Launch of the Ernst & Young (EY) Climate Resilience Centre of Excellence - Ms Grace Fu

1. Good morning. It is my pleasure to join you today for the launch of the EY Climate Resilience Centre of Excellence.

Impacts of Climate Change on Businesses

2. As a small, open city-state, our businesses — ranging from large MNCs to homegrown SMEs — are deeply engaged in global supply chains, regional markets, and international financial flows. This openness has been the engine of our prosperity — but it also means that when disruptions strike, our businesses feel the impacts acutely.

3. We witnessed this more recently, when conflicts in the Middle East drove up energy costs and food prices for businesses and households.

4. Today, these disruptions include a changing climate. We saw this unfold across the world this year: Catastrophic floods across Asia damaged valuable business assets and disrupted critical supply chains. Extreme heat events in Europe reduced worker productivity and agricultural yields, shut down power plants, while driving up cooling-related energy costs.

5. These trends are projected to intensify in the decades ahead. Singapore's Third National Climate Change Study (or V3) has projected that Singapore could experience increases in annual mean temperatures of up to 5 degrees Celsius, mean sea level rise of up to 1.15m, and more frequent and severe extreme weather events by end of the century. Similar trends are also projected for the region.

6. For businesses planning investments, managing assets, and building supply chains, these are material risks which cannot be ignored. Building resilience and adapting to climate impacts, are therefore compelling in safeguarding business continuity and competitiveness.

The Role of Businesses in Singapore’s National Adaptation Plan

7. This is why businesses are an integral part of Singapore’s first National Adaptation Plan (or NAP), which will chart out our long-term, adaptive strategy in response to climate change.  We have designated 2026 as the Year of Climate Adaptation, to raise awareness, galvanise collective action, and co-create solutions through the ongoing National Adaptation Conversations.

8. As part of this process, we have been engaging businesses to better understand the risks they face and the support they need, including those who are facing rising sea levels and storm surges. These conversations have reinforced what many of you already know — that the risks are real, the stakes are high, and the urgency to act is there. What businesses now need is the right information, capabilities, and support system to translate plans into action.

9. The Government will support businesses in this transition.

10. The Meteorological Service Singapore has made V3 data publicly accessible through the V3 Data Sharing Portal. Companies can access these projections to better understand the climate risks under future climate scenarios.

11. MAS has also been working closely with financial institutions to strengthen climate risk assessment capabilities through climate scenario analysis and stress testing exercises; and have also issued guidelines in managing climate-related risks.

12. But Government support alone will not be enough.

13. Companies will need to formulate plans to address these climate risks. This involves an assessment of the vulnerabilities in your operations and supply chains, assets and infrastructure; as well as putting in place business continuity plans that include protection of workers, diversification of supply chains, enhancement of asset protection and insurance against climate hazards.

14. Financiers such as banks, insurers and asset managers will need to identify, assess and price climate-related risks better to incentivise investments in resilience.

15. Beyond awareness, businesses will need the capabilities, expertise, financing and solutions to implement climate action.

16. What this calls for is an ecosystem that can bring together climate science, business capabilities, technology and financing, and translate them into practical solutions.

Launch of EY CoE for Climate Resilience

17. Therefore, the launch of the EY Climate Resilience Centre of Excellence is timely.

18. The Centre will help support Singapore and Southeast Asia countries in their climate transition through three interconnected pillars of work:

19. First, it will accelerate climate adaptation by supporting climate risk assessments, adaptation planning and the development of adaptation financing solutions.

20. Second, it will strengthen energy resilience through advancing renewable energy deployment, developing more resilient energy systems and promoting energy efficient solutions.

21. Third, it will support the conservation and restoration of nature and biodiversity, through nature-positive infrastructure, ecosystem restoration, nature risk management and financing for nature-based solutions.

22. To advance these areas of work, the Centre will bring together a wide range of stakeholders - including policymakers, businesses, academia, and investors - to serve as a regional hub for collaboration and knowledge exchange. It will play the critical role of connecting capital, technology and implementation partners in bringing about tangible and scalable outcomes.

23. I commend EY for this initiative. It is a good example of the role that private sector partners can play in fostering partnerships to strengthen capabilities and collective resilience. I encourage everyone here to find out more about the Centre's work during today's sessions, and I look forward to seeing the impact it will make in the years ahead.

Closing

24. In closing, climate resilience is not built by any single actor, nor a single country, but through partnerships and collaborations like the one we are celebrating today. Together, our collective efforts are crucial in shaping a more climate resilient future for Singapore and Southeast Asia, and ultimately, resilience will support all the businesses in Southeast Asia to thrive.

25. Thank you, and I wish you a fruitful session ahead.