Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Governance, Risk and Compliance
• People
• Health, Safety and Environment
• Community

Environmental Achievements

• Reduced GHG emissions marginally due to lower generation volume and retirement of coal-fired assets
• Increased use of alternative fuels and renewables (waste wood for woodchip boiler plant, waste wood from sustainably-managed forests for biomass power plant)

Social Achievements

• Continued implementation of competency framework and enhancement of learning and development framework
• Presented the Festival of Biodiversity in partnership with Singapore’s National Parks Board
• Contributed S$5.7 million across global operations in charitable contributions and community investments

Governance Achievements

• Won gold awards for Best Managed Board and Best Annual Report at the 2014 Singapore Corporate Awards
• Ranked third on The Business Times Governance & Transparency Index in Singapore
• Implemented a new policy and manual covering internal controls for the Group and its businesses

Climate Goals & Targets

Environmental Challenges

• Intense competition in Singapore’s power market and low oil prices
• Slower property market in China and dampened investor sentiment in Vietnam
• Weak conditions in the shipping market

Mitigation Strategies

• Contributions from overseas operations helped mitigate the decline in PFO from Singapore operations
• New income streams from Banyan facilities, short-term merchant income and improved contractual rates in the solid waste management business helped mitigate the decline in PFO
• Higher revenue recognition for rig building projects and offshore and conversion projects helped increase Marine business turnover
• Larger drydocks and additional capacity at the Sembmarine Integrated Yard @ Tuas opened up new customer segments for ship repair business

Supply Chain Management

Responsible Procurement

• Stringent requirements for suppliers (financial viability, human resource policy, HSE records, labour conditions, community impact)

Climate-Related Risks & Opportunities

Opportunities

• Investing in energy-efficient, renewable and low-carbon technologies

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• Sembcorp Global Asset Management System
• EQ-H wastewater treatment technology

Awards & Recognition

• Gold awards for Best Managed Board and Best Annual Report at the 2014 Singapore Corporate Awards
• Gold award for Best Chief Executive Officer at the 2014 Singapore Corporate Awards
• Runner-up for the Singapore Corporate Governance Award at the 15th Securities Investors Association (Singapore) Investors’ Choice Award 2014

Environmental Metrics

ESG Focus Areas

• Climate Change
• Local Environmental Protection
• Energy and Water Efficiency
• Health and Safety
• Our People
• Community
• Corporate Governance
• Risk Management
• Compliance
• Ethical Business Practices

Environmental Achievements

• Grew global renewable energy capacity from 248 megawatts in 2012 to 2,182 megawatts in 2017. Target to double renewables portfolio to approximately 4,000 megawatts by 2022.
• Reduced energy consumption of a natural gas compressor resulting in savings of 3,450 megawatt hours of electricity in 2017, or almost 1,500 tonnes of CO2 equivalent of emissions avoided.
• Ranked 21st in Energy Intelligence’s ‘Top 100 Green Utilities’ ranking.

Social Achievements

• Total recordable injury rate fell from 1.67 in 2016 to 1.2 in 2017.
• Annual workshop for all HSE officers across global operations.
• Sembcorp Leaders’ Programme (SLP) in Singapore was well-received, with close to 44% of eligible employees having signed up within the first year of its roll-out.
• Invested close to S$300,000 in education initiatives for communities in the vicinity of the Gayatri Power Complex in India, benefiting 19 schools and over 1,600 students. Significantly improved the percentage of girls completing higher secondary education from 76% to 98%.

Governance Achievements

• Established a dedicated Ethics and Compliance department.
• Successful roll-out of new online risk management system to key markets in Singapore and China.
• Developed a set of environmental and social ‘no go’ criteria and a list of ‘red flags’ for business development.

Climate Goals & Targets

Environmental Challenges

• Climate change poses potential regulatory, technological, physical and reputational risks.
• Changes in policy and regulation, technology and customer demand, and physical disruption due to climate change.
• Challenges in building a local workforce attuned to global health and safety standards in developing economies.
• Lack of qualified labour force with necessary technical skill sets in some operating markets.
• Complex commercial and regulatory environments.
• Social and environmental impacts on communities around power plants.
• Higher exposure to safety risks at project sites.
• Two work-related fatalities and one fatality involving a member of the public in 2017.
• Significant fines amounting to S$3.9 million for work-related accident, environmental non-compliance, and health and safety accident.

