Innovation

This innovation emerged from SML's recognition of the need for sustainable development in the real estate sector, as a response to global environmental challenges and a shift towards more eco-friendly and socially responsible business practices. A collaborative effort involving SML's leadership, sustainability experts, urban planners, and technology specialists led to the development of sustainable building standards, integration of renewable energy sources, and implementation of digital innovations for smart city developments.

The innovation aligns closely with SML's mission to create a sustainable future, demonstrating its commitment to environmental stewardship, social responsibility, and economic growth through sustainable practices. As the Chief Responsible Sustainability Officer (CRSO) stated in the interview, "Our sustainable innovation strategy represents our dedication to being a force for positive change in the real estate industry. We aim to integrate sustainability into every aspect of our operations, from energy-efficient buildings to supporting local communities.”

Inspiration

SML's technological advancements, particularly in smart building technologies, underscore its commitment to sustainability. These advancements conserve the environment and reduce operational costs, demonstrating the financial viability of sustainable practices. The idea originated from a strategic analysis of global trends in sustainability and the growing demand for environmentally friendly and socially responsible business practices. This initiative was guided by the CRSO and the team, including the top management and shareholders' direction. The motivation was to position SML as a leader in sustainable real estate development, addressing both environmental concerns and the societal needs of the communities they serve. The CRSO mentioned, "Our inspiration for this strategy came from recognizing our role in shaping a better, more sustainable future. We were driven by the challenge of integrating sustainability into every facet of our business model."

Overall impact

SML's approach yields multifaceted benefits:

• Quality Living: SML creates vibrant living and working environments, benefiting both individuals and the business.

• Greener World: The company's dedication to environmental conservation leads to cost savings and more attractive spaces.

• Better Jobs: SML empowers small businesses and fosters employment, strengthening community skills and resilience.

• Smarter Learning: Investment in education aligns with future job market needs, improving societal well-being.

The innovation has likely led to increased business growth for SML, enhanced corporate reputation, and potential cost savings from more efficient resource use. For society, SML's innovation has contributed to job creation, improved living standards, and enhanced access to education and community development. Environmentally, the innovation has led to reduced carbon emissions, more efficient waste management, and the promotion of renewable energy use.

Short-term effects include immediate improvements in energy efficiency and reduced operational costs. Long-term effects involve contributing to global efforts against climate change and promoting sustainable community development. Evidence of this impact includes reduced carbon footprint statistics, increased energy efficiency ratings, and metrics showing community engagement and support.

As the management expressed, "We've seen a tangible impact in terms of reduced energy costs and increased community engagement," and "Our efforts have contributed significantly to local and global sustainability goals."

Business benefit

FY2022 was an outstanding year for SML, achieving a record revenue of S$1,331.7 million, a 48.8% increase from the previous year ended 31 December 2021 (FY2021). This success was driven by higher sales of commercial and industrial land parcels, along with increased revenue from residential units and commercial shophouses in Indonesia. Earnings per share also increased significantly from 3.42 Singapore cents to 8.07 Singapore cents. Recurring income, comprising commercial rental income and hospitality business, improved by 32.5% to S$153.4 million. This success is attributed to the enhancement of their corporate image, given their commitment to ESG principles.

Social and environmental benefit

SML's innovations extend beyond business metrics, significantly enhancing community well-being and contributing to environmental health. By focusing on high-quality real estate and infrastructure development, SML not only generates economic value but also improves societal conditions and addresses environmental concerns. SML's innovation has enhanced the quality of life, supported small businesses, and fostered job creation. Environmentally, it has contributed to the reduction of urban heat islands and supported efforts against climate change. This holistic approach not only bolsters SML's reputation but also ensures a sustainable legacy in the communities it serves.

Conclusion: A Trailblazer in Sustainable Real Estate

SML's journey exemplifies how innovative, sustainability-focused business practices can positively impact society and the environment. Their approach serves as a model for other businesses aiming to contribute constructively to a sustainable future.

Interviews

Mr. Reza Abdulmajid - Chief Risk and Sustainability Officer - SinarMas Land, CRSO

Mr. Ramzi Rinaldhi - ESG & Sustainability Division Head - SinarMas Land, ESG & Sustainability Division Head