Climate Change Data

Environmental Metrics

ESG Focus Areas

• Taking Climate Action
• Transforming Supply Chains
• Nurturing a Future-Ready Workforce
• Stewarding Responsible Business

Environmental Achievements

• Reduced Scope 1 & 2 emissions by 4.6% compared to 2021
• Achieved 51% electrification or hybridisation of RTGs
• Implemented PSA Recommendations for Sustainable Concrete for 100% of new civil infrastructure construction projects in 2022
• Reduced electricity-related emissions by 69,600 tonnes of CO2e in 2022 through renewable energy procurement
• Commissioned a 1-megawatt solar farm at PSA Mumbai

Social Achievements

• Launched Talent Tech 4.0 platform for employee development
• 94% participation rate in 2021 Employee Opinion Poll
• Various training programs provided, totaling 960,000 hours for Corporate Centre, PSA Singapore and Belgium entities in 2022
• Various community engagement activities, including volunteering, fundraising, and donations

Governance Achievements

• Developed PSA Supplier Code of Conduct
• Reviewed and updated PSA’s Code of Business Ethics and Conduct
• Established a Sustainability & Technology Supervisory Committee (S&T SC)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Geopolitical tensions
• Inflation
• Climate change impacts on infrastructure and operations
• Measuring and influencing Scope 3 emissions

Mitigation Strategies

• Developed a comprehensive strategic approach towards decarbonisation through PSA’s Carbon Abatement Pathways
• Investing in research and development and innovation projects
• Implementing energy efficiency measures
• Expanding the use of renewable energy
• Exploring alternative fuel options such as hydrogen
• Collaborating with industry players to decarbonise the value chain
• Developing a Climate Risk Assessment and Adaptation (CRAA) Framework
• Implementing adaptation measures to protect port infrastructure
• Developing a Freight Decarbonisation Framework

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Framework (SPF)
• Supplier Code of Conduct (SCC)
• ESG criteria in tender specifications and evaluations
• Green Supplier Portal platform

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclone
• Flood
• Sea level rise
• Wildfire
• Drought
• Heat stress
• Precipitation stress

Transition Risks

• Regulatory changes
• Market shifts
• Technological advancements
• Changes in customer demand
• Reputational risks

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy
• Development of new business models

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD

Certifications: Green Mark Platinum Super Low Energy Building (Tuas Port Maintenance Base Administrative Building)

Third-party Assurance: Rigorous internal review; external assurance to be reviewed in the future

Sustainable Products & Innovation

• Smart Navigator
• Risk Monitor
• Smart Classify
• BridgeNet solutions
• OHS-Sapphire
• OptETruck

Awards & Recognition

• Forbes’ World’s Best Employers
• Singapore’s Best Employers
• Singapore’s Leading Graduate Employers
• CSO50 Awards 2022
• Best Container Terminal – Asia (PSA Singapore)
• Best Container Terminal in Europe (PSA Antwerp)
• Port Facility that Handles the Most Cargo (Mersin International Port)
• Port Operator of the Year (Mersin International Port)
• Best Service Partner (PSA BDP)
• Supplier of the Year (PSA BDP)
• Customer Experience Top Contributor (PSA BDP)

Environmental Metrics

ESG Focus Areas

• Creating Sustainable Value
• Transforming Supply Chains
• Nurturing a Future-Ready Workforce

Environmental Achievements

• 6% decrease in Scope 1 & 2 emissions in 2023 compared to 2022
• 77% electrification or hybridisation for all cranes as at end 2023
• 100% implementation of PSA recommendations for Sustainable Concrete for new civil infrastructure construction projects in 2023
• 13,000 MWh of solar energy generated by business units in 2023
• PSA Mumbai became India’s first 100% renewable-powered container terminal

Social Achievements

• Close to 10,000 employees globally participated in the “Greenfish Climate Action” e-learning program.
• 95% engagement rate in the 2023 Employee Opinion Poll (EOP)
• Launched the Digital Skills Academy (DSA)
• Launched PSA BDP diversity, equity and inclusion (DEI) councils in Europe, META and LATAM

