Sustainability Commitment

The Manager is part of the CapitaLand Group and our sustainability strategy is aligned to that of CapitaLand. Details can be found in the CapitaLand Limited Global Sustainability Report 2018.

CapitaLand's sustainability strategy is aligned with its credo of 'Building People. Building Communities.' CapitaLand is committed to improving the economic and social well-being of its stakeholders through the execution of development projects and management of its operations. In a rapidly changing business landscape, CapitaLand actively embraces innovation to ensure commercial viability without compromising the environment for future generations.

Ascott Residence Trust (ART) upholds high standards of corporate governance and transparency to safeguard Unitholders' interests. We have in place an adequate and effective Enterprise Risk Management framework to enhance our business resilience and agility. ART's proactive approach towards environmental, health and safety (EHS) management, which incorporates universal design into our developments, ensures that our properties are sustainable and future-proof. Policies and guidelines are put in place to ensure the efficient use of energy, water and other resources.

Our integrated human capital strategy aims to recruit, develop and motivate employees to drive growth. Community development is an important component of our commitment to sustainability. It focuses on providing support to enhance the lives of underprivileged children and vulnerable elderly, through corporate philanthropy and employee volunteerism.

Sustainability Commitment

CapitaLand was one of the first companies in Singapore to voluntarily publish an annual Global Sustainability Report and externally assure the entire report. Benchmarking against an international standard and framework that is externally validated helps CapitaLand to overcome the challenges in sustainability reporting that arise from its diversified asset types and geographical presence. CapitaLand is a signatory to the United Nations (UN) Global Compact and its Global Sustainability Report serves as its Communication on Progress, which is available at

For its efforts, CapitaLand is listed in the Sustainability Yearbook, Global 100 Most Sustainable Corporates, Dow Jones Sustainability World Index and Asia Pacific Index, Global Real Estate Sustainability Benchmark (5 Star), FTSE4Good Index Series, MSCI Global Sustainability Indexes, Euronext VigeoEiris Indices World 120, STOXX® Global ESG Leaders Indices.

CapitaLand's Global Sustainability Report 2018 has been published on 31 May 2019 and continues to be prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option and will also continue to apply the Guiding Principles of the International Integrated Reporting Framework and ISO 26000:2010 Guidance on Social Responsibility and reference the UN Sustainable Development Goals and the Taskforce on Climate Related Financial Disclosure. It covers CapitaLand's global portfolio and employees, as well as its listed real estate investment trusts (REITS), including Ascott Reit, unless otherwise indicated. The report is externally assured to AA1000 Assurance Standard.

This sustainability chapter references selected GRI Standards1 to report specific information and covers ART's properties from 1 January to 31 December 2018 unless otherwise indicated. The teams behind the Manager and property managers responsible for property and portfolio operations are identified as employees of ART.

1 This material references Disclosure 302-1 from GRI 302: Energy 2016, Disclosure 303-1 from GRI 303: Water 2016, Disclosure 305-1 and Disclosure 305-2 from GRI 305: Emissions 2016, Disclosure 205-1 and Disclosure 205-2 from GRI 205: Anti-Corruption 2016, Disclosure 403-1 from GRI 403: Occupational health & injury 2016 and Disclosure 405-1 from GRI 405: Diversity 2016.

Board Statement

ART is committed to sustainability and incorporates the key principles of environment, social and governance (ESG) in setting its business strategies and operations.

The Manager's Board of Directors (Board) sets the risk appetite, which determines the nature and extent of material risks that ART is willing to take to achieve our 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. Business plans are translated to both quantitative and qualitative performance targets including sustainable corporate practices and are cascaded throughout the organisation.

Top Management Commitment and Staff Involvement

CapitaLand's sustainability management comes under the purview of the Sustainability Council, comprising CapitaLand's top management. It is supported by a Sustainability Steering Committee which oversees various work teams to ensure CapitaLand's continued progress and improvement in the areas of ESG. The Sustainability Steering Committee comprises the CEOs of the business units and REIT managers, and the work teams comprise representatives from all business units.

The Board is updated regularly on matters relating to sustainability risks and business malpractice incidents. The Board is also updated on the sustainability management performance of ART, key material issues identified by stakeholders and the planned follow up measures.

