Our approach
Our approach to sustainability is underpinned by the three pillars of (i) Environmental Stewardship, (ii) Responsible Business, and (iii) People and Community, which address the environmental, social and governance (ESG) aspects of sustainability.
Keppel has a two-pronged sustainability strategy of running our business sustainably, and making sustainability our business by creating solutions that contribute to a sustainable future.
Environmental Stewardship
We are committed to combatting climate change, improving resource efficiency and reducing our environmental impact. We are refocusing the Company’s portfolio on solutions for a sustainable future, such as renewables, clean energy and decarbonisation solutions.
We have set quantitative targets to reduce our Scope 1 and Scope 2 carbon emissions, water and waste as well as to increase renewable energy utilisation, and grow our portfolio of renewable energy assets.
We are monitoring the latest developments in climate change and taking steps to manage climate-related risks and seize opportunities by investing in and creating solutions that contribute to climate action.
Responsible Business
The long-term sustainability of our business is driven at the highest level of the organisation through a strong and effective board, good corporate governance and prudent risk management, including the evaluation of ESG risks.
We are leveraging technology and our asset-light model to invest in and create solutions that contribute to a sustainable future, while generating value for all our stakeholders.
We are also working closely 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 uplift communities wherever we operate. We support initiatives that contribute to caring for the underprivileged, protecting the environment, and supporting education, with the goal of building a sustainable future together.
We have committed up to 1% of Keppel’s recurring income to support worthy causes.
Board statement on sustainability
The Board and management of Keppel 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 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. Its roles include monitoring international sustainability-related trends and developments, reviewing the Company’s sustainability strategy, ensuring that Keppel has in place an effective sustainability governance structure, overseeing the adoption of and progress towards the Company’s sustainability goals, reviewing the processes for identifying, assessing and managing climate-related risks and opportunities, and overseeing the Company’s health, safety, and environmental performance, among others.
At the management level, the Management Executive (MExCo), which meets every month, oversees Keppel’s strategy and performance, including sustainability issues. MExCo also determines Keppel’s key sustainability policies and targets, before they are presented to the BSSC. MExCo is chaired by Keppel’s CEO and its members include the Chief Investment Officer, Chief Financial Officer, the CEOs of Keppel’s platforms and divisions, the Chief Sustainability Officer (CSO) and selected members of senior management.
The 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 centralised functions and representatives from Keppel's platforms and 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 independent consultant, once every five years or more frequently if required.
In the intervening years, a more limited internal review of material ESG factors is conducted each year, with the material ESG factors reviewed by the Sustainability Working Committee and the Management Executive Committee, and then approved by the Board with the recommendation of the BSSC.
Keppel’s materiality assessments take reference from the SGX guidelines on Sustainability Reporting, as well as guidance from the Global Reporting Initiative. In addition, Keppel is studying the new standards issued by the International Sustainability Standards Board and considering how they can be incorporated, where relevant, in Keppel’s sustainability disclosures.
Task Force on Climate-related Financial Disclosures
Keppel supports the Task Force on Climate-Related Financial Disclosures (TCFD), and has been incorporating its recommendations in our sustainability reporting 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 towards the achievement of the United Nations Sustainable Development Goals (SDGs), and have identified 10 SDGs which represent Keppel’s most significant impacts on the sustainable development agenda.
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 inaugural 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 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 and services that 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 have expanded our coverage to include all 15 categories relevant to Keppel.
- 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. The tone for risk management and regulatory compliance is driven from the top and resonates with our employees at every level.
- 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 participant 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.
Keppel is committed to creating value for all its stakeholders. 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. Inputs from stakeholders are taken into account in determining the Company’s strategies and policies, including its sustainability efforts.
- Employees
- Customers
- Governments
- Shareholders and investors
- Suppliers
- Local communities