Sustainability

SUSTAINABILITY MANAGEMENT

We believe that it is important for us to focus on the areas which are most relevant to us.

OUE H-Trust’s inaugural sustainability report is published as an affirmation of its commitment to sustainability and address OUE H-Trust’s material environmental, social and governance (“ESG”) topics from 1 January to 31 January 2017.

Our data is reported in good faith and to the best of our knowledge. In the coming years, we will continue to enhance our sustainability processes by advocating transparency and accountability. These continue to be the fundamental aspects required to build trust with our stakeholders.

This report is with reference to the GRI Standards (2016) and includes consideration of the GRI Construction and Real Estate Sector Disclosures.

[GRI 102-16] [GRI 102-18]

OUE Hospitality Trust (“OUE H-Trust”), sponsored by OUE Limited (the “Sponsor”), is a stapled group comprising OUE Hospitality Real Estate Investment Trust (“OUE H-REIT”) and OUE Hospitality Business Trust (“OUE H-BT”).

OUE H-REIT is managed by OUE Hospitality REIT Management Pte. Ltd. (the “REIT Manager”), which is wholly-owned by the Sponsor. OUE H-BT is managed by OUE Hospitality Trust Management Pte. Ltd. (the “Trustee-Manager”), which is also wholly-owned by the Sponsor.

OUE H-REIT’s asset portfolio comprises two hotels – the 1,077-room Mandarin Orchard Singapore (“MOS”) and the 563-room Crowne Plaza Changi Airport (“CPCA”), and a high-end retail mall – Mandarin Gallery.

OUE H-BT is dormant.

The principal objectives of the REIT Manager and the Trustee-Manager of OUE H-BT are to deliver regular and stable distributions to Stapled Securityholders and to achieve long-term growth in distributions and in the NAV per Stapled Security, while maintaining an appropriate capital structure.

The REIT Manager endeavours to achieve this through the key strategies of optimising assets and delivering operational excellence, growth through acquisitions, and active capital and risk management. The REIT Manager identifies and evaluates property acquisition or improvement opportunities that will enhance the value of the portfolio. Post-listing, OUE H-Trust has acquired the 563-room CPCA. In addition, some of the asset enhancements completed include:

  • Renovation of 430 guest rooms in MOS
  • Creation of a brand new level of meeting and convention space in MOS’ Orchard Wing
  • Renovation of existing meeting facilities in MOS’ Main Tower

 

The REIT Manager has an established risk assessment and management framework (the “Framework”) for OUE H-Trust, which has been approved by the Board. The Framework is used by the REIT Manager to determine the nature and extent of the significant risks in order to achieve strategic objectives. The Framework also provides internal controls as to how to address these risks. (Please refer to the Corporate Governance Report for more information.)

The Board and senior management provide strategic direction to OUE H-Trust. The Board oversees and approves key sustainability related matters. The Board is supported by the Sustainability Steering Committee (“SSC”) which comprises senior management from the REIT Manager as well as across the OUE Group. The SSC is responsible for guiding the implementation of OUE Group’s sustainability strategies.

BOARD STATEMENT [GRI 102-14]

The Board of Directors (“the Board”) of the REIT Manager and the Trustee-Manager (collectively, the “Managers”) is pleased to present our first sustainability report.

We recognise how sustainability can contribute to our objective of delivering regular and stable distributions to stapled securityholders. We believe that sustainability provides opportunities to enhance the function, practicality, effectiveness, perception and value of our assets and we look forward to exploring these opportunities further.

The Board oversees the direction of sustainability focus and strategies within OUE H-Trust, the management of sustainability related performance and development of the sustainability report.

Our sustainability report is aligned to the SGX-ST Listing Rules 711A and 711B – Sustainability Reporting Guide and makes references to the internationally recognised Global Reporting Initiative (“GRI”) Standards (2016).

We believe that it is important for us to focus on the areas which are most relevant to us. The Board validated the results of a materiality assessment that was conducted by management to identify where we should concentrate our sustainability efforts given OUE H-Trust’s structure and business priorities. In addition, we have set out how we manage our impacts in these areas as well as our performance and targets for the upcoming year.

[GRI 102-50]

OUE H-Trust’s inaugural sustainability report is published as an affirmation of its commitment to sustainability. The report addresses OUE H-Trust’s material environmental, social and governance (“ESG”) topics from 1 January to 31 December 2017.

