Category: Blog

Company Name: CGS International Securities Singapore Pte. Ltd.

• Your Name and Designation: Daryl Ware, Sustainability Associate
• SDG Ambition Accelerator Program Cohort (year): 2024
• Sector/Industry: Financial Services
• SDG Ambition Benchmark: Science-Based Emissions Reduction in Line with a 1.5°C Pathway
• Brief background of your company: CGS International Securities Pte. Ltd. (CGSI) is an award-winning and market-leading integrated financial services provider, ranked among the top securities houses in Asia. CGS International taps on its wealth of global and ASEAN insights to offer equities trading, leveraged products, wealth management, investment banking, equities research, Shariah-compliant financing, fixed income, currency and commodities, structured products, and prime brokerage services in over 15 countries and regions.

1. We are interested in learning more about your organisation’s sustainability journey. What led you to participate in the SDG Ambition Accelerator? 

Daryl: Participating in the SDG Ambition Accelerator was driven by our commitment to enhance our sustainability efforts and align our business practices with the Sustainable Development Goals (SDGs). We were particularly attracted to the opportunity to select benchmarks linked to the Forward Faster initiative, which would guide us in developing innovative strategies that significantly increase our positive impact on the SDGs. Additionally, the Accelerator provided access to valuable resources, expert guidance, and a network of like-minded companies. This collaborative environment would enable us to share experiences, learn from others, and implement best practices in sustainability management. 

2. How has participating in the SDG Ambition Accelerator improved your or your organisation’s progress and outlook on corporate sustainability? 

Daryl: The progressive and structured approach of the programme, coupled with clear actionable recommendations made by the trainers, made it practical and useful. The framework

provided was also handy as a template to give us valuable insights into establishing metrics and performance indicators to track our sustainability progress for other sustainability-related agenda as well, beyond the selected SDG Ambition Benchmark, and helped to facilitate clear communication with stakeholders. 

3. What SDG Ambition Benchmark did you choose? How did you decide which SDG Ambition Benchmark to focus on during the Accelerator? 

Daryl: We chose Science Based Emissions Reduction in Line with a 1.5°C Pathway. Of the material ESG issues identified by my company, our GHG emissions footprint was something that we wanted to explore in greater detail. GHG emissions are a key material issue for my company. Especially coming from the financial sector, this area becomes very complex when considering Scope 3 emissions as well which is expected to be a significant component of a financial institution’s carbon footprint. It is also challenging to incorporate SDG 13 – Climate action into our operations. Failing to adequately measure and manage these financed emissions can lead to an incomplete understanding of the organization’s overall carbon footprint and climate-related risks This program was a good avenue to see what other companies are doing in this space, and to share knowledge and experience on how to tackle this issue. 

4. What were the most significant lessons or takeaways from your journey in the Accelerator? 

Daryl: The most significant takeaway was that for sustainability to be effectively championed within an organization, it must be woven throughout the entire value chain. It cannot be confined to a single area of focus; instead, ongoing stakeholder engagement and collaboration are essential to foster meaningful and progressive changes. Additionally, it is crucial to maintain a focused and strategic approach to the changes being implemented. For instance, targeting a specific SDG Ambition Benchmark is far more effective than pursuing initiatives in a disorganized or random manner. 

5. What have you found to be the biggest benefits of participating in the Accelerator? 

Daryl: Overall, the SDG Ambition Accelerator has been a transformative experience, equipping us with the mindset, skills, and network to accelerate our sustainability efforts and contribute meaningfully to the 2030 Agenda. 

The Accelerator offered a well-structured curriculum that guided us through the process of integrating the SDGs into our core business strategy. It created a platform for us to connect with other like-minded companies committed to driving positive change. These new relationships have opened up opportunities for collaboration, knowledge sharing, and collective impact that we plan to continue pursuing beyond the program. And lastly having access to subject matter experts and facilitators who are deeply knowledgeable about sustainability and the SDGs was

invaluable. They provided us with the tools, resources, and support needed to navigate challenges and make informed decisions. 

6. If you have already begun integrating the SDG Ambition Benchmark into your organisation, do you have any examples of the progress made so far? 

Daryl: We have initiated the process of aligning our business operations with climate scenarios that adhere to internationally recognized standards. This will enable us to perform a gap analysis to determine the necessary steps for remaining on track with the 1.5°C pathway. At this stage, we are not ready to announce any specific actions taken. We have selected this pathway as a proactive measure, embarking on this journey early on. Currently, we are in the initial phases of compiling our greenhouse gas (GHG) inventory and exploring opportunities for emissions reductions. 

