Singapore has committed to achieving net-zero emissions by 2050, which makes it imperative for businesses to establish concrete climate action plans. The Singapore Exchange (SGX) is initiating the implementation of mandatory climate disclosures, along with the imminent introduction of higher carbon taxes this year. This further emphasizes the urgent requirement for tangible climate action plans. Schneider Electric is a proud supporter of enabling organisations across Singapore to meet their decarbonisation goals and is celebrating its 50th year in the country.
In June, Schneider Electric hosted a Sustainability Marketplace Event in Singapore that convened leaders and experts in sustainability from various market sectors. The goal was to engage in discussions about strategies that businesses can adopt to concretely progress toward achieving their climate ambitions. Through the workshops, business leaders provided their insights into ongoing challenges when addressing sustainability strategy.
Data management is key
Data-related challenges were highlighted as the key issue faced by the majority of the participants in the workshop that was conducted as part of the event. Data management is the first critical step towards sustainability for any company, irrespective of its size, market, and maturity. Data collection, tracking, and reporting were identified as high-priority concerns. When coupled with incomplete data and poor data governance, it can lead to skewed results, nullifying the purpose of data management. The next set of challenges comes from data refinement, deriving meaningful insights, and translating them into actionable goals and targets.
Small to Mid-Sized Enterprises (SMEs) oftentimes lack the necessary awareness, and experience, resulting in resource limitations that hinder their ability to carry out effective data management. Training, awareness, and education are essential steps for players who are starting to begin data management.
With regards to large Multi-National Corporations (MNCs), it is a challenging task to convince their entire operations, supply chain, and other stakeholders to track and report high quality data since this may not benefit them directly. Moreover, accessing and tracking the data collected from multiple sites scattered globally, coupled with concerns over data quality and legacy data systems adds to the woe.
AI-driven, cloud-based, automatic data collection can serve as an effective solution to address data-related challenges. Learn more about Resource Advisor - Request a demo https://www.resourceadvisor.com/ now embark on your data management journey that delivers value to your organization and to your stakeholders.
Setting sustainability targets and monitoring progress
Understanding a company’s climate-related risks and opportunities and charting out sustainability goals and targets that are also in alignment may seem like a herculean task. During the session, a participant from the logistics industry mentioned the practical difficulties in reducing their own direct activity emissions i.e., Scope 1 emissions, as their fleet is predominantly powered by fossil fuels. For logistics providers that own their fleet, electric vehicles are a promising solution, but finding a commercially viable replacement option for certain vehicles, like heavy-duty trucks, is still a challenge. Coupled with multiple voluntary and mandatory sustainability standards and regulations in place, it can make it hard for both companies and investors to navigate this complex landscape.
Regulators need to lobby, influence, and set transparent standards along with imparting support, training, education, and awareness on sustainability.
Learn more about Schneider’s sustainability consulting services.
Supplier decarbonization and Scope 3 emissions
Reducing Scope 3, or supply chain emissions, can be a complicated and arduous undertaking, especially for large and diversified companies with global footprints. With 90% of the global economyi committed to reaching net-zero emissions and more than 1,800 businesses working towards net-zero Science Based Targets, supply chain decarbonization needs to be tackled swiftly. Supply chain emissions are, on average, 11.4 times higher than operational emissionsii, which equates to approximately 92% of an organization's total GHG (greenhouse gas) emissionsiii. Transitioning to renewable energy is a promising solution that addresses both the supplier’s Scope 2 emissions, which are the indirect emissions associated with the purchase of electricity, and the wider organization’s Scope 3 emissions. However, access to renewables in Southeast Asia can be restricted by resource availability and limited grid infrastructure. Furthermore, a participant from the agriculture industry pointed out that currently there are very few technologies and methodologies available to measure the agriculture sectors, increasing the complexity.
Building supplier capacity and engaging them will help reduce their Scope 1 or 2 emissions and your Scope 3 emissions.
Join our global webinar where experts from around the globe share practical advice and experiences ranging from target setting to road mapping and supplier engagement. Read more on Schneider’s Zero carbon project that aims to reduce supply chain emissions.
Industry associations and partnerships create joint value
Decarbonization is no easy feat and requires a significant amount of time and money. Instead of trying to navigate this alone, meaningful industry associations and partnerships can pave the way for a greater impact than what could be achieved by a single entity.
Active engagement and industry associations can help tackle decarbonization better together.
Incentivisation to prioritize sustainability
There is a growing need to recognize efforts and reward sustainability initiatives. As such, now is the time to incorporate decarbonisation ROI within a company’s planning and strategy.
Financial incentives such as linking C-suite remuneration with decarbonization targets/KPIs will go a long way in ensuring that sustainability goals are achieved. Based on a survey conducted between March and May 2023 of over 200 senior business leaders across MNCs and SMEs in Singapore, the reportiv details that Singapore’s business leaders are ready for greater accountability for their company’s decarbonisation goals. For example, 99% of business leaders believe that C-suite remuneration should be linked to decarbonisation goals and targets.
On the road to decarbonization, the journey can often be complex for many organizations. Working together with industry partners who can help to further enable that journey toward real progress, is key. Read more from our team to discover how Schneider is helping its clients navigate this important journey: https://perspectives.se.com/climate-change-advisory
i. Net Zero Tracker. https://zerotracker.net/
ii. 2020. Transparency to Transformation: A Chain Reaction (CDP Global Supply Chain Report). CDP. https://cdn.cdp.net/cdp-production/cms/reports/documents/000/005/554/original/CDP_SC_Report_2020.pdf?1614160765
iii. 2023. EPA Center for Corporate Climate Leadership: Supply Chain Guidance. 7 July. https://www.epa.gov/climateleadership/supply-chain-guidance#footnote
iv 2023. Ready for Net Zero Responsibility | Report by Schneider Electric. Schneider Electric. https://go.schneider-electric.com/SG_202305_C-Suite_Survey_Report_2023_Download-Now-MF-LP
Keerthana Gopinath: Sustainability Analyst, SCLP
Ana Lipton: Sustainability Analyst, SCLP