Reporting Scope [GRI 102-46]

In defining the reporting scope, OUE H-Trust considered its level of operational control over the activities carried out within its real estate assets as well as the significance of any resulting economic, environmental and social impacts.

OUE H-Trust owns a portfolio of real estate assets on behalf of Stapled Securityholders. Both hotels, Mandarin Orchard Singapore and Crowne Plaza Changi Airport are on master lease arrangements and Mandarin Gallery is managed by an appointed property manager. Please refer to the diagram on page 14 which illustrates the relationship between, among others, OUE H-REIT, OUE H-BT, the REIT Manager, the REIT Trustee, the Trustee-Manager, the Master Lessees, the Hotel Managers, the Property Manager and the Stapled Securityholders.

This report focuses on the REIT Manager’s policies, practices and performance in relation to the Trust’s material ESG factors. Unless otherwise specified, the performance data reported pertain only to the REIT Manager. Targets set pertain only to the REIT Manager.

We have regular meetings with the Master Lessees, Hotel Managers and the Property Manager of Mandarin Gallery where we communicate our objectives and strategic direction. We support initiatives that contribute towards building a future ready workforce with a strong pipeline of talent. We are also supportive of the community engagement projects and ecofriendly initiatives such as green campaigns and use of waste management systems undertaken at the properties. Highlights of information relating to the sustainability practices and performance of the Trust’s two hotels – Mandarin Orchard Singapore and Crowne Plaza Changi Airport, and its retail mall Mandarin Gallery, are included in the section on ‘Sustainability Management – Property Highlights’ within the annual report.

Our data is reported in good faith and to the best of our knowledge. In the coming years, we will continue to enhance our sustainability processes by advocating transparency and accountability. These continue to be the fundamental aspects required to build trust with our stakeholders.

Reporting Standard [GRI 102-54]

This report has been prepared in accordance with the requirements of SGX-ST Listing Rules 711A and 711B. The report is with reference to the GRI Standards (2016), and includes consideration of the GRI Construction and Real Estate Sector Disclosures. We have selected the GRI Standards as our sustainability reporting framework as they are widely used by sustainability reporters globally. The GRI Index and the relevant references are presented on pages 37 to 39.

Feedback [GRI 102-53]

OUE H-Trust welcomes all feedback to help us improve our sustainability practices. Please send your questions or feedback to enquiry@oueht.com.

 

Engaging with Our Stakeholders
[GRI 102-40][GRI 102-42][GRI 102-43]

OUE H-Trust is committed to maintaining regular and transparent communication with its stakeholders, namely stapled securityholders and prospective investors, analysts and the media, tenants (including Master Lessees), employees, Property Manager and the government and regulators. Regular stakeholder engagement enables ongoing learning within the organisation and fosters accountability between OUE H-Trust and its stakeholders.

Materiality Assessment [GRI 102-47]

Insights gained from interactions with our stakeholders have been considered when determining the content of this report. OUE H-Trust, together with the OUE Group, conducted a joint materiality assessment in January 2017 to select ESG factors that shine a spotlight on opportunities to improve our business and our practices. An independent sustainability consultant was engaged to facilitate a three-step process as summarised in the table below. The assessment covered OUE H-Trust’s operations, and was guided by the GRI Materiality Principle.

 

The following aspects were considered in the assessment process:

  • global and local emerging sustainability trends;
  • main topics and future challenges for the real estate sector, as identified by peers;
  • insights gained from regular day-to-day interactions with external stakeholders; and
  • key organisational strategies and risks identified in the Enterprise Risk Management (“ERM”) framework.

Through the assessment and taking into account OUE H-Trust’s level of operational control and low level of involvement in the day-to-day operations of the owned properties as they are mainly masterleased, there were eight factors determined to be material to the Trust.

The eight material factors in the table below form the focus of this sustainability report. For more information on OUE H-Trust’s economic performance, please refer to the Letter to Stapled Securityholders on pages 6 to 12, Financial Highlights on page 13 and the Financial Statements section for more information on the financial year ended 31 December 2017.

 

We are committed to ensuring the health and safety of our employees. Employers are required to conduct risk assessments and take steps to eliminate and reduce any anticipated risks in the workplace.

