Sembcorp: Pioneering Sustainable Industrial Transformation
The Growing Need for Sustainability
Asia’s manufacturing boom has significantly driven global growth, but it has also led to alarming levels of carbon emissions. Today, the industry accounts for approximately one-third of global emissions, with Asia’s share having more than doubled over the past two decades. With the world leaning towards sustainable practices, the industrial sector faces an urgent need for transformation.
To remain competitive in a low-carbon economy, industrialization must evolve. Governments and businesses alike are now turning to low-carbon industrial parks—effective and scalable platforms designed to decarbonize operations and ensure future growth.
Sembcorp’s Role in the Future of Industry
Sembcorp is emerging as a crucial player in this shift toward sustainability. As a leading provider of renewable energy and industrial solutions, Sembcorp is developing industrial parks where sustainability is ingrained from the very beginning. These parks incorporate green master planning, low-carbon construction, clean energy initiatives, and shared utilities like water recycling and treatment.
By embedding sustainability, Sembcorp is not just addressing immediate needs but also preparing for the economic demands of the future.
The Significance of Low-Carbon Industrial Parks
Decarbonisation is not just a trend; it’s a strategic priority for governments, manufacturers, and investors. With net-zero targets gaining traction across Asia, there is increasing pressure to minimize carbon footprints throughout operations and supply chains. Consumers are also demanding more sustainable products. As manufacturing expands in emerging hubs like Vietnam and Indonesia, driven by reshoring and digitalization, low-carbon industrial parks offer ready-made solutions to meet these emerging demands.
These parks provide reliable access to clean energy and shared infrastructure, thereby helping businesses to lower their carbon exposure, improve supply chain resilience, and sharpen their competitive edge. Additionally, they facilitate compliance with increasingly important environmental, social, and governance (ESG) standards, which are critical for engaging in global trade and attracting investment.
Retrofitting Existing Facilities
While the need for new industrial parks is clear, many existing facilities across Asia were built with speed in mind rather than sustainability. These legacy sites often depend heavily on fossil fuels and lack the infrastructure necessary for low-carbon operations. Retrofitting these facilities requires targeted investments in renewable energy, energy storage, and digital utilities. However, the upfront capital costs can be a barrier, particularly for small and mid-sized manufacturers.
Innovative financing mechanisms and public-private partnerships are essential to overcoming these financial obstacles. Additionally, long-term regulatory clarity, including harmonized emissions standards and stable incentives, is crucial for unlocking capital and accelerating action.
Collaboration: The Key to Success
For industrial decarbonization to succeed, collaboration among developers, tenants, energy providers, and government entities is vital. This collaborative spirit is embodied in Sembcorp’s approach, which aims to scale low-carbon industrial parks across Asia.
Sembcorp’s Established Track Record
With over 35 years of experience in the region, Sembcorp has developed 24 industrial parks that span 14,800 hectares, hosting over 1,000 tenants and attracting nearly US$58 billion in investments. The company plans to expand this footprint to 18,000 hectares and increase its leasable industrial space to 1.5 million square meters by 2028, reinforcing its commitment to sustainable manufacturing.
Designing for Performance and Sustainability
Sembcorp’s industrial parks are tailored to optimize both environmental and business outcomes. Key features of these parks include:
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Clean Energy Infrastructure: Parks integrate solar energy and are exploring wind options to diversify the energy mix. Tenants have direct access to renewable energy through power purchase agreements, enhancing grid reliability through energy storage systems.
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GoNetZero Digital Platform: This proprietary platform allows tenants to manage renewable energy certificates, monitor carbon credits, and track emissions. This promotes transparency in ESG reporting and facilitates data-driven decision-making.
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Water and Waste Management Solutions: Advanced wastewater treatment methods, along with water reuse systems, minimize environmental impact while promoting sustainable construction practices.
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Green-Certified Facilities: The ready-built spaces meet stringent green building standards, helping tenants reduce operational costs and create healthier work environments.
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Circularity and Industrial Symbiosis: Parks are designed for resource use efficiency, enabling the recycling of plastic waste into building materials and promoting by-product exchanges among tenants.
Case Study: Lego’s Green Factory
At Sembcorp’s Vietnam Singapore Industrial Park (VSIP) in Binh Duong, Lego operates its most environmentally sustainable factory, aiming to run on 100% renewable energy by 2026. This facility, powered by rooftop solar installations and an adjacent energy center, exemplifies Sembcorp’s capability to support the sustainability objectives of global manufacturers. The site has achieved LEED Platinum and Gold certifications for its buildings, underscoring its commitment to eco-friendliness.
Accelerating Transformation Across Asia
Sembcorp’s network in Vietnam includes 20 VSIPs that creatively intertwine industrial space with renewable energy and waste management capabilities. Similarly, in Indonesia, the development of Kendal Industrial Park—a designated Special Economic Zone—aims to position the area as a key hub for clean technology supply chains. Plans for Tembesi Innovation District, a low-carbon industrial area in Batam, further illustrate Sembcorp’s ambition in the region.
In China, Sembcorp’s parks support ongoing dual carbon goals by integrating clean energy, water recycling, and sustainable urban design, as seen in the Sino-Singapore Nanjing Eco Hi-Tech Island.
The Future of Industrial Parks
Asia is at a pivotal moment for industrial transformation. Scaling low-carbon ecosystems will require robust collaboration, long-term investments, and cohesive regional policy frameworks.
Sembcorp is dedicated to accelerating this transition, integrating master planning, utilities, and digital solutions to forge resilient, low-carbon industrial parks crucial for Asia’s sustained growth.