Keppel recognises that good corporate governance is essential to the sustainability of the Company’s businesses, and that non-compliance with laws and regulations may pose financial and reputational risks. We are committed to ensuring strong corporate governance, regulatory compliance and robust risk management, including risks related to sustainability, cybersecurity and data protection. We uphold high standards of ethical business conduct and have zero tolerance for fraud, bribery, and corruption.

We have a Board Diversity Policy, which states our commitment to board diversity in terms of skills, experience, gender, age, race/ethnicity and nationality. 

We maintain clear, consistent and timely communication with Keppel’s shareholders and the investment community. Please refer to Keppel's Annual Reports for more details on our engagement of shareholders.

Keppel’s System of Management Controls

Keppel’s System of Management Controls (KSMC) outlines Keppel’s internal control and risk management processes and procedures. The KSMC comprises the Three-Lines Model to ensure the adequacy and effectiveness of Keppel’s system of internal controls and risk management.

Regulatory compliance framework

We are guided by our core values and Code of Conduct. We will do business the right way and comply with all applicable laws and regulations wherever we operate. We strive to deliver outstanding performance, whilst maintaining the highest ethical standards.

We are clear with our tone for regulatory compliance, which is consistently emphasised from the top and throughout all levels of the Company. We do not tolerate fraud, bribery, corruption or any violations of laws and regulations.

Our Regulatory Compliance Framework focuses on critical pillars covering the areas of culture; policies and procedures; training and communications; key compliance processes; compliance risk assessment, reviews and monitoring; and compliance resources.

Risk-centric culture

Keppel adopts a balanced approach to risk management to optimise returns while taking into consideration business risks and corporate sustainability. Managing risks effectively is an integral part of the way in which we develop and execute our business strategies. It is grounded in the belief that a balanced risk-reward methodology is the optimal approach. This applies to all aspects of Keppel’s business, and in particular, our commitment to environmental, social and governance issues, and our commitment to deliver long-term value to our stakeholders.

Mindsets and attitudes are key to effective risk management. Keppel fosters a risk-centric culture through several aspects: transparency and competency; training and communications; frameworks and values; process and methods; ownership and accountability; and leadership and governance. Directors and employees are provided with regular education in risk management.

Keppel is committed to building a resilient, responsible, and diversified supply chain, including through integrating sustainability criteria in the selection, monitoring and assessment of suppliers. We also actively engage our suppliers to encourage the adoption of sustainable and responsible business practices, minimise negative ESG impacts and manage risks across our supply chains.

We contract Singapore and overseas suppliers for our different business operations. We recognise the importance of responsible supply chain management and sustainable procurement in managing risks, building operational resilience, minimising financial risk, as well as ensuring business continuity.

Key priorities of our supply chain management strategy include evaluating the track record of suppliers, aligning suppliers to the ESG criteria and ethical practices set out in Keppel’s Supplier Code of Conduct, and ensuring product quality and cost optimisation.

We adhere to local content requirements, where applicable, and are committed to strengthening our base of local suppliers in countries where we operate. In doing so, we support economic growth, generate employment opportunities, build capacities of the workforce in these countries, while potentially reducing carbon emissions related to the transportation of goods and services.

We are also tracking Scope 3 emissions generated by our supply chain, and are working with our suppliers and portfolio of investments to improve energy efficiency and reduce emissions where possible.

Identification of significant suppliers

Significant suppliers are suppliers that have significant business relevance to Keppel, or have substantial risks of negative ESG impacts, or a combination of both. Keppel assesses the significance of suppliers based on various factors including cumulative order value and volume, single order value and volume, as well as business criteria such as component criticality and substitutability of products or services. Identifying significant suppliers enables us to better focus our efforts on improving ESG practices and performance in our supply chain.

Screening new suppliers

All suppliers are qualified in accordance with our requisition and purchasing policies, and screened based on business relevance as well as ESG criteria including business conduct, human rights, health and safety, labour practices and environmental management. In assessing sustainability risks, we review potential suppliers’ industry reputation, track record, financial performance, security practices, and certifications, with a preference for suppliers with certifications for ISO 9001 Quality Management System, ISO 14001 Environmental Management System, OHSAS 18001 Occupational Health & Safety assessment series or ISO 45001 Occupational Health and Safety Management System or the equivalent.

As part of the supplier selection procedure, all new suppliers that provide Keppel with products and services valued at $200,000 or more per contract or over cumulative purchase orders in the prior calendar year are expected to sign and abide by the Keppel Supplier Code of Conduct, which is publicly available online.

Supplier assessment and development

The assessment of supplier risks and due diligence measures undertaken by Keppel are ongoing processes which take place throughout the lifecycle of the buyer-supplier relationship. This includes desk assessment, on-site internal audits as well as external audits as part of the ISO 14001 assessment framework. We have engaged a third-party supply chain risk management platform to facilitate the screening of new and existing suppliers and conduct supplier desk assessments.

Keppel is committed to providing a safe and healthy working environment. We believe in building a proactive safety culture and advocate for continuous improvements in health and safety standards, both in our operations and in the broader community.

The Company’s leadership sets the tone and leads by example in strengthening our safety culture. We also engage and empower the workforce to speak up when they encounter any unsafe act or practice. We ensure high safety standards for our products and services to safeguard customer health and safety.