In 2017, there were zero work-related fatalities and zero work-related injuries amongst staff employed by the REIT Manager. We continue to strengthen our safety management practices to minimise injuries in the workplace.

Employee Wellbeing

Efforts are taken to ensure that our employees feel appreciated for their contributions. Investing in the wellbeing of our employees is part of creating a working environment which respects individuals and acknowledges achievements. Our employees are entitled to benefits such as health insurance, annual health screenings, and complimentary flu vaccinations.

1The scope of this section is limited to the Manager’s employees. Employees under the Property Manager of Mandarin Gallery are not included as they are separately reported under OUE Group. There were no temporary employees.
 

Our employees are key drivers in our pursuit to enhance overall business performance to deliver sustainable growth. We place emphasis on recruiting individuals with the necessary competencies, experience, qualifications and mind-set to make a positive contribution to the business objectives of OUE H-Trust. We constantly endeavour to create an environment where our employees feel valued and respected. OUE H-Trust leverages on the Sponsor’s human resource strategies and policies which are grounded on equal opportunities and fair employment practices. The Sponsor subscribes to the Tripartite Alliance for Fair & Progressive Employment Practices (“TAFEP”) guidelines and government employment legislation in all its recruitment and selection practices. We are therefore committed to employing qualified candidates without any discrimination against age, gender, race, marital status or religion. We understand that an engaging workplace also caters to the employees’ desire to contribute to society. The REIT Manager is a keen supporter of the Sponsor’s community activities, including the Stars of Christmas annual event. Our employees have also been supporting this meaningful cause on a personal basis by contributing gifts to the beneficiaries. In 2017, the REIT Manager’s workforce totalled 10 permanent employees in Singapore1. There were no temporary employees. During the period, the rate of new employee hires was 20%. Employee turnover rate was at 20%.

We conduct annual performance evaluation exercises. Employees receive performance feedback from their supervisors, and are encouraged to communicate and discuss their training and development goals. The regular engagement through performance appraisals enables us to determine and recommend development opportunities to help employees achieve their full potential. In a dynamic business environment, we recognise the need to constantly train and develop our employees in order to equip them with the skills necessary for growth. OUE H-Trust leverages on the Sponsor’s training policy which focuses on enabling continuous learning and development throughout the employment cycle. In 2017, the average training hours per employee achieved was more than 40 hours . Apart from in-house training, employees are also encouraged to pursue development opportunities to further their careers. Examples of such opportunities include industry seminars and conferences, skills certification training, courses to attain professional qualifications as well as scholarship programmes. Employees may also apply for paid examination leave to pursue studies of their interest. We aim to maintain a continuous dialogue so as to enrich our employees’ careers with us.

2 The scope of this section is limited to the Manager’s employees. Employees under the Property Manager of Mandarin Gallery are not included as they are separately reported under OUE Group.
 

We aim to enhance the potential of our hotels and retail mall so that they may continue to be places which attract guests, patrons, and tenants. A safe and welcoming environment is vital to an enjoyable experience. As a real estate owner, we want our tenants and building users to be safe from injury, and are therefore committed to safety laws and regulations and strive to achieve the best of industry standards. Encouraging and enabling our Master Lessees and Property Manager to provide a hazard-free and comfortable environment is of paramount importance.

The properties are subject to periodic (usually once in five years) professional review for structural safety. When reviewing the annual capital expenditure budget of the properties, approval priority is given to expenditures related to regulatory, health and safety requirements. The Hotel Managers are required to hold the relevant licences from the Hotels Licensing Board to use the premises for operation as a hotel and adhere to the licensing and regulatory requirements relating to health and safety in their operations. The REIT Manager conducts periodic review of the validity of the key licences.

OUE H-Trust is committed to maintaining good standards of corporate governance and business conduct to safeguard the interests of its stakeholders. The REIT Manager is dedicated to upholding integrity and honesty in our operations. OUE Limited’s Code of Business Conduct and Ethics sets out expectations of employees in relation to issues such as fraud, bribery, segregation of duties and anti-competitive conduct. Upon commencement of employment, all employees are required to sign a certificate of compliance to indicate their willingness to adhere to the Code. The same requirement is made of the REIT Manager’s employees.

