CLI’s new Return on Sustainability (RoS) framework quantifies the financial return of green investments across its asset portfolio.
Renewable energy use increased to 7.3% across 70 properties in 12 countries; over S$4.3 billion raised in sustainable finance.
CapitaLand Sustainability X Challenge attracted over 900 global climate-tech solutions; S$1 million committed to pilot projects.
CapitaLand Investment (CLI) has released its 16th Global Sustainability Report, reinforcing its commitment to integrating ESG principles across fund and asset management. Key highlights include a rise in renewable energy use, growth in green leases, and the launch of a new proprietary tool: the Return on Sustainability (RoS) framework.
“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,” said Lee Chee Koon, Group CEO. “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.”
A Financial Lens on Sustainability
CLI’s RoS framework enables asset managers to assess the financial returns of green capital expenditure (capex), integrating eight financial performance variables:
Green capex
Utility costs and savings
Carbon cost reductions
Rent premiums
Leasing durations
Interest rate savings
Reduced insurance premiums
Enhanced asset valuations
Developed using financial models from CLI’s commercial assets across Asia-Pacific, the framework helps guide capital allocation decisions and assess ROI for sustainability initiatives like asset enhancement, redevelopments, and long-term energy strategies.
In best-case scenarios, the model projects a positive uplift in the Internal Rate of Return (IRR) through green investments. Even in volatile markets, it demonstrates how sustainability spending can protect asset value from risks such as carbon taxes, leasing delays, or rising insurance costs.
“As regulatory standards, investor expectations and climate resilience change rapidly, a structured approach to assess sustainable investments is essential,” said Vinamra Srivastava, Chief Sustainability & Sustainable Investments Officer at CLI.
“CLI’s RoS framework bridges environmental responsibility with financial accountability, ensuring sustainability decisions are grounded in environmental and commercial outcomes. This framework… answers questions such as ‘Does going green pay off?’ and ‘If so, by how much?’”
CLI has also introduced a portfolio-wide breakeven model through RoS to support large-scale capital planning, helping fund managers weigh the long-term feasibility of green capex investments across diversified portfolios.
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Measurable ESG Progress
CLI’s sustainability achievements in FY2024 include:
7.3% renewable energy usage across 70 properties in 12 countries, up from 5.2% in 2023
S$4.3 billion raised in sustainable finance through CLI and its listed REITs and business trusts
17% growth in green leases across new and renewed assets in Singapore and China
11% reduction in energy consumption intensity since 2019, despite portfolio growth
63% of the portfolio certified green, with 51% achieving LEED Gold or equivalent
30% female representation on the CLI Board and 37% in senior management
Innovation through CapitaLand Sustainability X Challenge
CLI also announced the top 10 finalists of the 4th CapitaLand Sustainability X Challenge (CSXC), launched in October 2024. The global initiative attracted over 900 entries from 90 regions, showcasing innovations like passive cooling coatings, AI energy automation, and water-powered energy recovery systems.
“The ideas that CSXC attracts, together with the RoS framework, underscore our belief that innovation, sustainability and business performance are inextricably linked,” said Srivastava. “We reaffirm our commitment to investing in promising decarbonisation technologies and piloting them in our assets around the world.”
Demo Day for the top ten finalists will take place on 10 July 2025 in Singapore, where they will present their solutions to an expert panel from CapitaLand and partner organisations, including the Building and Construction Authority of Singapore, Enterprise Singapore, Allianz Commercial, KPMG, FedEx, and GIC.
Since its 2020 launch, CSXC has received over 2,400 entries, committed more than S$2 million in funding, and piloted 30 innovations across 46 CapitaLand sites in Singapore, China, India, Thailand, Australia, the Philippines, and the U.S.
CLI’s 2024 sustainability strategy represents a maturing shift in ESG – from vision to data-backed, finance-aligned implementation. By aligning decarbonisation efforts with measurable financial outcomes, CLI is positioning sustainability as a driver of long-term asset resilience and value creation.
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