SINGAPORE – Companies lagging behind in the push towards sustainability can grab low-hanging fruit to reduce their carbon footprint, said Minister for Sustainability and the Environment Grace Fu on Wednesday.
Ms Fu told a summit that some firms have already adopted new technology and catered to demand for alternative energy, but this does not mean companies must always make bold moves to be sustainable.
“Not everyone is going to be cutting edge,” she said.
“Even if you’re not really looking for new technology, there are many ways to reduce your carbon footprint – for example, by reducing waste and assets that you don’t need.”
She added that firms can try to reduce the number of trips taken by their vehicles and time spent on the road, noting: “These are all things that companies can work on very easily.”
Ms Fu’s remarks at this year’s Bloomberg Sustainable Business Summit were in response to moderator Haslinda Amin from Bloomberg Television, who had asked if the private sector is acting urgently enough, given the Government’s agenda on sustainable development. The summit was held at Shangri-La Singapore on Wednesday.
Ms Fu pointed out that some companies will take more time to realise how climate change will impact their businesses, but the private sector is, on the whole, gaining momentum.
“A lot of it is driven through financial institutions and investors. Of course, from time to time, you will have events that push (these efforts) back,” added Ms Fu, citing the example of coal-fired power plants that have come back to life globally to support electricity generation amid the Ukraine war.
“But I think the trajectory is quite clear – there is a sort of willingness across sectors, particularly among the larger, more progressive companies, to see that movement,” said Ms Fu, who did not specify sectors that are lagging.
She noted that Singapore was the first country in South-east Asia to introduce a carbon tax, in 2019, which it plans to raise from $5 per tonne of greenhouse gas emissions to between $50 and $80 by 2030.
“It’s really to make the cost of emissions very explicit, and therefore, to tilt that level playing field in favour of green technology,” she said.
Ms Fu also noted that Singapore is working with central banks around the world to quantify climate risks, adding: “We need bankers to think about the risks of climate to their portfolio; and we also need central bankers around the world to think about how that is all going to add up.”
In a separate dialogue at the summit, Singapore Exchange group chief executive Loh Boon Chye said there has been increased demand for passive index investing, focusing on companies that are performing better in climate action.
Investors have also been allocating more capital directly to such companies, he said, adding that carbon credits are another area that has gained traction.
“For any kind of credit, what’s important is transparency, having globally recognised, well-established projects and, more importantly, the continuous monitoring of such projects,” said Mr Loh.
He also noted that climate-related projects can have social benefits: “Critically, in this part of the world, when we talk about the energy transition, I think a just transition is important.
“No one should be left behind; it should be inclusive. That’s a journey for sectors, companies, governments and regulators to come together to play their role.”
