Supporting Asia's clean energy future

The energy sector is responsible for over a third of global greenhouse gas (GHG) emissions1, making it a pivotal element in combatting climate change and addressing the ongoing global energy crisis. At Sembcorp, we are committed to supporting Asia’s shift to a clean and responsible energy future for all.

World Energy Outlook 2022 report

climate

Sembcorp launched its climate change strategy in 2018 and unveiled our inaugural strategic plan in 2021 under our brown to green portfolio transformation initiative. Since then, we have made significant progress against our 2025 strategic targets, with current gross installed renewables capacity of 8.7GW as of September 2023. We have also achieved our 2025 emissions intensity reduction target two years ahead of time. We remain committed to achieving our net zero emissions target (Scope 1 and 2) by 2050.

Building on this strong momentum, we have announced an enhanced set of targets during our Investor Day in November 2023.

Our targets

  • By 2028, grow gross installed renewables capacity from 8.7GW to 25GW
  • By 2028, halve emissions intensity2 to 0.15tCO₂e/MWh from 2023 forecasted levels 0.30tCO₂e/MWh
  • By 2030, reduce absolute emissions by 90% (from 2020 levels) to 2.7 million tCO₂e
  • By 2050, deliver net-zero emissions

2Emissions intensity and absolute emission target covers Scope 1 (direct emissions) from energy generation, and Scope 2 (indirect emissions) from energy consumption.

Our 2028 target is aligned with a 1.5°C Paris Agreement pathway. Our 2028 Scope 1 and 2 emissions intensity targets were developed using the Science-based Target initiative’s (SBTi) guidance and tools for the power sector. We are working towards setting a Scope 3 target, which would then enable us to seek SBTi validation for our Scope 1 and 2 targets.

Navigating the green transition journey

The journey from brown to green holds its own set of operational challenges, particularly in markets that are deeply entrenched in fossil fuel infrastructure and long-term supply agreements. As we scale down our fossil fuel usage, access to reliable and affordable renewable energy as well as low-carbon feedstock must be expanded to meet the needs of industry and individuals.

Sembcorp is taking significant steps to position itself as a key player in the journey towards a low-carbon future. As a leading renewables player in Asia, we are expanding our renewable energy portfolio to support the transition towards a net-zero future. In addition, we are actively exploring and investing in energy storage and battery technology to support the continued growth of renewables deployments.

During this critical phase of transition, the role of gas remains indispensable in upholding the energy security required by businesses and communities every day. For regions with poor renewables resource endowment, gas-fired generation remains the most accessible for electricity, with a lower emission intensity as compared to coal or oil.

Sembcorp remains committed to exploring low-carbon alternatives to gas. We will continue to invest in the necessary capabilities in production and turbine-firing of hydrogen and its derivatives, in anticipation of its future commercial viability and technological maturity.

Capital allocation

In line with our strategic targets, a significant share of capital will be deployed to support our renewables growth. We will also deploy capital into decarbonisation solutions and investments into hydrogen-ready assets.

Climate-related disclosures

We report our performance, activities and initiatives on climate change and other material sustainability factors in our annual Sustainability Report.  Our climate-related financial disclosures are guided by the recommendations of the Task Force on Climate-related Financial Disclosure (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.