7. How will you take your learnings from the SDG Ambition Accelerator forward to help achieve the Agenda 2030? 

Daryl: We will continue to develop our sustainability strategy in line with the framework that was produced during this program, taking stock of how far away we are from a 1.5°C pathway and subsequently identifying opportunities to leverage on existing and new technology and systems to reduce our operational emissions. The alignment to the 1.5°C pathway is a high priority, especially in light of international disclosures converging towards the ISSB reporting standards. 

8. What advice would you give to a company beginning the SDG Ambition journey?

Daryl; This program, offered exclusively to UN GCNS Members by the UN Global Compact Network, provides valuable resources, expertise, and networking opportunities. I encourage all my colleagues to take advantage of this platform, as it fosters collaboration with peers, which can significantly enhance learning and accelerate your progress. 

I recommend that the company approach this journey with an open mind and a willingness to learn from fellow participants. It’s beneficial to select an SDG Ambition Benchmark that is more ambitious rather than one that is easily attainable. Engaging in this thought exercise and applying the course framework can help break down these goals into manageable steps, making them seem more achievable.

In this interview, we speak with James Loke, Group CEO of Tru-Marine, who shares insights on the company’s decarbonisation journey. 

Tru-Marine is a home-grown Singapore company specialising in the Maintenance, Repair, and Overhaul (MRO) of turbochargers in marine, offshore, locomotive and power plant applications. The company has a presence in 8 countries worldwide, and is the only authorised and cooperative repair shop in the world for the majority of the turbocharger makers.

In 2023, Tru-Marine was one of 3 winners in the LowCarbonSG Category of GCNS’ annual Singapore Apex Corporate Sustainability Awards. Besides that, Tru-Marine recently joined as a signatory to the UN Global Compact as part of their sustainability ambition. 

GCNS: Thank you, James, for being with us for this interview.

As many companies who are new to carbon management may wonder how they can get started, could you share how Tru-Marine got started on its decarbonisation journey?

James: Our company embarked on our decarbonisation journey through initiatives such as a comprehensive assessment of our operations and identifying areas where we could reduce carbon emissions and improve sustainability. This involved engaging stakeholders across different departments to raise awareness and foster a culture of environmental stewardship.

We prioritised initiatives that offered significant environmental benefits while aligning with our business objectives. This included measures such as transitioning to renewable energy sources, lifecycle assessments of our repair processes, responsible procurement, and even R&D of green technologies.

Collaboration with external partners, including industry experts, research institutions, and government agencies, also played a crucial role in guiding our low-carbon initiatives and accessing resources and expertise.

GCNS: Can you share with us a few key initiatives that have been carried out by Tru-Marine to reduce its carbon emissions?

James: Our company has implemented several key initiatives:

1. We’ve transitioned to using 100% renewable energy sources to power our electricity needs at our workshop in Singapore.
2. We’ve implemented life cycle assessments of our in-house repair processes to identify and address areas with high carbon emissions.
3. We’ve replaced traditional forklifts with electric ones for our daily operations, and electric vehicles for employee commuting.

GCNS: The decarbonization initiatives you adopted (eg. solar installation, and electrification of forklifts) seem to be heavy in CAPEX. How do you look at the return on these investments to justify their costing from a business perspective?

James: From a business perspective, our decarbonization initiatives, such as solar installation and electrification of forklifts, represent strategic investments rather than mere costs. While these initiatives do require significant upfront CAPEX, we believe they offer compelling returns:

1. Long-Term Cost Savings: Transitioning to renewable energy sources and electric vehicles reduces our reliance on fossil fuels, leading to substantial savings on energy and operational costs over time.
2. Risk Mitigation: By proactively addressing environmental concerns and staying ahead of regulatory changes, we mitigate risks associated with carbon pricing and future carbon taxes, protecting our business from potential financial liabilities.
3. Enhanced Reputation and Brand Value: Demonstrating our commitment to sustainability through concrete actions like decarbonization initiatives enhances our brand reputation and attracts environmentally conscious customers and investors, while also fostering employee loyalty.
4. Access to New Markets and Opportunities: Embracing decarbonization trends positions us to access new markets, forge partnerships, and seize emerging business opportunities in the evolving landscape of sustainability.

GCNS: What are some of the key benefits that your company is seeing based on the effort in this low-carbon transition so far?