We focus on strengthening our frameworks and management systems as well as promoting a culture of HSE ownership across our operations. We are committed to continually improving our HSE performance by setting and reviewing targets, as well as monitoring and evaluating progress through performance management and audits.

Managing safety

Our approach to HSE management is guided by Keppel’s Zero Fatality Strategy, which comprises five strategic thrusts: building a high-performance safety culture, adopting a proactive approach to safety management, leveraging technology to mitigate safety risks, harmonising global safety practices and competency, and streamlining learning from incidents.

All employees and contractors at the worksites where Keppel has operational control are covered by our HSE management systems. All employees and third-party suppliers and contractors are expected to abide by Keppel's HSE policy, which places the highest priority on the health and safety of people and the protection of assets and the environment.

Hazard identification & risk assessment

Across the Company, we establish and implement procedures to identify, assess and mitigate safety and health hazards in our operations.

Our operational and safety teams conduct periodic workplace inspections and internal audits. Union workers and subcontractor representatives are invited to participate in meetings where the identification of hazards, assessment of risks and the application of control measures are discussed.

We are also leveraging a cloud-based platform to record HSE processes, such as hazards reporting, HSE inspections and audits, as well as permit-to-work applications. The integrated platform provides predictive analyses to identify safety hazards and implement risk mitigation measures proactively.

Incident reporting & investigation

All incidents and near misses have to be reported and investigated so that lessons can be learnt and shared to prevent recurrence.

At worksites, safety time-outs are conducted immediately after an incident occurs to heighten awareness among the involved work groups.

Keppel also has procedures in place to monitor and investigate any occurrences of occupational disease at sites based on the respective region’s regulatory requirements.

HSE training for workers

We empower and train our stakeholders to ensure that all personnel are updated on HSE measures and best practices, including migrant workers who are part of our workforce. Our subcontract workers undergo the same safety training as Keppel employees. All workers must undergo High Impact Risk Activities (HIRA) training which covers high-risk activities specific to each worksite. Training is conducted to equip HSE personnel with the skills to effectively manage safety risks.

Keppel recognises that our people are fundamental to the Company's performance. We seek to build a highly trained workforce led by people-centric leaders, and are committed to building positive employee well-being, upholding fair employment practices, and empowering a diverse and engaged workforce.

Together with our stakeholders, we strive to build a Keppel for all, where employees feel valued, respected and engaged.

Fair employment policies & practices

We adopt fair employment practices and comply with local labour regulations across our global operations, including minimum wage laws, where such laws apply. We believe that hiring from local communities enhances our ability to understand local needs and strengthens our capabilities on the ground. We also develop talents locally to assume management positions.

We endorse Singapore’s Tripartite Guidelines on Fair Employment Practices and are a signatory of the Employers’ Pledge of Fair Employment Practices. Keppel is also a signatory of the Singapore Business Federation’s Sustainable Employment Pledge.

Human rights

We uphold and respect the fundamental principles set out in the United Nations (UN) Universal Declaration of Human Rights and the International Labour Organisation’s Declaration on Fundamental Principles and Rights At Work. Our approach to human rights is guided by the UN Guiding Principles on Business and Human Rights.

Our commitment to human rights is supported by Keppel’s Code of Conduct, which sets the tone in relation to Keppel’s stance against discrimination and harassment on any basis. Keppel also supports the elimination of any exploitative labour practices through its policies, planning and administration of employment practices.

Keppel’s whistle-blower reporting channel, which is available publicly on our website, is widely communicated and made accessible to all stakeholders.

Diversity, Equity & Inclusion

We believe that people should have access to opportunities regardless of age, gender, ethnicity, nationality, religion, marital status, pregnancy status, caregiving responsibilities, mental health conditions or disability. Our stance on diversity and inclusion is articulated in the Keppel-wide Diversity, Equity & Inclusion Policy.

Our hiring policies ensure equal employment opportunities for all.

Training and talent development

We empower employees through learning and development programmes that help them realise their full potential. Our platforms and divisions also organise learning and development initiatives specific to their businesses.

Keppel creates direct and indirect economic value for its stakeholders. Keppel’s business operations generate employment for its staff, opportunities for suppliers, products and services for its customers, and tax revenues for governments.

In addition, Keppel aims to deliver lasting social and environmental benefits to the communities where we operate, through community investments, commercial initiatives and charitable donations.

Keppel commits up to 1% of our recurring income to worthy causes that resonate with the Company’s values. These include caring for the underprivileged, protecting the environment, and supporting education. We disclose the impact of our community investments in our annual Sustainability Report.

Keppel also supports sustainability-related industry/business associations and think tanks which are aligned with our purpose of creating solutions for a sustainable future, as well as those which promote good corporate governance and sustainable business practices.

Keppel Care Foundation

In Singapore, contributions to Institutions of a Public Character (IPCs) are coordinated and disbursed by Keppel Care Foundation, Keppel’s philanthropic arm, which is governed by its own Board of Directors. As at end-2023, the Foundation had disbursed close to $56 million to worthy causes since its launch in 2012.

Keppel Volunteers

Beyond philanthropic giving, Keppel encourages employees to be responsible citizens. To encourage volunteerism, Keppel grants employees up to two days of volunteer leave each year. Since its inception in 2000, Keppel Volunteers has harnessed the Company's diverse resources, strengths and talents to spearhead activities that make meaningful contributions to the community. In 2023, Keppel Volunteers contributed 11,450 hours of community service.