Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Responsible Business
• People and Community

Environmental Achievements

• Reduced water consumption by up to 13% at City Gas.
• Implemented a smart chemical handling system at Keppel Merlimau Cogen Plant, reducing staff chemical exposure.
• Waste-to-energy plants converted and produced 399,992 GJ of renewable energy and diverted 1,134,800 tonnes of waste from landfill.
• Produced 38.9 million m³ of potable water at Keppel Seghers Ulu Pandan NEWater Plant and SingSpring Desalination Plant.

Social Achievements

• Established a Board Safety Committee to oversee health, safety, security, and environment (HSSE).
• Dedicated 1,380 volunteer hours to community outreach activities.
• Contributed $125,000 to various charitable causes.

Governance Achievements

• Named Runner-Up for Sustainability at the 2019 Securities Investors Association of Singapore Investor Choice Awards.
• Implemented an Enterprise Risk Management framework to adapt to emerging ESG risks.

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 emissions due to the inclusion of data from Keppel Merlimau Cogen and the acquisition of Ixom.
• Increased water consumption due to the acquisition of Ixom.

Mitigation Strategies

• Implementing water management plans and water-efficient technologies.
• Working with agencies to determine gas emission computation under the Carbon Pricing Act.
• Exploring ways to reduce or reuse carbon emissions.
• Implementing energy conservation strategies and performance targets.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct outlining standards for environmental management, business conduct, labour, health and safety practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (implied)

Awards & Recognition

• Runner-Up for Sustainability at the 2019 SIAS Investor Choice Awards
• Solar Pioneer Award
• Various safety awards for KMC, City Gas, and Ixom

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Responsible Business
• People and Community

Environmental Achievements

• Reduced energy intensity by 17.5%
• Produced 359,471 GJ of renewable energy (4.5% of total energy consumption)
• Diverted 1,007,585 tonnes of waste from landfill
• Reduced Scope 1, 2 and 3 GHG emissions by 1.1% compared to 2019
• Reduced carbon intensity (Scope 1, 2 and 3) by 17.3% from 2019

Social Achievements

• Three safety initiatives recognized by safety agencies in Singapore and New Zealand
• Employees received an average of 15.6 hours of training per full-time employee
• KIFM and Keppel Capital dedicated approximately 790 community hours to outreach activities
• KIT group contributed about $66,000 to support communities

Governance Achievements

• Secured a seven-year $700 million sustainability-linked loan for KMC linked to carbon emissions intensity targets
• No known instances of corruption or non-compliance with regulations in 2020

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing operational, logistical, and manpower challenges
• Maintaining business continuity of critical infrastructure during lockdowns

Mitigation Strategies

• Implemented strict COVID-19 risk mitigation measures (safe distancing, hygiene practices, split-teams, telecommuting)
• Increased stakeholder engagement through virtual platforms
• Strengthened cybersecurity protection at critical information infrastructure plants

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Rigorous supplier screening
• Supplier Code of Conduct (for major suppliers)

Climate-Related Risks & Opportunities

Opportunities

• Optimising energy efficiency and adopting clean alternative energy sources

Reporting Standards

Frameworks Used: GRI Standards: Core option, Business for Societal Impact (B4SI) Framework

Certifications: ISO 14001, ISO 9001 (Ixom), ISO/FSSC 22000 (Ixom), ISO 45001 (operators)

Third-party Assurance: Corporate Citizenship (for community outreach efforts)

UN Sustainable Development Goals

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

KIT's ESG efforts help address crucial sustainability issues globally

Sustainable Products & Innovation

• Green hydrogen
• Green ammonia

Awards & Recognition

• Solar Pioneer Award (Keppel Seghers Ulu Pandan NEWater Plant)
• Workplace Safety and Health Innovation Awards (KMC, Senoko WTE Plant)
• Workplace Health and Safety Awards (New Zealand) (Ixom)
• Keppel Group Safety Convention awards (Ixom, City Gas)

Environmental Metrics

ESG Focus Areas

• Climate Change Adaptation
• Emissions
• Energy
• Asset Quality and Safety
• Corporate Governance
• Cybersecurity and Data Privacy
• Economic Sustainability
• Ethics and Integrity
• Environmental Protection
• Employee Health and Wellbeing
• Human Capital Management
• Community Development and Engagement
• Diversity and Inclusion
• Physical Security of Assets
• Sustainable Supply Chain Management
• Waste Management
• Water

Environmental Achievements

• Reduced total energy consumption in FY 2021 through several initiatives: enhancement of membrane efficiency at water plants, drawing river water for cooling towers, construction of gasoline storage tanks with internal floating roof, and adoption of water recycling system at Ixom.
• Reduced Scope 2 emissions at the SingSpring Desalination Plant by improving membrane efficiency.
• Generated close to 1.1 GWh of renewable energy from solar PV systems at KMC and Ulu Pandan NEWater Plant.
• Recycled 337,000 m3 of water, representing more than 20% of the water used in 2021.

Social Achievements

• Maintained zero workplace fatalities.
• Dedicated more than 630 volunteering hours to support community outreach activities.
• Contributed more than $170,000 in donations to support various philanthropic initiatives and community needs.
• Held a week-long virtual learning festival for employees.
• Employee engagement score above 75%.

Governance Achievements

• Established a dedicated Board ESG Committee in January 2022 to lead and drive KIT’s ESG strategy and sustainability initiatives.
• Maintained an ‘A’ rating in the MSCI ESG Ratings assessment.
• Upholding strong corporate governance, robust risk management, as well as timely and transparent communications with stakeholders.