Top Management Commitment and Staff Involvement


ART has a regular review, assessment and feedback process in relation to ESG topics. Key to this is an annual CapitaLand Group-wide Risk and Control Self-Assessment exercise which entails the identification, assessment and documentation of material risks and corresponding internal controls. These material risks include fraud and corruption, environmental, health and safety, and human capital risks which are ESG-relevant. Other existing channels for feedback to ensure relevance of issues include:


We identified and reviewed material issues that are most relevant and significant to ART and our stakeholders. These are prioritised based on the likelihood and potential impact of issues affecting business continuity and development. For external stakeholders, priority is given to issues important to the society and applicable to ART. We therefore prioritise our sustainability efforts and reporting on issues that are most material to our business and stakeholders. For more information on stakeholder engagement, please refer to the Social and Relationship Capital, Human Capital and Environmental Capital chapters in the CapitaLand Global Sustainability Report 2018. The report covers CapitaLand's international portfolio in over 20 countries unless otherwise indicated.

Prioritisation of ESG Material Issues

Prioritisation of ESG Material Issues

Stakeholder Engagement

Stakeholders are groups that ART's business has a significant impact on and those with a vested interest in our operations. Key stakeholders include employees, customers, business associates, builders and suppliers, and the local community. Other groups include regulators and key government agencies, non-governmental organisations (NGOs), representatives of the capital market and the media. They are mapped into groups based on their impact on ART.

Through the various engagement channels, we seek to understand our stakeholders' views, communicate effectively with them and respond to their concerns.

Stakeholder Engagement

  1. For more information on key stakeholders' issues of interest, please refer to CapitaLand Global Sustainability Report 2018

Creating Value and Alignment to United Nations Sustainable Development Goals (UN SGDS1)

CapitaLand referenced the Guiding Principles of the International Integrated Reporting Council (IIRC) Framework and grouped its material ESG issues into six Capitals – Financial, Organisational, Manufactured, Environmental, Human, and Social and Relationship. This is also mapped against some of CapitaLand's key efforts and programmes in relation to the key UN SDGs. For more information, please refer to CapitaLand Global Sustainability Report 2018.

Capitals What We Do (UN SDGs supported) 2018 Value Created


  • Earnings
  • Investments
  • Assets
  • Combination of master lease contracts and management contracts, for portfolio of stable and growth income
  • Active asset management
  • Diversified geographies
  • Disciplined capital and debt management
  • Refer to the Financial Review and Portfolio Overview sections on pages 96 to 100 and 101 to 104 respectively of ART's FY 2018 Annual Report


  • Leadership & culture
  • Corporate governance
  • Risk management
  • ART adopts a strong stance against bribery and corruption
  • All employees are required to make an annual declaration to uphold CapitaLand’s core values and to not engage in any corrupt or unethical practices
  • Require certain agreements with third-party service providers and vendors to incorporate anti-bribery and anti-corruption provisions
  • Require main contractor to ensure no child labour and forced labour at CapitaLand’s project sites
  • Supply Chain Code of Conduct to influence our supply chain to operate responsibly in the areas of anti-corruption, human rights, health and safety, as well as environmental management
  • CapitaLand is a signatory to UN Global Compact

(SDG 16)

  • Refer to the Corporate Governance section on pages 25 to 51 of ART's FY 2018 Annual Report
  • No reported incident relating to discrimination, child labour or forced labour
  • ART supports the ethical marketing of our products and services and practice fair competition, including room sales. We adhere to the Singapore Code of Advertising Practice (SCAP) and any other rules and regulations that apply. The SCAP was formulated against the background of national law, international law and practice, including the International Code of Advertising Practice published by the International Chamber of Commerce.

Social and relationship

  • Stakeholder relations
  • Social licence to operate
  • Community development

CapitaLand Hope Foundation (CHF), CapitaLand’s philanthropic arm, believes in investing in the fundamental needs of education, healthcare and shelter of underprivileged children to relieve them of hardship and help them to eventually break the poverty cycle. CHF also strives to improve the quality of life for the vulnerable elderly in Singapore through healthcare, deeper social integration and better living conditions².

