A Greenprint for Singapore, Part 2: Laying the Foundations for a National Sustainability Utility

 

This panel addressed the development of sustainability initiatives in Singapore, exploring the progress, challenges, and the ecosystem's engagement in building a national sustainability utility. The discussion revolved around how businesses, from large corporates to SMEs, are navigating the sustainability landscape and how technology and financial support can accelerate their journey toward decarbonization and ESG alignment. 

Key Themes and Insights: 

Sustainability Journey and Progress: 
  • The evolution of sustainability in real estate. Today, Singapore is relatively advanced, with strong regulatory backing from the Building and Construction Authority (BCA) and other policy drivers. 

Progress Bar: 
  • It is estimated that Singapore’s built environment sector is about 60-70% toward achieving sustainability targets, with much progress in new developments and green financing. 
  • Regulatory and Reporting Frameworks: 
  • Evolving sustainability reporting landscape in Singapore. SGX has introduced mandatory climate-related disclosures aligned with the ISSB and TCFD frameworks, with new requirements coming into effect between 2025 and 2026. 
  • The SGX’s ESGenome platform helps listed companies streamline their sustainability reporting, but adoption remains a challenge, especially for smaller entities. 


Challenges Facing SMEs: 

  • The need to engage SMEs, which represent over 95% of businesses and are crucial for decarbonization efforts. Programs like Low Carbon SG help SMEs track and reduce emissions, but barriers such as lack of resources, knowledge, and manpower persist. 
  • Many SMEs understand the importance of sustainability but lack the capacity to act. UOB’s SAGE (Sustainability Linked Financing) program and green financing solutions aim to bridge this gap, while government grants and support schemes also play a crucial role. 
  • Adoption and Engagement Strategies: 
  • SMEs are often driven to act on sustainability when pressured by major customers or regulations. A combination of government mandates and supply chain requirements can drive significant progress. 
  • CDL’s experience with the Queen Bee program, which aims to decarbonise the supply chain by engaging and supporting SMEs. Despite initial resistance, persistent engagement and tailored solutions have helped onboard more SMEs. 


Technology as an Enabler: 

  • The panellists emphasised the role of technology in easing sustainability reporting and data tracking. Tools like ESGpedia and digital platforms provide SMEs with accessible ways to manage and report their carbon footprint. 
  • The importance of consistent, comparable ESG data, which can be enabled by harmonised reporting standards and digital solutions. 


Ecosystem Approach: 
The conversation emphasised that sustainability requires a collaborative, ecosystem-wide approach involving government agencies, corporates, SMEs, financial institutions, and technology providers. 
Aligning national priorities with industry-specific decarbonization goals can drive more targeted and effective action. 

Conclusion: 
Building a national sustainability utility for Singapore is a complex and ongoing process that requires collaboration across various sectors. While technology and financial incentives are crucial, engagement and education remain key to driving adoption, especially among SMEs. The panellists emphasised the importance of persistence, collaboration, and a focus on tangible outcomes to achieve Singapore’s sustainability goals. 

 

Speakers:

  • Adrian Ow, Managing Director, Head of ESG Solutions, Group Wholesale Banking, United Overseas Bank
  • Emelia Tan, Director, Research & FinLit, SGX Group
  • Esther Chang, Executive Director, UN Global Compact Network Singapore
  • Esther An, Chief Sustainability Officer, City Developments Limited

 

Moderator:

  • Lionel Wong, Head, Green FinTech Office, Monetary Authority of Singapore

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