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SPH REIT / ANNUAL REPORT 2018
Sustainability
Report
Board Statement
We are pleased to present our first keeping pace with our stakeholders’
sustainability report to the stakeholders evolving needs, with a view to
of SPH REIT. forming collaborative partnerships
that will enable the impact of our
While sustainable practices are not sustainability efforts to be amplified
new to our business operations, this in the long term.
inaugural report provides a platform
through which we now formally To effectively discharge our responsibility,
communicate our sustainability the Board has assigned the monitoring
approach, performance and goals. and overseeing the management of
We will publish this report annually in environmental, social and governance
accordance with the requirements of (“ESG”) factors to the Audit & Risk
SGX-ST Listing Rules 711A and 711B. Committee (“ARC”). The ARC is
supported by the Sustainability
As a Real Estate Investment Trust, Steering Committee (“SSC”). We
we are able to contribute positively aspire to chart a sustainability journey
to the environment and the society underpinned by our business strategy
through the activities at our properties. and organisational values, to most
Our sustainability efforts are driven meaningfully live out our promise
by a strong focus on engaging with as a responsible corporate citizen.
our key stakeholders, including our
customers, tenants, investors and
Unitholders. We are committed to
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STRATEGIC FOCUS / SUSTAINABLE VALUE
impact ON
local communities
Water Usage Energy Usage
Sustainability at SPH REIT
SPH REIT is a Singapore-based Real Increasingly, shoppers are looking Following our consideration of
Estate Investment Trust (“REIT”) for a lifestyle experience when they business and stakeholder priorities,
established principally to invest in visit malls. More than retail avenues, we have identified three most
a portfolio of income-producing malls have become places where material environmental and social
real estate. As at 31 August 2018, communities gather and bond – factors for SPH REIT for purposes
SPH REIT comprises three quality and common spaces that contribute of disclosure in this report. These
well-located commercial properties, to social cohesion. Shoppers are factors include impact on local
namely Paragon, The Clementi Mall now also more conscious about the communities, as well as energy and
and The Rail Mall, which was newly social and environmental impact water usage at our properties. While
acquired in June 2018. of the products and services they this sustainability report centres
purchase and use. Investors and around our management and
All of our properties provide unique Unitholders assess sustainability performance in relation to these three
opportunities for us to engage with performance in their determination environmental and social factors, it
our stakeholders and with their input, of the company’s long-term business should be read in conjunction with
shape our sustainability initiatives. This value. There is heightened scrutiny the rest of the annual report for a
continuous engagement is critical from regulators on responsible holistic understanding of SPH REIT’s
in ensuring that our sustainability business practices. These changing strategy and business performance
priorities remain relevant. behaviours have direct implications for the financial year.
on how our tenants operate, and
in turn, how we manage our malls.
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SPH REIT / ANNUAL REPORT 2018
Sustainability
Report
Sustainability Performance at a Glance
MATERIAL PERFORMANCE IN TARGET FOR
FACTORs FY2018 FY2019
Impact on Achieve one CSR component
Description of Corporate Social
local in at least one of our major
Responsibility (CSR) initiatives
communities campaigns on an annual basis
379,207 m3 of water consumed
Water Usage Maintain current water intensity
Water intensity at 3.67 m3/m2
53,662 MWh of electricity consumed
Energy intensity at 0.52 MWh/m2
Achieve reduction in energy
Energy Usage
intensity
22,055 tCO2e of GHG(a) emissions
GHG emissions intensity at 0.21 tCO2e/m2
Sustainability Governance
The ARC, supported by the SSC, oversees is supported by the Sustainability SPH Retail Property Management
the management of sustainability Working Committee (“SWC”), which Services Pte. Ltd. (the “Property
issues. The SSC, which comprises consists of representatives from Manager”). We have adopted a
senior management, develops SPH different functions and divisions. sustainability framework, policies and
REIT’s sustainability strategy, manages guidelines as well as ethics and code
overall sustainability performance and As an SPH-sponsored REIT, SPH REIT of business conduct. SPH REIT also
reports periodically to the ARC. The is managed by SPH REIT Management upholds high standards of corporate
SSC assists in driving sustainability Pte. Ltd. (“REIT Manager”) and supported governance and transparency to
practices across the business, and in property management matters by safeguard Unitholders’ interests.
(a) “GHG”: Greenhouse gas.
