Latest news with #Sembcorp
Business Times
3 days ago
- Business
- Business Times
Issue 150: S-E Asia's ESG indices outperform; Sembcorp builds up regional pipeline
This week in ESG: CGS-CIMB sees structural drivers for ESG investing; Sembcorp in Malaysia-Singapore-Vietnam energy consortium Sustainable investing ESG pays off in South-east Asia Despite a pushback against environmental, social and governance (ESG) principles in the developed West, the sustainability theme continues to present potentially attractive investment opportunities in South-east Asia. A new analysis by CGS-CIMB shows that a number of well-followed ESG-themed stock indices have been outperforming their vanilla benchmarks since 2022. From May 2022 to May 2025, the FTSE4Good Asean 5 index of ESG leaders listed in Indonesia, Malaysia, the Philippines, Singapore and Thailand achieved an annualised return of 5.07 per cent. That surpassed the FTSE Asean All-Share index's 1.56 per cent annualised return over the same period. The Malaysia-only FTSE4Good Bursa Malaysia benchmark's annualised return was 3.46 per cent, more than the 3.10 per cent annualised return generated by the FTSE Bursa Malaysia EMAS index. That outperformance was comparable with Thailand's SETESG index, which lost 6.03 per cent annually on average versus the broader SET 100's steeper 6.41 per cent annual loss. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up CGS-CIMB attributes the outperformance to a structural shift towards integrating ESG into allocation decisions. Institutional investors are embedding ESG principles into their mandates, and regulators are making sustainability disclosures mandatory. The impact of these changes is long-term and widespread. Furthermore, businesses perceive competitive advantage through ESG-related branding, the firm says. Businesses in South-east Asia are no longer approaching ESG as mere compliance, but as a way to differentiate themselves from competitors. CGS-CIMB expects South-east Asian ESG to remain an attractive investment theme for a few reasons: Regional economic growth remains above the global average Inflation is not a major problem in South-east Asia's key markets Valuations are still attractive from an income and price upside perspective Markets are rewarding ESG outperformance and punishing misalignment Besides CGS-CIMB's report, a considerable amount of recent research has also turned the spotlight on investment opportunities in climate adaptation and resilience, with Singapore sovereign wealth investors GIC and Temasek publishing reports on that topic. The MSCI Sustainability Institute in April released a report that highlighted investment opportunities in Asian companies that provide resilience solutions against heat. Heat resilience solutions providers are particularly attractive in the universe of climate adaptation and resilience investment plays because their products are likely to draw significant private-sector demand, the MSCI authors say. A list of example companies that fall within the category of heat resilience solutions providers included SP Group – a leading supplier of district cooling solutions in Singapore – and Keppel – a Singapore-based asset manager with businesses in water treatment and sustainable real estate. The CGS-CIMB and MSCI reports are examples of a positive trend of investment research focused on ESG in Asia or South-east Asia. CGS-CIMB explains in its description of its proprietary ESG screening framework that global scoring models face limitations in South-east Asia due to regional circumstances that don't fit with the norms of developed markets where many of these models are developed. In the same way, it is difficult for most investors to translate ESG investment ideas that originate from outside the region to the regional context. For example, the energy and nature transitions in South-east Asia won't follow the same pathways as those in China or India, or even between countries within the region. Investors also need experts familiar with the region to connect ideas about big ESG trends to actual companies and products that are investable. Locally relevant research can help to unlock ESG-discerning private capital in South-east Asia. That could, in turn, provide market-based discipline to support better ESG performance among listed companies in the region. Just as growing coconut trees can provide a community