CapitaLand Investment Advances Decarbonisation and Green Asset Management Across Global Portfolio

CapitaLand Investment’s 2025 Sustainability Report highlights progress in decarbonisation, green building certification and sustainable finance. The company reported lower carbon, energy and water intensity, while raising S$5.7 billion in sustainable financing.

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CapitaLand Investment Advances Decarbonisation and Green Asset Management Across Global Portfolio

CapitaLand Investment Limited has released its 17th Global Sustainability Report, covering the 2025 financial year across its global portfolio, workforce, and listed REITs and business trusts. The report positions sustainability as part of CLI’s role as a global real asset manager, with disclosures spanning environmental performance, human capital, social impact, governance, and sustainable finance. It has been prepared in line with SGX-ST Listing Rules 711A and 711B, and includes climate-related disclosures based on the climate-relevant provisions of IFRS S1 and IFRS S2.

The report is significant because real estate asset managers are increasingly expected to connect climate resilience, responsible investment, and capital allocation. CLI’s disclosures suggest that sustainability is not being treated only as operational reporting, but as part of fund management, asset performance, stakeholder engagement, and financing strategy. This is particularly relevant as investors continue to scrutinise transition plans, building emissions, green certification, and the credibility of ESG-linked financial instruments.

Key Sustainability Themes and Disclosures

CLI reported progress across several environmental indicators. Since its 2019 baseline, the group recorded an 18.3% reduction in Scope 1 and 2 carbon emissions intensity, a 15.6% reduction in energy consumption intensity, a 22.4% reduction in water consumption intensity, and a 44.1% reduction in waste intensity. Green building certification covered 66% of its global owned and operationally managed portfolio, while renewable energy was expanded to 132 properties across 12 countries.

The report also highlights the complexity of decarbonising a growing real asset platform. While intensity indicators improved, CLI disclosed that absolute Scope 1 and 2 emissions increased by 15.9% from 2019, though same-store or like-for-like assets showed a 23.0% reduction. This distinction is important because it shows both operational improvement and the emissions challenge created by portfolio expansion.

Social disclosures focus on workforce development, engagement, diversity, safety, cybersecurity, and community investment. CLI reported an 83% staff engagement score, 36% women in senior management, around 240,000 training hours, 96% of staff completing at least one ESG training, and 89% completing at least one cybersecurity training. Community investment reached S$2.13 million in 2025, supported by CapitaLand Hope Foundation, CapitaLand Hope Foundation India, and other programmes.

Governance and Strategic Signals

Governance remains a central feature of CLI’s sustainability positioning. The Board oversees sustainability through the Executive and Sustainability Committee, chaired by CLI’s Chairman, with sustainability targets reviewed and approved at Board level. The report also states that selected sustainability and climate-related targets are linked to senior management remuneration and performance frameworks.

CLI’s use of double materiality is another notable signal. The company assesses ESG topics from both impact and financial perspectives, referencing frameworks such as GRI, ISSB, SASB real estate standards, UN SDGs, S&P Global Corporate Sustainability Assessment, and GRESB. Critical material issues include climate resilience, energy efficiency, water management, occupational health and safety, human capital, stakeholder engagement, product and services, supply chain management, risk management, and business ethics.

The report also shows a stronger link between ESG and capital strategy. CLI and its listed REITs and business trusts raised S$5.7 billion in sustainable finance in FY2025, bringing cumulative sustainable financing to approximately S$26 billion since 2018. This indicates that sustainability continues to function as both a risk management discipline and a financing enabler.

What This Report Suggests About Future Direction

CLI’s 2025 report suggests a direction of travel toward more integrated sustainability management across investment, asset operations, financing, and stakeholder relationships. The enhanced Climate Transition Plan, Net Zero Glide Path, and participation in SBTi-related pilots indicate that CLI is preparing for more demanding climate disclosure and transition planning expectations.

At the same time, the report shows areas that will likely remain under close stakeholder attention. These include the gap between emissions intensity reductions and absolute emissions growth, the pace of renewable electricity adoption, Scope 3 data quality, tenant engagement, and value-chain decarbonisation. CLI’s disclosure of these challenges adds credibility, particularly where it explains data limitations and the impact of portfolio growth.

Pacifica ESG View

CLI’s 2025 report provides a mature sustainability signal for the real asset management sector. Its strengths lie in governance integration, climate disclosure, sustainable finance, and transparent performance tracking. The next test will be how quickly CLI can translate intensity gains into deeper absolute emissions reductions while scaling its global platform.

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