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. 

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.

Our Climate-related Risks and Opportunities

We manage our climate risks and opportunities in line with Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Climate Change Governance

Sembcorp’s Climate Change Working Committee oversees the development of plans, processes and reports that address the Group’s climate-related risks and opportunities. Its role includes the review and development of policies and frameworks, assessment of risks and opportunities, setting of targets and implementation of relevant initiatives, as well as facilitation of reporting and disclosure of performance. This committee is chaired by the executive vice president, Office of the Group President & CEO and supported by Group Sustainability as secretariat. The committee meets at least twice a year and provides updates to our Enterprise Risk Committee (ERC), Sustainability Steering Committee (SSC) as well as the board’s Risk Committee (RC). The ERC and SSC are chaired by the Group President & CEO.

The ERC and RC each meet on a quarterly basis to review and enhance the effectiveness of the Group’s Integrated Assurance Framework, including its risk management plans, systems, processes and procedures. The committee also regularly reviews group-wide risks including climate-related risks. The Executive Resource & Compensation Committee supports the inclusion of sustainability-linked KPIs and targets such as GHG emissions intensity and gross installed renewable energy capacity for key management personnel.

Climate Change Disclosure

Sembcorp will report its activities and initiatives on climate change to our 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 financial 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.

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