James: Our company’s commitment to low-carbon transition has brought about substantial benefits. For one, our investments in renewable energy sources and optimization of energy consumption have led to tangible reductions in our carbon footprint while simultaneously lowering our energy expenses.

Moreover, our dedication to sustainability has bolstered our brand reputation and market positioning. Stakeholders increasingly value businesses that prioritise environmental stewardship, and our efforts in this area have earned us trust and credibility. This, in turn, has opened up new opportunities for partnerships and growth.

In addition to the financial and reputational gains, our low-carbon transition has positioned us to navigate regulatory changes and industry trends related to climate action more effectively.


GCNS: How has Tru-Marine’s experience been participating in the LowCarbonSG programme and being involved in the GCNS’ sustainability ecosystem thus far?

James: The LowCarbonSG Programme provided us with the Carbon & Emissions Recording Tool (CERT) as a scientific tool for measuring and evaluating our GHG emissions by scope 1, 2 and 3.

With that progress, we are able to work towards reducing our emissions by methods such as:

• optimizing our internal processes directly under our control, 
• employee training on our corporate values and sustainable practices, and even
• decarbonizing our supply chain through greener sourcing.

We are also able to keep abreast of developments in the carbon market so as to make continual progress in our decarbonisation efforts. 

GCNS: Congratulations again on being one of the winners of the LowCarbonSG Award in 2023! Do you have any advice for fellow SMEs, especially in similar industries, as they start on their decarbonisation journey?

James: We encourage companies to start on their decarbonisation and sustainability journey as sustainability can be a significant competitive advantage. Working towards being more sustainable can benefit businesses in complying with the market, community and even regulatory expectations for climate action, and in many cases attract and retain customers, talent, and investors.

On 15 and 16 August, we, together with our Global Compact Network Philippines (GCNP) colleagues, were delighted to host 2 webinars where we had six UN Global Compact (UNGC) member companies from around Asia to share their Science Based Targets initiative (SBTi) and decarbonisation journey with other Asia-based members. 

These sessions were part of the Climate Ambition Accelerator programme which aims to help participants deepen their skills and knowledge in carbon accounting, carbon management and setting science-based emissions reduction targets. 

In these webinars, we are grateful to our guest speakers for sharing their insights: 

• Hui Mien Lee, Senior Director, Group Environmental Sustainability, Singapore Telecommunications Ltd. (Singtel)
• Gabriel Tan, Director, GUAVA Amenities. (GUAVA)
• Krishna Ranagala, Deputy General Manager, Sustainability & Quality Systems Development, Talawakelle Tea Estates PLC
• Dhanujie Jayapala, Deputy General Manager – Environmental Sustainability, MAS Holdings Pvt Ltd. (MAS)
• Airlangga Djati, Head of Business Process and Smallholders Engagement, PT Austindo Nusantara Jaya Tbk. (ANJ)
• Maria Tripty, Officer, Sustainability and Planning, Dutch Bangla Pack Limited

These six members have set science-based targets (SBTs) and have, or are in the process of, getting their targets validated by the SBTi. Coming from diverse sectors such as telecommunications, guest amenities, agriculture, textiles and packaging, we have recapped the key takeaways and interesting insights shared by our speakers: 

1. Suitability of SBTs for companies of all sizes 

Having gone through the process of setting SBTs themselves, our speakers agreed that setting SBTs aligned with the SBTi is something applicable and relevant to companies of all sizes. The SBTi process can be relatively easier for SME companies, as the data needed for SMEs to account for their emissions and set the SBTs is not as huge compared to larger companies like MNCs. In addition, the SBTi also has a more streamlined route for SMEs to get their targets validated, to make it more accessible for SMEs to set SBTs. 

2. Strong business case for setting SBTs 

All our speakers shared the strong business case for setting SBTs, in particular, due to expectations from sustainability-conscious clients. For example, for our speakers’ companies, many of their clients are listed companies who have their own climate targets, including their own SBT and that of reducing their supply chain emissions. Hence, there is a strong incentive for these companies to set SBTs themselves, so as to continue standing in good stead with their clients. 

In fact, for clients who have their own scope 3 emissions reduction target aligned with the SBTi, they would then have to set a target of getting a proportion of their suppliers setting their own SBT. For example, for MAS’ SBT on scope 3 emissions, they have committed that 85% of their suppliers by spend covering Purchased Good & Services will have SBTs by 2025. 