OUE H-Trust adopts the Sponsor’s whistle-blowing policy to provide a channel for employees to report concerns about possible improprieties in financial reporting and other matters. Retaliation or harassment of any kind are not permitted against individuals for complaints submitted that are made in good faith. The Audit and Risk Committee (“ARC”) of the REIT Manager has the responsibility of overseeing this policy which is administered with the Head of OUE’s Internal Audit Department (“OUE IA”). Under these procedures, arrangements are in place for independent investigation of complaints or concerns received and for appropriate action to be taken.

The REIT Manager adopts Limits of Authority as approved by the Board for MOS and CPCA, and the Power of Attorney from the Trustee in relation to Mandarin Gallery to manage decision making. This ensures that actions to be authorised are at all times consistent with our objectives, principles, ethics as well as the relevant legal and/or regulatory requirements.

 

OUE H-Trust’s Board of Directors and management believe compliance with local laws and regulations is key to successful and sustainable financial and operating performance. The REIT Manager holds a Capital Markets Services License for Real Estate Investment Trust Management, administered under the Securities and Futures Act.

Compliance-related activities are guided by a legal and regulatory Compliance Manual and are administered by a legal and compliance team. In the event of any identified incidence of noncompliance, legal and regulatory impacts will be assessed and remedial plans will be carried out. External consultants are also engaged to review our compliance with the Monetary Authority of Singapore’s Risk-Based Capital (“RBC”) framework as well as implement measures to meet Anti-Money Laundering, Counter-terrorism and Financing, and Know Your Customer requirements.

The legal and compliance department monitors changes to relevant laws and regulations, and conducts regular updates and training for the REIT Manager. Where necessary, external consultants are engaged to assist with training and implementation of policies and practices to adapt to changes in regulatory requirements.

Our properties are subject to environmental laws and regulations, including the Building Control (Environmental Sustainability) Regulations administered by the Building and Construction Authority (“BCA”), as well as the Energy Conservation Act and Environment Protection and Management Act governed by the National Environment Agency (“NEA”). Properties are also subject to periodic environmental audits by the local authorities. The Hotel Managers and the Property Manager are responsible for conducting regular checks within the buildings and ensuring compliance with reporting requirements pertaining to the submission of environmental data.


 

 


At OUE H-Trust, we believe in being proactive in making a positive difference in the communities that are home to our customers, our associates, and our business partners.

We support programmes at our properties, in collaboration with our Sponsor, OUE Limited, and the Hotel Managers and Property Manager of the mall, which bring tangible results in supporting our workforce, and in aid of causes that support ecological sustainability and the welfare of underserved seniors, children and families especially in the areas of health and education.


Supporting Our Talent, Growing Their Potential

We fully support the training and development of staff employed at our properties. It is also important to recognise and reward good performance to continuously motivate staff and retain talent.

Mandarin Orchard Singapore (“MOS”)
Service excellence is the cornerstone of MOS’ delivery of the Meritus promise of Asian grace, warmth and care to guests. At MOS, staff are not only trained in the finer points of service execution but also in fundamental but important areas such as Occupational First Aid and Workplace Safety. As at the end of 2017, more than 600 MOS staff had attended at least one training programme and in aggregate accomplished a total of more than 16,000 hours of training.

In 2017, 262 employees of MOS received the Excellent Service Award (“EXSA”) across the Star, Gold, and Silver categories.

A national award that recognises individuals who have delivered quality service, EXSA seeks to develop service models for staff to emulate, and to create service champions within organisations.

EXSA is managed by six industry lead bodies—the Association of Singapore Attractions, the Land Transport Authority, the Restaurant Association of Singapore, the Singapore Hotel Association, the Singapore Retailers Association, and the Association of Banks in Singapore; and supported by SPRING Singapore.

Representing various departments within MOS, 70 staff received the Star distinction, 151 received the Gold Award, and 41 were awarded Silver. This year, Eugene Lee from the hotel’s Food and Beverage department was conferred the SHA Outstanding Star Award, the highest accolade for EXSA.

In 2016, MOS received the ISO 9001:2008 Quality Management System for successfully adopting international standards of quality and service within the hospitality industry. Implementing ISO 9001:2008 enables the continuous improvement of an organisation’s quality management systems and processes. In turn, this boosts profitability and improves the ability of the organisation to meet customer requirements and expectations.

MOS’ ISO 9001:2008 certification is valid until September 2018.

Crowne Plaza Changi Airport (“CPCA”)
CPCA places strong emphasis on growing, developing, and retaining its people by creating an inclusive culture where people are encouraged to be true to themselves.

