Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Economic sustainability
• Safety and health
• Product excellence
• Environmental performance
• Labour practices and human rights
• Community development
• Supply chain and responsible procurement

Environmental Achievements

• 24% average reduction in carbon emissions intensity from 2010 baseline
• Estimated $55 million in cost savings from energy efficiency initiatives, equivalent to 9% of total energy consumption and avoidance of approximately 95,000 tonnes of carbon dioxide emissions
• Keppel Bay Tower to yield estimated overall annual energy savings of approximately 1.5 million kWh (20% improvement) by 2020
• Corporate office at Keppel Bay Tower fully powered by clean energy from end-2018
• 1,419,628 m3 of water recycled in Singapore (approximately 29% of Group’s water consumption)

Social Achievements

• Over 500,000 hours invested in training and developing global talent pool
• Over 14,000 hours of volunteer work by Keppel Volunteers, benefiting over 2,600 people
• $8.9 million invested in social causes
• Formalized Corporate Statement on Diversity and Inclusion
• Launched a digital learning platform for staff

Governance Achievements

• Keppel Offshore & Marine’s Singapore entities achieved ISO 37001 Anti-Bribery Management System certification
• Enhanced reporting channels and increased geographical coverage for whistle-blower hotlines to 10 countries
• Engaged KPMG to provide an independent platform for raising concerns about irregularity or misconduct

Climate Goals & Targets

Environmental Challenges

• One fatality of a contractor in 2018
• Market driven forces, evolving competitive landscapes, changing customer demands and disruptive innovation
• Uncertainties in the global economy, geo-political developments, intense competition, and threats of disruptive technology
• Risks relating to corruption

Mitigation Strategies

• Thorough investigation of root causes of fatality and implementation of preventive measures
• Strategy meetings to review business strategies, formulate responses and take pre-emptive action against risks
• Established process for evaluating investment and divestment decisions
• Strengthening succession planning and bench strength, building new organisational capabilities
• Strengthened regulatory compliance framework
• Risk-based due diligence process for third-party associates

Supply Chain Management

Supplier Audits: 100% of new suppliers screened

Responsible Procurement

• Keppel supplier code of conduct covering business conduct, environmental management, labour practices, safety and health

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option, LBG Framework

Certifications: ISO 14001, ISO 37001, ISO 9001, OHSAS 18001, SS 564 (Singapore standard for green data centres)

Third-party Assurance: DNV GL

UN Sustainable Development Goals

• SDG 3, 6, 7, 8, 9, 11, 12, 13, 16, 17

Various activities of the Keppel Group contribute towards these goals

Sustainable Products & Innovation

• Floating LNG vessel conversion
• Green Mark-certified developments
• Energy-efficient data centres
• Innovative floating assets (wind turbine installation jackup rigs, autonomous tugs)

Awards & Recognition

• UN SDGs category at the Sustainable Business Awards 2018
• Champion of Good
• 28 WSH Awards

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate risk assessments
• Internal carbon pricing
• Environmental sustainability in executive remuneration
• Green developments
• Renewables
• New energy
• Circular economy solutions

Governance Achievements

• Strengthen board oversight
• Embed climate risk assessments
• Include environmental sustainability in executive remuneration

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Offshore Infrastructure
• Renewables
• Waste to Energy
• Power
• Hydrogen
• Wave Energy
• EV Charging
• Edge Data Centres
• Carbon Capture & Sequestration

Sustainable Products & Innovation

• Offshore renewables
• Energy storage
• AssetCare
• Yard of the future
• Smart Plant
• Smart City
• Smart Building
• Office/Retail/Living X
• Energy optimised DCs
• Digital first telco
• MVNE
• Smart Nation IoT
• 5G Applications
• Advanced Analytics
• IoT
• Artificial Intelligence
• Green & Hybrid Tech
• Additive Manufacturing

Environmental Metrics

ESG Focus Areas

• Climate Action
• Corporate Governance & Risk Management
• Labour Practices, Talent Management & Human Rights
• Environmental Management
• Economic Sustainability
• Occupational Safety & Health
• Supply Chain & Responsible Procurement
• Community Development
• Product Quality & Safety

Environmental Achievements

• Achieved 8.6% reduction in absolute Scope 1 and Scope 2 emissions from 2020 baseline.
• Achieved 27% weighted average reduction in waste intensity from 2019 baseline.
• Achieved 4% weighted average reduction in water intensity from 2019 baseline.
• Estimated 1,087,185 GJ of energy savings from energy efficiency initiatives and Green Mark-certified developments, translating to $73 million in cost savings.

