Keppel saved $68m from energy-efficient initiatives
Group also saw 29.4% average reduction in carbon emissions intensity from 2010 baseline
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In June last year, Keppel commenced commercial operations for the Keppel Marina East Desalination Plant. The plant is the first of its kind in Singapore, with an innovative design that situates treatment equipment completely underground and features a lush green rooftop for community recreation.
PHOTO: KEPPEL
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Green initiatives might seem like a burden for companies already grappling with a challenging operating environment, but they have paid off in spades for Keppel Group.
The firm's energy-efficient initiatives saved an estimated 1,040,420 gigajoules of energy, translating to cost savings of around $68 million last year.
Chief executive Loh Chin Hua said in its sustainability report out yesterday: "Covid-19 caused significant human suffering and disruption.
"It also highlighted the interconnectedness of the global ecosystem and our vulnerability to trans-border risks, whether from pandemics, environmental degradation or climate change, and the importance of sustainable development and building resilience."
In May last year, Keppel unveiled its vision to transform the company from a group of diverse parts into an integrated business providing solutions for sustainable urbanisation by 2030.
Part of the move involved the company shifting its focus to greener solutions.
It announced, for instance, that it will exit the offshore rig-building business after completing existing rigs under construction.
It has been pivoting towards renewables and cleaner fossil fuels such as liquefied natural gas.
Keppel Infrastructure also secured a $1.5 billion contract to develop a waste-to-energy facility and a materials recovery plant for Singapore's Tuas Nexus Integrated Waste Management Facility.
It is set to be the first integrated facility here to treat multiple waste streams, contributing significantly to the country's long-term waste management plans in the process, Keppel said.
Mr Loh noted: "Beyond running our business in an environmentally responsible manner, we see sustainability as a business and envisage Keppel playing a significant role in helping businesses and communities around the world become more sustainable through the solutions that we provide."
Another area of focus is data centres, which have come under increased scrutiny for their negative environmental impact.
Keppel Data Centres is exploring floating data centre technologies, together with other solutions like harnessing cold energy and a plant powered by hydrogen to reduce carbon footprint.
Plans also include looking at setting an absolute carbon emissions reduction target aligned with Singapore's national targets, it said.
The group had surpassed its target for last year, with a 29.4 per cent average reduction in carbon emissions intensity from its 2010 baseline as at the end of last year.
Mr Loh said: "With the risks and impact of climate change becoming more evident, we are applying the lens of sustainability to the group's major investment decisions."
Last year, Keppel also started introducing a shadow carbon price when evaluating major investments.
This shadow carbon price aims to help the firm better understand the carbon footprint of its business activities, the possible impact of future increases in carbon taxes, and also avoid potential stranded assets, Mr Loh said.
He added: "Keppel is committed to doing its part to support the international agenda on climate action and also contribute towards Singapore's Green Plan 2030."
