A recent study by Schneider Electric, the global leader in energy management and automation, reveals that a majority of Singaporean businesses are falling short in engaging their supply chain partners to calculate total greenhouse gas emissions (GHG).
Nearly two-thirds (63%) of business leaders indicate they have not fully measured or analyzed these emissions. A key barrier highlighted is the lack of appropriate technology, with less than half (44%) of business leaders stating their companies possess all the necessary tools, technologies, and infrastructure to easily measure and analyze their organization’s supply chain carbon footprint.
This perception varies across sectors, roles, and seniority levels. For instance, 58% of board members and C-suite executives indicate this shortfall, compared to only 25% of senior managers.
Similarly, those in general management roles (55%) are far more likely to indicate this than those focused on supply chain matters (27%).
By industry, Singapore’s real estate sector emerges as the most prepared, with 81% achieving full implementation of the required technology, tools, and infrastructure, while engineering and education sectors lag significantly at only 13%.
The findings are based on a March 2024 survey of over 500 senior business leaders in Singapore, responsible for leading sustainability strategies in their organizations.
They encompass board members, C-suite executives, directors, and senior managers from small, medium, and large multinational corporations (MNCs) across various industries.
Despite gaps in supply chain emissions data, the study finds that Singaporean businesses are taking steps to green their supply chains. For instance, 63% are altering transportation and/or distribution routes, 55% are imposing increased requirements on suppliers, and 47% are switching suppliers altogether.
To address the challenges faced, particularly by small and medium-sized enterprises (SMEs), businesses are providing financial incentives (81%), access to expertise (74%), and training (28%) to assist suppliers in lowering supply chain emissions.
The study also highlights the positive reception among Singaporean businesses to stronger government support, as announced by Deputy Prime Minister Lawrence Wong in Budget 2024, aimed at accelerating sustainability goals and green supply chains.
Notably, 92% of organizations view the enhanced Partnership for Capability Transformation (PACT) scheme positively, while 90% believe it will incentivize businesses to adopt more energy-efficient practices. Additionally, 94% of eligible businesses intend to apply for it.
Furthermore, the expanded Enterprise Financing Scheme – Green (EFS-Green) scheme is expected to provide crucial support for adopting green solutions, with 97% of surveyed organizations likely to apply for it.
Yoon Young KIM, Cluster President at Schneider Electric, Singapore and Brunei, emphasized the need to address the technology and infrastructure gap in measuring and managing supply chain emissions as part of Singapore’s green journey.
Increased cooperation between public and private sector stakeholders is necessary to ensure the impact on small businesses can be managed effectively and wider economic consequences can be avoided. KIM also expressed satisfaction with the positive reaction to the recently enhanced government measures in this area.
