On behalf of the Board, I am pleased to present CDL’s Corporate Social Responsibility (CSR) Report for 2007. While it has been a robust year of record earnings for CDL, we have continued to sustain our CSR commitment to our stakeholders. CSR remains an integral part of CDL’s corporate mission and we are motivated to challenge ourselves to make more environmental advancements in the property arena and to invest in the development and welfare of the community.

RISK MANAGEMENT

Since 2002, CDL has established a formal risk management framework to enable significant business risks within the Company’s property investment, development and management arm to be identified, assessed, evaluated, monitored and managed. Further enhancements to the framework were implemented in 2007 with the assistance of independent consultants to manage strategic business risks which are reflective of the changes in markets, products and emerging best practices. Risk management continues to play an important part in the Company’s business activities and is an essential component of its planning process.

For more information detailing the Company’s risk management process for the year under review, please see the Risk Management page.

ENGAGING OUR INVESTORS

Affirming the importance of corporate transparency and open communication with the investing community, CDL has ensured that its quarterly financial results are announced timely. The top management provided a review of the Group’s performance and its future plans to fund managers, analysts and the media during the half-yearly and full-year financial results briefing sessions. Information presented at these briefings was made available on SGXNET and the Group’s website for easy access by all.

In 2007, the top management continued the practice of presenting to our shareholders our vision and strategy at the Annual General Meeting as we had received very positive feedback when a presentation was made for the first time in 2006. Ample time was also given to address all queries by the shareholders during the question and answer session.

It was a busy year for the top management who participated in various investor conferences around the world to meet and field queries from current and potential investors. The Group remained accessible for one-to-one meetings and responsive to investor queries received in the course of the year.

ENHANCING ENVIRONMENTAL PERFORMANCE

Developing and Managing Sustainable Quality Developments

CDL has continued to stretch the boundaries in developing environmentally sustainable projects which are of quality that caters to the lifestyle needs of our customers. Using a holistic approach, CDL takes the entire environmental supply chain into consideration. From design, use of materials, to construction and finally the maintenance and lifespan, all of these elements are carefully assessed when making plans for our properties.

We constantly source and incorporate new, innovative and state-of-the-art technologies to help build greener developments so as to minimise the use of natural resources and to mitigate our impact on the environment. In 2007, we set another industry benchmark by being the first private developer to attain the highest honour – BCA Green Mark Platinum Awards by the Building and Construction Authority (BCA) for environmental sustainability. The Oceanfront @ Sentosa Cove (residential) and City Square Mall (commercial) were awarded this prestigious award which had previously only been accorded to public sector developments.

City Square Mall, Singapore's first Eco-Mall, is the first private commercial project to receive the BCA Green Mark Platinum Award.		Designed for water and energy efficiency, The Oceanfront @ Sentosa Cove is the first private residential project to receive the BCA Green Mark Platinum Award.

Furthermore, with the established Environmental, Health and Safety (EHS) Policy firmly in place since 2003, all our developments are subject to stringent independent audits also known as the CDL 5-Star EHS Assessment system conducted every quarter. Complemented by training and peer learning, the EHS performances of the developments have been positive.

We measure and monitor our energy and water usage as well as our waste management at our worksites. This will enable us to establish our own benchmarks for further progress.

With the incorporation of more eco-friendly designs, use of better technology and more stringent site controls, the use of energy and fresh water has been reduced by as much as 20%. However, the increase in construction waste is due to the fact that there were also more projects in the finishing stages (when more waste is generated) in 2007 as compared to 2006.

CDL’s Environmental Performance—Resources used in project development
(per square metre of gross floor area)

In 2007, CDL’s Property Division (Investment Properties) achieved the coveted ISO 14001: 2004 (Environmental Management System) and ISO 9001: 2000 (Quality Management System) certification for 14 commercial buildings it manages – a first in Singapore.

Constantly striving to achieve even higher standards of environmental and management performance, the Property Division has in place an Integrated Management System which provides high-quality, pro-active, excellent service as well as a safe and green environment for the tenants. Key areas such as tenant satisfaction, consumption levels of precious natural resources such as water and energy are closely monitored to improve performance.

The Property Division has already been successfully running a recycling programme in 17 of its commercial properties. However, taking recycling up one notch, food recycling was also incorporated at Plaza by the Park in November 2007. There, the food waste from the food court is collected daily and recycled to generate renewable energy from bio-gas and compost. If successful, there are plans to expand this programme further.

Influencing Our Stakeholders – Offices Go Green!

In 2007, “Climate Change” was the buzz word as more governments and corporations reviewed their business processes and looked at ways to reduce their carbon footprints. Leveraging on this rising eco-awareness and as one of Singapore’s largest landlords, it was timely for us to embark on a campaign that could proactively involve our tenants to play a part in conserving the environment.