Social Achievements

• Achieved an overall employee engagement score of 84% in the 2021 Global Employee Engagement Survey.
• Achieved zero workplace fatalities across global operations.
• Invested $4.6 million in social investments, including $2.4 million through Keppel Care Foundation.
• Keppel Volunteers contributed over 12,000 hours of community service.

Governance Achievements

• Rolled out ISO 37001 Anti-Bribery Management System across business units.
• Strengthened Group Cyber Security Governance structure and established the Keppel Cyber Security Centre.
• Won the Singapore Corporate Governance Award 2021 (Big Cap) and named Apex Winner at the Singapore Apex Corporate Sustainability Awards 2021.
• Retained the highest AAA rating in the MSCI ESG ratings.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Physical climate risks (extreme weather, water stress, floods, etc.) to key assets.
• Transition risks (policy changes, market shifts, etc.) related to climate change.
• Regional property market uncertainty in China.

Mitigation Strategies

• Robust supplier diversification programmes.
• High-level physical risk assessment of key assets and consideration of mitigation/adaptation measures.
• Implementation of an evolutionary shadow carbon pricing policy for major investment decisions.
• Review of liquidity profile and sales launches to match local demand in China.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• ESG criteria screening
• ISO certifications preference

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Water stress
• Floods
• Heatwaves
• Sea level rise
• Wildfires
• Coldwaves
• Hurricanes

Transition Risks

• Policy changes
• Legal changes
• Technological changes
• Market changes
• Higher carbon taxes
• Stricter building standards

Opportunities

• Renewables
• Decarbonisation solutions
• Green buildings
• Data centres
• Climate-resilient nearshore developments

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001, ISO 45001, ISO 37001, ISO 50001, ISO 9001

Third-party Assurance: DNV

UN Sustainable Development Goals

• 3
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 16
• 17
• 18

Keppel's initiatives contribute to these SDGs through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Green Mark-certified buildings
• Energy-efficient floating data centres
• Waste-to-Energy technologies
• District cooling solutions
• Renewable energy projects

Awards & Recognition

• MSCI ESG AAA rating
• Singapore Corporate Governance Award 2021 (Big Cap)
• Singapore Apex Corporate Sustainability Awards 2021 (Apex Winner)
• BCA Quality Excellence Award – Quality Champion (Platinum)
• WSH Awards (18 awards)

Environmental Metrics

ESG Focus Areas

• Climate Action and Environmental Management
• Corporate Governance and Risk Management
• Human Capital Management
• Health and Safety
• Economic Contribution to Society
• Supply Chain Management
• Community Development

Environmental Achievements

• 17.6% reduction in Scope 1 and 2 carbon emissions from 2020 baseline
• 41.9% weighted average reduction in waste intensity from 2019 baseline
• 5.7% weighted average reduction in water intensity from 2019 baseline
• Expanded Scope 3 emissions coverage to all 15 categories
• Increased renewable energy consumption to 12.6% of total electricity use

Social Achievements

• 84% overall employee engagement score (higher than Mercer’s global average)
• 88% of employees indicated pride in working for Keppel
• Women occupy about 31% of senior management and managerial positions
• Average salary of female employees was 98% that of male employees
• Over 14,000 hours of community service by Keppel Volunteers

Governance Achievements

• Established Board Sustainability and Safety Committee
• Appointed Chief Sustainability Officer and dedicated Group Sustainability department
• Further rollout of ISO 37001 Anti-Bribery Management System across business units

Climate Goals & Targets

Environmental Challenges

• Three workplace fatalities at Keppel Offshore & Marine shipyard
• Supply chain disruptions due to pandemic, labor shortages, and global energy crisis
• Heightened geopolitical risks, including the Russia-Ukraine conflict and tensions between the US and China
• Increasing cyber security risks

