Climate change and resource scarcity are increasingly becoming pressing issues. Sembcorp is committed to playing our part in enabling a low-carbon and circular economy. We aim to maintain the highest standards of environmental management, reduce our greenhouse gas emissions intensity and grow our portfolio of low-carbon energy assets, while innovating our business solutions to support a circular economy.

Why this is material
As an energy producer, our energy generation activities release GHG emissions that contribute to climate change. Climate change also poses potential regulatory, technological and physical risks to our business.

Our approach
We have a two-pronged approach to address the risks and opportunities arising from climate change. The first is to minimise our negative impact by reducing our operational GHG emissions, and the second is to enhance our positive impact by growing our sustainable solutions portfolio such as renewables.

In May 2021, we unveiled our strategic plan to transform our portfolio from brown to green, with growth driven by the Renewables and Integrated Urban Solutions businesses. Central to our strategy is also our commitment to climate action. We have set targets to:

- Reduce GHG emissions intensity by 25% from 2020 baseline, to 0.40 tonnes of carbon dioxide equivalent per megawatt hour (tCO2e/MWh) by 2025
- Reduce absolute GHG emissions (Scope 1 and 2) by 90% from 2020 baseline to 2.7 million tCO2e by 2030
- Deliver net-zero emissions by 2050

Climate-related risks and opportunities are managed through our Climate Change Working Committee (CCWC). The CCWC is chaired by the executive vice president, Office of the Group President & CEO and supported by the Group Sustainability division. The CCWC reports to the Enterprise Risk Committee as well as the Sustainability Steering Committee (SSC), which in turn report to the board’s Risk Committee. The achievement of our climate change targets is monitored and incentivised via the performance scorecards of our senior executives.

Our Group Integrated Assurance Framework (IAF) supports the identification, assessment and management of our climate-related risks.

For TCFD disclosures, please refer to Reports & Policies section on our Sustainability webpage.

Why this is material
As an energy and urban development player, our activities consume resources such as fuel and water. We continue to optimise our operational resource consumption to reduce our impact on the environment.

Our three key areas of focus are:

- Energy management
- Water and wastewater management
- Waste management

Our approach
Energy Management
We leverage a suite of digital analytics solutions to improve the efficiency, reliability and availability of our assets. Collectively, they provide a systematic approach to monitor and optimise our operations, while reducing human error and increasing productivity.

Water and Wastewater Management
We seek to ensure that our interactions with, and usage of water resources are responsibly managed. Our wastewater treatment business applies various technologies such as membrane separation and biological treatment to effectively treat different wastewater profiles from our customers. Our digital platform provides real-time insights that enable us to reduce electricity and chemical consumption.

To find out about our continuous innovation in our Integrated Wastewater Treatment Plant, please refer to our Spotlight webpage.

Waste Management
We adopt the principles of reduce, reuse and recycle, and actively seek and provide solutions that support a circular economy. 

Resource management falls under the oversight of the Group Centre of Excellence. It is guided by the Group Health, Safety, Security and Environment (HSSE) Management Framework and Standards, Group Environmental Policy as well as all applicable environmental regulations.

To find out about how we supported a customer in their waste reduction programme, please refer to our Spotlight webpage.

Why this is material
Our operations and activities have varying degrees of impact on the environment, such as the discharge of effluent, disposal of waste, or the emission of air pollutants. Any improper or non-compliant discharge, disposal or emission may result in harm to the environment and public health, as well as threaten the long-term viability of our business.

Our approach
Our Group HSSE standards support the Precautionary Principle in managing environmental risks. We seek to take preventive action to minimise our impact on the environment. Where required, we conduct environmental impact assessments in accordance with national and / or international standards and methodologies.

Our environmental protection standard establishes the requirements for emergency response protocols, including training for relevant employees. Environmental compliance audits are undertaken as part of our Group Integrated Audit programme.

Local environmental protection falls under the oversight of the Group HSSE department, guided by the Group HSSE Policy and Standards as well as all applicable environmental regulations.

To find out how we mitigate the impact of our fast-growing renewables operations in India on the environment, please refer to our Spotlight webpage.

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