“Regulations are evolving rapidly, and for businesses, it’s never too early to move towards sustainability. Better late than never.”
Professor Lawrence Loh, Director of the Centre for Governance and Sustainability at the National University of Singapore Business School, recently shared his views on the importance of businesses moving towards more sustainable development.
SMEs Accelerate Sustainable Development Progress
“More and more consumers and investors are demanding that businesses pay attention to sustainability and integrate it into their operations. There is an accelerating sign of progress in sustainable development among SMEs recently.” – Professor Lawrence Loh, Director of the Centre for Governance and Sustainability at the National University of Singapore Business School
Despite this, some SMEs do not know how to take the first step.
A national business survey by the Singapore Business Federation (SBF) in early January 2023/2024 showed that 41% of businesses are unclear about what to do or where to start to make their companies more sustainable.
The UOB 2024 Business Outlook survey report also shows that 74% of businesses consider sustainability crucial. However, businesses face many challenges and obstacles when adopting sustainable practices, including increased costs of products and services provided to end customers (29%), a lack of knowledge in identifying and implementing the right measures for the company (28%), and a lack of human resources (26%).
Yoon Young Kim, Cluster President for Singapore and Brunei at Schneider Electric, said that since the company announced the “SME Decarbonization Starter Program” locally at the end of 2022, nearly 60 SMEs have participated in the program.
“The interest in this program from SMEs has been growing, so we are also actively exploring various opportunities to allow more SMEs to benefit, reflecting our relentless efforts to promote sustainable development practices in the business community,” said Yoon Young Kim.
The “SME Decarbonization Starter Program,” supported by Enterprise Singapore, is a three-year mentorship program that helps SMEs start their sustainability journey and master decarbonization capabilities through workshops and training provided by multinational corporations like Schneider Electric. This program is part of the Enterprise Sustainability Programme launched by the government in October 2021.
Various Factors Drive Businesses to Embark on Decarbonization
Professor Lawrence Loh points out that the sustainable development of SMEs is not for their own sake but because they provide products and services to other companies, especially larger companies. Thus, if SMEs serve global markets such as the European Union, they must be suppliers that meet sustainability criteria. After all, these SMEs must disclose their sustainability status, especially their carbon footprint, in their business transactions.
“Businesses participating in the ‘SME Decarbonization Starter Program’ are generally just starting their sustainable development journey. They realize that the green economy is expanding and hope to learn the skills needed in the decarbonization process and take this opportunity to attract large multinational listed companies to cooperate with them,” said Yoon Young Kim.
Yoon Young Kim noted that businesses participating in the “SME Decarbonization Starter Program” are generally just starting their sustainable development journey. They are aware that the green economy is expanding and hope to learn the necessary skills during the decarbonization process, taking this opportunity to attract large multinational listed companies to collaborate with them. These listed companies often have “Scope 3 emissions” considerations, which include all other indirect emissions from a company’s value chain, so they look for more environmentally friendly SMEs as partners.
Rasel Catering’s Creative Director, Chris Low, said the company is committed to maintaining its leadership position in sustainable development in the catering supply field, and this motivation “has always been strong.”
Enterprises’ Active Pursuit of Sustainable Development Gains Recognition from Partners and Customers
Rasel Catering is continuously improving and adapting on its journey towards sustainability. It has voluntarily adopted a multi-faceted approach – significantly reducing food waste, sourcing more sustainable ingredients, and implementing eco-friendly operational practices, such as installing machines and establishing a food waste processing system within the company.
After food scraps are put into the machine, the device’s proprietary active oxygen technology reduces the net weight of the food by up to 80% and turns it into a safe and harmless substrate. This substrate is then transformed into protein-rich feed through microbial protein cultivation for animal and aquaculture farming, eventually returning to the dining table. This action seamlessly integrates food recycling into the food production ecosystem, reducing waste sent to incinerators and landfills, and lowering the demand for new natural resources in food production.
“The company’s commitment and efforts towards sustainable development have won the praise and favor of more and more customers; whether for the company’s business or the environment, it has brought positive impacts,” – said Chris Low.