Aside, setting SBTs was also seen as crucial for business resilience. This is especially pertinent for sectors, such as food and agriculture, that are more prone to suffer directly from climate change impacts. For example, both Airlangga (ANJ) and Krishna (Talawakelle Tea Estates) shared that reduced crop yields will result if climate change continues, directly impacting their earnings, and hence this has made it more imperative for them to set SBTs and adopt their own climate adaptation and mitigation measures. Besides physical risks, there are also financial risks such as carbon taxes that have further motivated companies to set their own SBTs. 

3. Scope 3 emissions may be a challenge but also presents a huge opportunity for reducing emissions 

Several of our speakers shared that scope 3 emissions contribute the bulk of their carbon footprint. (Scope 3 emissions refer to emissions found in the value chain.) Thus, they emphasized that engaging their suppliers and subsidiaries were key in helping them to reduce their scope 3 emissions. This involved meeting and educating their suppliers on their SBT and decarbonisation strategy, and in some cases, even supporting their suppliers with setting their own SBT. 

Beyond setting targets, Dhanujie (MAS) shared their collaboration with their suppliers in procuring recycled materials to reduce the carbon impact of their textile products. 

Maria (Dutch Bangla Pack Limited) also highlighted their collaboration with other factories to recycle 100% of their process wastage, producing post-industrial resin for reuse in their production line. This sustainable practice has played a significant role in lowering their environmental impact. Where the solutions were not yet available, Gabriel (GUAVA) shared it was then all the more important to work with their clients to co-create the sustainable products to make a positive impact on the environment. It also involves ongoing engagement with their clients to ensure that sustainability remains a core focus throughout the product’s lifecycle. 

On the ground, Hui Mien (Singtel) and Krishna (Talawakelle Tea Estates) also shared the importance of explaining the decarbonisation initiatives ‘in the same language’ as the operational staff, to help them understand the benefits of incorporating the decarbonisation measures from their lens. In engaging employees on decarbonisation, Singtel shared that two main barriers that companies often face were a) staff’s lack of knowledge and b) competing priorities, and if a company can resolve these, it would better help engage their employees and get internal buy-in for implementing the sustainability measures. 

4. Alternative sources of energy

Many of the speakers pointed to renewable energy as one of the main solutions in helping their companies decarbonise. This included installing solar panels on their premises, solar Power Purchase Agreements where their facilities were not suited for solar, and purchasing renewable energy certificates (RECs). 

For our speakers whose companies are based in the wider Asia region outside of Singapore, their companies were able to utilize a wider range of alternative energy sources: this included converting their diesel-powered boilers to biomass-powered ones and using hydro-generated electricity. 

In all, the broad areas that the speakers looked at for their decarbonisation initiatives centered around: reducing energy use where possible, improving energy efficiency and procuring renewable energy, which other companies can look at as well. 

5. Integrating sustainability into staff’s KPIs 

Besides education and to garner internal support for the company’s decarbonisation initiatives, some of our speakers have found it helpful to integrate some sustainability outcomes into their managers’ KPIs (key performance indicators), to foster ownership of the company’s decarbonisation goals. For example, Dhanujie (MAS) shared that for each division, they had appointed a head who is responsible for the division’s climate targets, while Airlangga (ANJ) shared that they include some sustainability-related KPI for most staff, including their operational-level staff, which has helped made decarbonisation a collective effort for the whole organization. 

6. Not forgetting the social part of sustainability 

Interestingly, while the webinar was centered around decarbonisation, speakers also brought up the importance of building a strong social compact with their employees, as part of their social sustainability goals. To motivate staff members to rally behind sustainability initiatives such as SBTi, Gabriel (GUAVA) shared that it is important for leadership to role model sustainable practices in daily interactions. Not only does this ensure staff’s wellbeing, this also translates to a better job satisfaction rate which, it seems, can have the added benefit of garnering staff’s buy-in more easily for the decarbonisation measures that the company seeks to implement. 

GCNS 2022 Carbon Footprint

Introduction

In line with global trends on increasing transparency and quality of carbon emissions reporting, we decided to increase the assessment of our 2022 emissions to include all Scope 3 emissions, such as Office Capital Purchases (Scope 3-2), and External GCNS Events and Training Workshops (various Scope 3 categories).

Our Emissions

In 2022, the GCNS office and related activities generated a total of 13.7 tCO2e, as shown in Figure 1. For context, Singapore’s per capita annual carbon emissions is 8.3 tCO2e (2018, per NCCS/IEA). In other words, GCNS’s activities generate less than 2 person’s worth of emissions.

To align with GHG Protocol standards, GCNS’s carbon footprint was also classified according to Scope 1, 2 and 3, as shown in Figure 2.