Training programmes are available to help employees grow in their roles and develop personally and professionally. A total of more than 10,000 hours of training had been clocked by about 300 employees in areas such as service, leadership skills, new employee orientation and on-the-job training.

Consistent training helps employees develop their skills and enables the hotel to deliver exceptional guest experience and be a great hotel guests love. CPCA also provides opportunities for staff to enhance their skills and build a long-term career with the hotel. Awards such as ‘Employee of the Year’, ‘Manager of the Year’ and ‘Colleague of the Year’ are conferred to recognise and reward employees for their contributions and outstanding performance.

With a strong culture of employee empowerment and engagement, CPCA is proud to be a part of the Intercontinental Hotels Group (“IHG”) hotels in Singapore - named amongst the top five companies to work for in Asia in Great Place to Work’s ‘Best Workplaces in Asia 2017’ list and had achieved 2017 Aon Global Best Employer accreditation by Aon Hewitt.

Some of the training and development programmes at our properties are featured below.

Type Programmes available
General courses • New Hire Orientation
• On-the-job Training
Specialised training courses at Mandarin Orchard Singapore • Business Excellence
• Computer and IT courses
• Professional Development
• Security and Safety
• Service Excellence
• Skills for Supervisors
Specialised training courses at Crowne Plaza Changi Airport • Food Safety Management System
• IHG Front Line – Problem Handling
• Interact with Guests
• Leading Others
• Personal Development Plan

 

Workplace Health and Safety

At our properties, emphasis is placed on the importance of having a workforce that works with a safety mindset and attitude. In order to cultivate a strong safety culture, the properties abide by occupational health and safety management frameworks which take reference from the Ministry of Manpower’s Workplace Safety and Health (“WSH”) Act.

Our properties subscribe to the bizSAFE programme administered by the Singapore WSH Council. Mandarin Orchard Singapore and Crowne Plaza Changi Airport have attained accreditation for bizSAFE Levels 4 and 3 respectively. The properties are subject to periodic audits conducted by MOM-approved WSH auditors to ensure compliance with bizSAFE standards.

All employees are required to undergo WSH training. In the day-to-day operations, employees are trained to conduct risk assessments for every work activity to identify workplace hazards and implement risk control measures. Any workplace related injuries or incidents are reported at once to the human resource department for proper management and treatment. As part of the bizSAFE programme, the properties also have in place risk and hazard management plans to anticipate and implement measures against threats to the workplace.

In 2017, there were zero work-related fatalities across the hotels. Accident frequency rate (“AFR”) and accident severity rate (“ASR”) per million manhours worked recorded were 25 and 169 respectively.


Supporting Our Local Communities

A community-driven approach is taken to caring for our society through financial contributions, inkind donations, and volunteer work by the different teams towards causes that alleviate hunger, poverty, and illnesses, particularly amongst children and the elderly.

Mandarin Orchard Singapore

Stars of Christmas 2017
Stars of Christmas, an annual community programme championed by OUE Limited (“OUE”) together with MOS and Marina Mandarin Singapore, marked its eighth year of bringing Christmas cheer to beneficiaries of non-profit organisations providing programmes and services to underprivileged children, and those with special needs and illnesses.

Leading the cast of supporting partners for Stars of Christmas 2017 are Komoco Motorcycles Pte Ltd (Harley-Davidson of Singapore—Sole Authorised Dealer), Tridente Automobili Pte Ltd (Official Maserati Importer for Singapore), and Community Chest, the fund-raising and engagement arm of the National Council of Social Service.

Stars of Christmas 2017 is in support of Children’s Cancer Foundation, Club Rainbow, KK Women’s and Children’s Hospital, and various other children’s welfare organisations under Community Chest.

The three-part programme commenced with the ceremonial hanging of Christmas stars at the lobby of MOS, led by OUE Chief Executive Officer and Group Managing Director, Mr Thio Gim Hock. Giant Christmas trees at MOS and Marina Mandarin Singapore were adorned with stars indicating beneficiaries’ information, so members of the public and staff could pick the stars and purchase Christmas presents accordingly.

