Directors' Masterclass Series 2026: A Veteran's Sustainability Reporting Journey: Challenges and Opportunities

Speaker: Esther An, Chief Sustainability Officer, City Developments Limited (CDL); Chair, World Green Building Council; Member, GRI Supervisory Board; Member, TNFD Global Task Force

Moderator: Dr. Gary William Theseira, Council Member, Climate Governance Malaysia

Climate Governance Malaysia's Directors' Masterclass Series 2026 continued with a session on sustainability reporting, focusing on how disclosure has evolved from a compliance requirement into a strategic governance tool. Opening the session, Dr. Gary Theseira introduced Esther An, Chief Sustainability Officer of City Developments Limited (CDL), recognising her pioneering role in corporate sustainability, including leading Singapore's first sustainability report and first green bond issuance. Esther reframed the session from discussing "pitfalls and challenges" to highlighting the opportunities that sustainability creates for long-term business resilience and value creation.

She began by placing sustainability within the broader global risk landscape. Referring to the World Economic Forum's Global Risks Report, she noted that while geopolitical and economic issues dominate short-term concerns, environmental risks are expected to be among the greatest long-term threats. She emphasised that climate change and biodiversity loss have significant financial implications, particularly for the real estate sector, where buildings rely heavily on natural resources while contributing substantially to global energy consumption and carbon emissions. Reflecting on CDL's sustainability journey since 1995, and reporting since 2008, Esther described how the company progressed from producing a simple environmental report to implementing a comprehensive sustainability reporting framework. Rather than responding only to regulatory requirements, CDL anticipated evolving investor expectations by adopting internationally recognised ESG ratings and reporting standards and frameworks, including CDP, SDG, TCFD, Science Based Targets initiative (SBTi), ISSB, and most recently the Taskforce on Nature-related Financial Disclosures (TNFD).

She explained CDL's sustainability strategy anchored on four key pillars: integration, innovation, investment, and impact. Guided by the company’s ethos “Conserving as We Construct”, sustainability is embedded within a robust corporate governance supervised by a dedicated Board Sustainability Committee reporting directly to the board. Esther stressed that sustainability functions should not be isolated under any single departments but instead be integrated into strategic decision-making and all business and operational units. She also highlighted the importance of investing in green financing mechanisms and maintaining transparent reporting that acknowledges both achievements and challenges to strengthen stakeholder trust and reduce greenwashing risks.

On reporting frameworks, Esther acknowledged that while sustainability standards remain diverse and continue to evolve, organisations should focus on harmonisation rather than waiting for complete standardisation. CDL aligns its reporting with frameworks into 2-pillar that report on Impact and Value, the framework comprises GRI, ISSB, SASB, CDP, SBTi, GRESB and TNFD. She underscored that strong governance requires robust data assurance processes involving multiple levels of internal verification, external assurance, and board accountability to ensure the credibility of sustainability disclosures.

The presentation also highlighted several practical sustainability initiatives implemented by CDL. These included green infrastructure projects, such as large-scale vertical greenery and micro forests adapted from the Miyawaki concept to tackle urban heat and enhance urban biodiversity. Esther also discussed retrofit programmes for existing buildings, circular economy initiatives using recycled and upcycled materials, and the CDL Net Zero Sustainability Academy, which serves as a platform for public education and stakeholder engagement. Sustainable finance is a key catalyst to accelerate green buildings and practices, she shared CDL’s pioneering green bond launched in 2017, followed by a series of, green loans, and sustainability-linked loans, which secured more than $11 billions to support the company’s climate, green building and Nature-based solutions.

During the fireside chat discussion, participants explored several governance and implementation challenges. One participant asked how companies reconcile sustainability commitments with industries that continue to depend on extractive activities. Esther acknowledged the complexity of balancing economic realities with environmental objectives, noting that industries such as cement and steel are investing in lower-carbon technologies despite cost challenges. Dr. Gary added that some developers are already incorporating lower-emission construction materials into their projects. Another participant shared plans for a community-based food forest initiative and asked about practical approaches to urban greening. Esther recommended the Miyawaki method as an effective model that speeds up growth and density of vegetation, while emphasising that land availability remains one of the main constraints for scaling such projects.

Participants also discussed ESG data management. Esther explained that although operational data such as energy and water consumption are generally available, ensuring consistency and accuracy across CDL's operations in multiple countries requires structured internal verification processes supported by digital ESG data management platforms. Responding to questions on artificial intelligence and digital technologies, she noted that the built environment has been actively utilising  AI-enabled building management systems to coordinate operations amongst multi-stakeholders along the value chain, as well as improve data collection across its portfolio. When asked about stakeholder confidence in sustainability disclosures, Esther shared that rigorous assurance processes have helped build credibility with investors and financial analysts, who place greater value on transparent reporting that openly acknowledges challenges alongside improvement plans. 

Closing the session, Dr. Gary highlighted Malaysia's simplified ESG disclosure guide, which includes a carbon calculator for Scope 1 and Scope 2 emissions, noting that these emissions often form part of the Scope 3 emissions of customers and business partners. The session underscored that sustainability reporting is most effective when treated as a strategic discipline, supported by strong board oversight, robust data governance and assurance, and transparent disclosure of both progress and gaps. In her closing remark, Esther stressed that it’s a "time for impact," not a "time for talk," in the era of climate emergency, encapsulating the key message that boards must move beyond disclosure compliance to driving measurable action.

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