Similarly, Yoon Young Kim found that SMEs that successfully benefit from the “SME Decarbonization Starter Program” share common traits, including strong adaptability, a commitment to sustainability, and forward-thinking. It is reported that one of the participating companies, Seng Heng Engineering, has begun to see some results on the decarbonization path by making cost-saving modifications to its existing air conditioning and lighting systems that are easy to implement.
Too Many Concerns Make Businesses Hesitate to Move Forward
“Many SMEs worry that adopting energy efficiency programs will increase costs and blur the focus of their existing operations. Finding energy efficiency solutions that suit operational needs and offer the best return on investment (ROI) is also a significant challenge for SMEs,” – said bbp CEO Hoe Boon Chye.
Hoe Boon Chye, CEO of energy efficiency company bbp, mentioned the main issues SMEs face regarding energy efficiency. He says that many SMEs worry that adopting energy efficiency programs will increase costs and blur the focus of their existing operations. Finding energy efficiency solutions that suit operational needs and offer the best ROI is also a significant challenge for SMEs.
As a result, some businesses may spend a lot of time contemplating how to start their sustainable journey or even choose to ignore the issue by focusing on their existing operations.
In such cases, Hoe Boon Chye advises businesses to focus on the immediate benefits instead of drafting a perfect plan in their minds. It’s better to start with easily achievable tasks to stimulate positive momentum and pave the way for more actions.
For businesses at the other end of the spectrum that choose to “conduct business as usual” – solving energy efficiency issues in more traditional ways (replacing old with new, using newer and more energy-efficient equipment) – Hoe Boon Chye suggests considering mature energy efficiency technologies to shorten the ROI period. Alternatively, outsourcing energy efficiency to capable solution providers through performance-based models, such as sharing the cost savings, could align mutual interests.
Implementing Sustainability Is Not About Making Big Moves
Hoe Boon Chye believes that for SMEs with limited funds and resources, signing performance-based energy efficiency contracts with proven solution providers might be the best option and a game-changer.
Performance-based business models eliminate SMEs’ concerns about funding, allowing them to see ROI from day one, focus on their core competencies, and allocate the saved funds to other energy efficiency projects or core business activities.
“I often encourage businesses to start small, not big, when adopting low-carbon operational practices, such as digitalization and supporting the use of more energy-efficient products, to reduce long-term business costs. Businesses often don’t even track their carbon footprint; it’s hard to reduce what you don’t know,” said Seastainable Co. founder Samantha Thian.
Samantha Thian, founder of the social enterprise Seastainable Co., said she often encourages businesses to start small, not big, when adopting low-carbon operational practices, such as digitalization and supporting the use of more energy-efficient products, to reduce long-term business costs. “Businesses often don’t even track their carbon footprint; it’s hard to reduce what you don’t know.”
She advises SMEs to follow the principles of Scope 1, Scope 2, and Scope 3 greenhouse gas emissions, starting with employees and services, tracking their companies’ impact, setting achievable goals, conducting annual reviews for sustainability, and encouraging employees to take responsibility for reducing their environmental impact.
For multinational companies, she recommends including sustainability goals in the leadership team’s performance indicators (KPIs) and offering bonuses for achieving sustainability goals, linked to a portion of the company’s dividends.
The New Budget Increases Support for the Green Economy Transition
To address our country’s challenges in sustainability while supporting businesses in pursuing a greener future, the Singapore government announced increased financing for green initiatives, enhanced support for energy efficiency, and additional measures to accelerate our country’s transformation pace during the announcement of the FY2024 budget. The Ministry of Trade and Industry also made related announcements and explanations during the recent Parliamentary Committee of Supply debates. These measures include:
- Strengthening the energy-saving subsidy program: The program will cover more industry sectors, not just the initial food service, food manufacturing, and retail sectors. Now, manufacturers, construction, maritime, and data center operators investing in energy-saving equipment can also enjoy up to 70% subsidies.
- Expanding the Enterprise Financing Scheme: Green Loans will be expanded: From next month (April 1), the scheme will expand its support scope to assist businesses adopting green solutions, not just limited to project developers and solution providers.
- Large enterprises with annual revenues of SGD 100 million or more can receive up to 30% government subsidies for the costs of producing their first sustainability report, with a cap of SGD 150,000 per enterprise. The government will also collaborate with designated sustainability service providers to help SMEs produce their first sustainability report.
