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\nView of Gardens by the Bay, a huge nature park in the city.\u00a0\u00a0
\nSingapore remains committed to reducing greenhouse gas emissions in the next 10 years. In line with this, several real estate companies are doing their part to build a more sustainable city.\u00a0\u00a0\u00a0\u00a0
\nBy Romesh Navaratnarajah\u00a0
\nAt over 100ha, Gardens by the Bay is a sprawling oasis of nature that sits right next to luxury condominiums and office towers in the new downtown of Marina Bay. Opened in 2012, the nature park contains more than one million plants and draws busloads of tourists each day.\u00a0\u00a0
\nBut the park is more than just a top tourist attraction. It highlights Singapore\u2019s ongoing efforts to become one of the eco-friendliest cities in the world. For instance, the Supertrees at Gardens harvest solar energy used for lighting the towering structures at night. They also act as a collection point for rainwater used for irrigation.\u00a0\u00a0
\nThe Republic\u2019s bold plan to go green is nothing new.\u00a0\u00a0
\n\u201cSingapore\u2019s journey towards sustainability started in the 1960s before environmental issues became a global concern,\u201d said Deputy Prime Minister Teo Chee Hean. \u201cWe made a conscious decision to green our country, clean up our streets, and enact laws against pollution.\u201d\u00a0\u00a0
\nAs part of the Paris climate agreement, Singapore is also looking to reduce greenhouse gas (GHG) emissions by 36 percent by 2030, Teo noted.\u00a0\u00a0\u00a0
\nHe was speaking at the opening of Singapore\u2019s first sustainability academy in June. Jointly developed by property heavyweight City Developments Limited (CDL) and the Sustainability Energy Association of Singapore, the $2 million showpiece project located atop CDL\u2019s City Square Mall in Farrer Park features about 3,200 sq ft of photovoltaic panels, and aims to promote a low-carbon economy, resource efficiency, and sustainable practices among businesses and the community.\u00a0\u00a0
\nIt is also the first in Singapore to have its timber construction materials verified by the Nature\u2019s Barcode system as coming from responsible sources.\u00a0\u00a0
\nA long track record\u00a0\u00a0
\nCDL began integrating sustainability into its business strategy back in 1995, and is just one of a handful of real estate firms here to do so. Other major players include CapitaLand, Lendlease and UOL Group.\u00a0\u00a0
\n\u201cToday, integrating sustainability into a company\u2019s business is indeed a must-have and not just a good-to-have,\u201d said Esther An, Chief Sustainability Officer at CDL, who discussed sustainable design and developments at the recent Urban Land Institute Asia Pacific Summit held in Singapore.\u00a0\u00a0
\nShe identified climate change as a key risk that could significantly impact the bottom line of businesses.\u00a0\u00a0
\n\u201cIn Singapore, businesses that do not adopt sustainable practices may face reputational or operational risks that will impact their license to operate, and be exposed to higher operating costs, with the water price increases and upcoming carbon tax.\u201d\u00a0\u00a0
\nIn 2009, CDL launched 11 Tampines Concourse, the first carbon neutral development in Asia Pacific, and was the first developer in the region to adopt the prefabricated prefinished volumetric construction method in 2014.\u00a0\u00a0
\n\u201cWe develop green buildings, manage them in an energy- and resource-efficient way, and engage stakeholders on sustainable development,\u201d said An, adding that this has given it first-mover advantage.\u00a0\u00a0
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\nEsther An, CDL Chief Sustainability Officer.
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\nMore awareness\u00a0
\nChunsheh Teo, Managing Director for Southeast Asia at global design firm smdp studio, believes sustainable building and construction is gaining momentum due to growing awareness of climate change.\u00a0\u00a0
\nAt smdp, sustainability has become a core principle in all its designs through site placement, floor plan configuration and solar orientation. One of their most recent construction projects \u2013 the Samsung Headquarters in Beijing \u2013 features sky gardens which allow sunlight through and improves indoor air quality.\u00a0\u00a0
\nTeo noted that in the past, older buildings were designed and built to create a controlled environment for greater comfort, but this creates a disconnect between the interior and exterior environment and contributes to negative environmental effects.\u00a0\u00a0
\n\u201cAs cities get denser and populations increase contributing to horizontal and vertical sprawl, we build and consume more at the expense of the environment, which in return impacts our lives and future generations,\u201d he told PropertyGuru.\u00a0\u00a0\u00a0
\nLooking ahead, he believes that demand from consumers will push developers to provide more sustainable projects.\u00a0\u00a0\u00a0
\n\u201cThis becomes a new segment for developers to market themselves, enhance their brand and compete to step beyond the traditional way of development,\u201d said Teo, adding that governments also play an important role in introducing new guidelines, policies and regulations while offering incentives to developers and consumers.\u00a0\u00a0
\nGreen financing\u00a0\u00a0
\nMeanwhile, the shift towards social responsibility has led to an increased appetite for alternative financing options such as green bonds.\u00a0\u00a0
\nIn April this year, CDL became the first local company to launch a green bond. The two-year senior secured green bond raised $100 million at a fixed rate of 1.98 percent.\u00a0\u00a0
\nThe proceeds will go towards refinancing a $100 million loan initially taken to construct and maintain Republic Plaza, a Grade A office building at Raffles Place which was awarded the highest Green Mark Platinum rating by the Building and Construction Authority (BCA) in 2012.\u00a0\u00a0
\n\u201cGreen finance offers CDL an alternative financing stream,\u201d said An. \u201cOur green bond issuance also complements the Singapore government\u2019s target of greening at least 80 percent of the country\u2019s building stock by 2030, which could be the lynchpin of Singapore\u2019s climate change pledge to reduce GHG emissions.\u201d\u00a0
\nAccording to An, CDL will explore more green bond issuances in future.\u00a0\u00a0\u00a0\u00a0\u00a0
\n\u201cIt is clear that for the next 13 years, real estate companies have a large role to play in mitigating climate change and contributing towards Singapore\u2019s greening and GHG emissions reduction goals,\u201d she said.<\/p>\n