Climate Change Data

Keppel REIT

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:17,124 tCO2e/year
Scope 1 Emissions:1,225 tCO2e/year
Scope 2 Emissions:15,376 tCO2e/year
Scope 3 Emissions:523 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:37,326 MWh/year
Water Consumption:154,168 m3/year
Waste Generated:1,116 tons/year
Carbon Intensity:0.047 tCO2e/m2 (2020)

ESG Focus Areas

  • Environmental Stewardship
  • Responsible Business
  • People and Community

Environmental Achievements

  • Reduced GHG emission intensity by 11.4% to 0.047 tCO2e/m2
  • Reduced energy usage intensity by 12.5% to 0.103 MWh/m2
  • Reduced water usage intensity by 32.2% to 0.380 m3/m2
  • All Singapore assets maintained Platinum status under BCA Green Mark scheme
  • Most Australian buildings achieved 5 Stars and above in NABERS Energy rating

Social Achievements

  • Implemented initiatives to support employee wellness during the pandemic (virtual events, care packages, access to counselors)
  • Employees received an average of 13.2 training hours
  • Dedicated about 790 hours to community outreach activities

Governance Achievements

  • Zero instances of violation of laws and regulations
  • Maintained Prime status in ISS ESG corporate rating
  • Component of two iEdge SG ESG Indices

Climate Goals & Targets

Medium-term Goals:
  • Reduce energy usage intensity by 30% by 2030
  • Reduce GHG emission intensity by 30% by 2030
  • Reduce water usage intensity by 60% by 2030

Environmental Challenges

  • COVID-19 pandemic significantly impacted 2020 environmental data due to lower footfall in properties
  • Reduced air travel and telecommuting lowered Scope 3 emissions, making year-on-year comparison difficult
Mitigation Strategies
  • Implemented stringent measures to provide a safe work environment for building occupants (temperature scanning, contact tracing, increased disinfection)
  • Adopted telecommuting, split team arrangements, and staggered working hours for employees
  • Leveraged technology to maintain connectivity and smoothly transition to telecommuting

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Adherence to Keppel Supplier Code of Conduct
  • Preference for suppliers with ISO 14001 and bizSAFE certifications
  • Encouragement of sustainable product use

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, Business for Societal Impact (B4SI) community investment framework, United Nations’ Sustainable Development Goals (SDGs)

Certifications: ISO 14001:2015, OHSAS 18001

Third-party Assurance: Corporate Citizenship (for B4SI Framework)

UN Sustainable Development Goals

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

Nine SDGs incorporated as a supporting framework to guide sustainability strategy

Awards & Recognition

  • GRESB Green Star Status (2020)
  • ISS ESG Corporate Rating – Prime Status (2020)
  • Ocean Financial Centre WELL Health-Safety Rating (2021)
  • SG Clean quality mark (multiple properties)
  • BCA Green Mark Platinum Award (multiple properties)
  • NABERS Energy rating (multiple properties)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:35,750 tCO2e/year
Scope 1 Emissions:1,591 tCO2e/year
Scope 2 Emissions:17,053 tCO2e/year
Scope 3 Emissions:17,106 tCO2e/year
Renewable Energy Share:24,289 GJ out of 128,799 GJ electricity consumption (approx. 19%)
Total Energy Consumption:165,555 GJ/year
Water Consumption:163,308 m3/year
Waste Generated:1,152 tons/year
Carbon Intensity:0.17 tCO2e/m2 (Scope 1 and 2)

ESG Focus Areas

  • Environmental Stewardship
  • Responsible Business
  • People and Community

Environmental Achievements

  • Installed 480 solar panels at Pinnacle Office Park, supplementing 10% to 25% of daily electricity needs.
  • Ocean Financial Centre became the first commercial building in Singapore to be certified with the WELL Health-Safety Rating.
  • Achieved a 12.2% reduction in Scope 1 and 2 emissions from 2019 levels.

Social Achievements

  • Held a week-long virtual learning festival for employees.
  • Contributed more than 630 hours to community outreach activities.
  • Employee engagement score above 75%.

