Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustaining Growth
• Empowering Lives
• Nurturing Communities

Environmental Achievements

• Reduced direct energy consumption by 25% (excluding Keppel Energy)
• Increased NEWater usage by 47%
• Recycled 91,598 tonnes of waste (a 5% increase from 2009)
• Reduced waste sent for incineration by approximately 8% (compared to 2009)
• Keppel Land achieved 24 Green Mark awards for its buildings in Singapore and overseas
• Marina at Keppel Bay awarded Clean Marina status and 5 Gold Anchors rating

Social Achievements

• Conducted Group-wide Organisational Climate Survey with 94.5% response rate
• Invested $18.3 million in employee training and development globally
• Awarded 43 Bursary Awards and 16 Education Grants totaling $12,800 under the Keppel FELS Co-operative Bursary & Education Grant
• Keppel Group garnered 12 Workplace Safety and Health (WSH) Awards

Governance Achievements

• Keppel Corporation’s Board named Best Managed Board among largest Singapore-listed companies
• Keppel Land included in the Dow Jones Sustainability Index (DJSI) Asia Pacific
• Established a Group Sustainability Steering Committee

Climate Goals & Targets

Environmental Challenges

• Lower volume of work at Offshore & Marine Division resulting in lower revenue
• Losses from EPC contracts in Qatar
• Four fatal cases involving subcontracted workers (falls from height)

Mitigation Strategies

• Improved margins driven by cost efficiencies and higher productivity in Offshore & Marine Division
• Implemented energy-saving initiatives across the Group
• Thoroughly investigated the causes of fatal accidents and implemented measures to prevent future incidents
• Launched Keppel Workplace Safety & Health (WSH) 2018 strategy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Contractors and suppliers represented in unions and councils
• Procurement of materials and equipment from responsible vendors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3 guidelines (Application Level B)

Certifications: ISO 9001, ISO 14001, OHSAS 18001 (various business units)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• KFELS B Class jackup rig
• KFELS Semi-Submersible Drilling Tender (SSDT)

Awards & Recognition

• Numerous awards listed on pages 7-9

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Performance
• Safety and Health
• Labour Practices & Human Rights
• Community Development

Environmental Achievements

• Reduced direct energy consumption in Singapore operations by approximately 21.4%
• Reduced total water consumption in Singapore operations by 9%
• Reduced waste sent for incineration in Singapore operations by 58.3%
• Recycled 284,489 tonnes of waste in Singapore operations

Social Achievements

• Launched Keppel Care Foundation to support needy and underprivileged, promote education, and encourage eco-friendly initiatives
• Invested $20.5 million in training and development programmes for employees globally
• Achieved a Group Accident Frequency Rate of 0.17 and Accident Severity Rate of 84

Governance Achievements

• Updated Insider Trading Policy and Internal Guidelines on Disclosure of Dealings in Listed Securities
• Updated terms of reference of board committees
• Enhanced corporate governance processes through Keppel’s System of Management Controls Framework

Climate Goals & Targets

Environmental Challenges

• Three fatalities in 2012, two related to working at height
• Increased indirect energy consumption in Singapore operations (4.7% increase compared to 2011)
• Breaching environmental regulation at Keppel Singmarine Brasil resulting in a fine

Mitigation Strategies

• Thorough investigation of incidents to determine root causes and identify preventative steps
• Process improvements and resource optimization initiatives to reduce energy consumption
• Construction of blasting chambers at Keppel Singmarine Brasil to prevent recurrence of environmental breaches

Supply Chain Management

Responsible Procurement

• Engaging suppliers on operations and processes, including safety management programmes

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1 guidelines, AA1000 Assurance Standard

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Det Norske Veritas (DNV) Business Assurance

Sustainable Products & Innovation

• Ice-worthy jackup rig
• Floating LNG vessel conversion
• Green Mark Platinum buildings

Awards & Recognition

• 34 Workplace Safety and Health (WSH) Awards
• Singapore Corporate Governance Award (Big Cap) – Winner
• Numerous awards for products and services

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Corporate Governance
• Environmental Performance
• Product Excellence
• Safety & Health
• Labour Practices & Human Rights
• Community Development

Environmental Achievements

• Energy savings of 530,983 GJ through efficiency improvements and technological advancements.
• Keppel Datahub 2 achieved BCA-IDA Green Mark Platinum and LEED Gold certifications.
• Recycled 216,073 tonnes of waste.
• Singapore operations recycled 178,912 tonnes of waste (14% higher than 2013).

