. Through the artworks created by the inmates, visitors could empathise with their past struggles and mistakes, connect with their desire for acceptance and reintegration, and support their hopes for the future.

CapitaLand Giving Marketplace

An initiative at Raffles City Singapore whereby charities and social enterprises were offered retail spaces to promote merchandise and public volunteer opportunities. For every transaction at this marketplace, CHF donated S$6 to the participating charities.

Wrapping Service

An initiative whereby shoppers at Plaza Singapura could donate any amount to get their purchases giftwrapped by volunteers from Blossom World Society.

Todo Todo Skills Marketplace @ South West

A career fair at Westgate aimed at helping youths to find fulfilling careers. The event was organised by People's Association, National Trades Union Congress and South West Community Development Council.

My Schoolbag

CapitaLand's corporate social responsibility programme reached out to 183 underprivileged beneficiaries from MINDS and the Association for Persons with Special Needs through carnival games and other activities held at Junction 8. This is the second year that My Schoolbag catered to the underprivileged special needs children, to reinforce the message that the mall is a place that is inclusive and welcomes people of diverse backgrounds and needs.

Health and Well-being

Fitness Sessions

Weekday fitness sessions were regularly organised at Bukit Panjang Plaza, IMM, JCube, Junction 8, Lot One and Tampines Mall to reach out to local communities. The events were co-organised with the Health Promotion Board and fitness centres.

Eco & Farmer's Market

An event organised by Bukit Panjang Plaza to promote sustainable agriculture, urban farming and eco-friendly practices. Sales proceeds of vegetables grown in community gardens by the residents were donated to the National Kidney Foundation Dialysis Centre in Bukit Panjang.

Environment

Fashion Upcycling Workshop

An event held at IMM, Plaza Singapura and Westgate to promote sustainable fashion. Workshop participants were taught how to transform pre-loved apparel into trendy statement pieces.

G!Innovation Challenge 2018

A competition for schools in the northeast district that saw students pitching innovative solutions to environmental issues caused by climate change. The event was organised by the National Environment Agency and North East Community Development Council and held at Tampines Mall. Fringe activities and a roadshow were also organised to encourage shoppers to sign the Climate Action Pledge.

Heritage

In Sight: A Monumental 3D Journey

An exhibition at Westgate organised in conjunction with Singapore Heritage Festival. Shoppers were treated to a 3D experience as they learned about the communities and pioneers behind selected Singapore's landmarks.

Tenant Engagement Programme

Biz+ Series tenant engagement programme comprising seminars, workshops and networking sessions focused on the theme of new retail in 2018. Industry experts were invited to share with the tenants on topics that ranged from mobile payment solutions and its influence on shopping behaviours, to budget allocation for digital media planning, and tips on tracking the ROI of marketing efforts.

Material Topics and Boundaries

GRI Content Index

GRI Standards Content Index for 'In accordance' - Core

GRI Standards
General Disclosures
Organisational Profile
Notes/Page number(s)


102-1 Name of the organisation CapitaLand Mall Trust
102-2 Activities, brands, products, and services Corporate Profile, page 1
102-3 Location of headquarters Corporate Information, Inside Back Cover
102-4 Location of operations Corporate Profile, page 1
Property Portfolio, page 19
102-5 Ownership and legal form Trust Structure, page 5
Organisation Struction, page 5
102-6 Markets served Corporate Profile, page 1
Property Portfolio, page 19
102-7 Scale of the organisation Corporate Profile, page 1
Property Portfolio, page 19
102-8 Information on employees and other workers Our People, page 74
Data collected to be accurate as at 31 December 2018
102-9 Supply chain Stakeholder Engagement, page 65
Key Performance Indicators, page 68
Supply Chain Management, page 74
102-10 Significant changes to organisation and its supply chain No significant changes
102-11 Precautionary principle or approach CMT does not specifically address the principles of the Precautionary approach
102-12 External initiatives About this Report, page 63
UN SDGs, page 67
Employment, page 75
United Nations Global Compact, page 85
102-13 Membership of associations Investor and Media Relations, page 56
Sustainability Commitment, page 62
Governance, page 69
Strategy
102-14 Statement from senior decisionmaker CEO's Message, page 61
Board Statement, page 62
Ethics and Integrity
102-16 Values, principles, standards, and norms of behaviour Corporate Governance, page 27 - 51
Enterprise Risk Management, page 52 - 53
CEO's Message, page 61
Board Statement, page 62
Governance
102-18 Governance structure Management Structure, page 63
Stakeholder Engagement
102-40 List of stakeholder groups Stakeholder Engagement, page 64 - 65
102-41 Collective bargaining agreements Freedom of Association, page 77
102-42 Identifying and selecting stakeholders Stakeholder Engagement, page 64 - 65
102-43 Approach to stakeholder engagement Stakeholder Engagement, page 64 - 65
102-44 Key topics and concerns raised Stakeholder Engagement, page 64 - 65
Reporting Practice
102-45 Entities included in the consolidated financial statements About this Report, page 63
102-46 Defining report content and topic Boundaries About this report, page 63 Materiality, page 66 Within the organisation:
  • Energy Efficiency
  • Climate Change and Emissions Reduction
  • Water Management
  • Occupational Health and Safety
  • Employment
  • Compliance
  • Business Ethics
  • Product and Services


