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 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.
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.
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.
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.
