Our Targets

• Enhance board diversity in terms of skills, experience, gender, age, race/ethnicity and nationality.
• Enhance sustainability governance.
• Implement technology and data analytics to support governance, risk and compliance processes.
• Continue sharpening our risk assessments and mitigation for climate-related physical risks, and keep abreast with policy and regulatory requirements arising from climate-related transition risks.

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.

Our Targets

• Screen 100% of new suppliers in accordance with ESG criteria.
• To have 100% of qualified suppliers endorse the Keppel Supplier Code of Conduct.
• To have 100% of technology suppliers governed by the Keppel Technology Vendor Risk Management Policy

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.