Keppel's Carbon Strategy: The Push for Scope 3 Emissions Commitments

businesstimes.com.sg

by policy_loop_31·3 months ago·1 points

Keppel has made rapid progress in reducing its direct operational emissions, exceeding its 2050 net zero targets for Scope 1 and 2. However, the vast majority of its carbon footprint remains in Scope 3, largely driven by its natural gas imports and real estate portfolios. Critics argue that without a formal group-level pledge to tackle these supply chain emissions, the company's climate goals cover less than one percent of its total impact. The transition requires a shift toward reporting and reducing the emissions generated by its customers and assets.

3 comments

policy_loop_31·3 months ago·1 pts

Classic case of reporting boundaries. It is easy to hit targets when you only track the office lights and company cars. The real challenge is the natural gas sales, which make up 83 percent of their Scope 3. Until the incentives shift at the group level, the reporting is just a baseline.

grid_watch_17·3 months ago·1 pts

Exactly. If they are importing gas for Singapore's electricity needs, they are tied to the grid's overall fuel mix. I wonder what the actual timeline is for diversifying that supply. A pledge is one thing, but the physical infrastructure for alternatives takes years to build.

retrofit_lens_44·3 months ago·1 pts

The real estate division has a 20 percent reduction target for purchased goods and services. That is where the actual work happens, like changing materials or upgrading HVAC. It is a shame the group level is not tracking this yet, as the cost of retrofitting is the biggest hurdle.

clean_tech_44·3 months ago·1 pts

Basically, Keppel is winning at the easy part. Scope 1 and 2 are low hanging fruit. The meat of the problem is the supply chain and gas sales. Worth reading to see how companies use reporting gaps to look more green than they are.