SMEs participating in the program can receive a 70% subsidy from the authorities in the first year and a 50% subsidy in the second and third years. This program is expected to be launched by the end of this year and will last for three years. As carbon emission data disclosure becomes more common, although small businesses are not currently required to produce sustainability reports, doing so can help them remain competitive.
Professor Lawrence Loh believes that our country’s current funding for sustainable development is quite in place. Creating sustainable conditions for companies, especially reducing carbon emissions, will be better, such as studying how to attract businesses to participate in the voluntary carbon market through subsidies or rebates.
Unlike traditional mandatory carbon markets, in the voluntary carbon market, companies’ carbon trading goals are not restricted by environmental policy compliance but are voluntarily chosen to reduce carbon emission intensity. The goals of the voluntary carbon market align with global climate plans.
Professor Loh emphasizes that businesses, especially SMEs, must recognize that sustainable development is in their own interest.
Businesses Depend on Each Other for Sustainable Development
As many companies’ supply chains are more intertwined today than ever before, our country can move forward by leveraging the interdependence of sustainability among enterprises.
Professor Lawrence Loh points out that climate transition and decarbonization are new priorities for businesses. Large companies and SMEs can come together, along with financial institutions, to form learning networks and practice communities.
In terms of sustainability, Singapore businesses must unite, especially in participating in the global market, to engage in sustainable development cooperation.
Sustainability Needs to Be Integrated to Perfect Operations
Yoon Young Kim said that the cooperation between SMEs and multinational corporations is crucial because multinational corporations empower SMEs to increase their value as partners and for the global supply chain while pursuing net-zero goals for their supply chains.
