Address at the launch of the Sustainability Alliance - Dr Koh Poh Koon

ADDRESS BY DR KOH POH KOON, SENIOR MINISTER OF STATE FOR SUSTAINABILITY AND THE ENVIRONMENT, AT THE LAUNCH OF THE SUSTAINABILITY ALLIANCE ON 10 OCTOBER 2024

Mr Kho Choon Keng, President, Singapore Chinese Chamber of Commerce and Industry (SCCCI)

Mr Ng Siew Quan, Vice President, SCCCI

Mr Mark Lee, Chairman of the Youth Business & Sustainability Committee, SCCCI

Leaders of Trade Associations and Chambers

Ladies and Gentlemen

1 Good morning. I am delighted to join you today to witness the official launch of the Sustainability Alliance. I also congratulate the Alliance for organising your inaugural forum dedicated to promoting the sustainability agenda to the business community in Singapore.

Changing business climate

2 Climate change is transforming the way businesses operate. At COP28 last year, the world came to a historic agreement to transit away from fossil fuels, triple renewable energy capacity, and double energy efficiency improvements globally by 2030. Moving forward, we can expect Governments to implement more measures to decarbonise their economies, such as the US’s Inflation Reduction Act and the EU Cross Border Adjustment Mechanism. In Singapore, SGX requires all Singapore-listed companies to report and file annual climate-related disclosures from FY 2025, and large non-listed companies to do the same from FY 2027. Last year, the Government announced plans to incorporate environmental sustainability criteria for tenders involving large construction and ICT projects. More companies are also mandating green procurement and supply chains, as investors and consumers place greater value on sustainable products and services.

3 The business case is building up progressively to make it an impetus for companies, big and small, to get on the sustainability journey and understand their own carbon footprint. Climate change related developments not only impact larger companies, but also our SMEs. For example, with more MNCs and corporations committing to reduce greenhouse gas emissions and make climate disclosures, SMEs that wish to do business with them will need to build up their green credentials. Businesses will also need to keep themselves up to date on climate policy requirements in jurisdictions they wish to operate in. SMEs that integrate sustainability into their business models are in a good position to remain competitive, while those that fail to do so risk losing market share.

Support for SMEs in our green transition

4 While more businesses recognise the importance of sustainability, many also face challenges in going green. According to the SBF National Business Survey 2023/2024, the most cited challenge is that of not knowing how to start, followed by the perceived high cost involved in the adoption of sustainability practices and energy-efficient equipment. Many SMEs are concerned that sustainability initiatives will not only reduce profit, but dilute focus on existing business operations. Instead of looking at sustainability measures within your company as a cost, we have to start viewing such measures as an opportunity.

5 The Government is fully aware of these concerns. To help our companies overcome some of these challenges, we have rolled out a range of support measures targeted at different stages of their sustainability journeys. For example:

a. The Energy Efficiency Grant (EEG) announced at Budget 2024 helps businesses transit towards being more energy efficient by co-funding investments in energy-efficient equipment. More sectors including construction, maritime, data centres and their users, will be able to tap on EEG by the end of this year.

b. The Monetary Authority of Singapore (MAS) has launched the Greenprint (Gprnt) digital platform to help SMEs automate their sustainability disclosures. EnterpriseSG will also be partnering sustainability service providers to help SMEs develop their first sustainability reports via the SME Sustainability Reporting Support Programme, which will be launched later this year.

c. To address concerns on increased operating costs, EnterpriseSG has extended the Enterprise Financing Scheme – Green by two years till March 2026 to help local businesses access financing to develop and adopt green technologies to reduce emissions.

Role of the Sustainability Alliance

6 The Government alone cannot drive sustainable development across businesses. Over the years, we have worked closely with trade associations and chambers (TACs) to overcome many challenges, such as the Global Financial Crises, and the more recent COVID-19 pandemic. To effectively decarbonise the Singapore economy, we will require continued strong support from our TACs to bring more SMEs onboard the sustainability movement.

7 Some trade associations have set up their own sustainability committees to look into how they can help members adopt green practices. More businesses could benefit if associations synergise their efforts and facilitate resource and information sharing, so that our SMEs would not be lost in a sea of information that is available out there. In fact, there is no lack of schemes and support measures, but too much information out there, resulting in SMEs not knowing where to get started.

8 This is where the Sustainability Alliance comes in as a unifying force to bring together trade associations to collectively address sustainability challenges. I am heartened that founding members of the Alliance, namely SCCCI, the Sustainable Energy Association of Singapore, and SG Tech, are working together to guide and support Singapore businesses, especially SMEs, in starting their sustainability journey through monitoring their carbon footprint.

9 Today, we will witness 15 more trade associations joining the Alliance. This will strengthen the Alliance’s collective knowledge, resources and reach, and catalyse a multiplier effect on members’ adoption of sustainable practices and technology. As a concrete outcome of this multiplier effect, I am happy to announce that the Alliance will partner the Greenprint digital platform launched by MAS to extend automated reporting to its network of SMEs, to help these businesses get started on basic emissions disclosures. Greenprint, together with Enterprise Singapore, has engaged various industry stakeholders to identify key sustainability data that SMEs across different sectors would require for basic emissions disclosures. This will facilitate SMEs’ automated sustainability disclosures using Greenprint. After taking their first steps, SMEs can further engage the Alliance on navigating the next milestones along their sustainability journeys. With support from EnterpriseSG, the Alliance will be rolling out sustainability training for member trade associations, as well as capacity building programmes to benefit more businesses.

10 The Alliance also plays an important role in aggregating feedback from SMEs on their challenges in going green, to help us better understand how we can better partner and support them. To strengthen their efforts on this front, the Alliance will partner Greenprint to publish the inaugural “SME Sustainability Barometer” in 2025. This annual report will serve as a key platform for TACs, government agencies, and solution providers to engage businesses to better address their immediate needs and strengthen incentive frameworks to encourage more SMEs to get started on sustainability.

Conclusion

11 To conclude, I commend the Sustainability Alliance for your role in driving positive change. As the saying goes, 团结就是力量 (unity is strength). I urge more trade associations to join the Alliance and support its efforts. As long as we work hand-in-hand, I am confident we will be able to overcome all challenges and make great strides in our sustainability journey together, and collectively seize opportunities in the large green market out there for our Singapore businesses.

Thank you.