Our approach
Our approach to sustainability starts with our goal to run a profitable, safe and responsible business providing the best value proposition to customers, making a difference to the wider community, and contributing to a sustainable future.
Our sustainability framework is guided by the three pillars of Environmental Stewardship, Responsible Business and People & Community, which address the environmental, governance and social aspects of sustainability.
Environmental Stewardship
As part of Keppel’s Vision 2030, we have set targets to halve our Scope 1 and Scope 2 carbon emissions by 2030 from 2020 levels and achieve net zero by 2050, as well as reduce our water and waste intensity.
We are also making sustainability our business by providing solutions that contribute to sustainable development and climate action. We are refocusing the Company’s portfolio on sustainable urbanisation solutions, through evaluating the fit with Keppel’s Vision, Mission and ESG goals as well as the risks and opportunities associated with climate change.
We are expanding our involvement in renewables, clean energy and decarbonisation solutions, and have committed to grow our renewable energy portfolio to 7 GW by 2030.
Responsible Business
The long-term sustainability of our business is driven at the highest level of the Company through a strong and effective board, good corporate governance and prudent risk management, including the evaluation of ESG risks.
We are driving collaboration across the Company, promoting innovation and harnessing technology to seize opportunities to provide sustainable urbanisation solutions. We also work with stakeholders in our value chain to enhance their sustainability performance.
People & Community
People are the cornerstone of our business. We are committed to diversity, employee well-being, workplace health and safety, and investing in the training and development of our employees to help them reach their full potential.
We strive to create value and build vibrant and inclusive communities wherever we operate, and support initiatives that contribute to protecting the environment, supporting education and caring for the underprivileged, with the goal of building a sustainable future together.
We have committed up to 1% of the Company’s net profit to support worthy causes.
Board statement on sustainability
The Board and management of Keppel Ltd.
have considered sustainability issues in the
Company’s business and strategy, determined the
material environmental, social and governance
(ESG) factors and overseen the management and
monitoring of the material ESG factors.Keppel Ltd. Board of Directors
The Board determines the material Environmental, Social and Governance (ESG) factors of the Company, oversees the management and monitoring of the material ESG factors, and takes them into consideration in the determination of the Company's strategic direction and policies.
With effect from 1 May 2022, the Board of Keppel Ltd. has established a Board Sustainability and Safety Committee (BSSC) to provide even greater focus on sustainability matters. The committee’s roles include reviewing the Company’s sustainability strategy and material ESG factors, ensuring that Keppel has in place an effective governance structure for sustainability matters, reviewing the processes for identifying, assessing and managing climate-related risks and opportunities, overseeing the adoption of and progress towards the Company’s sustainability goals and targets, and overseeing the Company’s health, safety, and environmental (HSE) performance, among others.
At the management level, the Management Executive Committee oversees Keppel’s strategy and performance, and provides guidance on strategic and operational issues and performance, including sustainability issues. The committee is chaired by Keppel Ltd.’s Chief Executive Officer and Executive Director Loh Chin Hua and comprises senior management from across the Company.
The Chief Sustainability Officer (CSO), who reports to the CEO as well as the BSSC, coordinates and drives Keppel’s sustainability efforts. The CSO chairs the Sustainability Working Committee, comprising heads of corporate functions and representatives from across the divisions, which monitors and executes Keppel’s sustainability efforts. The CSO also heads the Sustainability department, which manages different aspects of Keppel’s sustainability efforts, including preparing Keppel’s sustainability report.
Materiality
Materiality assessments are important components of Keppel’s sustainability strategy and reporting. Keppel conducts a comprehensive materiality assessment, supported by an external consultant, once every five years or more frequently if required.
In the intervening years, the review of material ESG factors is conducted each year by the Management Executive Committee and the Sustainability Working Committee, and approved by the Board.
Our materiality assessments are based on the SGX guidelines on Sustainability Reporting, as well as the Global Reporting Initiative's (GRI) guidance on the approach to determine material topics.
Materiality with respect to sustainability reporting, as defined by GRI Standards, includes topics and indicators that reflect the organisation’s significant economic, environmental, and social impacts; and would substantively influence the assessments and decisions of stakeholders.
Task Force on Climate-related Financial Disclosures (TCFD)
Keppel supports the Task Force on Climate-Related Financial Disclosures (TCFD), and has voluntarily incorporated its recommendations in our reporting framework since 2020 to better articulate climate-related risks and opportunities that have a financial impact on our business.
UN Sustainable Development Goals
We are working with partners to support the achievement of the United Nations Sustainable Development Goals (SDGs), and have incorporated 10 of the SDGs as a supporting framework to guide our sustainability strategy.
Supporting SDGs:
- Providing a safe and healthy working environment for all stakeholders is fundamental to our commitment to conduct business responsibly. Keppel is also committed to building positive employee well-being.
- We advocate for continuous improvements in health and safety standards, both in our operations and in the broader community. We also ensure high safety standards for our products and services to safeguard customer health and safety.
- Our advanced technology solutions address a wide spectrum of environmental issues in solid waste and wastewater management, as well as seawater and freshwater treatment to bolster water supply resilience.
- We enhance access to clean energy with our diverse portfolio of solutions for a sustainable future. These include commencing Singapore’s first renewable energy import in 2022, developing Singapore’s first hydrogen-ready power plant, and exploring green ammonia and green hydrogen opportunities with international partners.
- Keppel has set a target to grow our portfolio of renewable energy assets to 7 GW by 2030.
- Our businesses spark economic growth, productivity and jobs.
- Our hiring policies ensure equal employment opportunities for all, and we are committed to invest in nurturing our human capital.
- We are focusing our portfolio on sustainability-related solutions and innovations.
- We are committed to operating sustainably, and apply our people and technology to drive innovation and support economic development and the well-being of our communities.
- Our businesses help promote sustainable urbanisation.
- We offer solutions for property, infrastructure, technology and services that optimise urban systems and contribute towards resilient, green and liveable cities. We are also contributing to sustainable urban renewal.
- We are focused on achieving sustainable management and efficient use of natural resources.
- We are committed to reducing energy consumption, water consumption and waste generation, as well as preventing pollution and preserving biodiversity in our operations.
- Keppel has committed to halve its Scope 1 and 2 carbon emissions by 2030, compared to 2020 levels, and achieve net zero by 2050. We have been tracking Scope 3 emissions since 2019 and are progressively expanding our coverage to include all 15 categories.
- Within our operations, we have set a target for 50% of the Company’s electricity use to be from renewable energy sources by 2025, with a view to reaching 100% by 2030.
- We will conduct business the right way and comply with all applicable laws and regulations wherever we operate. Our tone on regulatory compliance is clear and consistently reiterated from the top of the organisation.
- We have zero tolerance for fraud, bribery, corruption and violation of laws and regulations.
- Through collaboration with our stakeholders, we mobilise and share knowledge, expertise, technology and financial resources to support the achievement of the SDGs.
UN Global Compact
Keppel is a signatory of the United Nations (UN) Global Compact, and we are committed to the Compact’s 10 universal principles on human rights, labour, environment and anti-corruption.
Regular engagement with our stakeholders helps us determine our material areas of focus, as well as identify and manage the positive and negative impacts of our business.
We have applied the reporting principles from the GRI Standards, whereby stakeholders are defined as individuals or groups that have interests that are affected, or could be affected, by an organisation’s activities.
- Employees
- Customers
- Governments
- Shareholders
- Suppliers
- Local communities