On 15 December, beneficiaries of Stars of Christmas 2017 along with their parents, siblings, and caregivers, were guests of honour at a Christmas luncheon hosted by OUE Executive Chairman, Dr Stephen Riady. The children were joined by employees of OUE and its affiliate companies for an afternoon of Christmas treats and entertainment at Mandarin Orchard Singapore, featuring a visit from Santa who helped give out Christmas presents.

Stars of Christmas 2017 ended with a highly anticipated Toy Run activity on the morning of 16 December, with volunteer riders on a fleet of Harley- Davidson motorcycles and Maserati cars making for a festive spectacle on the Orchard Road frontage of Mandarin Gallery. Children and caregivers from Thye Hwa Kwan Family Service Centre, together with employees of OUE and MOS, cheered on the riders as their convoy set off to deliver Christmas presents to various beneficiaries.

More than 1,500 beneficiaries received presents under this year’s OUE Stars of Christmas community programme.

Heartstrings Walk 2017
Over 200 employees from OUE, MOS, and Marina Mandarin Singapore joined an estimated 8,000 participants on September 9, 2017 to celebrate abilities and promote inclusivity at Community Chest Heartstrings Walk 2017. Aptly themed “A walk by all, a heart for all,” the charity festival was a fun-filled experience with exciting performances, games and experiential activities to signify a collective effort to build one community that shares, and a nation that cares.

Work Experience Programme for Special Needs Students
MOS continues to work with Metta School and APSN Delta Senior School for the Work Experience Programme organised by the Singapore National Employer Federation and the Special Education Branch of the Ministry of Education to offer onthe- job training opportunities for special needs students. The objective is to expose them in real-life settings and assist them in developing into selfsufficient and productive members of society. MOS, depending on the students’ performance during the programme and how successfully they adapt to the work environment, then facilitates the placement of these students into full-time roles with the hotel.

Crowne Plaza Changi Airport

IHG Foundation Week
During the IHG Foundation Week, CPCA joined colleagues from IHG hotels and corporate offices around the world to pledge their support by participating in fun-filled activities to raise funds. For every activity a colleague participates in, IHG will make a donation to the IHG Shelter Fund.

CPCA organised a series of activities to raise funds for IHG Shelter in a Storm, IHG’s disaster relief programme, to aid those impacted by disaster and to rebuild communities. Highlights include the sale of fresh fruit juices to employees, who placed their orders through Whatsapp and enjoyed complimentary delivery service to their desks or work areas. Employees are also encouraged to support the fund raising efforts by gifting cupcakes to fellow colleagues to say ‘Thank you’.


We believe increasing operational efficiency at our properties through a greener approach makes business sense. Working to reduce the direct impact on the environment can create more sustainable ways of doing business.

Effluents and Waste

Reducing waste generation and proper waste management is increasingly a priority in Singapore. The Hotel Managers and Property Manager do not have direct control over the production of waste by guests and tenants within its buildings. Their focus therefore is on providing good waste management and recycling facilities for guests and tenants as part of their efforts to reduce overall environmental footprint. We recognise that there are opportunities for the functionality of our buildings to contribute towards a circular economy, where by-products and materials are recycled or reused.

In 2017, the total weight of non-hazardous waste generated by the hotels and Mandarin Gallery was 2,068 tonnes. Of which, waste sent for recycling amounted to 386 tonnes in 2017. Total waste sent for composting recorded 114 tonnes in 2017.

Mandarin Orchard Singapore
At MOS, the ‘Meritus Loves the Earth’ green campaign engages guests and employees alike to actively participate in waste reduction and energy conservation measures. The three ‘Rs’ (Reduce, Reuse, and Recycle) are applied where possible – from cleaning guestrooms and setting up events, to managing waste in the kitchens and installing recycling bins at back-of the-house areas.

As a large hotel with 1,077 rooms, waste management is one of the key drivers of MOS’ environmental sustainability efforts. Since 2014, MOS has embarked on a Food Recycling Programme partnering with ECO-WIZ Group Pte Ltd, one of the world’s leading food waste management companies to recycle all food waste generated. In addition to the collection of used materials such as cardboards, newspapers, plastics and glass bottles for recycling, the hotel also started its Fluorescent Lamp Recycling Programme in July 2014. The objective is to reduce the environmental risk from improper disposal of used mercury-containing lamps, including compact fluorescent lamps, fluorescent tubes, and highintensity discharge lamps, by collecting and treating them in line with international practices.

