Temasek-backed STT GDC sets higher targets for sustainability-linked loans
It will now have to meet one or more of the key performance indicators and their sustainability performance targets when issuing bonds and loans
ST TELEMEDIA Global Data Centres (STT GDC) on Thursday (Sep 5) released a set of more stringent criteria for its sustainability performance targets, which the company must meet when issuing financial instruments.
This comes as the Temasek-backed data-centre provider launched a new version of its Sustainability-Linked Financing Framework.
Introduced in 2022, the framework provides guidelines for STT GDC to manage sustainability-linked financing transactions.
It contains three key performance indicators – increasing the percentage of renewable energy in total electricity consumption, reducing carbon intensity, and increasing the proportion of green data centres.
STT GDC will need to meet one or more of the key performance indicators and their sustainability performance targets when issuing bonds and loans.
Under the new framework, it will need to increase the percentage of renewable energy consumption to 85 per cent by 2028, from 44 per cent recorded in 2021.
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Last year, the company’s percentage of renewable energy in total electricity consumption stood at 62.5 per cent.
To meet the new, higher target, STT GDC said it plans to use a range of renewable technologies and sourcing methods.
“We will take expert advice on the best available solutions in each region to fulfil our business needs and environmental, social and governance goals,” it added.
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For the second indicator, the data-centre provider needs to reduce its carbon intensity by 70 per cent to 179 tonnes of carbon dioxide equivalent per million Singapore dollars in revenue, from 597 tonnes in 2021.
In 2023, STT GDC’s carbon intensity amounted to 325 tonnes of carbon dioxide equivalent per million Singapore dollars in revenue.
Scope 2 emissions, which come from the purchase of electricity, steam, heat or cooling, make up the bulk of its greenhouse-gas emissions.
Hence, the data-centre provider said it aims to meet the target by improving energy efficiency, reducing its use of diesel fuel, as well as offsetting the emissions by investing in projects that reduce or remove carbon dioxide.
Lastly, STT GDC needs to increase the proportion of data centres that are classified as green assets to 65 per cent by 2028. As at 2023, some 48.6 per cent of its data centres were labelled green.
A data centre is considered green when it is certified with a GoldPlus or Platinum BCA Green Mark or SS564 Sustainable Data Centres, among other credentials.
STT GDC said it will look into applying for green building certifications for new data centres being built, as well as for the existing ones.
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