Platform to offer one-stop global solution to help customers meet sustainability targets
Leading energy companies Sembcorp Industries (Sembcorp) and SP Group (SP) are collaborating to develop an Environmental Sustainability Platform, a one-stop global solution to help corporates and consumers achieve their sustainability goals. The launch of the platform is planned for the first quarter of 2021.
The platform aims to include a marketplace that trades renewable energy certificates (RECs) and carbon credits as well as provide carbon consulting services. RECs are a recognised way of achieving green targets and a credible means for buyers to report their consumed energy comes from renewable energy sources. Carbon credits are tradable certificates that allow buyers to offset their greenhouse gas emissions (GHG) by supporting projects aimed at reducing GHG emissions. Carbon consulting services include analysis, advisory and strategy development to assist corporates in achieving their carbon emission reduction targets.
The momentum for climate action is accelerating. In 2015, Singapore pledged to reduce the nation’s emission intensity by 36 per cent from 2005 levels by 2030, and to stabilise emissions with the aim of peaking around 20301. The national target is to halve emissions from its peak to 33 million tonnes of CO2 equivalent by 2050, with a view to achieving net zero emissions as soon as viable in the second half of the century.
Increasingly, companies are incorporating environmental, social and corporate governance (ESG) factors into their business strategies and practices, which has led to growing demand for environmental solutions to offset GHG emissions. The Environmental Sustainability Platform will tap on the expertise of both parties to provide consultancy services that encompass physical and digital solutions across energy, water and waste management – enabling corporates to achieve their GHG reduction targets.
More companies have joined the RE100, a global initiative that brings together the world’s leading businesses committed to using only renewable electricity. As of September this year, the number of companies who have set Science Based Targets2 to pursue efforts to limit global warming to 1.5oC has increased by about 45 per cent from the same period in 2019. The Sembcorp-SP collaboration will cater to demand among corporates and consumers to reduce their carbon intensity and improve their sustainability credentials.
Mr Stanley Huang, SP’s Group Chief Executive Officer said: “This platform complements SP Group’s full suite of sustainable energy solutions that enable individuals and corporates to achieve a low-carbon, smart energy future. We contribute through deep experience and a strong track record of serving our strong base of 1.6 million industrial, commercial and residential customers in Singapore and the region, as well as operating the world’s first blockchain-powered RECs platform.”
Mr Wong Kim Yin, Group President and Chief Executive Officer, Sembcorp Industries, said: “Our partnership with SP is timely as more customers pivot towards low-carbon energy goals. We are well positioned to add value through our strong global energy expertise, digital innovation and renewables portfolio. This offering, together with the 2,600MW renewable energy assets we have developed across key markets, enables Sembcorp and our customers to contribute actively towards a sustainable future.”
SP Group, through its existing REC platform, has been providing corporates with a one-stop automated process of buying and selling of RECs by the I-REC Standard3. Customers enjoy the convenience, ease and transparency for the issuance, transaction and redemption of RECs. In addition, SP’s My Green CreditsTM provides individuals and households in Singapore an affordable and convenient way to purchase RECs via the SP Utilities App and match their electricity consumption with an equivalent amount of green energy produced to support renewable energy generation.
The Sembcorp REC platform offers customers high liquidity and flexibility with a stable source of RE100-recognised RECs. As an aggregator, Sembcorp combines qualified RECs from sellers for sale to customers seeking high quality sources. With its strong supply base of RECs and access to other renewable energy generators in Singapore and the region, Sembcorp will add to the list of third-party assets offered on the combined platform.
1 Singapore’s Climate Action Plan: Take Action Today, For a Carbon-Efficient Singapore, 2016, National Climate Change Secretariat, Prime Minister’s Office, Singapore
2 The Science Based Targets initiative (SBTi) calls on organisations to set and commit to greenhouse gas emissions reduction targets that “limit global warming to well-below 2oC above pre-industrial levels and pursue efforts to limit warming to 1.5oC”.
3 I-REC Standard ensures a stringent process for the trading of RECs by mitigating double claiming, double counting and double certificate issuance. This provides the assurance that each REC transaction is with integrity and secure.
About Sembcorp Industries Pte Ltd
Sembcorp Industries (Sembcorp) is a leading energy and urban development group, operating across multiple markets worldwide.
As an integrated energy player, Sembcorp is uniquely positioned to support the global energy transition. Leveraging technology and digital innovation, Sembcorp provides solutions across the energy and utilities value chain. Sembcorp has a balanced thermal and renewable energy portfolio of over 12,600MW, with over 2,800MW of renewables, battery storage and energy-from-waste capacity. Sembcorp’s urban arm is a recognised leading Asian developer with a strong track record in transforming raw land into sustainable urban developments.
Sembcorp Industries has total assets of over S$23 billion and over 7,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index and sustainability indices including the FTSE4Good Index, the Dow Jones Sustainability Asia Pacific Index and the iEdge SG ESG indices. For more information, please visit www.sembcorp.com.
About SP Group
SP Group is a leading utilities group in the Asia Pacific, enabling a low-carbon, smart energy future for its customers. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and sustainable energy solutions in Singapore and China.
As Singapore’s national grid operator, about 1.6 million industrial, commercial and residential customers benefit from its world-class transmission, distribution and market support services. These networks are amongst the most reliable and cost-effective world-wide.
Beyond traditional utilities services, SP Group provides a suite of sustainable energy solutions such as cooling and heating systems for business districts and residential townships, electric vehicle fast charging and green digital energy management tools for customers in Singapore and the region.
For more information, please visit spgroup.com.sg or for follow us on Facebook at fb.com/SPGroupSG, on LinkedIn at spgrp.sg/linkedin and on Twitter @SPGroupSG.