First n Asia's real estate sector to set a near-term 100% reduction science-based target for Scope 1 and 2 emissions in line with the 1.5°C trajectory.

Keppel Land has committed to reducing its absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 100% by 2030 from a 2020 base year. It has also committed to reducing Scope 3 GHG emissions from purchased goods and services by 20% per square metre by 2030 from a 2020 base year.

Underscoring its commitment, Keppel Land has had its GHG emissions reduction targets approved by the Science Based Targets initiative (SBTi^[1]). The Scope 1 and 2 emission targets are consistent with the reductions required to keep global warming to 1.5°C, the most ambitious goal of the Paris Agreement and reaffirmed at the recent UN Climate Change Conference in Glasgow (COP26). It is the first in Asia’s real estate sector to set a near-term 100% reduction science-based target for Scope 1 and 2 emissions in line with the 1.5°C trajectory.

Mr Louis Lim, CEO of Keppel Land, said, “In line with Keppel’s Vision 2030 to place sustainability at the core of its strategy, Keppel Land is doing its part to combat climate change through improving resource efficiency and reducing any negative impact on the environment.

“We have set ambitious carbon reduction targets that build on our efforts to advance sustainable development. Our new targets will enable us to make a greater contribution to the environment and the communities where we operate, as well as support us in our continuous efforts to drive environmental, social and governance (ESG) improvements, as we deliver Keppel Land’s vision to be a leader in redefining urban spaces for a sustainable future.”

To meet its emissions reduction goals, the company will undertake various measures, including phasing out the use of diesel equipment, achieving high Green Mark standards, or their equivalent, for all its new commercial developments; improving the energy efficiency of its portfolio of existing buildings through energy optimisation and digitalisation strategies; maximising on-site renewable energy; purchasing renewable energy certificates, and increasing the use of green-labelled and low-emission materials and products.

Commitment to sustainability

To support its sustainability drive, Keppel Land has implemented a variety of initiatives which include:

• Adopting six of the UN Sustainable Development Goals that are most aligned with its business and material issues. Keppel Land will continue to contribute to advancing sustainable development through aligning its activities with these selected goals.
  
  

• Supporting the Task Force on Climate-related Financial Disclosures (TCFD^[2]) and working towards incorporating TCFD’s recommendations in its reporting framework. Keppel Land has voluntarily disclosed its approach in the four key areas of governance, strategy, risk management, as well as metrics and targets, as recommended by the TCFD.
  
  

• Implementing an evolutionary shadow carbon pricing policy, as part of the Keppel Group, in the evaluation of major new investment decisions. This helps to mitigate climate-related risks in the mid to long term, support low-carbon investments, prepare for tougher climate legislation and higher carbon prices, and avoid stranded assets. In 2021, Keppel Land also conducted an assessment of the vulnerability of its key assets to physical climate-related risks in 2021.
  
  

• Embedding sustainability throughout the company, as well as at every stage of a development’s life cycle. Sustainability key performance indicators linked to ESG matters are also weaved into the performance appraisal of senior management.
  
  

• Strengthening its green funding sources. Earlier this year, Keppel Land secured its first sustainability-linked loan referencing the Singapore Overnight Rate Average from DBS Bank. Prior to that, Keppel Land had, in June 2019 and December 2020, secured green loans for its overseas developments, Seasons City (Phase 1) in Tianjin, China, and Junction City Tower in Yangon, Myanmar, respectively.

• Harnessing technology and adopting digital strategies, such as the use of smart building control systems to improve building energy efficiency and reduce carbon emissions. For example, the Keppel Towers redevelopment, which garnered the BCA Green Mark Platinum Super Low Energy Award earlier this year, boasts myriad innovative and green features that help monitor and detect anomalies in energy use. Keppel Bay Tower, which was certified as Singapore’s first BCA Green Mark Platinum Zero Energy commercial building in December 2020, incorporates various energy-efficient technologies that have lowered its energy use index to less than 115 kWh/m² per year, which is almost 50% more energy efficient compared to typical office buildings in Singapore.

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About Keppel Land

Keppel Land is a wholly-owned subsidiary of Keppel Corporation, a Singapore flagship multinational company, which provides solutions for sustainable urbanisation, focusing on energy & environment, urban development, connectivity and asset management.

Keppel Land delivers innovative and multi-faceted urban space solutions that enrich people and communities. Its sterling portfolio includes award-winning residential developments, investment-grade commercial properties and integrated townships. It is geographically diversified in Asia, with China, Singapore and Vietnam as its key markets, while it continues to scale up in other markets such as India and Indonesia.

^[1] _{The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature. The SBTi defines and promotes best practice in science-based target setting and independently assesses companies’ targets.}

^[2] _{Established by the G20 Financial Stability Board, TCFD develops recommendations for more effective climate-related disclosures that could promote more informed investment, credit, and insurance underwriting decisions and, in turn, enable stakeholders to understand better the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks.}