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 Fifth Assessment Report (AR5) from the United Nations (UN) Intergovernmental Panel on Climate Change (IPCC) states that carbon dioxide (CO2) emissions and other greenhouse gas (GHG) 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 carbon footprint. 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.

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 Renewables Growth Journey

Climate Change Governance
Our Climate Change Working Committee oversees and addresses Sembcorp’s climate change risks and opportunities. Its role includes the review and / or development of policies and frameworks, 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 Head, Group Centre of Excellence (concurrently also Executive Vice President, Group President & CEO’s Office). The committee meets at least twice a year, and provides updates to our Sustainability Steering Committee as well as our Board’s Risk Committee.

Climate Change Disclosure
Sembcorp will report its activities and initiatives on climate change to ensure transparency of our communication to the stakeholders. We will publish our activities in our Sustainability Report in accordance to GRI (Global Reporting Initiative) Standards and report our GHG emissions in accordance to the GHG Protocol. Our climate-related disclosures are guided by the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board and CDP’s (formerly Carbon Disclosure Project) Climate Change programme. We respond to CDP Climate Change questionnaire on annual basis.

Please refer to our Feature Stories section 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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