with many benefits, nurturing domestic ESG research could help South-east Asia's market regulators to boost interest in their markets and to improve ESG performance at the same time. Sustainable business Sembcorp's growing South-east Asia pipeline Gas and renewable energy group Sembcorp Industries has been busy sowing seeds in South-east Asia so far in 2025. The latest announcement involves a strategic partnership with a Malaysian consortium and a subsidiary of Vietnam's state-owned oil company PetroVietnam to explore exporting renewable energy from Vietnam into Malaysia and Singapore. The deal includes a feasibility assessment for a potential undersea cable from Vietnam to Malaysia. Earlier in the month, Sembcorp said it had clinched S$650 million of contracts to provide chemical and energy solutions provider Aster with gas, power and utilities solutions for its Pulau Bukom and Jurong Island facilities. The two parties also signed a memorandum of understanding to explore strategic initiatives across Singapore, Indonesia and the rest of South-east Asia. So far this year, Sembcorp has also announced a solar contract with a Meta Platforms subsidiary, a hydropower import project with Sarawak Energy, two industrial park projects in Vietnam with partner Becamex IDC, the S$105 million purchase of a solar farm in the Philippines from CleanCurrent Renewable Energy, and a utility-scale solar and storage project in Indonesia. Not every announcement has been positive. Sembcorp said in March that a deal to import gas from Indonesia would be terminated because regulatory approval in Indonesia was not obtained. Not all of the deals will lead to revenue soon. For instance, the Vietnam energy import agreement is still in very exploratory stages. Outside of Singapore, Sembcorp's largest markets in terms of revenue are the UK, China and India. The rest of Asia – Sembcorp does not report South-east Asia as a separate geographical segment – makes up less than 5 per cent of total revenue. However, taken together, the recent announcements reflect a growing pipeline in South-eat Asia for Sembcorp. Other ESG reads
Business Times
4 days ago
- Business
- Business Times
Sembcorp unit wins solar-energy project to supply 150 MW of power in India
[SINGAPORE] Sembcorp Industries' wholly owned renewables subsidiary, Sembcorp Green Infra, was awarded a solar-energy storage hybrid project by SJVN, an Indian state-owned power company. Sembcorp Green Infra will develop, own and operate the project and supply 150 megawatts (MW) of solar power to SJVN over a 25-year period, subject to the execution of a power purchase agreement (PPA) to be signed with the Indian power company. Once the project is completed, it will support peak electricity demand for up to four hours daily through a 300 megawatt-hour (MWh) battery-energy storage system (Bess), the group said on Thursday (May 29). Commercial operations for the project are expected to start within 24 months of the date of the signing of the PPA, the group noted. The project is part of SJVN's 1.2 gigawatt (GW) tender for the Inter State Transmission system-connected solar projects with 600 MW/ 2.4 GWh of Bess capacity. As one of four renewable-energy implementing agencies in India, SJVN issues tenders for renewable energy companies in the country to bid for and build capacity for sale to the grid, Sembcorp said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The project will be funded through a blend of internal funds and debt. It is not expected to have a material impact on Sembcorp's earnings per share and net tangible assets per share for the financial year ending December 2025, the group said. As Sembcorp's second solar-energy storage hybrid project in India, the project raises the group's gross renewables capacity in the country to 6.3 GW. Globally, the group's total renewables portfolio stands at 17.7 GW, including acquisitions pending completion. It comes on the back of the group's first solar and Bess hybrid project in India, involving a 150 MW solar photovoltaic project with a 300 MWh Bess, announced in December 2024. Then, Sembcorp Green Infra was awarded a build-own-operate project by Indian public sector company, Solar Energy Corporation of India, to supply on-demand power to support four hours of peak electricity daily over a 25-year period. The counter ended on Wednesday 1 per cent or S$0.07 lower at S$6.64.
