Sembcorp launches sustainable financing framework

Sembcorp Industries (Sembcorp) has launched a sustainable financing framework for sustainability-linked transactions for the energy sector.

The framework lays out Sembcorp's strategic approach, key performance indicators (KPIs) and sustainability performance targets (SPTs) for its sustainability-linked transactions. It can now issue sustainability-linked bonds, sustainability-linked loans or any other sustainability-linked instruments, following the guidelines in the framework.

"With this framework, Sembcorp further demonstrates its commitment to transforming its portfolio from brown to green and to achieving the sustainability goals it announced in May 2021," it said in a press release on Monday.

The three KPIs identified by Sembcorp in the framework are greenhouse gas (GHG) emissions intensity, GHG absolute emissions and gross installed renewable energy capacity.

Sembcorp has also defined the SPTs that will measure the progress of its transformation towards a low-carbon and sustainable solutions portfolio, and contribute to the UN Sustainable Development Goals.

The SPTs laid out in the framework are: GHG emissions intensity reduction to 0.4 tonnes of carbon dioxide equivalent per MW hour (tCO2e/MWh) by 2025, absolute GHG emissions reduction to 2.7 million tCO2e by 2030 and the growth of its gross installed renewable energy capacity to 10 gigawatts (GW) by 2025.

In 2020, the group's GHG emissions intensity was 0.54 tCO2e/MWh, absolute GHG emissions was 26.5 million tCO2e and its gross installed renewable energy capacity was 2.6GW.

Eugene Cheng, group chief financial officer of Sembcorp, said: "Sustainability is at the core of our business model, including our financing strategy. This sustainable financing framework provides transparency to our stakeholders and demonstrates our commitment to achieving our transformation and sustainability targets."

The counter closed at S$1.95 on Monday, up two cents or 1.04 per cent.