Environmental

Climate change and resource scarcity are becoming more 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
Climate change poses an enormous threat to the safety and well-being of entire populations as well as the global economy. In particular, as an energy producer, our energy generation activities release GHG emissions that contribute to climate change. In addition, climate change also poses potential regulatory, technological, physical and reputational risks to our business. However, we recognise that in spite of these challenges, we are also uniquely positioned to leverage opportunities that have arisen from actions in response to climate change.

Our approach
In 2018, we launched our Climate Change Strategy, which outlines megatrends in the global energy transition, why climate change matters to Sembcorp and how we are addressing climate-related risks and opportunities.

For more information on our Climate Change Strategy, please visit Reports & Policies.

Our climate-related disclosures are guided by the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). TCFD is a market-driven initiative, which articulates a set of voluntary climate-related financial risk disclosures for use by companies. Our TCFD disclosure can be found here.

Why this is material
Global population growth coupled with rapid urbanisation and industrialisation have led to an unprecedented demand for critical resources. This has underscored the need for us to reduce the unnecessary use of resources while pursuing innovations that support a circular economy.

We have identified three key areas under resource management:

• Energy management
• Water and wastewater management
• Waste management

In each area, we seek to optimise resource use for our customers and in our own operations.

Our approach
Energy Management
The challenge for the energy sector is to meet growing energy needs, with less emissions. While we are taking steps to move to a green portfolio, this process takes time. In the meantime, we are optimising the efficiency of our power assets.

The Sembcorp Global Asset Management System enables process optimisation, troubleshooting and predictive analytics, and consolidates real-time operational data from our global assets.

Energy efficiency parameters are embedded in our plant operation management systems and monitored daily.

Water and Wastewater Management
Our aim is to ensure that all our interactions with, and the usage of, water resources are responsibly managed.

As a water solutions provider, Sembcorp uses water for a number of purposes. In addition to consuming water in our own operations, we also supply water and associated water services to our customers.

Where required, environmental impact assessments are conducted in accordance with national and / or international standards and methodologies, to understand the effect our activities have on the local environment, including water bodies.

Our specialised water solutions for industries enable us to treat multiple streams of industrial wastewater directly from source. In some cases, a proportion of treated water is channelled for reclamation and re-supplied to customers for their industrial processes.

In water-stressed regions such as Oman and the United Arab Emirates, our large-scale integrated power and desalination plants provide high-quality water to meet municipal and industrial needs.

Waste Management
Tackling the challenge of waste management requires a circular economy approach, including reduction in waste generation and exploring opportunities to reuse resources.

For example, Sembcorp operates energy-from- waste plants in Singapore and the UK, where waste is used as feedstock for power generation. In Singapore, this waste is collected by our solid waste management business. In addition, the majority of fly ash generated as a by-product in our coal-fired power plants in India is recycled into cement and bricks.

We actively seek to reduce the volume of sludge generated in our industrial wastewater treatment operations. In some cases non-hazardous sludge is converted into useful products such as bricks or plant fertiliser where possible.

Why this is material
As a result of the products and services we provide, our operations may have varying degrees of impact on the environment, in direct or indirect ways. These may include the discharge of effluent, disposal of waste, and the emission of air pollutants. Any improper or non-compliant discharge, disposal or emissions may result in harm to the environment and public health, as well as threaten the long-term viability of our business.

Our approach
Environmental protection and stewardship are integrated into our operations, guided by our Group Health, Safety, Security and Environment (HSSE) management system comprising:

• Group HSSE Policy
• Group HSSE rules, standards and procedures
• All applicable environmental regulations

Our Group HSSE standards, such as the environmental protection and hazardous substances handling standards, set out the principles and requirements which support the Precautionary Principle in managing environmental risks. We seek to take all possible preventive action to minimise our impact on the environment. Our aim is to avoid pollution from effluents or disposal of waste and hazardous substances, prevent spills or other environmental incidents, keep our atmospheric emissions within legally acceptable levels, as well as monitor and minimise boundary noise.

Environmental considerations are integrated into the planning for all existing and new operations, products and services. Where required, environmental assessments are conducted in accordance with national and / or international standards and methodologies, which include environmental and social impact assessments, environmental baseline studies as well as pollution control studies.

Our Group HSSE Incident Reporting and Investigation Requirements set out systematic steps and actions in response to HSSE incidents and near misses, with the aim of preventing a recurrence. Our Integrated Assurance Framework (IAF) sets out the three lines of defence that ensure compliance to our operating standards.

For more information on our IAF, please refer to the Our Focus Areas: Governance.

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