(SDG 1, 2, 4)

  • ART's global team participated in various charitable activities during the year, including:
    • partnering a local NGO from the Philippines to provide meals to over 600 children, raising over S$23,000 in support for other food distribution programme
    • partnering CapitaLand Vietnam to raise funds for underprivileged primary school students in Bu Dang Town, Binh Phuoc Province, Vietnam
    • visitation to Go Vap Orphanage Centre, home to over 240 orphans. Our team donated food and general supplies to the orphanage as well as carry out repairs, cleaning works and engaged the children over performances and activities
    • spearheading the “Charity Bazaar for Lombok” drive where donated items from staff and residents were sold and proceeds donated to Save the Children foundation


  • Environmentally sustainable, healthy, safe and accessible quality buildings
  • Innovative and sustainable construction methods and technologies


  • Carbon emissions
  • Energy management
  • Water stewardship
  • Waste and resource management

CapitaLand is committed to:

  • reduce energy consumption through energy efficiency and encourage renewable energy sources
  • reduce water consumption, reuse water and prevent water pollution, especially in countries where the availability of clean water and sanitation are of concern
  • green its operational portfolio by 2030
  • actively embrace innovation to ensure commercial viability without compromising the environment for future generations
  • future-proof its developments by addressing the risks of climate change right from the design stage preserve the biodiversity of its sites as well as the wider area where possible

Occupational health and safety is of utmost importance to ART, including all our employees, residents, contractors, supplier and the communities who use our properties.

CapitaLand EHS Management System is externally audited to receive the International Organization for Standardization (ISO) 14001 and Occupational Health and Safety Assessment Series (OHSAS) 18001 certification across 15 countries.

CapitaLand continues to participate in Carbon Disclosure Project (CDP). Its footprint is calculated in accordance with the Greenhouse Gas (GHG) Protocol7³.

(SDG 3, 6, 7, 9, 11, 13, 15)

  • Green Building Ratings: In 2018, ART obtained two green building ratings4
  • Consumption5: For 2018, ART’s operational properties’ total energy consumption was 95,117 MWh. Indirect energy consumption accounted for about 85% (80,998 MWh) and direct energy consumption from gas, diesel and other fuels accounted for about 15% (14,119 MWh) of total energy consumption.
  • Approximately 1,278 MWh of our electricity consumption was from renewable sources. Direct (Scope 1) and indirect (Scope 2) carbon emissions were approximately 2,783 tonnes CO2e and 41,236 tonnes CO2e respectively. ART’s operating properties’ total water consumption was about 942,677m3. This includes the use of 11,235m3 of recycled water.
  • Reduction6: For 2018, our reduction in energy usage in kWh/m2 was 9.9% and our reduction in water usage in m3/m2 was 37% from the 2008 baseline. Our reduction in carbon intensity (kg/m2) was 29.13% from the 2008 baseline. ART will continue to implement energy and water conservation measures to ensure efficient operations and minimise resource wastage
  • More than 280 CapitaLand properties across Asia and Europe participated in the World Wide Fund for Nature Earth Hour initiative. More than 70% of ART’s properties participated in this event.


  • Health and safety
  • Job creation and security
  • Learning and development
  • Benefits and remuneration

ART believes that regardless of ethnicity, age or gender, employees can make a significant contribution based on their talent, expertise and experience. We adopt consistent, equitable, and fair labour policies and practices in rewarding as well as developing our employees.

ART aims to provide a work environment that is safe and contributes to the general wellbeing of our employees.

CapitaLand is a signatory to the UN Global Compact.

(SDG 3, 8, 10)

  • Zero Fatality/Permanent Disability: In 2018, there was no staff fatality or permanent disability reported
  • Global workforce7
    • more than 70 nationalities
    • almost equal proportion of males and females, at ratio of 48:52
    • 61% of global workforce aged between 30 and 50
    • average training hours per staff of approximately 54 hours
  1. 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.
  2. 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.
  3. This was developed by the World Resources Institute and World Business Council for Sustainable Development, which sets the global standard on how to measure, manage and report greenhouse gas emissions.
  4. Somerset Ho Chi Minh City was awarded the Green Mark GoldPlus and Ascott Makati was awarded the first green building certification in the serviced residences category by International Finance Corporation as a part of their Excellence in Design for Greater Efficiencies (EDGE) system.
  5. Computation of footprint data excluded third-party operated properties.
  6. Computation of intensity data excluded new properties which are in operation for less than 12 months, properties undergoing asset enhancement programmes and third-party operated properties.
  7. Computation of global workforce statistics are based on employees of ART (including our subsidiaries) and the Manager.