We are committed to climate action, improving resource efficiency and reducing our environmental impact.
Keppel is committed to both running our business sustainably, and making sustainability our business through investing in and creating solutions that contribute to a sustainable future. This involves focusing our portfolio on sustainability-related solutions, building resilience against climate change risks, and seizing climate-related opportunities. We also minimise our impact on the environment by reducing carbon emissions, energy consumption, water consumption and waste generation, avoiding pollution and preserving biodiversity in our operations.
Keppel's climate-related disclosures are guided by the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). Keppel also takes reference from the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), and continues to monitor emerging regulatory requirements and international best practices regarding nature and biodiversity disclosures.
Since 2020, Keppel has implemented a shadow carbon price in the evaluation and stress testing of new investments, to help us factor in the possible impact of rising carbon prices and avoid potential stranded assets, while driving investments towards low-carbon solutions that contribute to sustainable development.We disclose our performance in mitigating our environmental impact in our annual sustainability reports.
Keppel’s carbon reduction strategy is overseen by the Board Sustainability and Safety Committee and driven by the Management Executive Committee, which is chaired by the CEO of Keppel Ltd.
Keppel aims to halve its Scope 1 and 2 carbon emissions by 2030 compared to 2020 levels, and reduce its Scope 1 and 2 emissions by 100% to achieve net zero by 2050. We plan to achieve this through refocusing Keppel’s portfolio on sustainability solutions, pivoting away from more carbon intensive businesses, implementing energy efficiency measures, increasing the use of renewable energy, including through purchasing Renewable Energy Certificates, as well as purchasing carbon credits to offset any residual unavoidable emissions, where necessary. The target is in line with the Paris Agreement’s goal to limit global temperature increase to 1.5°C above pre-industrial levels.
Keppel tracks and reports on all relevant categories of Scope 3 emissions. We are also working with our value chain and portfolio of investments to improve energy efficiency and reduce emissions wherever possible. Keppel’s operating divisions have set Scope 3 reduction targets where possible, in line with their respective sectoral contexts and unique capabilities.
Keppel’s energy efficiency initiatives include the optimisation of operations and processes; technological improvements, including the adoption of more sustainable building designs and materials; and the use of energy-efficient equipment and devices.
We continue to strengthen our water conservation efforts through initiatives like promoting water-saving practices, adopting water-efficient technologies and equipment as well as implementing process improvements.
All effluents are monitored, treated and discharged in accordance with relevant standards and limits in the countries of operation. Any non-compliance is immediately addressed and rectified.
We strive to minimise waste generation, increase opportunities for reusing and recycling, as well as treat and dispose waste responsibly where other options are not practicable. Hazardous waste generated is handled, stored and disposed in a manner that adheres to best practices and meets local regulatory requirements.