Within and outside of the organisation:
  • Stakeholder Engagement
  • Supply Chain Management
102-47 List of material topics Materiality, page 66
102-48 Restatements of information No restatement in 2018
102-49 Changes in reporting No significant changes in reporting
102-50 Reporting period 1 January 2018 - 31 December 2018
102-51 Date of most recent report CMT Annual Report 2017
102-52 Reporting cycle Annual
102-53 Contact point for questions regarding the report ask-us@cmt.com.sg
102-54 Claims of reporting in accordance with GRI Standards In accordance with Core
102-55 GRI content index GRI Content Index, page 82 - 84
102-56 External assurance We have not sought external assurance on this report specifically, however, our Sponsor does seek assurance and data is shared between the two entities
Management Approach
103-1 Explanation of the material topic and its boundary Materiality, page 66
Management Structure, page 63
103-2 The management approach and its components See ESG material issues idenitfied under
the respective Environment, Social and
103-3 Evaluation of the management approach Governance sections, pages 64 - 65, 69 - 72,
74 - 75, 77 - 79
Material Topics Economic Performance
201-1 Direct economic value generated and distributed Message to Unitholders, page 8 - 11
Financial Review, page 98 - 101
Financial Statements, page 147 - 226
Anti-corruption
205-3 Confirmed incidents of corruption and actions taken Corporate Governance, page 48 - 49
Business Ethics, page 69
Energy
302-1 Energy consumption within the organization Energy Efficiency, page 71, 73
Climate Change and Emissions Reduction, page 72
Energy consumed is purchased electricity or
energy generated from our PV system. Data is collected from utility bills.
302-4 Reduction of energy consumption Energy Efficiency, page 71, 73
Water
303-1 Water withdrawal by source Water Management, page 73 - 74
Main water source, including NEWater, is
purchased from PUB. Data is collected from utility bills.
Emissions
305-2 Energy indirect (Scope 2) GHG emissions Climate Change and Emissions Reduction,
page 72 - 73
305-4 GHG emissions intensity Climate Change and Emissions Reduction,
page 72 - 73
305-5 Reduction of GHG emissions Climate Change and Emissions Reduction,
page 72 - 73
Occupational Health and Safety
403-1 Staff represented in OHS committee Occupational Health and Safety, page 78 - 79
403-2 Types of injury and rates of injury,
occupational diseases, lost days,
and absenteeism, and number of
work-related fatalities
Occupational Health and Safety, page 78 - 79
Occupational diseases not included due to
confidentiality constraints
Training and Education
404-1 Average hours of training per year per employee Learning and Development, page 77
404-3 Percentage of employees receiving regular performance and career development reviews Positive Work Environment, page 75
Local Communities
413-1 Operations with local community engagement, impact assessments, and development programs Stakeholder engagement, page 79 - 80
Supplier Social Assessment
414-1 New suppliers screened using social criteria Stakeholder Engagement, page 65
Key Performance Indicators, page 68
Supply Chain Management, page 74
Customer health and safety
416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Products and Services - Customer Health and
Safety, page, 69
Socioeconomic compliance
419-1 Non-compliance with laws and regulations in the social and economic area Corporate Governance, page 27 - 51
Governance, page 69
United Nations Global Compact
UNGC Principle How we align More details
Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2: make sure that they are not complicit in human rights abuses
As part of CapitaLand, one of the common goals is to uphold the spirit of international human rights conventions, such as the Universal Declaration of Human Rights and the International Labour Organisation (ILO) Conventions, against coerced labour and discrimination in any form. Singapore has to date ratified 27 ILO Conventions covering four key areas of employment standards: child labour, forced labour, collective bargaining and equal remuneration. Refer to page 75
Labour

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour; and

Principle 6: the elimination of discrimination in respect of employment and occupation.
We are committed to be a workplace of choice for employees. CapitaLand has in place an integrated human capital strategy designed to recruit, develop and motivate employees. It adopts stringent principles of fair employment and equal remuneration. CapitaLand has signed the Employersâ Pledge for Fair Employment Practices with The Tripartite Alliance for Fair and Progressive Employment Practices. Refer to page 75
Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.
We are committed to environmental sustainability and the enhancement of value as a real estate owner. By leveraging technologies and analytics in optimising the usage of energy, water as well as waste management across our properties, we believe that we can manage our business better and create long-term value for all stakeholders. Refer to page 70 - 74
Anti-Corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
We adopt a strong stance against bribery and corruption. Refer to page 49, 66, 69, 78