Looking forward, he expects investors to favor business ecosystems that promote such cooperation, providing more opportunities for innovation and growth. Environmental, social, and governance (ESG) factors will increasingly become the core of investment decisions.
He emphasized that the “SME Decarbonization Starter Program” highlights the partnership between SMEs and multinational corporations, key to accelerating the Singapore Green Plan 2030.
[This article is presented by the National Climate Change Secretariat]
绿色转型不知从何做起?一则文告诉你中小企业迈出可持续征程的第一步
“条规正在迅速演变,对企业来说,迈向可持续发展永远不会太早。即使迟到,也好过不到。”
新加坡国立大学商学院治理与永续发展研究所所长卢耀群教授日前受访时,就商家迈向更可持续发展之路的重要性,发表了他的看法。
中小企业加速可持续发展进程
“越来越多消费者和投资者会要求商家注重可持续发展,并融入相关的作业方式。中小企业近期在可持续发展的进展,有加速的迹象。”——新加坡国立大学商学院治理与永续发展研究所所长卢耀群教授
卢教授说,越来越多消费者和投资者会要求商家注重可持续发展,并融入相关的作业方式。中小企业近期在可持续发展的进展,有加速的迹象。
尽管如此,一些中小企业并不知道如何迈出第一步。
新加坡工商联合总会(SBF)今年1月初发布的2023/2024年全国商业调查显示,有41%的商家不清楚要怎么做或从何做起,才能够让公司变得更加可持续。
大华银行2024年商业展望调查报告也显示, 有74%的企业认为可持续发展至关重要。不过,企业在采取可持续做法时面对诸多挑战和障碍,包括向最终顾客提供的产品与服务的成本增加(29%)、为公司找出和执行正确举措方面的知识不足(28%),以及缺乏人力资源(26%)。
法国公司施耐德电气(Schneider Electric)新加坡与文莱区域总裁金允荣(56岁)表示,自公司2022年底宣布在本地推出“中小企业脱碳启动计划”以来,参与计划的中小企业近60家。
金允荣说:“对这项计划有兴趣的中小企业有增无减,所以我们也在积极探讨各种机会,好让更多中小企业受惠,从而体现我们在商界促进可持续发展实践上不遗余力。”
“中小企业脱碳启动计划”获新加坡国际企业发展局支持,是个为期三年的导师计划,通过像施耐德电气的跨国集团,以工作坊等培训方式协助中小企业启动可持续发展之旅及掌握脱碳能力。该计划是政府于2021年10月推出的企业可持续发展计划(Enterprise Sustainability Programme)的一部分。
种种因素推动商家开展脱碳之路
卢耀群教授指出,中小企业的可持续发展,实际上并不是为了它们本身,而是因为它们为其他公司尤其是较大型的公司提供产品与服务。因此,如果中小企业服务的对象是全球市场如欧盟,就必须是符合可持续条件的供应商。毕竟,这类中小企业在经商交易过程中,得披露自己的可持续发展状态,特别是碳足迹方面的信息。
“参与‘中小企业脱碳启动计划’的商家一般才刚刚开展自身的可持续发展旅程。它们意识到绿色经济正在扩大,希望在脱碳进程中也让雇员学习所需技能,并借此机会吸引大型跨国上市公司与它们合作。” ——施耐德电气新加坡与文莱区域总裁金允荣
金允荣指出,参与“中小企业脱碳启动计划”的商家一般才刚刚开展自身的可持续发展旅程。它们意识到绿色经济正在扩大,希望在脱碳进程中也让雇员学习所需技能,并借此机会吸引大型跨国上市公司与它们合作。这类上市公司多数有“范围三排放”的考量,即包含企业价值链中产生的所有其他间接排放量,所以会物色较环保的中小企业为伙伴。
中小企业Rasel Catering创意总监罗佩蓉(51岁)说,公司致力于在餐会供应领域保持可持续发展运动领导者的地位,而这股动力“一直都很强”。
企业在可持续发展的积极进取 获伙伴和客户肯定
Rasel Catering在可持续发展之旅,不断地进行改良和适应。它自发地采取多管齐下的运作——显著减少食物浪费、采购更可持续的食材及在营运中推行环保作业方式,如在公司内装置机器,设立食品废物处理系统。
当公司把食物残渣放入机器后,设备专有的活性氧技术会使食物净重减少高达80%,并且变成安全无害的基质。这些基质进而通过微生物蛋白培养转化为富含蛋白质的饲料,用于动物和水产养殖,最后回到餐桌。此举将食品回收无缝地结合到食品生产生态系统中,减少送往焚化厂和垃圾填埋场的废物,同时降低生产食品对新自然资源的需求。
“公司在可持续发展所作的承诺和努力,得到越来越多客户的称许和青睐;无论对公司业务还是环境,都带来正面的影响。”——Rasel Catering创意总监罗佩蓉
罗佩蓉坦言,公司在可持续发展所作的承诺和努力,得到越来越多客户的称许和青睐;无论对公司业务还是环境,都带来正面的影响。