If you are interested in the details of our carbon footprint, do check out our Carbon Footprint report which we published as a segment in our GCNS Annual Report 2022.

Lessons and Insights On Carbon Footprinting

• Everything has to start somewhere, and a good carbon footprint is no different. Whilst we in CPLC Singapore have reached a level of experience to be in a position to footprint all 15 categories of Scope 3, in addition to Scope 1 and 2, we were not in such a position as recently as last year. If this is your first time doing a carbon footprint, start with easy first steps using a relatively easy-to-use tool such as our Carbon and Emissions Recording Tool (CERT), get going with whatever data you can get at the start, and gradually build up the quality of your footprint as you develop your expertise.
   
• There is no such thing as an absolutely accurate carbon footprint. We realised quickly that every calculated emissions number will be an average or an estimate. Even the electricity grid emissions factor provided by the Energy Market Authority (EMA), (which is shown to 4 decimal places), is merely an average of the contributions by each power generator, and will not be exactly the emissions factor of the electricity consumed by you. Taking another example, you may not be able to get the local transportation data for each employee for the entire work year. It is therefore very acceptable to start with broad estimates (e.g. sample 10% of your workforce) and gradually sharpen your estimate as you go e.g. by increasing the sample size each year.
   
• You may find that, at best, some of your colleagues will wonder what all this fuss is about carbon footprinting, and at worst, they may not cooperate with you when you need some necessary data from them. In such instances, see if the reason is that you may have asked for too much information that will take them a considerable amount of their time to dig out. If so, consider how you can simplify the data requirements, even if it is at the expense of less accuracy. It is better to get a rough estimate, than to have no estimates at all.

The CPLC Singapore team understands your dilemmas and difficulties as we have “been there, done that”. We are more than happy to assist you in any way we can. Do contact us at cplcsg@unglobalcompact.sg and we will see how we can help

In this feature, we are grateful to have Andre Yeo (Senior Manager – HSE, Facilities & Energy Mgt) and Rob Field-Marsham (Head of Technology & Innovation) from fellow GCNS member and CPLC Partner, Containers Printers, share their experience in implementing various energy-saving and decarbonisation initiatives in their company.

Q: Thanks Rob and Andre for joining us today. As many companies who are new to sustainability may wonder how to start on this, could you share how you started,  and which  decarbonisation measures you targeted first?

Rob and Andre: We used a hotspot analysis to help us prioritise which initiatives to start with, but first we needed training on how to conduct an analysis. Thankfully, our CEO Amy was very supportive of sending our staff for training in Energy Management, including courses such as the Singapore Certified Energy Manager (SCEM) course. With this training we were able to identify hotspots of high energy usage, and thus areas for improvement. 

Our hotspot analysis pointed to our air compressors – we call them our “fourth utility” because we use them so extensively in our factory – which turned out to be not particularly energy-efficient.

We then sought advice from the NEA to understand improvement options we might have, and the potential cost savings we could gain from improving our equipment’s energy efficiency, The NEA recommended that we apply for the Energy Efficiency Fund (E2F), which we did in 2019, armed with a solid business case built on cost savings, and emission reductions.

Q: May you share with us 1-2 challenges that you unexpectedly faced and how did you overcome them?

Rob and Andre: As mentioned, it was critical for our team to upgrade their skills, thus we provided practical, on-the-job training. However, one challenge was addressing the impact of turnover: if we train people, and then they leave, we might inadvertently lose a bit of their knowledge, hence we have had to find ways to retain such knowledge in the department to cope with such transitions.

Another challenge we faced was in the decision-making process when figuring out which solution to choose. For example, for our Energy Management Information System (EMIS), we were somewhat overwhelmed by the number of solutions in the market. Rather than adopting an all-or-nothing approach, we piloted solutions with a smaller scope to see how they worked. This helped us learn along the way and reduce risk, compared to if we had upgraded everything, all at once.

Q: The solutions you adopted (for eg. solar installation) seem to incur quite a bit of cost, although you are able to recover them after a short period. How did you manage your costing for these decarbonisation initiatives at the start?

Andre: For our solar installation, Sembcorp offered us a zero-capital investment model that worked favourably for us. The panels belong to Sembcorp, where they take care of installation, commissioning, and ongoing maintenance. We were then provided a fixed rate on the electricity generated by our solar panels. Such solar leasing models usually last for 10, 15 years, or more, and can provide a viable way for SMEs to benefit from renewable energy. It also helps that our factories have large, flat roofs, which are also attractive locations for companies like Sembcorp to install and operate the panels. 

