Companies will be getting more help in reporting their carbon emissions more accurately, announced Minister for Sustainability and the Environment and the Minister-in-charge of Trade Relations Grace Fu.
Fu was speaking at Ecosperity Week 2024, the 10th edition of an annual conference hosted by Temasek on Monday (Apr. 15).
Companies need to understand their carbon footprint
Fu said that it is "important" to help Singapore's businesses understand and measure their carbon footprint, as well as to integrate sustainability into their management frameworks systematically.
"One way to do so is through climate reporting, by requiring companies to disclose climate-related data, such as carbon emissions, we can increase market transparency and empower businesses to take greater ownership of their sustainability policies."
In addition, this data will also help consumers, investors and financiers to make more informed choices in their purchases and investments, which would direct finance to businesses with strong sustainability practices, Fu added.
Singapore will require all listed issuers to make climate related disclosures from the financial year 2025.
Large non-listed companies will also need to do so from the financial year 2027. The disclosures will be aligned with the standards set by the International Sustainability Standards Board.
A new registry set up
To help local businesses track and report emissions more easily and accurately, a registry that is reflective of local conditions will be set up.
The Singapore Emission Factors Registry (SEFR) will be established by the Singapore Business Federation (SBF), in partnership with the Agency for Science, Technology and Research (A*STAR), PwC and Singtel.
It is also supported by the Ministry of Trade and Industry (MTI) and the Ministry for Sustainability and the Environment (MSE).
The idea of the registry emerged from a Forward Singapore conversation in 2022, revealed Fu.
Companies had shared their difficulties in reporting Scope 3 emissions, which are indirect emissions produced by a business' operations such as business travel, commuting, investments and waste disposal.
According to PwC, these emissions make up 65 to 95 per cent of most companies' carbon footprint.
How it works
The registry will consist of a database of emission factors tailored to Singapore’s context.
These emission factors act as conversion rates, translating various business activities into corresponding greenhouse gas emissions.
This includes emission factors related to transportation, water, general waste, and energy, said SBF in a press release.
Currently, most Singapore businesses make use of emission factors from international sources when it comes to reporting for Scope 3 emissions.
The localised emission factors provided by the registry will help Singapore-based businesses to track and report their emissions more accurately.
The project will be developed in phases, with the first phase ready by the end of 2024.
Fu said that the registry will not only help businesses meet their climate reporting needs, but also save time and effort.
Ultimately, it will "empower" them to make more informed sustainability decisions based on this data.
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Top images via Ecosperity.