Climate Goals & Targets

Medium-term Goals:
  • Halve Scope 1 and 2 emissions by 2030 from 2019 levels.
  • Reduce energy usage by 10% by 2030 from 2019 levels.
  • Increase portfolio’s renewable energy usage to 40% by 2030.
  • Reduce water usage by 5% by 2030 from 2019 levels.
Short-term Goals:
  • All properties to be green-certified by 2023.
  • Achieve at least 20 training hours per employee in 2022.
  • Achieve at least 75% in employee engagement score in 2022.

Environmental Challenges

  • COVID-19 pandemic impacting operations and tenant occupancy.
  • Supply chain disruptions (implied).
Mitigation Strategies
  • Adopted stringent safe management measures.
  • Implemented flexible hybrid work arrangements.
  • Obtained additional green loans.

Supply Chain Management

Responsible Procurement
  • Keppel Supplier Code of Conduct
  • Preference for Singapore Green Label products

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Long-term climate changes
Transition Risks
  • Global decarbonisation efforts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

UN Sustainable Development Goals

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

Report details how initiatives contribute to these goals.

Awards & Recognition

  • MSCI ESG Rating 'A'
  • GRESB 4 Star rating
  • ISS ESG Prime status
  • Various Green Mark and NABERS awards (listed on page 71)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:17,675 tCO2e (Scope 1 & 2)
Scope 1 Emissions:1,551 tCO2e
Scope 2 Emissions:16,124 tCO2e
Scope 3 Emissions:15,691 tCO2e
Renewable Energy Share:15.3%
Total Energy Consumption:164,481 GJ
Water Consumption:206.6 ML
Waste Generated:1,540 tons
Carbon Intensity:0.12 tCO2e/m2 (Scope 1 & 2)

ESG Focus Areas

  • Climate Change Adaptation
  • Emissions
  • Energy
  • Waste Management
  • Water Management
  • Building and Service Quality
  • Corporate Governance
  • Cybersecurity and Data Privacy
  • Economic Sustainability
  • Ethics and Integrity
  • Sustainable Supply Chain Management
  • Tenant Alignment
  • Community Development and Engagement
  • Diversity and Inclusion
  • Employee Health and Wellbeing
  • Human Capital Management
  • Tenant Health and Safety

Environmental Achievements

  • 16.8% reduction in Scope 1 and 2 emissions from 2019’s level
  • 28.7% reduction in water usage from 2019’s level
  • 15.3% of waste generated was recycled
  • 100% of operational properties are green-certified

Social Achievements

  • Zero fatalities, work-related injuries or safety incidents reported among employees in 2022
  • Average of 30.6 hours of training per employee in 2022
  • More than 1,000 volunteer hours on various environmental and community outreach events

Governance Achievements

  • Established a Board environmental, social and governance (ESG) Committee to enhance oversight on ESG-related matters
  • Achieved 50% sustainability-focused funding in 2022, ahead of the original target of 2025
  • Zero incidents of fraud, corruption, bribery and non-compliance with laws and regulations pertaining to fraud, corruption and bribery

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Halve Scope 1 and 2 emissions by 2030 from 2019’s level
  • 10% reduction in energy usage by 2030 from 2019’s level
  • Increase portfolio’s renewable energy usage to 40% by 2030
  • 5% reduction in water usage by 2030 from 2019’s level
  • Achieve at least 30% female Board representation
Short-term Goals:
  • All properties to achieve green certification by 2023

Environmental Challenges

  • Rising interest rates
  • Global economic uncertainty
  • Weakening global outlook
  • Technology sector consolidation
  • Rising cost environment
  • Increased emphasis on sustainability
  • Inflationary pressures
  • Potential impacts of climate-related risks and opportunities
Mitigation Strategies
  • Increased percentage of total borrowings on fixed rates to 76%
  • Prudent and proactive approach towards capital management
  • Active portfolio optimisation
  • Disciplined execution of investment and asset management strategy
  • Implementation of energy-efficient technologies and increasing the use of renewable energy
  • Detailed scenario analysis to evaluate and understand the potential impacts of climate-related risks and opportunities
  • Integration of ESG factors into management’s performance assessments
  • Robust risk management processes
  • Strong corporate governance
  • Continuous upskilling of employees
  • Engagement with tenants to adopt green practices