Mitigation Strategies

• Developed a Climate Change Strategy, including carbon emission intensity and reduction targets.
• Mandated the set-up of Health, Safety and Environment (HSE) steering committees for individual projects.
• Implemented a phased approach in the development of a security management programme.
• Implemented a host of initiatives to address community’s educational needs, including free transportation to schools.
• Developed a Governance Assurance Framework.
• Developed a set of environmental and social ‘no go’ criteria and a list of ‘red flags’ for business development.
• Regular audits conducted by Group Internal Audit and Group HSSE departments to ensure compliance.
• Remediation actions taken for fines incurred, including enhanced training and strengthened contractor assessment process.

Climate-Related Risks & Opportunities

Physical Risks

• Weather extremities

Transition Risks

• Changes in policy and regulation
• Changes in technology and customer demand

Opportunities

• Growing renewables portfolio

Reporting Standards

Frameworks Used: GRI Standards, TCFD

UN Sustainable Development Goals

• SDG 7

Commitment to Sustainable Development Goal 7, which aims to ensure access to affordable, reliable, sustainable and modern energy for all.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Management
• Local Environmental Protection
• Health and Safety
• People
• Community
• Corporate Governance
• Ethical Business and Compliance
• Risk Management

Environmental Achievements

• GHG emissions intensity decreased to 0.51 tCO2e/MWh from 0.54 tCO2e/MWh in 2020.
• Scope 3 GHG emissions decreased by 8.2% to 8.9 million tCO2e from 9.7 million tCO2e.
• Gross installed renewable energy capacity grew from 2.6 GW to over 2.7 GW.
• 30 energy optimization projects led to a reduction of close to 40,000 MWh of electricity consumed, avoiding over 26,000 tCO2e emissions.
• Four water optimization projects improved efficiency and led to a projected annualized consumption reduction of close to 49,000 m3.

Social Achievements

• Investment in communities: S$2.7 million.
• Launched a workplace C-19 Notify App to facilitate monitoring of COVID-19 related workplace arrangements.
• Average training hours per employee increased to 27.0 from 23.6 in 2020.
• Supported employees and their families through vaccination programs, medical equipment, and counselling services.
• Donated medical equipment to hospitals in Bangladesh, India, Myanmar, and Vietnam.

Governance Achievements

• Ranked ninth in the Singapore Governance and Transparency Index 2021.
• Recognised as the Most Transparent Company – Industrials at the Securities Investors Association (Singapore) Investors’ Choice Awards 2021.
• Awarded Most Outstanding Company in Singapore – Energy Sector in the Asiamoney Asia’s Outstanding Companies Poll 2021.
• 100% of employees received mandatory compliance training and acknowledged compliance to the Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Increase in lost time injury rate and total recordable injury rate.
• Increase in waste generated (2.4 million tonnes) due to higher electricity production.
• COVID-19 pandemic impact on business operations and employee health and safety.
• Cybersecurity risks.

Mitigation Strategies

• Reviewing and adjusting approaches to improve identification and addressing of unsafe conditions.
• Implementing a comprehensive insurance program.
• Activating business continuity and emergency response plans.
• Developing and deploying Sembcorp’s in-house COVID-19 application.
• Implementing a robust cybersecurity strategy with workshops, exercises, and training.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth of Renewables and Integrated Urban Solutions businesses

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact Ten Principles, Singapore Exchange Securities Trading Limited Listing Rules 711A and 711B, Practice Note 7.6 Sustainability Reporting Guide, TCFD recommendations, CDP’s Climate Change programme

Certifications: ISO 14001, ISO 45001, ISO 27001 (some plants)

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

Brown to green strategic transformation targets support these SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Forbes World’s Best Employers 2021 (Top-ranked Company in Singapore)
• Asiamoney Asia’s Outstanding Companies Poll 2021 (Most Outstanding Company in Singapore – Energy Sector)
• Securities Investors Association (Singapore) Investors’ Choice Awards 2021 (Most Transparent Company – Industrials)

