Environmental Sustainability

Sembcorp Marine is committed to mitigating its business impact on the environment and the community. The Group aims to further enhance its service and product offering with optimal use of resources, and with minimal impact to the environment and the community.

At Sembcorp Marine, we are actively managing the risks and opportunities brought about by climate change, ocean ecosystem degradation and resource availability. The Group recognises the importance of climate-related risks arising from factors such as policy and regulation, technology, stakeholders’ expectations and extreme weather. Climate related risks and opportunities are integrated into Sembcorp Marine’s business strategy and environmental sustainability framework. 

We reduce emissions by operating more efficiently and increasing the proportion of renewable energy in our total energy use. With most of our largest yards ISO 14001-certified, our environmental management goes beyond compliance with applicable laws, regulations and standards.

By focusing on three key areas in our environmental programme, namely Climate, Earth and Ocean, we are constantly exploring new ways to improve our practices and minimise the environmental impact of our operations.


Sembcorp Marine actively advances decarbonisation efforts in the industry. Our President & CEO Mr Wong Weng Sun is the  Co-chair of the International Advisory Panel on Maritime Decarbonisation (IAP), which explores decarbonisation strategies, policies and actions to be taken by the local maritime sector, in line with the International Maritime Organization’s (IMO) 2050 target to reduce total annual greenhouse gas (GHG) emissions from international shipping by at least 50 per cent.

The Group supports the Task Force on Climate-related Financial Disclosures (TCFD) and is working towards integrating its recommendations in our sustainability reporting. In 2020, we started to align our disclosures with TCFD recommendations, specifically our approach to address the four core elements – governance, strategy, risk management and metrics and targets. We plan to provide further disclosures on this in the future. We are also enhancing our environmental policy to guide our management approach and strategy on issues such as climate change mitigation, adaptation and resilience, and ensure that it is implemented across our various operational sites.

Together with our sustainability partner Carbon Care Asia, we have jointly developed a methodology to quantify our indirect carbon emission savings. This methodology provides a quantifiable assessment of the carbon dioxide equivalent (CO2e) savings attributable to our low-carbon energy solutions, including LNG-battery hybrid tug boats and battery-powered vessels.




Sembcorp Marine’s Board of Directors and Senior Management Committee (SMC) have oversight of climate-related risks and opportunities through theSustainability Council which oversees our corporate sustainability strategies, policies, performance and mitigation actions.

The Sustainability Secretariat reports to the Sustainability Council and coordinates with the Economic, Environmental, Social and Governance (EESG) working groups to implement strategies, identify emerging issues and engage our stakeholders on sustainability issues, including climate-related matters.

To guide the Group’s strategic direction, the Board and SMC meet annually to review key business plans while taking into account climate-related risks and opportunities.

Climate-related risks and opportunities are integrated into Sembcorp Marine’s business strategy through the annual strategicplanning process and our environmental sustainability framework.

We have identified policy and regulation changes, technological shifts, evolving stakeholder expectations, and growing thread of extreme weather events as key climate-related risks.

In keeping with the global and industry shift towards decarbonisation, we proactively leverage our engineering capabilities to diversify into gas value chain and renewables solutions, including offshore wind farms and zero-emission vessels. We also pursue opportunities in energy-efficient and lowemission engineering solutions to help ship owners comply with more stringent fuel and emission regulations through retrofits and upgrades.

Moving forward, we plan to conduct scenario analysis to evaluate the resilience of our business strategy against climaterelated risks and opportunities for different time horizons.



Our Environmental Sustainability workgroup identifies, manages, monitors and controls environmental issues arising from our operations through risk assessment and environmental impact assessment as part of our ISO 14001 Environmental Management System.

The Group also actively pursues opportunities to leverage its capabilities to provide sustainable solutions as well as implement energy- and resource-efficient solutions in its operations to reduce climate-related risks and mitigate our environmental impact.

Sembcorp Marine uses a robust set of metrics and targets to manage and monitor our exposure to climate-related risks and opportunities.

To manage the risk of higher energy costs due to higher carbon taxes in the future, we measure and monitor the share of renewable energy in our energy mix and Scope 2 GHG emissions from our consumption of purchased energy.

We have also set up metrics and targets to monitor our progress in pursuing climate-related opportunities. We have been actively investing in R&D and pursuing business opportunities for our gas and renewable energy solutions and target to generate at least 30% of our total revenue from these by 2025.



Sembcorp Marine is committed to reducing the impact of its business on the environment. The Group’s Environmental Policy guides the monitoring, management and reduction of operational impact on the environment. It addresses group-wide leadership and accountability, communication, legislative and regulatory documentation, risk and change management as well as performance review of environment-related topics.