Rob: For other energy efficiency projects, it was also important not to just focus on the upfront cost, but also to build a business case around the payback period, and the ongoing savings for the business. We were also able to receive grants like the E2F, and advice from NEA, which helped us find ways to reduce some of our costs.

Q: Do you have any advice for fellow SMEs, especially in similar industries, on how they can reduce their carbon footprint?

Rob: Tons! For us, these are: 

Change: 

• A lot is about changing mindsets and behaviour, which requires a company-wide effort.– we had a strong commitment from our CEO, Amy, in driving culture change. 
• Job redesign: We created a new team, including energy managers, and redesigned roles so that staff’s KPIs are linked to sustainability.
• Encouraging staff who have a natural interest helps create momentum, as does making everyone aware of how much energy they are actually consuming.

Training: 

• Upgrade teams’ skills; leverage on courses by the NEA and GCNS.
• While courses help with the basics, staff should also have on-the-job training to learn by doing.

Infrastructure investments: 

• Pilot your solutions in small projects, and learn along the way to improve on the next project.
• With the strong direction from the Government in moving to Net Zero, you can work with the NEA in your energy-efficiency projects.
• Digitize and digitalise: for example, instead of SP reading your utilities meter monthly, you can install meters that can track consumption in real time. This will allow you to do things faster, and potentially enable you to automate your processes.

As a business, energy consumption usually forms a big part of a company’s carbon footprint. If your company is looking to go green, switching to renewable energy is a great way to start.

In Singapore, companies are increasingly opting for Solar Energy to cut down on their carbon emissions. Check out these 3 broad solar energy plans that you can consider for your business.

1. Solar Leasing or Solar Power Purchasing Agreement (PPA) Plans

How they work: 

• ‘Solar as a service’: The solar developer owns, operates and maintains the solar panels on your rooftop, and you pay for the electricity generated monthly. 
• Zero capital cost and enables you to purchase electricity at fixed (usually discounted) rates. 
• Solar leasing plans can range from at least 5 to more than 20 years.

[Source: Solar AI Technologies]

Suitable for:

• Building and property owners with enough roof space (usually around 2,500 sqm) to install the solar panels 
• Did you know? If you are a JTC lessee, you can tap on JTC’s SolarRoof programme to adopt solar leasing. 

Benefits: 

• Low capital expenditure 
• Savings in your electricity bills
• Stable electricity price 

Find out more here. 

2. Solar Electricity Plans

How they work: 

• These plans include electricity that is either a certain % or 100% generated from solar panels installed elsewhere in Singapore. 
• When the electricity generated from these external panels (‘green electricity’) are exported into the grid, it is mixed with electricity generated from fossil fuels (‘brown electricity’) –  this makes it physically hard to differentiate between ‘green’ and ‘brown’ electricity. 
• Hence, solar electricity plans make use of renewable energy certificates (RECs), which certify that for every 1 MWh of solar-generated electricity exported to the grid, 1 REC is generated. 
• When a company buys the RECs (which are included in the solar electricity plan), they can then claim that the electricity they buy is from renewable sources. 

[Source: 8 Billion Trees]

Suitable for: 

• Office tenants and companies who don’t own the property they operate in. 

Benefits: 

• Relatively easy to switch to solar electricity plans 
• Convenient way to support the purchase of solar-generated electricity

Find out more here.

3. Direct Purchase

How it works: 

• You’ll pay for installing and maintaining the solar panels, and this model allows you to own the solar PV system 

Suitable for: 

• Building or property owners who have sufficient roof space 

Benefits: 

• Usually provides the most savings compared to the above 2 options in the long run → the electricity generated from your panels is free! 

Find out more here. 

Need help in reducing your carbon footprint? Reach out to us at cplcsg@unglobalcompact.sg and we can connect you with sustainable solution providers in our GCNS and CPLC community.

“There is enough evidence to demonstrate that business plays a key role in just moving society forward,” said Sanda Ojiambo as she addressed GCNS Members and Prospects during our in-person Open House 2023 that happened on February 7th.

Sanda Ojiambo reminded us that with only seven years left to achieve the 2030 Agenda, the world is not on track despite progress. However, she also empahsised that decisive actions from businesses are imperative in changing that narrative.

The keynote address was followed by an insightful sharing of key issues faced by business leaders and how the UN Global Compact is providing support by Sue Allchurch, Chief of Outreach and Engagement at UNGC.

