ddd KPL Sustainability - Stakeholder Engagement & Materiality

Stakeholders’ interest is central to the determination of our sustainability agenda. Our dynamic, year-round stakeholder engagement activities allow us to gather diverse views, opinions and expectations from our key stakeholders, which are material to our business, on a continuous basis.

Engage different
stakeholders via
diversified channels
and approaches

Analyse and evaluate
feedback collected

Devise action plan for
further improvement

Our internal and external stakeholders are grouped into nine categories and engaged through various regular communication channels. These help us enhance our communication transparency, anticipate our stakeholders’ needs, and identify possible emerging risks and opportunities to our business operations.

Each year, we also design a thorough stakeholder engagement process to identify key sustainability topics, assess topic materiality, and gain valuable feedback on our strategy, performance and initiatives.

 
 
Customers and
Tenants
Government and
Industry Associations
Academia
NGOs
Media
Employees
Suppliers and
Contractors
Local
Communities
Investors and
Shareholders

Stakeholder
Groups

  • Materiality Assessment
  • Materiality Matrix

As stakeholders’ concerns and expectations may change over time, we have gone through a rigorous materiality assessment process annually to prioritise topics that are important to stakeholders and our business, keeping abreast of the sustainability trends that shape our industry and business.

IDENTIFYING
RELEVANT TOPICS

1. Identifying Relevant Topics

With the inclusion of 5 new issues, a total of 28 sustainability issues were identified for material assessment.

COLLECTING
STAKEHOLDER FEEDBACK

2. Collecting Stakeholder Feedback

Feedback from material internal and external stakeholders was collected through a series of engagement activities, including surveys, interviews and focus groups.

PRIORITISING
MATERIAL TOPICS

3. PRIORITISING MATERIAL TOPICS

Followed by the engagement activities, the level of the materiality of each sustainability topic was assessed based on:

  • Survey scoring on its importance to stakeholders and importance to the business of KPL
  • Feedback collected in interviews and focus groups
  • Peer benchmarking results

The assessment result was plotted in the materiality matrix, where sustainability topics were categorised into three tiers – most material, moderate material, and less material for further validation.

VALIDATION

4. Validation

The list of material topics and materiality assessment result was presented to the Sustainability Steering Committee for review.

1.
Identifying Relevant Topics

With the inclusion of 5 new issues, a total of 28 sustainability issues were identified for material assessment.

2.
Collecting Stakeholder Feedback

Feedback from material internal and external stakeholders was collected through a series of engagement activities, including surveys, interviews and focus groups.

3.
Prioritising Material Topics

Followed by the engagement activities, the level of the materiality of each sustainability topic was assessed based on:

  • Survey scoring on its importance to stakeholders and importance to the business of KPL
  • Feedback collected in interviews and focus groups
  • Peer benchmarking results

The assessment result was plotted in the materiality matrix, where sustainability topics were categorised into three tiers – most material, moderate material, and less material for further validation.

4.
Validation

The list of material topics and materiality assessment result was presented to the Sustainability Steering Committee for review. The validated list of sustainability topics was disclosed in this Report.

The materiality matrix maps 21 sustainability topics, with their level of importance to stakeholders (y-axis) and their level of importance to our business (x-axis). Overall materiality combines both internal and external factors, including the Group’s overall strategy, mission, resources, industry trends and stakeholders’ concerns.

  • Tier 1: Material Topics
  • Tier 2: Moderate Topics
  • Tier 3: Monitored Topics

Material Issues by Topics

  • Environmental
    • Energy Efficiency and Greenhouse Gas ("GHG") Emissions
    • Climate Change and Resilience
    • Green Building Certification
    • Waste Management
    • Water Consumption and Conservation
    • Biodiversity
    • Sustainable Finance
  • People
    • Occupational Health and Safety
    • abour Practices and Human Rights
    • Diversity, Equity, Inclusion
    • Human Capital Management and Development
  • Community
    • Community Engagement, Development and Investment
  • Value Chain
    • Responsible Supply Chain Management
    • Information Privacy
    • Innovation
    • Stakeholder Well-being
    • Customer Engagement and Collaboration
    • Service and Product Quality
  • Governance
    • Business Ethics and Integrity
    • Risk and Crisis Management
    • Economic Performance

We are committed to identifying and addressing the material issues that are most relevant to our business. In this regard, we have identified the key potential risks/opportunities associated with our top three material issues:

  • Energy efficiency and Greenhouse Gas ("GHG") Emissions:

    Implementing energy-efficient and carbon reduction measures can involve high upfront investment costs. Yet, Energy efficient and low-carbon operation enhance marketability, attract sustainability-conscious tenants, thereby increasing occupancy rate and gaining a competitive edge in the rapidly growing green building sector. It is also vital for contributing to our commitment to carbon neutrality.

  • Responsible Supply Chain Management:

    Failure to adopt supply chain management measures can result in the Group‘s reputational damage and public scrutiny. By close monitoring, auditing, and collaboration with suppliers, we can mitigate supply chain risk.

  • Climate Change and Resilience:

    As climate change imposes direct impacts on our business operations, it is one of our material ESG risks. Climate risks and opportunities include increased severity of extreme weather, rising mean temperature and heatwave, tightened building energy codes and guidelines, increased market demand for climate-resilient properties.