The Board and management of Keppel Corporation are committed to sustainability, which is at the core of the Company’s strategy.
The Board and management consider sustainability issues in the Company’s business and strategy, determine the material ESG factors and oversee the management and monitoring of the material ESG factors.
Sustainability-related topics, including environmental and climate change issues, as well as social and governance aspects, are regularly discussed by the Board, which meets six times a year, and as warranted by circumstances. Since July 2022, sustainability has been included in the agenda of each Board meeting.
In May 2022, the Board established a Board Sustainability and Safety Committee (BSSC) to provide even greater focus on sustainability matters. The role of the former Board Safety Committee has been subsumed under the BSSC.
The BSSC is chaired by non-independent and non-executive director Mr Teo Siong Seng, and its members include Chairman of Keppel Corporation Mr Danny Teoh, CEO and Executive Director Mr Loh Chin Hua, as well as Independent Director Mr Olivier Blum, who has extensive experience
The BSSC meets at least four times a year. Its roles include monitoring international sustainability-related trends and developments, reviewing the Company’s sustainability strategy, ensuring that the Group 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, overseeing the Company’s health, safety, and environmental (HSE) performance, among others. The BSSC also makes regular visits to the Group’s projects and work sites, including interacting with the Group’s contractors and suppliers, to monitor and better understand the Group’s sustainability and safety performance.
Each quarter, the Chairman of the BSSC provides an update to the Board on key issues deliberated by the BSSC. The BSSC also considers management’s proposals on sustainability-related policies and practices and makes recommendations to the Board where relevant.
While the BSSC maintains broad oversight over sustainability issues, other Board Committees, namely the Audit, Nominating, Remuneration and Board Risk Committees, also address specific aspects of sustainability relevant to their respective committees.
At the management level, the Management Executive Committee (MExCo), which meets every month, oversees Keppel’s strategy and performance, including sustainability issues. MExCo also determines the Group’s key sustainability policies and targets, before they are presented to the BSSC. The committee is chaired by CEO Mr Loh Chin Hua and comprises senior management from across the Group, including the Chief Financial Officer, CEOs of key business units and the Chief Sustainability Officer (CSO).
The CSO, who reports to the CEO as well as the BSSC, coordinates and drives the Group’s sustainability efforts. The CSO chairs the Group Sustainability Working Committee, comprising heads of corporate functions and representatives from across businesses units, which monitors and executes the Group’s sustainability efforts. The CSO also heads the Group Sustainability department, which manages different aspects of the Group’s sustainability efforts, including preparing Keppel’s sustainability report, with inputs from business units and members of the Group Sustainability Working Committee.
To embed sustainability throughout the Company and ensure accountability, sustainability targets have been included in the performance appraisal of senior management across the Group, including both annual remuneration and long-term incentives. Environmental sustainability targets, including carbon emissions reduction, account for 7.5% of the Company’s performance scorecard.