Governance Achievements

• Launched the Group’s Green Finance Framework
• Achieved a “B” score on CDP Climate Change Assessment 2023

Climate Goals & Targets

Environmental Challenges

• Elevated interest rates, tightening labour market and heightened geopolitical tensions impacting global economic growth
• Disruptions to global trade flows and supply chains due to geopolitical tensions, economic uncertainties, and weather events
• Climate-related risks such as extreme heat, extreme winds and storms impacting operations
• Transition risks such as market shifts, regulatory changes, and increased costs from low-carbon transition

Mitigation Strategies

• Investing in climate-related mitigation and adaptation measures
• Implementing a comprehensive approach to manage and adapt to climate change risks aligned with TCFD recommendations
• Conducting climate change scenario analysis for physical and transition risks and opportunities
• Developing adaptation plans and implementing necessary measures to safeguard the resilience of PSA’s operations
• Implementing key adaptation measures (avoid, mitigate, transfer, and accept) to manage exposure to climate-related risks
• Electrification of equipment fleet, deployment of low-carbon fuels (LNG and biofuels)
• Generation of renewable energy from solar and wind power, optimisation of electrical grid and systems
• Collaborating with partners to identify and deploy decarbonisation solutions throughout the value chain
• Implementing stringent waste management protocols and waste reduction strategies
• Promoting sustainable practices and implementing water-efficient technologies to minimise water consumption
• Implementing a health, safety and security management system, facilitating incident reporting, and gathering feedback from employees
• Upholding a zero-tolerance policy towards all forms of discrimination and harassment
• Building strong relationships with labour unions
• Providing a comprehensive compensation package and promoting employee wellbeing through various initiatives
• Implementing stringent measures to uphold port security and working closely with local authorities
• Developing the Group Data Policy and the PSA Cybersecurity Master Plan to enhance cybersecurity resilience

Supply Chain Management

Supplier Audits: 97 suppliers screened and scored in 2023 (PSA Singapore screened 100% of awarded suppliers for key tenders in the second half of 2023)

Responsible Procurement

• Supplier Code of Conduct (SCC)
• ESG assessments incorporated into all buildings, civil and construction tenders
• Supply chain sustainability platform to track carbon footprint and ESG maturity of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclone
• Flood
• Sea level rise
• Wildfire
• Drought
• Heat stress
• Precipitation stress
• Increased extreme temperatures
• Increased storms, extreme winds
• Increased storm events, storm surges
• Increased sea levels, rainfall, storm surges
• Increased rainfall events
• Decreased annual precipitation
• Increased waves
• Increased wave action
• Increased fog

Transition Risks

• Market shifts
• Increased labor uncertainty
• Increased financing costs
• Increased energy costs
• Increased commodity supply uncertainty
• Shifting energy and bunkering hubs
• Shifting trade routes
• Changing freight content
• Increased low-carbon technology supply uncertainty
• Suboptimisation of assets
• Increased costs from negative reputation
• Increased costs from PR crisis management
• Increased costs to adhere to alternative fuel regulations
• Increased policy costs from Scope 3 disclosure standards
• Increased costs of energy infrastructure
• Increased costs of carbon tax
• Increased costs from litigation

Opportunities

• Adoption of energy efficient measures
• Development of rail and barge services
• Development of low-carbon service offerings
• Implementation of low-carbon technologies

Reporting Standards

Frameworks Used: GRI Universal Standards 2021

Certifications: ISO 45001:2018

Third-party Assurance: Bureau Veritas Singapore Pte Ltd

UN Sustainable Development Goals

• 7
• 9
• 11
• 12
• 13

Sustainable Products & Innovation

• OptEVoyage
• OptETruck
• Carbon Dashboard Project
• Green Straddle Carrier program
• Electric trucks powered by PSA Mumbai’s Open Access Solar Plant
• Risk Monitor
• Smart Navigator
• Smart Classify

Awards & Recognition

• Best Global Container Terminal Operator (AFLAS Awards 2023)
• Best Green Container Terminal (AFLAS Awards 2023)
• Best Container Terminal - Europe (AFLAS Awards 2023)
• Best in Future of Industry Ecosystems (IDC Future Enterprise Awards for Hong Kong)