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Keppel Group Supplier Code of Conduct
  • Corporate sustainable procurement policy encouraging purchase of environmentally friendly products

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 building/sector regulations
  • Increased cost of materials
  • Increased energy costs
  • Unsuccessful investment in/deployment of new technology
  • Change in stakeholder expectations
  • Increased employee expectations and preferred workplace
Opportunities
  • Resource efficiency and energy source
  • Expansion of low carbon solutions and price competitiveness
  • Increased access to incentives and capital
  • Tapping on government schemes

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: BCA Green Mark Platinum, NABERS Energy Rating, LEED, WELL Health-Safety Rating, WiredScore Platinum Rating, Climate Active Carbon Neutral certification, CASBEE A rating

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 17 (Partnerships for the Goals)

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

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • GRESB 4 Star rating
  • MSCI ESG Ratings Assessment ‘A’ rating

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:19,642 tCO2e (Scope 1 & 2)
Scope 1 Emissions:1,453 tCO2e
Scope 2 Emissions:18,189 tCO2e
Scope 3 Emissions:27,602 tCO2e
Renewable Energy Share:15.1% of total energy use
Total Energy Consumption:173,905 GJ
Water Consumption:259.1 ML
Waste Generated:1,466 tons
Carbon Intensity:0.17 tCO2e/m2

ESG Focus Areas

  • Environmental Stewardship
  • Responsible Business
  • People and Community

Environmental Achievements

  • 16.9% reduction in Scope 1 and 2 emissions compared to the 2019 baseline.
  • 100% of Keppel REIT’s properties are green-certified (except for 2 Blue Street, pending certification).

Social Achievements

  • Zero fatalities, work-related injuries, or safety incidents reported in 2023.
  • Manager’s employees achieved an average of 25.2 hours of training in 2023.
  • Dedicated more than 900 hours to community outreach activities.

Governance Achievements

  • Maintained a 4-Star rating in the 2023 GRESB Assessment and an ‘A’ rating in the MSCI ESG Ratings Assessment.
  • 64% of Keppel REIT’s total borrowings comprised sustainability-focused funding.

Climate Goals & Targets

Medium-term Goals:
  • Halve Scope 1 and 2 emissions by 2030 from 2019 baseline.
  • 10% reduction in energy usage by 2030 from 2019 baseline.
  • Increase portfolio’s renewable energy usage to 40% by 2030.
  • 5% reduction in water usage by 2030 from 2019 baseline.

Environmental Challenges

  • Increase in Scope 1 and 2 emissions in 2023 due to more tenants returning to the office.
  • Increase in energy consumption and intensity in 2023 due to more tenants returning to the office.
  • Increase in water withdrawal in 2023 due to more tenants returning to the office.
Mitigation Strategies
  • Implementing energy optimisation initiatives (HVAC Load Reductions units, LED lighting upgrades, high-efficiency EC fans).
  • Increasing the use of renewable energy resources.
  • Implementing water-efficient fittings and fixtures, collecting water condensate, deploying water leakage detectors.

Supply Chain Management

Responsible Procurement
  • Keppel Supplier Code of Conduct
  • Corporate sustainable procurement policy

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 building/sector regulations
  • Increased cost of building materials
  • Increased energy costs
  • Unsuccessful investment in/deployment of new technology
  • Change in stakeholder expectations
  • Increased employee expectations and preferred workplace
Opportunities
  • Resource efficiency and energy sources
  • Expansion of low carbon solutions and price competitiveness
  • Increased access to incentives and capital
  • Tapping on government schemes

Reporting Standards

Frameworks Used: GRI Standards

UN Sustainable Development Goals

  • 10 UN SDGs integrated into sustainability framework

Awards & Recognition

  • 4-Star rating in the 2023 GRESB Assessment
  • ‘A’ rating in the MSCI ESG Ratings Assessment
  • Various green building and environmental certifications (LEED, BCA Green Mark, NABERS)