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STRATEGIC FOCUS / SUSTAINABLE VALUE
Stakeholder Engagement
Stakeholder engagement is essential also helps SPH REIT to adapt to the
to creating value and strengthening evolving needs of the industry. SPH
the sustainability of SPH REIT’s REIT interacts with our stakeholders
properties. It not only enables us to regularly via different platforms and
understand the expectations and channels, as summarised below.
concerns of our stakeholders, but
Customers and Unitholders and Regulators
Tenants Investors
Description
To understand the needs of the To understand and help them To communicate with regulators
tenants and customers, and work understand our sustainability regularly and ensure compliance
with tenants to enrich customer goals and efforts with relevant laws and
experience regulations
Engagement Methods
• Management circulars and • Release of financial results, • Industry networking functions
notices announcements, media • Annual regulatory audits
• Tenant bulletins releases, and other relevant • Compliance with mandatory
• Tenant engagement activities disclosures through SGXNET, reporting requirements
• Informal dialogue and Annual Report and SPH REIT’s
networking sessions website
• Annual General Meeting
• Extraordinary General
Meeting, where necessary
• Updates through one-on-
one and group meetings and
investor roadshows
Key Issues of Interest
• Shopper experience, • Economic performance • Anti-corruption
including a sustainable space • Socioeconomic compliance
that helps enhance the
lifestyle experience
• Community engagement
Corresponding Sections of the Annual Report
• Sustainability report • Financial statements • Corporate governance report
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SPH REIT / ANNUAL REPORT 2018
Sustainability
Report
1 Miu Miu Disco pop-up
2 Prada Silver Line pop-up
3 Shoppers’ engagement in FEMALE
Magazine event
4 Robotic arm fashion visual
merchandising display
organisations and selected partners
1 enable rich customer experiences,
harmonise social interactions and
promote give-back to society.
Paragon
2 3
Tenant Engagement Customer Engagement
SPH REIT fosters tenant relations SPH REIT strives to facilitate and
through regular dialogues and enrich customer experience in our
meetings. Paragon, The Clementi properties. In addition to the shoppers’
Mall and The Rail Mall have regular concierge, a new dedicated Paragon 4
tenant bulletins to keep tenants Medical Concierge was launched
updated on upcoming campaigns and in December 2017 to provide Elevate Your Reality,
initiatives. Through collaborations one-stop hassle-free assistance for September 2017
with tenants, the properties have our patrons in a comfortable and Showcasing the digital world up-close
created interactive events to rejuvenate relaxing environment. SPH REIT and in reality, Paragon presented
their shopping environment. For values customer feedback and what was possibly Orchard Road’s
example, during the Spring Summer ensures all feedback is responded first-ever Robotic Arm Display
2018 programme, Paragon hosted to in a timely manner. Post-mortem with integration of fashion visual
closed-store events helmed by reports are also prepared after events merchandising display. The one-
popular fashion magazines Harper’s for future improvement. of-a-kind virtual reality fashion
Bazaar and Female, together with runway was choreographed by
its fashion tenants such as Burberry, The events and activities aim to Raffles Design Institute and featured
Prada and Miu Miu. This event string shoppers and local community the latest ready-to-wear fashion
has enriched the fashion scene in together through the arts, culture, collection. Medical technology
Paragon. On top of commercial digital, talent development, and and practices were presented
initiatives, we aim to integrate health and wellness, by providing by Singapore Medical Specialists
corporate social responsibility venue sponsorships for events and Centre to improve health and
(“CSR”) components in our campaigns campaigns. Meaningful collaborations wellness. PUMA also hosted a ladies’
and get tenants involved. with schools, community, non-profit workout session for shoppers.
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STRATEGIC FOCUS / SUSTAINABLE VALUE
5 6
5 Mr Katsuzo Uchia
demonstrates kimono
sewing
6 Japanese cultural
performances
7 Japanese cultural
performances
8 Artistic Ikebana floral
arrangements
9 Singapore Chinese
Orchestra performance
organised by SPH Gift
7 8 of Music
Harmony in Perspective, May 2018 Japanese green tea lovers learnt The free concert series has
Titled Harmony in Perspective, the about the golden drop, which could brought music to the community
all-things Japanese event featured lead to a magical difference in the in various locations. In July 2018, the
Japan’s rich culture, the harmonious taste of the tea. Singapore Chinese Orchestra
ancient art of enchanting Ikebana, performed Classic Vibes for
delicate Kimonos, Tagai traditional Singapore Chinese Orchestra shoppers at the main entrance of
music performances by young Community Series, July 2018 Paragon. The spectacular Chinese
Japanese musicians and an exhilarating Sponsored by Singapore Press orchestra entertained shoppers and
Japanese Sword demonstration, all Holdings (SPH), the SPH Gift of showcased the traditional beauty
from the Land of The Rising Sun. Music series has been entertaining of Chinese musical instruments.