Here are some highlights from the evening:

• There’s firm belief and evidence that embracing the Ten Principles of the UN Global Compact does lead to a more competitive business over time
   
• The main challenge to business leaders is to balance the short-term priorities and pressures and the long-term sustainable business decisions
   
• The two biggest challenges facing small businesses are the lack of financial resources and lack of knowledge which is why trading knowledge, skills and talent is important for them
   
• The UN Global Compact and its local networks are here to help businesses navigate the complexities of business leadership and build a community so that people can share what they learned and provide business leaders platforms to conduct advocacy as well as to dialogue with the government on to how to move businesses forward
   
• Collectively we have the opportunity to make a great impact on the region and globally toward the SDGs

On the sidelines of Sustainability Week Asia 2023 and in conjunction with the United Nations Global Compact (UNGC), we planned two events to engage with key MNC and SME Participants: The CEO Breakfast and The GCNS in-person Open House.

We were delighted to welcome our Guest of Honour, Sanda Ojiambo, Assistant Secretary-General and CEO of the UN Global Compact who joined us for both the events to amplify the UNGC messaging regarding the Global Stock Take, SDG Movements, and the 12th Annual UN Global Compact-Accenture CEO Study as well as UNGC’s strategy and commitment to the region, along with specific programmes and initiatives that will help local businesses.

This was followed by a fireside chat to discuss insights from the Annual UN Global Compact-Accenture CEO Study by ASG Sanda Ojiambo, Jurgen Coppens, Managing Director and Sustainability Services Lead of Accenture Southeast Asia, and Esther Chang, Executive Director of the UN Global Compact Network Singapore.

Here are some highlights from the fireside chat:

• The UN Global Compact-Accenture CEO Study serves as a call to action for both public and private sector leadership to enable and advance the corporate sustainability movement
   
• The most senior leaders of the organization are responsible for driving the transformation needed by integrating sustainability into business strategy and operations in a manner that supports the long-term viability of the business
   
• As businesses, politics, and geopolitics matters complicate decision-making, companies need to rely on principles more than business models and understanding globally what purpose means for them and their business
   
• In order to thrive in the face of these unprecedented challenges, businesses need to build resilience by building their sustainability capabilities
   
• We all need to collaborate, share best practices, and scale that across globally to meet ambition as no one sector or business alone can address the challenges and meet the 2030 agenda alone

Download the study here for detailed insights from CEOs around the world on sustainability.

On 31 January, UNGCNS held its first in-person event with panel discussions around the takeaways of COP28 and what this means for businesses in Singapore.

The event welcomed Guest-of-Honour Joseph Teo (Chief Negotiator for Climate Change, Ministry of Sustainability and the Environment) who provided an insightful keynote presentation on the COP28 discussions that took place around climate change adaptation and mitigation.

Two plenary sessions, on “The Transition away from fossil fuels and acceleration of renewable energy supply in Singapore” and “The case for greater climate disclosure and transparency to accelerate the journey to net zero emissions” were also held, with speakers having had experience at previous COPs.

In this article, we summarize some of the relevant takeaways from the two plenary sessions:

1. On energy efficiency and renewable energy 

One of the main outcomes of COP28 was the creation of the Global Renewables and Energy Efficiency Pledge, which saw 123 states, including Singapore, signing it. The Pledge called for the tripling of renewable energy capacity and doubling energy efficiency improvements on a global scale by 2030. In Singapore, where fossil fuels still form the major source of energy, promoting energy efficiency is one of the key ways for companies to reduce their emissions. On that note, retrofits to existing buildings and infrastructure would be one way for companies to improve on their energy efficiency. Examples of retrofits include changing to more efficient LED lighting, switching to glazed windows which provide better insulation, and upgrading to more efficient air-conditioning and compressor systems. 

At the same time, it is important for companies to design with energy efficiency in mind, so that their facilities and operations do not have to use as much energy in the first place. Examples include buildings designed to allow more sunlight to stream in which lowers the need for lighting, more green cover, and better insulation which lowers the need for cooling. 

Moving one step further, companies can also plan for integrating energy storage in their operations to enable them to maximise the utilisation of renewable energy for their operations.  Due to Singapore’s climate which can reduce the generation of solar energy, energy storage helps companies cope with the intermittency of renewables, enabling them to tap on the energy stored when the sun is not shining, and in turn save on electricity costs by depending less on the grid. 

