-- CapitaLand Investment (CLI), a leading global real asset manager, has published its 16th Global Sustainability Report, featuring an updated Climate Transition Plan and providing further insights into its 2030 Net Zero Glide Path. The report reaffirms CLI’s commitment to decarbonisation – balancing between financial feasibility and achieving its sustainability targets. CLI remains focused on low-carbon design, intensifying energy efficiency and expanding the use of renewable energy across its portfolio.
Highlights from the report include:
- Renewable energy usage across CLI’s global portfolio rose from 5.2% in 2023 to 7.3% in 2024, with contributions from 70 properties in 12 countries
- Recorded a 17% growth in green leases for new assets and renewal of leases in Singapore and China1
- Raised over S$4.3 billion in sustainable finance in FY2024 through CLI and its listed real estate investment trusts (REITs) and business trusts
- 30% women on the CLI Board2 and 37% women in senior management
Since 2019, CLI has achieved an 11% reduction in energy consumption intensity through asset enhancement initiatives despite a growing portfolio. As of 2024, 63%3 of its global portfolio has attained at least one green building certification. 51% of CLI’s properties were certified LEED Gold and above or equivalent in 2024.
Mr Lee Chee Koon, CLI’s Group CEO said: “As a responsible global real asset manager, CLI remains steadfast in integrating sustainability and ESG considerations across every stage of our fund and asset management life cycle. Our decarbonisation strategy is guided by a clear carbon mitigation hierarchy – beginning with low-carbon design, enhancing energy efficiency, and scaling up the use of renewable energy. We continue prioritising solutions that balance environmental impact with financial feasibility while leveraging innovation and technology to accelerate our transition to a low-carbon future.”
Return on Sustainability Framework
CLI has introduced a new Return on Sustainability (RoS) framework, a data-driven tool that enables asset managers to quantitatively assess the financial benefits of green capital expenditure (capex). CLI’s RoS framework demonstrates how sustainability investments can deliver financial returns in addition to environmental impact.
Developed using financial models from CLI’s selected commercial assets across Asia-Pacific, the framework evaluates eight key variables that influence financial performance: green capex, utility costs and savings, carbon cost reductions, rent premiums, leasing durations, interest rates savings, reduced insurance premiums, and enhanced asset valuations.
By analysing how each variable impacts cash flows, the RoS framework provides a capital allocation compass for assessing return on investment (ROI) from sustainability initiatives. In best-case scenarios, the framework was shown to estimate that green capex could uplift the Internal Rate of Return (IRR) for many assets. Even under challenging market conditions, the framework shows how sustainability spending can safeguard asset value against risks such as carbon taxes, leasing delays, and rising insurance premiums.
By quantifying risks and returns, the RoS framework supports more informed decisions around capital allocation, asset-level budgeting and cost-benefit analysis for asset enhancement initiatives (AEIs), redevelopments, and other scenarios that require financial justification.
Beyond the asset level, the RoS framework also introduces a portfolio-wide break-even model, enabling fund managers to assess the feasibility of green capex investments through projected long-term savings – offering a practical tool for those with large portfolios that may find it impractical to modify and assess numerous individual financial models.
"As regulatory standards, investor expectations and climate resilience change rapidly, a structured approach to assess sustainable investments is essential,” said Mr Vinamra Srivastava, CLI’s Chief Sustainability & Sustainable Investments Officer. “CLI's RoS framework bridges environmental responsibility with financial accountability, ensuring sustainability decisions are grounded in environmental and commercial outcomes. This framework, using first-party data drawn from six existing assets owned and managed by CLI, answers questions such as “Does going green pay off?” and “If so, by how much?”.
“Drawing on learnings from external research, the RoS framework allows asset managers to objectively ascertain the financial benefits of green capital investments into their assets. The study shows that when implemented correctly, sustainability delivers clear, measurable returns,” added Mr Srivastava.
CapitaLand Sustainability X Challenge
CLI also unveiled the ten finalists from the fourth edition of the CapitaLand Sustainability X Challenge (CSXC), a global initiative seeking climate-tech innovations for the urban environment. Launched in October 2024, the challenge attracted more than 900 submissions from 90 regions, including passive cooling coatings, water-powered energy recovery systems, low-carbon construction materials, and AI energy automation. The top ten finalists will pitch their innovations to an internal judging panel comprising CapitaLand and industry experts on Demo Day, 10 July 2025 in Singapore. (See Annex A for the list of finalists).
“The ideas that CSXC attracts, together with the RoS framework, underscore our belief that innovation, sustainability and business performance are inextricably linked,” said Mr Srivastava. “With CSXC, we reaffirm our commitment to investing in promising decarbonisation technologies and piloting them in our assets around the world. Tenant partners stand to benefit from these solutions, gaining potential savings in energy and water consumption, waste reduction, and enhancements in health and well-being.”
Since its launch in 2020, CSXC has received over 2,400 entries from over 90 regions, showcasing cutting-edge solutions for sustainable urban development from startups and innovations globally. Over the last three editions, more than S$2 million in funding has been committed, with over S$1 million allocated to pilot innovations in the fourth edition. To date, 30 innovations have been piloted in 46 CapitaLand sites across Singapore, China, India, Thailand, Australia, the Philippines, and the USA. Key partners for this edition include the Building and Construction Authority of Singapore, Enterprise Singapore, KPMG in Singapore, Allianz Commercial, FedEx, and GIC. (see Annex B for the list of partners).
[1] Percentage coverage computed based on net lettable area of CLI-owned and operationally managed commercial, retail, business park, industrial and logistics properties in Singapore and China.
[2] 25% as at 1 Jan 2025 with the appointment of Mr Tham Kui Seng and Mr Eugene Lai.
[3] This refers to CLI-owned and operationally managed properties by per m2.
Release ID: 89164022
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