Social Achievements

• Invested $14.2 million in employee training and development.
• 62.7% of workforce are local hires.
• All 85 female employees in Singapore who went on maternity leave returned to work.
• Contributed almost $6 million towards social investments.

Governance Achievements

• Implemented a holistic IT governance framework.
• Circulated the Keppel Group Anti-Bribery and Corruption Statement Group-wide.
• Established Keppel Group Personal Data Protection Policy and Keppel Group Telemarketing Policy.

Climate Goals & Targets

Environmental Challenges

• Four fatalities globally in 2014.
• Brent oil prices declined sharply in the latter half of 2014.
• Oversupply and margin pressures in the commercialisation of additional generation capacity.
• Subdued Singapore residential market.

Mitigation Strategies

• Thorough investigations to identify root causes of fatalities and implement preventive measures.
• Review of existing control measures to prevent recurrences.
• Focus on core competencies and agility to deliver solid results.
• Strengthened retail management capability by acquiring a 75% stake in Array Real Estate.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Screening and qualification of new suppliers based on HSE and labour criteria.
• Preference for contractors with ISO 9001, ISO 14001, and OHSAS 18001 certifications.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3.1, Singapore Exchange’s Guide to Sustainability Reporting

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: DNV GL

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• KFELS N Plus jackup rig design
• Emulsified Fuel System
• Exhaust gas desulfurisation system

Awards & Recognition

• Dow Jones Sustainability Asia Pacific Index component
• Various BCA Green Mark awards
• Guinness World Record for largest manufacturer of offshore rigs
• 39 WSH Awards

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Responsible Business
• People and Community

Environmental Achievements

• Keppel Bay Tower certified as Singapore’s first Green Mark Platinum (Zero Energy) commercial building
• Corporate headquarters powered by renewable energy since end of 2018
• Achieved carbon neutrality for corporate office in 2020 by acquiring carbon credits to offset Scope 3 emissions
• Keppel Marina East Desalination Plant commenced operations
• Keppel O&M secured contract to build first offshore wind turbine installation vessel in the US
• Keppel Renewable Energy entered into agreement for first solar farm project in Australia
• A- in CDP’s benchmark assessment on climate change

Social Achievements

• Employee Engagement Score of 87% in 2020
• Launched virtual townhalls and other staff engagement initiatives
• Rolled out employee assistance program for mental health support
• Committed over $5 million to support communities affected by COVID-19
• Donated $2 million towards a new National Kidney Foundation dialysis centre
• Keppel Volunteers achieved over 10,000 hours of community work in 2020
• Invested $9.6 million in social investment spending

Governance Achievements

• Strong and independent board with nine independent directors out of 11
• Keppel O&M successfully concluded Deferred Prosecution Agreement with the U.S. Department of Justice
• Enhanced compliance measures, including rolling out the ISO 37001 Anti-Bribery Management System
• Singapore entities of Keppel Land and Keppel Data Centres achieved ISO 37001 certification in 2020
• Ranked sixth on the Singapore Governance and Transparency Index 2020

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on business operations and communities
• Supply chain risks
• Climate-related risks

Mitigation Strategies

• Robust business continuity plans
• Supplier diversification programmes
• Evolutionary shadow carbon pricing policy
• Implementation of safe management measures to mitigate COVID-19 risks
• Collaboration with authorities to manage COVID-19 clusters

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• ESG criteria screening

Climate-Related Risks & Opportunities

Opportunities

• Green developments
• Environmental solutions
• Renewables
• New energy
• Circular economy solutions

Reporting Standards

Frameworks Used: Global Reporting Initiative Standards

Third-party Assurance: Externally assured

Sustainable Products & Innovation

• Floating data centres
• Hydrogen infrastructure for power generation and cooling
• Carbon capture, utilisation and sequestration systems

Awards & Recognition

• Industry Mover in the S&P Global Sustainability Yearbook 2021
• 21 Workplace Safety and Health Awards
• Community Spirit Platinum Award at the Community Chest Awards 2020
• Forbes World’s Best Employers 2020

