The increasing adoption of sustainable finance reflects Sembcorp Marine's continuous commitment towards operating a responsible, resilient and sustainable business.
The integration of sustainability in Sembcorp Marine’s financing structure complements the Group’s strategy of providing innovative and sustainable solutions for the offshore, marine and energy industries, with a focus on cleaner, greener and renewable energy segments. This dovetails our ongoing efforts to proactively manage the environmental impact of our business.
Sustainability-linked Finance Framework
Sembcorp Marine’s Sustainability-linked Finance Framework outlines the Group’s Key Performance Indicators and Sustainability Performance Targets for green financing. As these Sustainability Performance Targets are achieved, the Group will enjoy savings in borrowing costs. The framework has been assessed by PricewaterhouseCoopers LLP (PWC) who provided their second party opinion on the alignment of the framework to market principles.
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With the framework, Sembcorp Marine secured its first sustainability-linked loan facility in 1Q2021. The S$500 million facility, believed to be the first Singapore Overnight Rate Average (SORA)-based sustainability-linked loan for the local maritime industry, features interest rate discounts linked to pre-determined ESG targets. The Group secured another S$100 million loan facility, similarly referencing SORA, in September 2021. This financing facility met the Sustainability Linked Loan Principles (SLLP), validated independently by classification society DNV against pre-agreed sustainability performance targets (SPTs).
These facilities are the results of the Group’s ongoing efforts to increasingly tap on green financing, which will contribute to Sembccorp Marine’s strategy to greenify its overall business operations and achieve its sustainability goals.
The progress against sustainability goals and ESG targets is monitored by our Environmental Sustainability Working Group and Sustainability Council, with oversight from our Board of Directors.