In yet another pioneering green initiative, CDL kicked off the pilot programme “1°C Up” in five commercial buildings in October 2007 including Republic Plaza, City House, Fuji Xerox Towers, Plaza by the Park and Central Mall (offices). In this innovative programme, CDL hopes to encourage our tenants to make an active contribution towards the green cause by agreeing to raise the airconditioning temperature in their office by 1°C and yet not compromising on their comfort levels.

With much enthusiastic support from our tenants, an overwhelming participation rate of over 90% was achieved. Heartened by such positive response, CDL extended the programme to another six buildings in December. While the monetary savings may not be substantial, an independent consultant estimates that with good participation, the carbon emissions from these 11 buildings can be reduced by about 1.5 million kg per year which is equivalent to 6,000 trees required to absorb the same amount of carbon emitted into the environment each year.

Walking the talk, CDL established video-conferencing facilities in the office to enhance productivity and lessen the need for business travel. As part of CDL’s “Let’s Work Green!” initiative to promote green practices at the workplace, a customised cutlery set was given to employees to reduce the use of disposable cutlery so as to conserve natural resources.

IMPACTFUL SOCIAL INITIATIVES

Valuing Our People

2007 has been a challenging year as a thriving economy has also created a tight labour market. CDL has always placed great emphasis on the importance of the human asset in the corporation. We continue to offer a comprehensive range of policies and practices that not only cultivate and enhance the talent and skills of our employees but helps create a positive environment that places immense value on a quality workplace and work-life balance for all employees.

More information can be obtained in the Human Resource Review page.

REACHING OUT TO THE COMMUNITY

Sharing its success with the community has also been a guiding principle for CDL. We firmly believe in looking beyond making monetary contributions by actively engaging the community. We have been energetically managing a wide range of sustainable outreach initiatives that require alternative resources such as time and skill. CDL has also been a strong supporter of the government’s 3P Partnership Model with efforts that encompass the People, Private and Public sectors.

Our focus in the community remains in four core areas, namely the environment, the arts, youth development and the less fortunate.

Cultivating Eco-Consciousness

Project Eco-Office, an outreach initiative founded by CDL and Singapore Environment Council (SEC) in 2002 received heightened interest amongst the business community. The 2007 Project Eco-Office Seminar titled “Converting your Office into a Green Office” saw an enthusiastic turnout of over 150 top management executives from all over the island. The list of Green Office Label Recipients has also grown steadily and 17 new offices were certified green in 2007 in addition to another three re-certified offices including CDL.

Project Eco-Office also took to the airwaves for the first time in a four-day radio campaign on 93.8Live. Listeners had the opportunity to find out more about Project Eco- Office and also to learn from two new Green Office Label recipients who shared their motivation and strategy in creating a green office. 93.8Live has an estimated 270,000 PMEB (Professionals, Managers, Executives and Businessmen) listeners tuning in weekly.

CDL also strongly supported the National Environment Agency (NEA)’s Clean and Green Singapore (CGS) campaign in November 2007 in three key events. Together with SEC, we presented the “Green Living Exhibition”, a mobile home-living exhibition display which promotes green practices at home at the CGS Opening Ceremony held at Bishan Park. The event attracted more than 20,000 visitors. To drive the green message home, a Green Living Guide Pamphlet and an attractive fridge magnet with water-saving tips were given to visitors.

Together with other corporate sponsors, CDL joined in the CGS Corporate Environmental Outreach Run 2007 at Semakau Landfill as a platinum sponsor. CDL employees gamely joined in the run and planted the Sea Hibiscus Triple Color to commemorate the event. Funds raised at the event were channeled to six local environment-related Non-Governmental Organisations.

For the last decade, CDL has been a corporate patron of China Exploration and Research Society, whose mission is to conduct research as well as nature and culture conservation projects in remote regions of China. CDL continued its annual financial aid, plus an in-kind contribution of hotel room accommodation.

CDL also produced its 11th calendar in the “Beauty of Nature” series which highlights the importance of nature conservation. Distributed to its business associates and employees, the calendar reinforces the message on the need to protect our environment daily.

Developing Youths

Helping to groom and develop the youths towards the progress of Singapore remains a significant area of focus. As Singapore strives to become an education and research hub, CDL played its part in the advancement of education in Singapore with contributions to the Nanyang Technological University (NTU) Wee Kim Wee Legacy Fund, REDAS Research & Education Fund as well as bursaries for needy students from Singapore Polytechnic.

To further cultivate the heightened interest in CSR, CDL was the main sponsor of the National University of Singapore (NUS) CSR Awareness Month organised by the NUS Students’ CSR Group and NUS Business School. The activities included a speaker series, film screening and exhibition.

In addition, helping our youth “scale to new heights”, CDL supported the annual National Vertical Marathon (NVM), organised by the NTU Sports Club. CDL’s flagship building, Republic Plaza which is one of the tallest skyscrapers in Singapore, was scaled by some 1,629 sports enthusiasts — a record in the event’s 13-year history. CDL sponsored the venue as well as prizes for the CDL Corporate Challenge, a new category introduced to inspire stakeholders such as our tenants and business associates to participate. CDL employees also sweated it out in the Special Olympics Challenge by assisting 36 intellectually disabled students ascend the building in relay-style.

