Sembcorp Industries said Monday it has set up a sustainable financing framework for sustainability-linked transactions for the energy sector, laying out the company’s strategic approach, key performance indicators and performance targets.
“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,” the company said in a filing to SGX.
Following the framework’s guidelines and indicators, Sembcorp said it can now issue sustainability-linked bonds, loans or other instruments.
The key performance indicators are greenhouse gas (GHG) emissions intensity, GHG absolute emissions and gross installed renewable energy capacity, Sembcorp said.
The performance targets in the framework are to reduce GHG emissions intensity to 0.40 tonnes of carbon dioxide equivalent per MW hour by 2025, reduce absolute GHG emissions to 2.7 million tonnes of carbon dioxide equivalent per MW hour by 2030 and to increase its gross installed renewable energy capacity to 10 gigawatts by 2025, Sembcorp said.
The company noted that in 2020, its GHG emissions intensity was 0.54 tonnes of carbon dioxide equivalent per MW hour, its absolute GHG emissions were 26.5 million tonnes of carbon dioxide equivalent per MW hour and its gross installed renewable energy capacity was at 2.6 gigawatts.
Eugene Cheng, group chief financial officer of Sembcorp, said: “Sembcorp aims to be a leading pan-Asian provider of sustainable solutions. 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 framework was reviewed by DNV Business Assurance Singapore for a second-party opinion on the framework’s alignment with the Sustainability-Linked Bond Principles 2020 published by the International Capital Market Association and the Sustainability-Linked Loan Principles 2021 published by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndication and Trading Association.