同样地,金允荣发现,能成功从“中小企业脱碳启动计划”中获益的中小企业,共同点包括适应能力强、对可持续发展信守承诺及具有前瞻性的思维。据悉,其中一家参与计划的企业成兴机械(Seng Heng Engineering)在脱碳之路已开始取得一些成果,通过对现有空调和照明系统进行易于实施的改造,节省了成本。
商家顾虑太多反而举步维艰
“许多中小企业担心采纳能源效率计划会提高成本,模糊现有运作的焦点。要找出既适合营运需要又提供最佳投资回报的能源效率方案,对中小企业也是个不小的挑战。”——bbp首席执行官何文财
能源效率公司bbp首席执行官何文财(47岁)谈到中小企业在能源效率面对的主要课题时说,许多中小企业担心采纳能源效率计划会提高成本,模糊现有运作的焦点。要找出既适合营运需要又提供最佳投资回报(ROI)的能源效率方案,对中小企业也是个不小的挑战。
于是,一些商家可能花费大量时间构想如何启动它们的可持续之旅,或甚至以着重现有运作为由,选择避重就轻、不了了之。
在这种情况下,何文财建议商家,与其耗费过多资源草拟心目中完美的计策,不如注重近在眼前的收益,先从可轻松致胜的事项着手,激发公司的正向动力,为展开更多行动铺路。
至于处在另一端、选择“照常营业”——偏向用传统方式(以新换旧,用较新较节省能源的器材替代旧的)解决能源效率问题的商家,何文财说,这些商家不妨考虑善用成熟的能源效率技术,缩短投资回报期;或者把能源效率外包给具有实力的方案供应商,通过绩效模式如共享省下的成本,来协调共同的利益。
落实可持续发展并非一步“做大”
何文财认为,对于资金和资源有限的中小企业,与经过验证的方案供应商签订以绩效为基础的能效合同,可能是最好的选择,也会改变游戏规则。
以绩效为基础的商业模式消除了中小企业对资金的担忧,使得它们从第一天起就能实现投资回报,让它们能专注于本身的核心竞争力,并把节省下来的资金用于其他能效项目或核心业务。
“我经常鼓励商家在采纳低碳作业方式时,从小处而非大处做起,如数码化、支持改用更具能效的产品等来降低长远的商业成本。商家往往连它们的碳足迹都没有追踪,对于不知道的事,就难以减下来。”——海洋可持续公司创办人田思惠
社会企业海洋可持续公司(Seastainable Co.)创办人田思惠(29岁)说,她经常鼓励商家在采纳低碳作业方式时,从小处而非大处做起,如数码化、支持改用更具能效的产品等来降低长远的商业成本。“商家往往连它们的碳足迹都没有追踪,对于不知道的事,就难以减下来。”
她建议中小企业遵循温室气体排放范围一、范围二和范围三的原则,从雇员和服务开始,追踪各自公司的影响,以及设定可达到的目标,并为可持续发展进行常年检讨,鼓励雇员为减少对环境的影响负责。
至于跨国公司,她推荐把可持续目标加进领导层的绩效指标(KPI),且为实现可持续发展目标提供奖励金,与公司一部分的分红挂钩。
新预算案加大对绿色经济转型的支持
为了应对我国在可持续发展方面的挑战,同时支持企业追求更加绿色的未来,新加坡政府公布2024财年预算案时宣布为绿色方案增加融资,加强能源效率方面的支持以及一些旨在加快我国转型步伐的额外措施,贸工部在刚过去的国会拨款委员会辩论中也做出相关宣布和说明。这些措施包括:
- 加强节能津贴计划:该计划将涵盖更多行业领域,除了最初的食品服务、食品制造和零售领域,如今制造、建筑、海事和数据中心业者投资于节能器材配备时也能享有高达70%的补助。
- 扩大企业融资计划—绿色贷款将扩大:从下个月(4月1日)起,该计划将扩大支持范围,扶持采纳绿色方案的商家,而不再仅限于项目开发商和方案供应商。
- 年营1亿元及以上的大型企业制定第一份可持续发展报告时,费用可获政府最高30%补助,每家企业顶限为15万元。
政府也会与指定可持续发展服务商合作,帮助中小企业制定首份可持续发展报告。
中小企业参与计划第一年可获得当局补助70%费用,第二和第三年则补助50%。这项计划预计今年底推出,为期三年。随着披露碳排放数据变得越来越普遍,尽管小企业目前不被强制要求做可持续发展报告,但这样做能助它们保持竞争力。
卢耀群教授认为,我国目前在可持续发展方面的资助相当到位。为公司创造可持续的条件尤其是减低碳排放,将会更好,如:可以研究如何透过津贴或回扣,吸引商家参与自愿碳市场。
与传统的强制碳市场不同,在自愿碳市场,企业的碳交易目标不受环境政策的合规限制,而是自主选择降低碳排放强度。自愿碳市场的目标和全球气候计划保持一致。
卢教授强调,企业尤其是中小企业必须认识到,可持续发展符合它们的自身利益。
商家在可持续发展方面相互依存
由于多家公司现今的供应链比以往任何时候都还要交织在一起,我国可利用企业间可持续发展的相互依存关系向前迈进。
卢耀群教授指出,气候转型和脱碳是商家新的优先事项。大公司和中小企业可以联合起来,加上金融机构,形成学习网络和实践社区。
在可持续发展方面,新加坡企业必须团结一致,尤其是在参与全球市场方面,进行可持续发展合作。
可持续性贯彻才能完善操作
金允荣说,中小企业与跨国企业的合作至关重要,因为跨国企业在追求供应链净零目标的同时,也赋予中小企业权力,以提高它们为合作伙伴和全球供应链增加的价值。
展望未来,他预计投资者将更倾向于促进这类合作的商业生态系统,从而为创新和增长提供更多机会。环境、社会和治理因素将日益成为投资决策的核心。
他强调,“中小企业脱碳启动计划”凸显了中小企业和跨国企业之间的合作伙伴关系,是加快2030年新加坡绿色发展蓝图的关键。”
【本文由国家气候变化秘书处呈献】