Mitigation Strategies

• Investigations into fatalities and implemented measures to prevent recurrence
• Working with customers and suppliers to mitigate supply chain disruptions
• Group-wide scenario planning exercise to assess potential risks
• Enhanced technology and cyber security governance and controls
• Implementation of a shadow carbon pricing policy

Supply Chain Management

Supplier Audits: 100% of new suppliers screened; on-site HSE assessments conducted at various locations

Responsible Procurement

• ESG criteria integrated into supplier selection
• Keppel Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Sea-level rise
• Water stress
• Heatwaves

Transition Risks

• Evolving regulations on climate taxonomies
• Higher carbon taxes
• Stricter regulations
• Higher expectations on climate disclosures

Opportunities

• Growing demand for renewables, clean energy, and decarbonisation solutions
• Development of climate-resilient nearshore developments

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 37001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Keppel supports the achievement of the United Nations Sustainable Development Goals (SDGs), and has incorporated 10 of the SDGs as a supporting framework to guide our sustainability strategy.

Sustainable Products & Innovation

• Floating Data Centre Module
• Green data centre parks
• Hydrogen-ready power plant
• Water filtration systems

Awards & Recognition

• MSCI ESG triple-A rating
• Inclusion in Dow Jones Sustainability World and Asia-Pacific Indices
• Inclusion in S&P Global’s Sustainability Yearbook 2023
• Forbes World’s Best Employers 2022
• Singapore Corporate Governance Award 2022
• 11 WSH Awards 2022
• Champion of Good 2022
• Patron of the Arts Award (Corporate) 2022

Environmental Metrics

ESG Focus Areas

• Climate Action & Environmental Management
• Corporate Governance & Risk Management
• Supply Chain Management
• Human Capital Management
• Health & Safety
• Contribution to Society

Environmental Achievements

• Received the President’s Award for the Environment
• Reduced Scope 1 and 2 emissions by 17.6% compared to 2020 baseline by end of 2022 (further details in 2024 Sustainability Report)
• Grew renewable energy portfolio to 4 GW from 2.6 GW at end-2022
• Achieved zero fatalities across global operations

Social Achievements

• Employee engagement score of 86% (2 percentage points higher year on year and 6 percentage points higher than Mercer’s global norm)
• Contributed $4.3 million to worthy causes
• Completed more than 11,000 hours of community service
• Average of more than 23 training hours per employee

Governance Achievements

• Augmented Board’s diversity with appointment of new independent director
• Passed ISO 37001 surveillance audits
• Conferred the Gold Award at the Singapore Corporate Awards for Best Managed Board
• Established Suspicious Transaction Reporting Framework to strengthen Anti-Money Laundering controls
• Established AI Governance and Data Governance frameworks

Climate Goals & Targets

Environmental Challenges

• Volatile external environment with conflicts, tensions, slow growth, high interest rates, and extreme climate events
• Challenging market conditions in China

Mitigation Strategies

• Asset-light strategy with $5.4 billion in asset monetisation announced by end-December 2023
• Careful monitoring and progressive derisking of portfolio in China
• Real Estate Division monetised over $3 billion of assets in China since 2017, recognised total profits of more than $1 billion, and repatriated more than $5 billion of cash

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme water level
• Extreme temperature
• Extreme precipitation

Transition Risks

• Impact of carbon taxes
• Rising price of electricity

Opportunities

• Renewables, clean energy, decarbonisation solutions

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 37001

UN Sustainable Development Goals

• 7
• 9
• 11
• 13

Sustainable Products & Innovation

• Energy-as-a-Service (EaaS)
• Sustainable Urban Renewal (SUR)
• Floating Data Centre Module (FDCM)
• DataPark+

Awards & Recognition

• President’s Award for the Environment
• Singapore Corporate Sustainability Award (Big Cap)
• Sustainable Solutions category at the Singapore Apex Corporate Sustainability Awards
• Gold Award for Best Managed Board at Singapore Corporate Awards
• World’s Best Employers 2023 by Forbes
• World’s Best Companies 2023 by TIME
• Top Employer in Singapore and China