For the third year running, CDL participated in NEA’s Corporate and School Partnership Programme. Besides Catholic High School (Primary), which CDL had “adopted” in 2005, it also took under its wing Catholic High School (Secondary) and St. Nicholas Girls’ School (Primary and Secondary). The schools’ environmental projects were showcased to over 13,000 visitors at the CGS Schools Carnival 2007. CDL employees also lent a hand and volunteered their time at St. Nicholas Girls’ School to mentor and assist the students with their project.

To cultivate environmental consciousness amongst the youths of today, CDL has been "adopting" schools such as Catholic High School under the NEA's Corporate & School Partnership Programme.

CDL continued to support its long-standing partner National Youth Achievement Award (NYAA) Council, one of Singapore’s most established youth organisations with some 130,000 participants, dedicated to nurturing the skills and talents of the youths to benefit the community.

In recognition of its sustained commitment to youth development, CDL was presented with The Distinguished Partner of the NYAA by Prime Minister Mr Lee Hsien Loong, at the Awards Ceremony.

Sustaining the Arts

The 3rd CDL Singapore Sculpture Award and Exhibition was held in September 2007. This initiative has firmly established itself as a key competition in the local arts calendar. Based on the theme “Aspirations”, Tan Wee Lit, 29 years old, a postgraduate student at The School of the Art Institute of Chicago, took home the top prize in the Open Category with his art piece “All the Essentially Essential”. 13-year-old See Wenhan, a student from Victoria School, won the top prize in the Student Category with “Peaceful Waves”. With close to half of the participants in the Student Category ranging between the ages of 12 and 14, it certainly underscores the competition’s success as a platform in nurturing artistic creativity in the young.

“All the Essentially Essential”, the winning work of the 3rd CDL Singapore Sculpture Award by Tan Wee Lit, was created for the designated sculpture site at East Coast Park.

In January 2007, CDL also created history when it unveiled the “Reed Sculpture” by Peter Chen, the winning work commissioned from the inaugural CDL Singapore Sculpture Award. The sculpture was the first donation made under the National Heritage Board’s Public Art Tax Incentive Scheme.

Photography is another art form that CDL has been promoting amongst the youths. The 2nd Singapore Young Photographer Award (SYPA) was launched in 2007 to discover budding talents. The “CDL Young Architectural Photographer Award”, a sub-category of SYPA, aims to cultivate more interest in the photography and appreciation of architecture.

CDL was also an integral partner of circa2007, a photo outreach programme, managed by NTU, comprising a series of talks, workshops and exhibitions targeted at youths.

Lending a Hand to the Less Privileged

CDL kept close to its heart many long-standing beneficiaries and helped spread much goodwill and cheer with a host of activities round the year. We are proud to have cultivated an engaged workforce through the company’s employee volunteer programme, City Sunshine Club (CSC), which facilitates and encourages staff and their families to participate in voluntary work.

CSC’s major programmes aim at improving the lives of the lonely elderly through befriending visits and outings, nurturing children at risk of delinquency and supporting CDL’s community outreach activities. A dynamic “progiving” environment has been instrumental in inspiring the employees to actively engage in community work. In 2005 and 2006, employee volunteerism was 70%. In 2007, some 2,242 manhours were contributed.

Since February 2007, CSC expanded its youth programme to include the youths at Kolam Ayer, volunteering at Viriya Community Services. For the first time, CSC also helped to organise a stay-in character building camp at the SAF Yacht Club for these less privileged youths.

CDL also supported multiple Assisi Hospice programmes, having built a close working relationship with the organisation since 1999. All 300 CDL employees participated in the “Teddy Bank” Fund-Raising Campaign, rallying the support of their family, friends and business associates, and raised some $60,000 in one month. Employees even dressed up the Teddy Banks in a pageant judged by the children from the Hospice! CSC volunteers continued to build a close rapport with the children in their annual twice-yearly hosting and befriending outings and helped to paint and touch up the Hospice with the help of our business associates in 2007.

Beyond raising $60,000 for Assisi Hospice in its "Teddy Bank" fund-raising campaign, CDL employees put their creativity to the test by decorating the Teddy Banks for the enjoyment of Assisi's patients.

For two weeks, CDL employees rendered their time and effort, giving up their lunch hours to help sell Duck Adoption Certificates for the Great Singapore Duck Race outside CDL buildings. Employees also contributed by approaching their business associates for donations and the funds raised went to Touch Community Services.

Pinnacles of Distinction in 2007

It is my hope that this Report has provided an insight into some of CDL’s CSR programmes in 2007. CSR is an unending journey and one that we will continue to draw on our experience, commitment and dedication. It is an integral component that serves CDL’s mission to be the partner of choice for our investors, business associates, employees, customers and the community at large.

Kwek Leng Joo
Managing Director