We do our part in mitigating and adapting to the effects of climate change. Our efforts include: • Reducing our energy consumption by conducting energy audits and improving production energy efficiency • Reducing Scope 1 emissions by: – Optimising energy efficiency, and replacing equipment and fixtures with energy efficient models when due for replacement – Optimising our operational activities such as delivery runs, engine test cell usage and electrification of our vehicle fleet • Reducing Scope 2 emissions by: – Installing solar PV systems across our global sites – Optimising and re-engineering our production and operational processes • Reducing Scope 3 emissions by: – Reducing air and land travel, and conducting virtual meetings where possible • Preventing the contamination of the surrounding air by: – Using air pollution control equipment such as scrubbers – Monitoring and minimising stack emissions, and the level of air pollutants The base year for our absolute Scope 1 and 2 GHG emissions calculations is 2010, as the Group established its initial GHG inventory process in 2009 for Singapore operations. We adopt an operational control approach when reporting our GHG emissions and energy data, which includes our international business units. The base year emissions were recalculated, where applicable, or estimated using proxies where needed. In 2022, the Group acquired new entities and businesses. The environmental data for these acquisitions have not been reflected in our 2022 data but will be included in subsequent years. We are progressively expanding the tracking and disclosure of our Scope 3 GHG emissions. In 2022, we conducted a study to determine the GHG emissions on our employees’ commute to and from work and started our journey to gather the upstream and downstream emissions from our supply chain. In 2014, the Group set a target for its Singapore operations to reduce GHG intensity as a measure of revenue by 16% by 2025, compared to a 2010 base year. This target was raised in 2018 to 36% by 2030, in alignment with Singapore’s Nationally Determined Contribution pledge and was met in 2019. In 2022, our GHG emissions intensity was 12 tCO2e/$million revenue. In 2022, our energy intensity6 was 149GJ / $million revenue. This includes the energy derived from fuel, electricity, heating and cooling. 2 tonnes of carbon dioxide equivalent 3 Direct GHG emissions from sources owned or controlled by the Group 4 Indirect GHG emissions from the generation of purchased electricity consumed 5 Indirect GHG emissions from business travel by air and land 6 Energy intensity = energy / SGD revenue ENVIRONMENTAL ENVIRONMENTAL PROTECTION TOTAL EMISSIONS (‘000tCO2e) 2 Scope 13 Scope 24 Scope 3, Category 6 Scope 3, Category 7 Direct Indirect TOTAL ENERGY CONSUMED (‘000GJ) 2020 2021 2022 150 120 90 60 30 0 83 1.9 37 83 2.6 34 30 7 70 38 1,500 1,200 900 600 300 0 2020 2021 2022 778 739 549 480 762 580 38 ST ENGINEERING SUSTAINABILITY REPORT 2022
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