Climate Goals & Targets

Environmental Challenges

• Supply chain challenges caused by the pandemic.
• Lower gas demand in 2021 due to lower consumption from Commercial & Industrial customers amid prolonged COVID-19 restrictions.
• Under recovery of fuel cost at City Energy due to timing differences in the fuel price pass through gas tariff mechanism.
• Basslink entered into voluntary administration on 12 November 2021.

Mitigation Strategies

• Ixom leveraged its extensive global supply chain and in-house logistics capabilities to ensure prompt delivery and distribution of its products.
• City Energy installed gas supply infrastructure to approximately 13,400 newly constructed condominium developments and HDB flats.
• City Energy has no material exposure to fuel price risk as fuel price is passed through to customers and the over and under recovery balances out over time.
• Basslink loans have no contractual recourse to KIT and KIT does not rely on Basslink’s cash flows for distributions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct requiring adherence to responsible business practices (environmental management, business conduct, labor, health and safety).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Global decarbonisation efforts

Opportunities

• Development of energy-efficient products and services
• Increased exposure to renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO/FSSC 22000, EcoVadis (Bronze), Hazard Analysis and Critical Control Points (HACCP)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

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

KIT's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• IoT-enabled home solutions
• Electric vehicle charging services
• Green chemicals

Awards & Recognition

• Solar Pioneer Award

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Responsible Business
• People and Community

Environmental Achievements

• Reduced carbon emissions intensity by 20% from 2019 levels
• Increased portfolio exposure to renewable energy to 10% of AUM

Social Achievements

• Achieved an average of 23.7 training hours per employee in 2022
• Committed more than 1,000 hours of community service in 2022
• Maintained zero workplace fatalities

Governance Achievements

• Established a dedicated Board ESG Committee (BEC) in January 2022
• Maintained zero incidents of fraud, corruption, bribery and non-compliance with laws and regulations

Climate Goals & Targets

Environmental Challenges

• Potential headwinds in the evolving macro environment
• Climate-related risks (physical and transition risks)
• Increased cost of materials and consumables due to decarbonization pressure
• Enhanced reporting obligations and stricter statutory regulations
• Shift in stakeholders’ expectations towards decarbonization

Mitigation Strategies

• Developed a roadmap to progressively align with the TCFD recommendations
• Conducted a detailed scenario analysis to evaluate climate-related risks and opportunities
• Implemented energy-efficient equipment and technologies
• Increased portfolio exposure to renewable energy
• Incorporated ESG considerations into corporate strategy and business operations
• Developed and implemented mitigation plans to address identified risks
• Actively track, monitor and analyze energy data to improve energy efficiency
• Purchase materials from sustainable and efficient suppliers
• Continue to diversify assets and expand services towards providing green energy solutions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Keppel Group Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme precipitation
• Extreme water level
• Mean sea level rise
• Extreme temperature
• Heat wave days
• Extreme wind speed
• Fire risk

Transition Risks

• Increasing price of carbon
• Enhanced reporting obligations
• Stricter statutory regulations
• Increase in costs of energy and fuel
• Unsuccessful investment in/deployment of new technology
• Shift in stakeholders’ expectations

Opportunities

• Resource efficiency and energy source
• Improved access to capital
• Expansion of and increased demand for low carbon solutions
• Incentives provided by government entities

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations

Certifications: ISO 9001, ISO 14001, ISO 27001, ISO 37001, ISO 45001, ISO 50001, ISO/FSSC 22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 6 (Clean Water and Sanitation)
• SDG 13 (Climate Action)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 17 (Partnerships for the Goals)

KIT's initiatives contribute to these SDGs through its focus on renewable energy, water management, emissions reduction, economic growth, infrastructure development, and community engagement.

Sustainable Products & Innovation

• Green hydrogen solutions for town gas production
• Hydrogen fuel cell solution for off-grid power supply
• Low carbon solutions for water desalination and treatment

Awards & Recognition

• MSCI ESG rating of BBB

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Responsible Business
• People and Community

Environmental Achievements

• 36% reduction in carbon emissions intensity from 2019 levels (20% YoY reduction to 6,900 tCO2e/$m)
• Increased exposure to renewable energy from 10% to 19% of AUM

Social Achievements

• 28.4 average training hours per employee in 2023 (up from 23.7 hours in 2022)
• Over 900 hours of community service in 2023 (exceeding the target of 500 hours)
• Approximately $353,000 in donations to support various philanthropic initiatives

Governance Achievements

• Zero incidences of non-compliance with laws or regulations, corruption, bribery, or fraud
• Zero physical security breaches affecting operations

Climate Goals & Targets

Environmental Challenges

• Workplace fatality involving a subcontractor worker at one of KIT’s overseas assets

Mitigation Strategies

• Implemented initiatives to prevent recurrence of workplace fatality

Supply Chain Management

Responsible Procurement

• Keppel Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme precipitation
• Extreme water level
• Extreme temperature
• Heat wave days
• Extreme wind speed
• Fire risk

Transition Risks

• Increasing price of carbon
• Enhanced reporting obligations
• Stricter statutory regulations
• Increased cost of materials and consumables
• Increase in costs of energy and fuel
• Unsuccessful investment in/deployment of new technology
• Shift in stakeholder expectations

Opportunities

• Resource efficiency and energy source
• Expansion of and increased demand for low carbon solutions
• Improved access to capital
• Incentives provided by government entities

Reporting Standards

Frameworks Used: GRI Standards

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

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Green hydrogen pipeline
• Off-grid hydrogen fuel cell solutions
• EV charging services

Awards & Recognition

• WSHC Safety Innovation Award 2023
• Mabuhay Business Awards
• Outstanding Freeport Worker Awards