AS A trained engineer with more than two decades of experience, Jeffrey Sim has a better idea than most corporate chieftains of what can or can’t be done in the name of sustainability.
The group chief executive of listed rail and bus services operator SBS Transit began his career in the Republic of Singapore Air Force, joining SBS Transit in 2015.
Since then, he has led engineering departments in various roles and headed the rail business – all positions that have given him the hands-on experience necessary to assess possibilities and opportunities.
He took on the position of chief executive in January 2023, and has put that experience to use in the integration of environmental, social and governance (ESG) considerations into operations, as well as in the purchase and development of new technologies.
“Our approach is that in embedding climate-related risks and opportunities into our long-term planning process, we are better poised to create a more sustainable and resilient public transport system,” said Sim.
For championing environmental stewardship and corporate sustainability at the public transport operator, he clinched the Impact Leader Excellence Award in the individual category at the 2024 Sustainability Impact Awards organised by The Business Times and UOB.
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SBS Transit, which clocks more than three million passenger trips daily, is committed to achieving net-zero targets by 2050, and has implemented several strategies to reduce its environmental impact.
For instance, it has optimised the chilled-water system in the Downtown Line through adjustments to the temperature settings. This resulted in annual savings of 1,800 MWh.
The system cools the station by circulating chilled water through the fan coil unit. Warm air drawn from the surroundings passes through the chilled water where it is cooled, and then is released back into the environment.
“We are focused on improving the energy and water efficiency of our buildings and infrastructure, expanding solar photovoltaic deployment, supporting the electrification of our bus fleet, and leveraging new technologies to enhance operational efficiency,” said Sim.
He isn’t stopping there. “While most of our ESG annual targets have been met, the company has identified waste reduction as a key area that we can do more in,” he said.
To ensure alignment of interest, he raised the portion of senior management compensation linked to ESG performance targets to 25 per cent in 2023, from 20 per cent the year before.
Harnessing collaborative strengths
Sim is a big believer in tapping the expertise of others to achieve more. SBS Transit has actively fostered partnerships with industry players and stakeholders to drive innovation and set new standards for sustainability, both in Singapore and internationally.
The group has worked with French train maker Alstom to test the use of artificial intelligence in the optimisation of train schedules. The intent is to maximise the capture of regenerative braking energy from arriving trains to power departing trains.
This technology potentially cuts energy consumption by up to 3,000 MWh for SBS Transit’s entire fleet, which is enough to power 750 four-room HDB flats for a year. It is being trialled on the North East Line, and will be extended to the Downtown Line by end-2024.
SBS Transit also set a new industry benchmark by implementing a condition monitoring system for key components across its fleet of 3,500 buses.
“This improves their efficiency and life cycle, and reduces waste by not replacing bus parts if they are still in working condition,” said Sim. The system was developed by Portuguese predictive fleet-maintenance platform solutions provider Stratio Automotive.
A trial is also ongoing to retread the tyres of the company’s buses three times, up from the current two.
In collaboration with Enterprise Singapore, SBS Transit set up the Mobility Innovation Centre in 2023 to bring together small and medium-sized enterprises, startups, industry experts, academics, government agencies and other stakeholders to tackle challenges and co-create solutions for the public transport industry.
The cents behind sustainability
SBS Transit allocates a portion of its budget annually to achieve ESG targets set across business units and departments. Money is also set aside to reward staff for their contributions to ESG projects and encourage idea generation.
“Funding for these initiatives primarily comes from SBS Transit’s own resources, supplemented by government grants where relevant, to maximise impact and efficiency,” Sim said.
The company considers both tangible and intangible benefits before implementing sustainability measures, he added.
Tangible benefits include reduced operational costs, and enhanced energy and resource efficiency; intangible benefits include improved employee engagement and enhanced competitive advantages.
Other factors the company considers are the potential return on investment – factoring in capital costs and long-term savings – and the alignment of the initiative with its overall sustainability objectives and targets.
The group also evaluates the potential risks and challenges associated with implementation, including technical feasibility and regulatory compliance.
Sim concedes that implementing sustainability measures “may conflict with other business goals, such as short-term profitability or expansion plans. Balancing these competing priorities can be challenging”.
Employee resistance to change can also be an obstacle, and effective communication and training are crucial to getting employee buy-in.
For instance, when SBS Transit tweaked office temperatures to reduce energy consumption and shut down one lift during off-peak hours at rail depots, staff were informed ahead of time.
Ensuring that sustainability is integrated into the overall business strategy, instead of treating it as a separate or secondary issue, can also be a significant hurdle.
It is therefore important to quantify the benefits of prioritising sustainability, Sim said. “By sharing and demonstrating how sustainability can lead to reduced costs, increased efficiency, revenue generation, and gaining competitive advantage in the long term, this approach helps connect sustainability to our daily operations.”
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