Environmental Metrics

ESG Focus Areas

• Climate Action
• Empowering Lives
• Resilient Business

Environmental Achievements

• GHG emissions intensity reduced slightly to 0.50 tCO2e/MWh
• Absolute GHG emissions (Scope 1 and 2) reduced to 25.5 million tCO2e
• Scope 3 emissions decreased by 9.4% to 8.0 million tCO2e
• Gross installed renewable energy capacity more than doubled from 2.8GW in 2021 to over 6.8GW
• 25 energy optimisation projects led to a reduction of close to 51,000MWh of electricity consumed (equivalent to over 16,000tCO2e emissions avoided)

Social Achievements

• In 2022, Sembcorp contributed S$2.9 million in cash donations to charities and community initiatives globally.
• In 2022, 61.5% of our operations supported communities through local community engagement and / or development programmes.
• Achieved an average of 26.7 learning hours per employee, of which 31.0% were sustainability skill learning hours

Governance Achievements

• 100% of our key markets implemented the IAF in 2022.
• 100% of our existing employees received ABC training.
• 100% of our employees acknowledged compliance to the Code of Conduct in 2022.
• Ranked ninth in the Singapore Governance and Transparency Index
• Won several accolades at the SIAS Investors’ Choice Awards 2022

Climate Goals & Targets

Environmental Challenges

• China operations continued to face pandemic-related restrictions which affected our ability to organise community engagement programmes.
• Policy risk from increasing carbon pricing
• Legal risk from exposure to litigation
• Technology risk from transition to lower-carbon systems disrupting conventional energy systems
• Market risk from shift in supply and demand for certain commodities, products, and services
• Physical risk from increased severity of extreme weather events and rising sea levels and temperatures
• Geopolitical tensions
• Recessionary pressures
• Interest rate exposure
• Commodity volatility
• Counterparty Risks
• HSSE
• Bribery and corruption
• Cybersecurity

Mitigation Strategies

• Assess GHG emissions against emissions reduction targets and apply an internal market-specific shadow carbon price on new investments and existing operations.
• Continuously monitor regulations and track compliance.
• Identify new technologies and partner with academia and industrial associations to research and test new technology.
• Conduct physical risk assessments of critical assets every five years and annually review effectiveness of mitigation and adaptation plans.
• Insure assets appropriately.
• Conduct scenario analysis and stress-testing of existing operations.
• Incorporate contingencies in operating model and closely monitor development trajectories.
• Use natural hedges, fixed rate borrowings and interest rate swaps to manage interest rate exposure.
• Pass through commodity costs and hedge residual risks.
• Monitor credit exposures and use mitigation measures like guarantees and collateral.
• Implement Group HSSE management system.
• Implement enterprise-wide compliance programme and zero-tolerance stance towards bribery and corruption.
• Implement cybersecurity strategy with defensive tools and a robust attestation framework.

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Group Know-your-counterparties Policy
• Group Third Party Representative Anti-bribery and Corruption Due Diligence Policy

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather events such as floods
• rising sea levels and temperatures

Transition Risks

• increasing carbon prices
• shift in supply and demand for certain commodities

Opportunities

• Deployment of renewable energy solutions
• Development of low carbon hydrogen initiatives

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, Ten Principles of the UN Global Compact, Singapore Exchange Limited (SGX) Listing Rules 711A and 711B, Practice Note 7.6 Sustainability Reporting Guide, SGX Core Environmental, Social and Governance (ESG) Metrics, TCFD recommendations, CDP Climate Change programme

Certifications: ISO 14001

Third-party Assurance: DNV Business Assurance Singapore Pte. Ltd.

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

Brown to green strategic transformation targets support these SDGs.

Sustainable Products & Innovation

• renewable energy solutions
• low carbon hydrogen initiatives

Awards & Recognition

• Most Transparent Company Award (Utilities)
• Shareholder Communications Excellence Award (Big Cap)
• runner-up of the Singapore Corporate Governance Award (Big Cap)