2. Companies can facilitate and be part of a Just Transition

The global transition to a low-carbon economy will disrupt traditional emissions-intensive industries such as oil and gas, aviation, maritime, and semiconductors, especially if such industries don’t take steps to operate in a lower-carbon manner. Emerging green industries such as the renewable energy sector will also need talent as they expand to support the growing green economy’s needs. 

With that, companies can seize the global low-carbon transition as an opportunity to pivot their business to support the low-carbon economy. In so doing, they should look at upskilling and reskilling their staff on the relevant sustainability knowledge and skillsets, which would enable them to contribute to the company’s sustainability pivot, as well as enable staff to acquire relevant skillsets in the low-carbon economy. 

In turn, it will be helpful for companies to look at the type of skills they will need to grow their business sustainably, considering the increasing sustainability demands and requirements of their clients, investors, and in the jurisdictions which they operate. Beyond skillsets such as sustainability reporting, and carbon management, transferable skills which staff already apply in their current job scopes, such as project management, will be useful as well. 

3. Harmonisation of climate-related disclosure standards 

Climate change will bring about various risks that negatively affect a company’s financials and this has led to rising expectations by investors for companies to report the risks that climate change will have on their financial performance, as well as their climate transition plans.

Such expectations have led to the development of climate-related disclosure standards such as the Task Force on Climate-Related Financial Disclosures (TCFD) Recommendations and, more recently, the two standards by the International Sustainability Standards Board (ISSB) – the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and IFRS S2 Climate-related Disclosures (IFRS S2). 

It would hence be critical for companies to start thinking about and communicating their climate transition plans should they wish to continue being an investable company. 

At the same time, with the various climate and sustainability-related disclosure standards out there besides those mentioned above, such as the standards by the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB), it can be confusing for companies to know which standards to align with. 

On a positive note, recent efforts have been made to harmonise the ‘alphabet soup’ of sustainability-related disclosure standards. The ISSB’s IFRS Standards seek to become the global baseline of sustainability-related disclosure standards, incorporating both the TCFD Recommendations and SASB Standards. At the same time, the ISSB and GRI have been working together to achieve coordination and interoperability in both their standards. 

In the evolving landscape of climate-related disclosures, companies can look to local regulations as a start. For example, in Singapore, the Sustainability Reporting Advisory Committee (SRAC), an industry-led committee set up by ACRA and SGX, has announced recommendations to require listed companies to start reporting ISSB-aligned climate-related disclosures from FY2025, with the same requirement applied to large non-listed companies from FY2027. 

4. The domino effect of climate-related disclosure requirements 

With the increasing focus on sustainability and climate related risks to inform businesses’ and investors’ decision-making, Singapore has taken proactive steps to gradually make sustainability reporting a requirement for companies in Singapore. 

This includes the latest SRAC’s recommendations to make sustainability reporting a requirement for selected non-listed companies in the near future. With the bracket of companies expected to report their sustainability impacts widening, this will trickle down to smaller companies in the value chain who have to track their own sustainability impacts to serve the sustainability requirements of their bigger clients. This includes reporting of their own scope 1 and scope 2 emissions to feed into the scope 3 emissions reporting by their larger clients. 

This reflects the need for smaller companies to build their capacity in sustainability so they will be prepared to meet the incoming demands by their stakeholders, even if they may not be directly affected by national regulatory requirements yet. 

Besides climate-related disclosures, there has also been increasing calls for companies to look into their impacts on biodiversity, as reflected by the creation of the Taskforce on Nature-related Financial Disclosures (TNFD) Recommendations. The TNFD aims for companies to report on the risks and opportunities associated with nature-related risks such as biodiversity loss and ecosystem degradation. While this may be relatively new to companies given that reporting on nature-related risks has not been a common practice, the TNFD Recommendations should be slightly more accessible to companies, as the TNFD builds on the TCFD model which is already relatively familiar to companies. 

Overall, sustainability and climate-related disclosures are a means for companies to continually look at aligning long-term business growth with sustainable development. Companies can look to the requirements and demands from their various stakeholders (government, customers, investors etc.) as they craft and refine their sustainability policies and in turn, business strategies. 

The topic of sustainability is becoming ever-more pertinent and is increasingly being discussed at government, corporate, and even household levels. Naturally, it is nearly impossible to talk about sustainability without mentioning carbon emissions. It seems that there are almost daily reports published that include terms like “carbon markets,” “carbon credits,” and “carbon tax” – but what do all these terms mean? Our CPLC Partner, ACT Commodities, sheds light on these terms and explores the implications of these discussions on Southeast Asia as well as the carbon management journeys of organisations across the region.

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