CLI published its first global sustainability report in 2009 and has since expanded its reporting framework to cover close to 600 properties worldwide across the retail, office, logistics, business park, serviced residence and data centre sectors, says Foo.
Speaking on the panel about science-based emissions targets, Foo says CLI tackled each “scope” of carbon accounting at a time. “First, you need to understand Scope 1, 2 and 3 [emissions]. Second, you must [grasp] the international standards and the carbon mitigation hierarchy. Once you do, the roadmap for a single building becomes very clear.”
Scope 1 refers to direct emissions occurring from sources that are owned or controlled by the company, while Scope 2 refers to indirect emissions from the generation of purchased electricity consumed by its properties and offices.
Scope 3 refers to emissions arising from the company’s upstream and downstream value chain, such as business travel and investments.
See also: Green transition lags behind world’s rate of construction: UNEP
Science-based targets
CLI’s sustainability reporting journey began long before science-based targets became mainstream.
The Science-Based Targets Initiative (SBTi) is a global corporate climate action organisation that defines and promotes best practices in emissions reductions. Using greenhouse gas (GHG) emissions reduction goals that align directly with the latest climate science and ensuring corporate decarbonisation efforts are consistent with the goals of the Paris Agreement — namely, limiting global warming to 1.5°C above pre-industrial levels — it enables businesses and financial institutions to set clear, scientifically backed GHG reduction targets in line with what is needed to keep global heating below catastrophic levels and reach net zero by 2050.
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SBTi expects to publish the SBTi Corporate Net‑Zero Standard (CNZS) Version 2 — a revised framework that will tighten the integrity of emissions reporting — before the year ends. CLI was shortlisted to pilot a draft of the framework, and its global portfolio data across various asset types was used to test “practicalities in implementation”.
Echoing Foo’s comments, FPS’s Kew says achieving net zero ultimately requires companies to “start early and establish a concrete foundation”, including a “centralised data management system, good ISO systems, and strengthened governance and accountability across the companies”.
Kew’s comments reflect a growing shift among corporates, particularly in real estate, where sustainability is increasingly integrated into decision-making, procurement policies, operations and capital allocation.
At FPS, carbon emissions reduction efforts are embedded across business functions, says Kew. He adds that carbon emissions intensity reduction efforts are integrated into all the different various parts of the departments, including the construction team and building management team, and science-based targets are shared monthly with the building management team and quarterly with the leaders so they understand the impact on energy, water consumption and waste management.
Beyond its own operations, FPS also engages stakeholders across its value chain — including tenants, suppliers and contractors — as part of its decarbonisation journey. For instance, in the past, sustainability was viewed solely as a corporate responsibility initiative, but today FPS is increasingly integrating decarbonisation efforts into all its operations, capital allocations, risk management and opportunities, says Kew.
Target-setting just a start
While science-based targets have become a common benchmark for climate commitments, the panellists stress that target-setting is only the beginning.
“Many companies think that SBTi is basically a reporting exercise,” says Kew. “For us, it [is] never a reporting exercise for the sake of reporting.”
Instead, FPS views SBTi as a framework that translates long-term climate ambitions into measurable milestones, while helping the company identify risks and opportunities across its portfolio.
“The greatest value is not setting the target itself; it’s about the discipline that it brings to the company,” Kew says. That discipline is particularly important in real estate, where buildings are long-lived assets and decarbonisation requires coordination across “multiple stakeholders, from tenants and contractors to suppliers and asset managers”, he adds.
Kew notes that sustainability discussions have evolved significantly within the company. Previously, sustainability projects were often evaluated on a “standalone basis”.
Today, conversations increasingly revolve around carbon reduction and how individual initiatives contribute to the company’s broader transition pathway. “The next step is to identify where the largest opportunities and risks lie,” says CLI’s Foo. “Most importantly, it is about aligning the different parts of the business under a common transition pathway. This elevated sustainability from being a [peripheral] concern into a central business discussion, shaping how decisions are made and how risk management is approached.”
Foo adds: “Ultimately, the value of SBTi is not just in [validated] target‑setting, but in influencing the decisions we will make over the next few years, or the coming decade, [while] strengthening both credibility and functionality behind those choices.”
To FPS, the biggest outcome from setting science-based targets is the “changing of mindset and how decisions are made across the organisation”, says Kew.
At CLI, that shift is also reflected in how sustainability considerations are embedded into day-to-day operational decisions. Rather than relying solely on consultants to meet certification requirements for a Green Mark Platinum office fit-out, for example, CLI’s sustainability team worked directly with budget owners and asset managers to identify practical opportunities to reduce waste and improve circularity, says Foo.
The team at CLI also seeks circular-economy partners that could extend the life of used materials. An example Foo cites is the carpets from a renovated office which are “repurposed for use in dormitories, non-profit organisations and counselling spaces”. The company also redirected part of its furniture budget to support the local circular-economy enterprise ChopValue, which transforms discarded chopsticks into furniture, as well as explore ways to reuse spent coffee grounds and tea leaves collected from its offices.
Such initiatives demonstrate how decarbonisation goals can influence procurement, budgeting and operational decisions across the organisation.
According to CLI’s 2025 Global Sustainability Report published in late May, CLI collected more than 20 kilotonnes of waste from 496 operational properties and eight admin offices in 30 countries for recycling, with a 17% recycling rate.
Both panellists emphasise that decarbonisation becomes significantly easier when sustainability targets are embedded into business processes and performance metrics.
“The most powerful way to activate a company is when you set a target in your balanced scorecard,” says Foo. However, achieving those targets remains “complex”, she adds. “Our portfolio is changing every day; it is complex and I don’t want to make light of it.”
SMEs face practical constraints
Angela Pang of Climate Asia, who advises companies on science-based targets, notes growing interest among SMEs in adopting SBTi requirements.
However, many smaller firms still face unique, practical constraints, says Pang on the panel. “SMEs focus a lot on business survival; their considerations are things like cost, cash flow and whether they have the resources to collect data.”
According to Pang, one of the biggest industry myths is believing that “obtaining SBTi validation is the hardest part of the process”. Instead, “setting a target is just a number on paper if there is no roadmap”, she says. “[Many] of the companies we work with overlook the aftermath — how to actually achieve that target and whether it is even possible for them to do so.”
For both large corporations and SMEs, panellists agree that the key lies in treating sustainability not as a compliance exercise but as a core business issue.
“Companies that really succeed are companies that really integrate sustainability into all the various functions,” says FPS’s Kew. “How do they do procurement? What materials do they source? How do they allocate capital? How do they create opportunities and reduce risks? Those are the questions companies need to think about.”