Singapore audiences since 2005.
Specially flown in from Japan, the
Kimonos worn by Japanese of
various ages for different occasions
were exhibited to educate shoppers
on Kimono culture. A Wedding
Kimono was displayed for shoppers
to appreciate the intricate details
and the dedication it took to craft
the timeless work of art.
Shoppers immersed themselves in
a host of exciting Japanese-infused
cultural performances, activities,
workshops and demonstrations,
such as learning the history and art
of sewing kimonos, presented by Mr
Katsuzo Uchia, who used to tailor
prized kimonos for the Japanese
Royal Family. Ms Keiko Miura also
hosted a Kimono Fabric Workshop
to impart step-by-step crafting skills
for shoppers to create their very
own kimono fabric accessory. At
the Japanese Tea Demonstration, 9
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SPH REIT / ANNUAL REPORT 2018
Sustainability
Report
10 11
10 Wholegrain Wednesday food truck
11 Dance performance by
New Town Secondary School
12 Violin performance by
Vienna Music School
13 Zumba workout at outdoor area 12 13
The Clementi Mall Christmas, December 2017 and Dance to Fit, January to
Chinese New Year, January 2018 December 2018
Wholegrain Wednesday, Over the Christmas and Chinese In collaboration with HPB to
December 2017 to January 2018 New Year period, students from support an active and healthy
In collaboration with the Health New Town Secondary School, lifestyle, shoppers and residents
Promotion Board (“HPB”) as one The Clementi Primary School and are welcome to enjoy the one hour
of the Health Promotion Malls, The tenant Vienna Music School treated rhythmic Zumba workouts every
Clementi Mall supported two shoppers to melodious festive Wednesday at the outdoor area.
Wholegrain Wednesday initiatives musical performances and hyped The exercise is open to all with
to encourage the public to include up the joy of celebration in The no participation fee. On average,
more wholegrains in their diets. More Clementi Mall. A public platform approximately 25 members of the
than 2,000 portions of HPB products, was created for the students to public have benefited from each
such as Subway wholegrain wraps, showcase their talents. workout session.
brown rice and wholegrain muffins
were distributed to the public.
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STRATEGIC FOCUS / SUSTAINABLE VALUE
The Clementi Mall Fiesta, residents to learn more about eating
April 2018 well and living healthy. Supermarket
Students from Clementi Primary tours on healthy food selection
School and Tanglin Secondary and cooking demonstrations were
School, together with shoppers, organised for the residents too.
created Singapore’s largest weaved
CD wall of 4m by 1.8m using 440 Singapore Music to the Ears,
CDs. The CD wall, which entered August 2018
the Singapore Book of Records, was To pay tribute to the nostalgic
testament to the neighbourliness Xinyao tunes that emerged and
of the community. Local talents rose to fame in Singapore between
Annoying Brothers, Bubble show the late 1970s to 1980s, students
by Bubble Girl and The A Capella from Vienna Music School brought
Society NANU performed in the mall back fond memories of Xinyao with
and brought joy to the fiesta. Besides their melodious performance to
entertainment, educational tie-ups celebrate our 53rd National Day
with HPB also attracted Clementi with shoppers.
14
15
14 Musical performance in conjunction with
The Clementi Mall Fiesta
15 Singapore’s largest wall of weaved CDs
16 Annoying Brothers performing with a
young girl
17 16 17 Family bonding through mall activities
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SPH REIT / ANNUAL REPORT 2018
Sustainability
Report
IMPACT ON LOCAL COMMUNITIES
Local communities form the bulk and accompanied with sponsored and displayed in the digital realm,
of our properties’ regular shoppers. meals at Fish & Co. on 21st and guided along by renowned VR
This is especially so for The Clementi 22nd December. calligrapher Mr. Malik Mazlan. His
Mall. We are committed to partner mentor, locally and internationally
with tenants and involve them in A Prosperous Dimension, acclaimed calligrapher Master Yong
giving back to the communities January 2018 Cheong Thye, treated shoppers to
and fostering strong relationships. From exhilarating oriental drum live demonstrations of his calligraphy
performances and arresting life-sized prowess by turning large floor
SPH REIT’s properties, with good festive greeting showcases, to an canvasses into life-sized festive
shopper traffic, offer conducive enthralling lion dance performance greetings at the Main Entrance
platforms to increase the visibility of and possibly the first-ever virtual Foyer, accompanied by thrilling
social causes. In addition to providing reality calligraphy portrayal, Paragon drum performances.