The yards adopt individualised environmental management systems adapted to the respective locations and managed by committees consisting of HSE personnel, business excellence champions and management representatives from the Group’s operations. These EMS are compliant with strict national regulations such as the National Environment Agency’s Environment Protection and Management Act and Hazardous Waste (Control of Export, Import and Transit) Act, as well as the Maritime and Port Authority of Singapore’s Prevention of Pollution of the Sea Act. All of its yards undergo regular external and internal audits as part of ISO 14001 Environment Management, ISO 9001 Quality Management or ISO 45001 Occupational Health and Safety Management certifications.

The Group identifies, manages, monitors and controls environmental issues arising from our operation through risk assessment and environmental impact assessment as part of the ISO 14001 Environmental Management System.

All employees, contractors, customers and shipyard occupiers are expected to comply with the associated policies and practices.

Our Environmental Framework

The key environmental areas of concerns include energy use, materials usage and waste management, water resource management, and air quality management. In these areas, the yards aim to:

  • Manage consumption of direct and indirect sources of energy used in the operations
  • Use raw materials such as steel efficiently and reduce different types of waste
  • Encourage recycling for materials including copper slag, steel scrap and paper
  • Optimise water consumption through the use of reclaimed water and other water-saving devices
  • Reduce emissions of greenhouse gases

The Group’s environmental performance can be found in the Environmental chapter of our latest sustainability report here.

Discover more about how we:



Sembcorp Marine proactively manages its consumption of energy emission of greenhouse gas from operations.

Trained energy managers track and monitor the consumption of electricity and fuels. They also implement policies to increase energy efficiency and reduce wastage in the yards.

The Group actively sources for methods to accelerate adoption of environmentally-friendlier sources of energy and reduce reliance on carbon-based fuels. More information can be found below in the Green Future section of the page.


Sembcorp Marine recognises water as a valuable resource and is committed to managing it responsibly.

Water Efficiency Managers at the yards monitor and audit water withdrawal, consumption, discharge and efficiency programmes. Water consumption is mapped across the yards and reclaimed water is used as much as possible in the yards to reduce the stress on potable water from national resources.


Sembcorp Marine practices a policy of not procuring materials, parts, equipment or products containing harmful substances, including asbestos and ozone-depleting compounds such as chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs) and halon. The Group avoids the entry of conflict minerals into its supply chain by not procuring tin, tantalum, tungsten, gold and other raw materials originating from conflict-affected or high-risk areas.

Marine and offshore superstructures require substantial amounts of raw materials and semi-manufactured parts to construct and repair. The Group is committed to managing this through a range of platforms and initiatives. Automation and increased precision as a result of new technology have resulted in more accurate and efficient material management in the Group’s facilities. Continuous efforts are made to ensure a culture of waste minimisation.

To encourage a culture of sustainability and responsible use of resources, Sembcorp Marine has rolled out an E4Rs (Eliminate, Reduce, Reuse, Recycle and Recover) programme to manage waste and by-products. Various platforms and initiatives ensure all waste is managed responsibly. The Group requires all disposals to be required to be carried out by nationally-certified waste processing companies.



The Group’s new-generation Tuas Boulevard Yard is designed with environmentally friendly and innovative features, in line with the Group’s commitment to environmental sustainability. To maximise energy efficiency, facilities in this yard are arranged to reduce the need for diesel and are fitted with environmentally-friendly lighting, utilities and power systems. A land-based energy management system enables the optimisation of energy management and conservation.

To integrate renewable energy resources into its energy mix and further reduce greenhouse gas emission, Sembcorp Marine installed an extensive solar harvesting farm at the new yard. Jointly developed with one of Singapore’s leading energy providers, the 4.5 megawatt-peak rooftop solar panels will enable the yard to replace part of its electricity consumption with renewable solar power. A digitalised system equipped with storage functions and energy sensors will further enhance the capacity management of the yard’s electricity network. An estimated reduction of 2,500 tonnes of carbon emission at peak load is expected per year. Read more here.

As part of our move towards greener operations, we have also embarked on a tug fleet renewal programme to replace our diesel-powered tugs with liquefied natural gas (LNG)-hybrid powered units.




Besides encouraging recycling and resource conservation among our employees, Sembcorp Marine continues to be actively involved in various green programmes targeted at different stakeholders.

To foster a green mindset among the young generation, Sembcorp Marine organises the annual Green Wave Environmental Care Competition for Schools. Sembcorp Marine has also supported the National Environment Agency-Mediacorp Semakau Run organised in support of several beneficiaries including the Singapore Environment Council and the Nature Society (Singapore).




Learn more about our environmental performance for the year here

We welcome all feedback and comments on our sustainability issues and reporting at sustainability@sembmarine.com.