Our Approach

Our Supply Chain

We recognise the importance of integrating sustainability practices into our procurement and supply chain management processes.

Sembcorp’s main suppliers consist of original equipment manufacturers (OEMs), material suppliers, and engineering, procurement and construction (EPC) contractors. OEMs supply us with large-scale equipment such as wind and gas turbines and desalination units as well as key equipment such as switchgears and control systems. Material suppliers supply fuel and chemicals needed to run our plants. EPC contractors provide detailed EPC services for our greenfield plants.

Our plants are designed and built to international codes and standards and it is with this perspective that we procure our equipment. We seek to ensure the procurement of high-quality and technologically advanced equipment that is durable and from suppliers who share our commitment to sustainability. Our Group Procurement Policy and Standards provides guidelines and control principles for various stages of the procurement process.

We value the opportunity to positively influence our service providers and suppliers towards greater health, safety, security and environmental awareness and social responsibility. Our Supplier Code of Conduct defines the environmental, social and governance (ESG) standards of practice that we expect from our suppliers. Separately, our vendor pre-qualification process incorporates ESG criteria in the assessment of potential suppliers.

Supplier diversification

Our efforts to ensure supply chain security include diversifying supply to mitigate concentration risk. Coal supply is managed via a portfolio of suppliers and country sources. Sembcorp’s operations maintain at least one primary and one secondary supplier for critical spare parts and consumables, where possible.

Payment to Suppliers by Geography
1 Payments to suppliers include payments to governments, banks and financial institutions
2 Numbers may not add up as they are rounded to the nearest one decimal place

 

Our suppliers and contractors provide a wide range of products and services including fuel and equipment for electricity generation, chemicals for water treatment as well as maintenance services for our power and water treatment plants.In 2021, our operations in our markets procured goods and services from approximately 7,900 suppliers, of which about 85% are located in Asia. The total expenditure amounted to approximately S$6.5 billion. In a majority of our operations, a higher proportion of goods and services are sourced locally. There were no significant changes to our supply chain in 2021.

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