Climate Action Plan

Taking Climate Action is Central to Sembcorp’s Strategy

Climate change poses an enormous threat to the safety and well-being of our communities and to the global economy. The Sixth Assessment Report issued by the United Nations (UN) Intergovernmental Panel on Climate Change states that carbon dioxide (CO2) and other greenhouse gas (GHG) emissions from human activity are leading to changes in the global climate. We believe the evidence is clear. The 2015 Paris Agreement was signed by more than 190 countries, setting an ambitious goal to align with the scientific guidance of limiting global warming to well below 2ºC, preferably to 1.5ºC, compared to pre-industrial levels. Achieving the Paris Agreement goal will require substantial emissions reductions over next few decades, and GHG emissions from the energy sector will need to be radically reduced.

Driven by our purpose to help build a sustainable future, Sembcorp believes we have a responsibility to respond to climate change. We are transforming our portfolio from brown to green, growing our renewable energy capacity and setting targets to reduce our GHG emissions. With our focus on renewable energy and integrated urban solutions, we believe we can be a leading provider of sustainable solutions to help support the energy transition and sustainable urban development.

Sembcorp's GHG Emissions Footprint

Our Climate Action Targets and Commitments

Sembcorp was the first Singapore energy company to launch a comprehensive climate change strategy in 2018. Today, we are stepping up this commitment with the following climate action targets.

 

 Targeting net-zero emissions by 2050

Our Climate-related Risks and Opportunities

The key climate-related risks and opportunities faced by Sembcorp’s businesses are managed as part of our Climate Action Plan. We manage our climate risks and opportunities in line with Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Sembcorp also conducts risk-based scenario analysis in its investment decisions to evaluate the impacts of rising carbon prices over time.

Our Climate-related Risks and Opportunities

Climate Change Governance

Our Climate Change Working Committee oversees the development of plans, processes and reports that address the Group’s climate change risks and opportunities. Its role includes the review and development of policies and frameworks, assessment of risks and opportunities, the setting of targets and implementation of relevant initiatives, as well as facilitating the reporting and disclosures of performance. This committee is chaired by the executive vice president, Office of the Group President & CEO. The committee meets at least twice a year, and provides updates to our Enterprise Risk Committee (ERC) and Sustainability Steering Committee, both chaired by the Group President & CEO, as well as the board’s Risk Committee (RC). The ERC monitors and reviews the risk management performance and appropriateness of risk mitigation measures. The ERC then reports to the RC on a quarterly basis to monitor group-wide risks, including significant risk exposures as well as corresponding risk mitigation plans.

Our Climate Change Governance

 

Climate Change Disclosure

Sembcorp will report its activities and initiatives on climate change to ensure transparency of our communication to the stakeholders. We publish our activities annually in our Sustainability Report in accordance with GRI (Global Reporting Initiative) Standards and report our GHG emissions in accordance with GHG Protocol. Our climate-related disclosures are guided by the recommendations of the TCFD as well as CDP’s Climate Change programme. We respond to the CDP Climate Change questionnaire and publish our climate-related disclosures per TCFD recommendations on an annual basis.

Please refer to our Spotlight webpage to learn more about how we address our climate change risks and opportunities.

To learn more about how our Strategy will help achieve our Climate Action Plan, please refer to our Strategy section.

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