venue sponsorship for campaigns presented a series of Chinese
that benefit the local communities, festivities and cultural performances In addition to the festivities and
we also garner donations to support in celebration of Lunar New Year. performances, kids from Beyond
philanthropic causes, including the Social Services were also treated to
well-being of children and youths. Shoppers and tourists were engaged pre-Lunar New Year festive cheer
We partner closely with Beyond in a highly immersive traditional with a free haircut at Papa Poika,
Social Services, a Voluntary Welfare calligraphy experience, but in a followed by apparel shopping at
Organisation (VWO) with a mission virtual reality (VR) format. This FOX Kids and Baby. The fun outing
to help children and youths from less melding of the old and new, saw ended with a bento-lunch treat
privileged backgrounds break away ‘written’ characters transformed from Tori-Q.
from the poverty cycle.(b) Through
events held at Paragon and The
Clementi Mall over the past year, a 18 Children from
total of S$6,020 was donated and Beyond Social Services
receiving gifts
raised for Beyond Social Services.
19 First-ever virtual reality
calligraphy portrayal
20 Life-sized calligraphy by
PARAGON Master Yong
Season’s Glimmerings,
November 2017 18
In the season of giving, together
with generous support from
shoppers, Paragon brought joy
to 100 children from Beyond
Social Services. Shoppers were
encouraged to make a donation of
S$15 to grant a child’s wish with a
personalised message on the gift
card. In addition, Paragon matched
the same donation amount from the
shoppers to benefit more children.
The donations raised were used for
Christmas gifting for the children 19 20
(b) For more information, please visit the website of Beyond Social Services at http://beyond.org.sg/
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STRATEGIC FOCUS / SUSTAINABLE VALUE
21 22
Spin for A Good Cause,
July 2018
On 28th July, from 10am to 8pm,
Paragon’s atrium was turned into
a spin studio for 10 good hours of
back-to-back spinning sessions,
led by Fitness First’s energetic
instructors. Over 250 participants
took part in this event, which was
Singapore’s first charity spinning 23 24
event. A total of S$7,124 was raised
and all proceeds were donated
to Make-A-Wish Singapore, a
foundation that grants the wishes
of children with life-threatening
medical conditions, such as end- 21 Charity spin event at
stage renal failure and Duchenne Paragon’s atrium
muscular dystrophy. 22 Shopping spree at
GIORDANO for kids from
Beyond Social Services
23 Boy from Beyond Social
The Clementi Mall Services getting a haircut
from EC House Express Cut
24 Kids from Beyond Social
Christmas, December 2017 and Services enjoying a meal
Chinese New Year, January 2018 at KFC
Shoppers were encouraged to each 25 Boy jumping on the giant
25
donate S$15 to purchase a gift for piano for charity
kids from Beyond Social Services
during The Joy of Christmas Gifting
CSR event. The Clementi Mall Services each time a shopper hair cut from EC House Express Cut.
matched dollar-for-dollar to fulfil successfully played a complete The kids also enjoyed a shopping
these kids’ wishes. short tune. spree at GIORDANO to pick up
some new clothes.
In our Music with a Heart event, During the Chinese New Year period,
while shoppers had fun ‘jumping’ 10 kids from Beyond Social Services In the coming year, SPH REIT targets
on the giant piano, The Clementi were treated to a delightful meal at to achieve one CSR component in
Mall donated S$5 to Beyond Social KFC, followed by a complimentary at least one of our major campaigns.
71SPH REIT / ANNUAL REPORT 2018
Sustainability
Report
Energy and Water Usage
In response to the global call for our value chain and better manage and target to reduce our energy
climate action, the real estate sector our external environmental footprint. intensity. We plan to explore the use
is moving towards sustainable of renewable energy where possible,
practices on the efficient use of Paragon and The Clementi Mall also and review operational practices,
electricity and water to reduce continuously seek opportunities such as the length of pre-cooling
building impact on human health to improve our energy and water hours before tenants’ opening hours.
and the environment. efficiency. Following last year’s
initiative on the upgrading of the Both Paragon and The Clementi
SPH REIT has established monitoring air-conditioning plant to a more Mall are also certified under the
and review mechanisms to evaluate efficient machine, Paragon obtained Public Utilities Board’s (“PUB”) Water
our environmental performance the Green Mark Certified Award by Efficient Building (“WEB”) Certification
and policies. Every year, electricity the Building & Construction Authority Programme. This signifies that these
and water consumption levels are (“BCA”) in May 2018. buildings have been installed with
reported to the respective statutory approved water efficient fittings
boards for national benchmarking The Clementi Mall embarked on and adopted WEB recommended
and planning. Building enhance- green improvement works last year flow rate and flow volumes. We also
ments are consistently reviewed and completed them in July 2018. monitor water consumption closely
for operational improvements In addition, The Clementi Mall has to identify leaks and opportunities
and environmental impact. We achieved BCA’s Green Mark Gold for improvement.
