Sembcorp to miss 2025 target on green business profits, drops metric from 2028 strategy
Management will not receive compensation tied to this particular sustainability goal
SEMBCORP Industries will miss one of its 2025 strategic targets of having 70 per cent of its net profit come from its sustainable solutions business, said the energy company in response to queries from The Business Times.
This means that Sembcorp’s management will not be able to receive the compensation tied to this particular sustainability goal.
It is one out of three energy transition targets Sembcorp had set in 2021, as part of its pivot to be a renewable energy company, with the executives’ remuneration directly linked to the achievement of all three targets.
Following this, Sembcorp has also stopped using this metric as one of the targets in its next set of energy transition milestones it aims to reach by 2028.
Sembcorp failed to meet the target of having 70 per cent of its net income come from sustainable solutions because its gas business has recorded strong growth, with earnings from the segment almost trebling since 2021, said a spokesperson. “As a result, group net profit after tax has more than doubled to almost S$1 billion, with the percentage from sustainable solutions remaining below 70 per cent,” added the spokesperson.
Copyright SPH Media. All rights reserved.