Sembcorp highlights sustainability with launch of financing framework
The framework is the first of its kind in Singapore.
Sembcorp Industries announced today the Sembcorp Sustainable Financing Framework.
The framework focuses on Sembcorp’s strategic approach, key performance indicators (KPI), and sustainability performance targets (SPT). Sembcorp can also issue sustainability-linked bonds, loans, or instruments based on the framework.
KPIs included in the framework include greenhouse gas (GHG) emissions intensity, GHG absolute emissions, and gross installed renewable energy capacity.
Meanwhile, the SPTs that will serve as metrics for the transformation towards sustainable solutions and contribute to the UN Sustainable Development Goals revolve around SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). In particular, the reduction of GHG emissions to 0.4 tonnes of carbon dioxide equivalent per megawatt hour (MWh) by 2025, absolute GHG emissions reduction to 2.7m by 2030 and the growth of gross installed renewable energy capacity to 10 gigawatts by 2025 are the main focuses of the framework.
The group, as of 2020, has achieved an intensity of 0.54 tCO2e/MWh, absolute GHG emissions of 26.5m tCO2e and 2.6GW of gross installed renewable energy capacity.
This has also been reviewed by DNV Business Assurance Singapore, who gave a second opinion on how closely the framework follows the “Sustainability-Linked Bond Principles 2020” published by the International Capital Market Association and the "Sustainability-Linked Loan Principles 2021.”