Sustainable Finance

Sustainable finance is a key instrument to mobilise capital towards the development of sustainable solutions. To demonstrate our commitment to a more sustainable future and to support our strategic transformation plan, we believe that it is important to integrate sustainability across the financing tools of the company.

Green Finance

Green Financing Framework
Sembcorp’s Green Financing Framework forms the backbone of our commitment to grow our renewables portfolio, and play our part in supporting the global energy transition and a more sustainable future.

The Framework is aligned with The Climate Bonds Initiative (CBI) Climate Bonds Standard v3.0, containing rigorous scientific criteria which are consistent with the 2 degrees Celsius warming limit declared in the 2015 Paris Agreement. The Framework is also aligned with Green Bond Principles by the International Capital Market Association as well as other international market standards and guidelines including Green Loan Principles and ASEAN Green Bond Standards. The Framework has been reviewed by EY, a CBI-approved verifier. In 2023, Sembcorp published our inaugural Green Finance Report which provides an update on the allocation of use of proceeds and eligibility and impact of nominated projects annually.

Related documents: 
Green Financing Framework (2021)  
Pre-issuance Assurance Report (2021)
Green Finance Report and Post-issuance Assurance Report (2022)

Sustainability-Linked Finance

Sustainable Financing Framework
Sembcorp’s Sustainable Financing Framework outlines Key Performance Indicators and Sustainability Performance Targets for sustainability-linked transactions that track the progress of Sembcorp’s transformation towards a low carbon and sustainable solutions portfolio.

The Framework is aligned with the “Sustainability‐Linked Bond Principles 2020” by International Capital Market Association (ICMA) and the “Sustainability-Linked Loan Principles 2021” by Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA) and Loan Syndications and Trading Association (LSTA).

The Framework has been reviewed by DNV, who provided a Second Party Opinion on alignment of the Framework.

Related documents: 
Sustainable Financing Framework (2021)
Second Party Opinion on Sustainable Financing Framework (2021)
Assurance Report on Sustainability-linked Bond (2021)
Assurance Report on Sustainability-linked Loans and Bonds (2022)

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