Keppel still committed to its sustainability course despite the pullback in some markets

SINGAPORE - Keppel cut its Scope 1 and 2 carbon emissions by over 80 per cent in 2024 compared with 2020, and remains committed to its green push despite the backsliding in sustainability in some markets, it said.

“We see sustainability, especially environmental sustainability, not just through the lens of compliance or disclosure, but as an integral part of how we create value,” said chief executive Loh Chin Hua in the company’s sustainability report released on May 28.

“Despite the backsliding seen in some markets, Keppel remains committed to sustainability,” he added. “We are committed to running our business responsibly, and investing in and creating solutions that contribute to a sustainable future.”

These solutions include the development of Keppel Sakra Cogen Plant, Singapore’s first hydrogen-compatible power plant, which is set to start operations in the first half of 2026, and the greening of data centres. 

Earlier in 2025, the US withdrew from the Paris Agreement, after President Donald Trump took office. Major banks and asset managers such as JPMorgan, Goldman Sachs and Morgan Stanley have also pulled out of various net-zero initiatives, such as the Net-Zero Banking Alliance.

Keppel aims to achieve net-zero Scope 1 and 2 emissions by 2050, and have renewable energy supply all its electricity needs by 2030.

Scope 1 emissions refers to direct emissions incurred by a company, say, from its facilities or transport vehicles, while Scope 2 emissions refers to indirect emissions, such as the electricity or heating it buys from power-generation companies.

However, Keppel’s Scope 3 emissions in 2024 amounted to 6.03 million tCO2e – or tonnes of carbon dioxide equivalent – slightly higher than the 6.02 million tCO2e in 2023.

Scope 3 emissions refers to indirect greenhouse gas emissions incurred by a company as part of its value chain, such as business travel by employees, the use of its sold products, or the emissions from its purchased goods and services. 

Keppel’s reductions in Scope 1 and 2 emissions have come on the back of its continued transition to an asset-light model, as well as the increased use of renewable energy, Mr Loh said.

Renewable energy accounted for 40.7 per cent of Keppel’s electricity use in 2024, up from 23.1 per cent in the previous year. Keppel also aims to grow its renewables portfolio to 7GW by 2030. It was 3.8GW as at the end of 2024.

As reference, Singapore is on track to meeting its target of at least 2 gigawatts-peak (GWp) of solar deployment by 2030, which is equivalent to the annual electricity needs of around 350,000 households, according to the Energy Market Authority.

The report said: “International efforts to decarbonise and combat climate change (are) driving demand for the sustainability solutions that Keppel provides.”

Keppel provides solutions such as waste and water management services and a model that offers cooling, smart energy management and electric vehicle charging on a cost-effective subscription basis.

It also offers sustainable urban renewal and consultancy services for large-scale developments in Asia, which help buildings to drive energy and water efficiency through technology.

Some of the developments where Keppel provides services include the Suzhou Industrial Park and the Sino-Singapore Cooperation Zone in Shandong province in China.

Keppel is also creating solutions for more sustainable data centre operations through concepts such as floating data centres cooled by seawater.

Its floating data centre project, which is proposed to be in Loyang in north-east Singapore, is currently pending government approvals and is designed to deliver improved power and water usage effectiveness through harnessing seawater cooling technologies, it said.

The report also marks Keppel’s first disclosures related to its impact on nature and biodiversity, taking reference from the recommendations of the Taskforce on Nature-related Financial Disclosures. The task force, a global initiative, provided a framework in 2023 to help companies identify and disclose their nature-related risks and opportunities.

Keppel assessed that most of the 28 assets under its operational control have low or medium biodiversity exposure, based on their locations.

For example, three of its district cooling plants are within 10km of the Central Forest and Kranji-Mandai key biodiversity areas in Singapore. Nonetheless, Keppel has assessed that the operations of these plants do not have adverse impacts on these key biodiversity areas, it said.

The assets deemed to face water risks are mainly located in cities in China and Indonesia, it added.

Besides sustainability, Keppel also adopted a board gender-diversity policy in 2024, aiming to have at least 30 per cent female board representation by 2030. As at Feb 28, two women are on its nine-member board.

In 2024, women occupied about 36 per cent of senior management and managerial positions, Keppel said, adding that remuneration is comparable between men and women.

At the board level, Mr Teo Siong Seng, the first chairman of the board sustainability and safety committee, has stepped down.

Independent director Olivier Blum has taken over the chairman position.

Mr Loh said: “With his wealth of experience in driving sustainability and sustainable solutions at Schneider Electric, I am confident that he will further elevate Keppel’s focus on sustainability.”

Correction note: An earlier version of the story said that Mr Blum will take over the chairman position. This is incorrect. He has already taken over the position. We are sorry for the error.