also promote green procurement Certification in October 2018. The
practices, preferring environ- efforts in better managing the energy We plan to work with PUB to explore
mentally sustainable vendors with usage has shown a downward trend the possibility of using NEWater
ISO 140001, ISO 50001 certifica- in the electricity consumption and for non-potable use. We will
tion or carrying a “Green Label” greenhouse gas (“GHG”) emissions continue to improve our monitoring
by certification institutions like in the past years.(c) infrastructure and cooling system
Singapore Green Label, Energy Star to optimise water savings. In the
or Forest Stewardship Council. In this In the next year, we will continue to coming year, we aim to maintain
way, we integrate sustainability into optimise our energy consumption the current water intensity.
SPH REIT Property Environmental Certifications and Accolades
• Green Mark Certified Award, BCA
Paragon
• Water Efficient Building, PUB
• Green Mark Gold Award, BCA
The Clementi Mall
• Water Efficient Building, PUB
(c) GHG emissions are provided by the appointed energy management firm servicing Paragon and The Clementi Mall.
72STRATEGIC FOCUS / SUSTAINABLE VALUE
Total Energy Consumption (MWh) Average Energy Intensity (MWh/m2)
58,153 56,653 0.55 0.54
53,662 0.52
FY2016 FY2017 FY2018 FY2016 FY2017 FY2018
Total GHG Emissions (tonnes of CO2e) Average GHG Intensity (tonnes of CO2e/m2)
26,507 0.25
23,908 0.23
22,055 0.21
FY2016 FY2017 FY2018 FY2016 FY2017 FY2018
Total Water Consumption (m3) Average Water Intensity (m3/m2)
365,153 375,653 379,207 3.69
3.67
3.59
FY2016 FY2017 FY2018 FY2016 FY2017 FY2018
73SPH REIT / ANNUAL REPORT 2018
Sustainability
Report
The Way Ahead
We believe that sustainability offers
bountiful opportunities for us to bring
value to our stakeholders, and we are
excited to embark on this journey of
discovery. While we recognise that
we may be taking the first steps, we
know that as property owners, we
are in a good position to partner with
our stakeholders to create positive
impact, and look forward to doing so.
About This Report
This is SPH REIT’s inaugural sustainability • Disclosure 303-1 GRI 303: Water • Global and local emerging
report. This report summarises the 2016 sustainability trends;
sustainability approach and performance • Disclosures 305-2 and 305-4 • Main topics and future challenges
of the listed entity, SPH REIT and from GRI 305 Emissions 2016 for the real estate sector, as
two of our properties, Paragon and identified by peers
• Disclosure 413-1 from GRI 413:
The Clementi Mall. The reporting
Local Communities 2016
period is from 1st September 2017 to The pool of potentially material ESG
31st August 2018 (“FY2018”). factors was then prioritised based on
Materiality Assessment their relative importance to SPH REIT’s
This report is aligned with the reporting business and our key stakeholders.
requirements of Singapore Exchange In 2017 and 2018, SPH REIT further
A formal materiality assessment was
(“SGX”) Listing Rules Practice Note 7.6 refined the material factors by
conducted to identify ESG factors
Sustainability Reporting Guide. This considering sustainability concerns
which have great impact on the
report is prepared with reference from the different perspectives of a
business and are key concerns for
to the Global Reporting Initiative REIT, REIT Managers and Property
our stakeholders. The assessment,
(“GRI”) Standards (2016), and includes Managers. The selected material
facilitated by an external consultant,
consideration of the GRI Construction factors were also benchmarked
followed the GRI Principles of Material-
and Real Estate Sector Disclosures. GRI with SPH REIT’s peers. Eventually,
ity and Stakeholder Inclusiveness.
Standards are selected as the reporting three ESG factors were identified as
The process started in 2016, with a
framework as they represent one of material and approved by the Board.
Group-wide materiality workshop.
the global best practice guides for
The assessment considered the
reporting on Environmental, Social
following aspects:
and Governance (“ESG”) factors. Feedback
This report references the following • Key organisational strategies and
GRI Standards and topic-specific risks identified in the Enterprise Risk
SPH REIT welcomes your feedback to
Disclosures: Management (“ERM”) framework;
improve our sustainability practices
• Disclosures 302-1 and 302-3 • Insights gained from regular day- and reporting. Please forward enquiries
from GRI 302: Energy 2016 to-day interactions with external and feedback to ir@sphreit.com.sg
stakeholders;
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