Sembcorp to turn portfolio 'from brown to green' in new strategic plan

SEMBCORP Industries aims to grow profit contribution from its sustainable solutions portfolio from a current 40 per cent to 70 per cent by 2025, as part of the group's new strategic plan to "transform its portfolio from brown to green".

Growth of the portfolio will be driven by the group's renewables and integrated urban solutions business, said Sembcorp in a filing on Thursday morning.

The group said it targets to achieve a compounded annual growth rate (CAGR) of 30 per cent for its renewable energy portfolio by 2025, and a CAGR of 10 per cent for its integrated urban solutions portfolio.

Its commitment to halve the group's greenhouse gas (GHG) emissions by 2030 and deliver net-zero emissions by 2050 will also be central to its strategy, said Sembcorp.

Other targets for 2025 include the quadrupling of Sembcorp's gross installed renewable energy capacity to 10 gigawatts (GW) from 2.6 GW in 2020; to triple its urban business' land sales to 500 hectares (ha) from 172 ha in 2020; and reduce GHG intensity to 0.4 tonne of carbon dioxide equivalent per MW hour (tCO2e/MWh) from 0.54 tCO2e/MWh in 2020.

Aside from committing to not invest in new coal-fired energy assets, the company aims to halve GHG emissions by 2030 from a 2010 baseline of 5.4 million tCO2e - and deliver net-zero emissions by 2050.

"The transformation plan we unveiled today is driven by a clear purpose to play our part in building a sustainable future. With our proven track record across Asia and capabilities across various segments of the renewables and urban solutions sectors, Sembcorp is well-positioned to be a leading pan-Asian provider of sustainable solutions," commented Sembcorp Industries's group president and chief executive, Wong Kim Yin.

Sembcorp Industries shares closed at S$2.15 or 0.94 per cent higher on Thursday, after this announcement was made.