At Sembcorp, we believe in building sustainable businesses that deliver long-term shareholder value and growth, and that a truly sustainable business not only creates economic value but does so in a way that benefits its stakeholders.
Environmental, social and governance (ESG) considerations are embedded in our business decisions and processes. In taking ESG considerations into account, it helps us understand our risks and responsibilities in a holistic manner. We believe that when our strategy and business decisions incorporate ESG concerns, we are better prepared to respond to the challenges we face.
The management of our sustainability issues is centred on five focus areas. Sembcorp's key sustainability principles are set out in our Sustainability Policy. These principles are applied throughout our management systems and processes. Sembcorp aims to continually improve our management systems, and evaluate our management approach by benchmarking it against industry best practice. We adopt a precautionary approach to avoid or minimise negative impacts. A list of our policies, certified facilities as well as memberships and participation in external initiatives can be found here.
Sustainability is addressed at the highest levels of the organisation. Our Board of Directors oversees the business affairs of the Group and is collectively responsible for Sembcorp’s long-term success. The main duties of the board include providing leadership on Sembcorp’s overall strategy, taking into consideration sustainability issues. The board also ensures the adequacy of the Group’s framework for risk management and its internal controls.
Sembcorp’s Sustainability Steering Committee (SSC) provides strategic direction for managing sustainability-related risks and opportunities, and guides the development and improvement of frameworks, policies, guidelines and processes to ensure that sustainability issues are effectively managed. The SSC is a high-level committee chaired by the Group Chief Financial Officer, and comprises senior executives across various functions, including asset management, human resources, health, safety and environment (HSE) and corporate relations.
At the business unit level, the head of operations reviews economic, operational, as well as health and safety issues and other risks at bi-monthly business unit management meetings and risk management committee meetings. Sembcorp’s performance in these areas is evaluated against internal targets. Business units also provide quarterly governance assurance certifications on the adequacy of their risk management and internal control system in line with Sembcorp’s Governance Assurance Framework.
In 2016, Sembcorp was selected as an index component of the SGX Sustainability Leaders Index. Sembcorp has also been named one of the top 3 most sustainable companies in Singapore in the 2016 Channel NewsAsia Sustainability Ranking.