Environmental Metrics

ESG Focus Areas

• Climate Action and Environmental Management
• Corporate Governance and Risk Management
• Human Capital Management
• Health & 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 achieved by operations in Singapore and overseas.
• 41.9% weighted average reduction in waste intensity relative to 2019 baseline.
• 5.7% weighted average reduction in water intensity relative to 2019 baseline.
• 10.4% year-on-year decrease in total hazardous waste generated by the Group’s operations.
• Approximately 4.5 million tCO2e in net avoided emissions resulting from operation of two waste-to-energy plants in Singapore and the Domestic Solid Waste Management Centre in Qatar.
• 1,125,595 GJ in energy savings in 2022, translating to estimated cost savings of about $94 million and the avoidance of approximately 126,000 tCO2e in emissions.

Social Achievements

• Launched Living Well programme in Vietnam, providing clean drinking water for about 20,000 villagers.
• Contributed $4.3 million to worthy causes, including social investments and industry advancement.
• Achieved a strong overall employee engagement score of 84% in the 2022 Global Employee Engagement Survey (higher than Mercer’s global average of 80%).
• 88% of employees indicated that they are proud to work for Keppel.
• Achieved 24.2 training hours per employee, exceeding the target of 20 hours.

Governance Achievements

• Established a Board Sustainability and Safety Committee.
• Appointed two new independent directors with rich experience and expertise in sustainability and digitalisation.
• Appointed the first Chief Sustainability Officer and established a dedicated Group Sustainability department.
• Further rollout of the ISO 37001 Anti-Bribery Management System across business units.

Climate Goals & Targets

Environmental Challenges

• Three workplace fatalities from two incidents at Keppel Offshore & Marine’s shipyard in Singapore in 2022.
• Supply chain disruptions due to the pandemic, labor shortages and the global energy crisis.
• Heightened geopolitical risks arising from the Russia-Ukraine conflict, volatility in commodity prices, rising interest rates and inflation, and slowdown of China’s economy.
• Increasing cyber threat landscape.

Mitigation Strategies

• Investigated incidents and put in place measures to prevent recurrence of workplace fatalities.
• Worked closely with customers and suppliers to mitigate the impacts of supply chain disruptions.
• Conducted a Group-wide scenario planning exercise to assess potential risks from several global macroeconomic, geopolitical and climate-related scenarios and developed mitigation plans.
• Continuously enhanced technology controls to prevent and detect cyber attacks.
• Implemented an integrated digital system to enhance the Compliance process for Third Party Associates.
• Implemented Sanctions Compliance framework to enhance the operationalisation of Group Sanctions Policy.

Supply Chain Management

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

Responsible Procurement

• Supplier Code of Conduct
• ESG criteria in supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Sea-level rise
• Water stress
• Heatwaves

Transition Risks

• Evolving regulations on climate taxonomies
• Higher carbon taxes
• Stricter regulations
• Uncertain price developments in carbon markets
• Higher expectations on climate disclosures

Opportunities

• Growing demand for renewables, clean energy, decarbonisation solutions and climate-resilient infrastructure

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 contributes, both directly and indirectly, towards the achievement of 10 UN Sustainable Development Goals.

Sustainable Products & Innovation

• Hydrogen-ready power plant
• Green Mark Platinum Positive Energy building
• Floating Data Centre Module
• Green data centre parks

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 awards at the Workplace Safety and Health (WSH) Awards 2022
• Champion of Good 2022
• Patron of the Arts Award (Corporate) 2022

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Sustainable Growth
• Responsible Investment

Environmental Achievements

• City Energy completed acquisition of Tan Soon Huah’s LPG business, expanding its consumer network.
• City Energy and Gentari signed a joint feasibility study agreement to construct a hydrogen pipeline from Malaysia to Singapore.
• City Energy launched solar solutions to promote greener living.
• City Energy achieved 100% plant availability in 9M 2023.

Social Achievements

• Not disclosed

Governance Achievements

• Established KIT Responsible Investment Policy, aligned with UN Principles for Responsible Investment.

Climate Goals & Targets

Environmental Challenges

• Rising interest rates

Mitigation Strategies

• Approximately 78.8% of KIT’s total loans are fixed and hedged as at 30 September 2023.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Principles for Responsible Investment

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• City Energy's solar solutions

Awards & Recognition

• Not disclosed