Sembcorp Industries has launched the Sembcorp Sustainable Financing Framework, which lays out Sembcorp’s strategic approach, key performance indicators (KPIs) and sustainability performance targets (SPTs) for its sustainability-linked transactions.

The three KPIs set out by the group are greenhouse gas (GHG) emissions intensity (Scope 1 and 2), GHG absolute emissions (Scope 1 and 2) and gross installed renewable energy capacity.

In line with the KPIs, Sembcorp has defined the sustainability performance targets that will measure the progress of its transformation towards a low-carbon and sustainable solutions portfolio. The targets will also contribute to the UN Sustainable Development Goals (SDGs), in particular affordable and clean energy as well as climate action.

The framework is Singapore’s first such framework for sustainability-linked transactions in the energy sector.

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Following the launch of the framework, Sembcorp may now issue sustainability-linked bonds, sustainability-linked loans or other sustainability-linked instruments following the guidelines under the framework.

“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,” says Eugene Cheng, Sembcorp’s chief financial officer.

Shares in Sembcorp closed 2 cents higher or 1.04% up at $1.95 on Aug 30.

Photo: Sembcorp