Business Times
4 days ago
- Business
- Business Times
Sembcorp unit wins solar energy project to supply 150 MW of power in India
[SINGAPORE] Sembcorp Industries' wholly owned renewables subsidiary, Sembcorp Green Infra, was awarded a solar energy storage hybrid project by SJVN, an Indian state-owned power company. Sembcorp Green Infra will develop, own and operate the project and supply 150 megawatts (MW) of solar power to SJVN over a 25-year period, subject to the execution of a power purchase agreement (PPA) to be signed with the Indian power company. It will supply solar power for four hours daily, through a 300 megawatt-hour (MWh) battery energy storage system (Bess), to support peak electricity demand once the project is completed, the group said on Thursday (May 29). Commercial operations for the project are expected to start within 24 months from the date the PPA is signed, the group noted. The project is part of SJVN's 1.2 gigawatt (GW) tender for the Inter State Transmission system-connected solar projects with 600 MW/ 2.4 GWh of Bess capacity. As one of four renewable energy implementing agencies in India, SJVN issues tenders for renewable energy companies in the country to bid for and build capacity for sale to the grid, Sembcorp said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The project will be funded through a blend of internal funds and debt. It is not expected to have a material impact on Sembcorp's earnings per share and net tangible assets per share for the financial year ending December 2025, the group said. As Sembcorp's second solar energy storage hybrid project in India, the project raises the group's gross renewables capacity in the country to 6.3 GW. Globally, the group's total renewables portfolio stands at 17.7 GW, including acquisitions pending completion. It comes on the back of the group's first solar and Bess hybrid project in India, involving a 150 MW solar photovoltaic project with a 300 MWh Bess, announced in December 2024. Then, Sembcorp Green Infra was awarded a build-own-operate project by Indian public sector company, Solar Energy Corporation of India, to supply on-demand power to support four hours of peak electricity daily over a 25-year period. The counter ended on Wednesday 1 per cent or S$0.07 lower at S$6.64.
Time of India
4 days ago
- Business
- Time of India
Sembcorp bags 150 MW solar project with 300 MWh storage capacity from SJVN
New Delhi: Sembcorp Industries , through its wholly-owned subsidiary Sembcorp Green Infra Private Limited (SGIPL), has secured a 150 MW solar power project integrated with a 300 MWh Battery Energy Storage System (BESS) from SJVN Limited . The Letter of Award issued by SJVN is part of its 1.2 GW tender for Inter-State Transmission System (ISTS)-connected solar projects with a total of 600 MW/2.4 GWh of battery storage capacity. The project will be implemented on a build-own-operate basis and is expected to commence commercial operations within 24 months from the signing of the 25-year Power Purchase Agreement (PPA). Upon completion, the project will supply solar power and support peak electricity demand for four hours daily through the BESS. Funding for the project will be sourced through a mix of internal funds and debt. This is Sembcorp's second solar-energy storage hybrid project in India. With this award, the company's gross renewables capacity in India has increased to 6.3 GW. Sembcorp's global renewables portfolio, including acquisitions pending completion, now stands at 17.7 GW.
Straits Times
4 days ago
- Business
- Straits Times
Sembcorp unit wins solar energy project to supply power in India
This is Sembcorp's second solar energy storage hybrid project in India. PHOTO: SEMBCORP SINGAPORE - Sembcorp Industries' wholly owned renewables subsidiary, Sembcorp Green Infra, was awarded a build-own-operate solar energy storage hybrid project by SJVN, an Indian state-owned power company. It will supply solar power for four hours a day to support peak electricity demand through a 300 megawatt-hour (MWh) battery energy storage system (Bess) once the project is complete, the group said on May 29. This is subject to the execution of a 25-year power purchase agreement (PPA) with SJVN, Sembcorp said. Commercial operations for the project are expected to start within 24 months from the date the PPA is signed, the group noted. The project has a contracted capacity of 150 megawatts (MW) and is part of SJVN's 1.2 gigawatt (GW) tender for the Inter State Transmission system-connected solar projects with 600 MW/2.4 GWh of Bess capacity. It will be funded through a blend of internal funds and debt, Sembcorp said. The award of the project is not expected to have a material impact on the group's earnings per share and net tangible assets per share for the financial year ending December 2025, it added. As Sembcorp's second solar energy storage hybrid project in India, the project raises the group's gross renewables capacity in the country to 6.3 GW. Globally, the group's total renewables portfolio stands at 17.7 GW, including acquisitions pending completion. It comes on the back of the group's first solar and Bess hybrid project in India, involving a 150 MW solar photovoltaic project with a 300 MWh Bess, announced in December 2024. Then, Sembcorp Green Infra was awarded a build-own-operate project by Indian public sector company, Solar Energy Corporation of India, to supply on-demand power to support four hours of peak electricity daily over a 25-year period. Sembcorp shares were up 0.15 per cent to $6.65 as at the midday trading break on May 29. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