Crowne Plaza Changi Airport
CPCA has an Environmental Management Committee which is focused on implementing effective initiatives to promote sustainability. Some of the key initiatives include the adoption of Eco-Wiz Food Digester which converts food waste into water which is then used for cleaning the bin centre. The hotel has also installed Jemflo, a water flow control system which provides sustainable long term water and energy savings.

Besides embracing environmental technology, CPCA also engages employees and guests in its green practices which include incorporating 3R initiatives widely within the hotel with readily available recycling points; involving guests by placing linen and towel reuse cards in guestrooms; providing training to employees on waste separation and reduction; and the use of environmentally-friendly cleaning products.

CPCA also works with Sealed Air on the ‘Soap for Hope’ initiative to provide, sanitise and recycle used soap bars into new bars for distribution to underprivileged communities around the region. The hotel also participates in the ‘Linen for Life’ programme by donating linen, which can be repurposed into pillow cases, sleeping bags and simple clothing which are then sold to earn a small income for the people who made them.

Mandarin Gallery
Although the Property Manager does not have direct control over the generation of waste by tenants, the mall has in place a waste management plan in collaboration with MOS by using waste management technology to compact and automatically discharge waste. Part of the waste is also recycled with the objective of reducing waste. Working with a licensed waste/recyclables vendor, the mall pro-actively tracks the recycling of waste such as paper, metal, glass and plastic. In 2017, Mandarin Gallery participated in the National Environment Agency’s inaugural 3R Awards For Shopping Malls which was launched to recognise outstanding waste reduction efforts of malls and retail tenants, and was acknowledged with a Certificate of Participation.

Energy and Emissions

Energy use and its associated greenhouse gas (“GHG”) emissions is an emerging concern due to the potential threats from rising global temperatures and climate change. In 2015, Singapore was one of more than 190 nations which pledged to limit their GHG emissions through “nationally determined contributions” as part of the Paris Agreement.

As our buildings use substantial amounts of energy, energy management provides opportunities for the properties to enhance operational performance through energy efficiency initiatives as well as exploring energy efficiency innovations for future adoption. Some initiatives by the Hotel Managers and the Property Manager that were implemented to improve energy efficiency at our properties include:

  • installing energy-efficient LED lighting in common areas;
  • installing motion-activated lighting controls in common areas;
  • regular monitoring of chiller plant efficiency; and
  • encouraging employees and hotel staff to practise energy-saving initiatives.

MOS, CPCA and Mandarin Gallery were awarded the Green Mark certification by the BCA of Singapore. The BCA Green Mark is a green building certification that looks into the overall environmental performance and practices of buildings as they relate to sustainable design, construction, and operations. Criteria for a Green Mark rating include energy, water and waste efficiency; environmental protection, indoor environmental quality, and green innovations.

The bulk of the properties’ energy consumption is from purchased grid electricity. In 2017, electrical energy consumption1 at the properties amounted to 37,872 megawatt hours (“MWh”). Overall building energy intensity was 252 kWh/m2 in 2017.

Indirect GHG emissions2 and intensity from electrical energy in 2017 attributable to the properties was approximately 16,073 tonnes of carbon dioxide equivalent (“tCO2e”) and 0.11 tCO2e/m2, respectively.

Water

Water is essential to the business operations at OUE H-Trust’s properties. The guests, tenants and visitors expect to be supplied with clean potable water. Like energy, water management provides opportunities for the properties to enhance their operational performance.

Our properties are certified under the Public Utilities Board’s (“PUB’s”) Water Efficient Building (“WEB”) Certification Programme. This signifies that the buildings have been installed with approved water efficient fittings and adopted WEB recommended flow rates and flush volumes. While majority of the water supply is sourced from public utilities, the buildings also utilise water from alternative sources to reduce the reliance on potable water. Non-potable water, including NEWater, is used in cooling towers, for irrigation as well as flushing in lavatories. Pioneered by the Public Utilities Board, NEWater is high-grade reclaimed water produced from treated used water that is purified further using advanced membrane technologies.

Total building water consumption at the properties in 2017 recorded 438,063 m3. Overall building water intensity was 2.92 m3/m2 in 2017.

1 Energy consumption excludes tenanted areas that are not within the operational control of the Property Manager
2 GHG emissions is derived based on the latest available Singapore’s Grid Emission Factors published by the Energy
Market Authority