Sustainability platform CO2X inks MOU with key industry players

SUSTAINABILITY-linked company CO2X, a joint venture by 3 home-grown technology companies - Ascent Solutions, Evercomm Singapore and Hashstacs - signed a memorandum of understanding (MOU) with industry and association leaders from the transport and logistics, as well as finance sectors, on Friday (Oct 15).

The transport and logistics sector contributes 14.8 per cent of Singapore's carbon emissions and is the third-largest pollution contributing sector in the nation, CO2X noted in a press statement on the same day.

As such, the sustainability platform announced that it has strategically chosen to test its beta version in November 2021 with key industry partners such as Bok Seng, Chuan Lim Construction, CWT, EVFY, FoodXervices and Tiong Seng.

CO2X has already garnered more than 10 partners including 2 banks, 1 insurer, 3 associations, as well as support from the Monetary Authority of Singapore (MAS) and Enterprise Singapore.

CO2X said that the MOU signals the commitment to jointly develop a platform that will provide local small and medium-sized enterprises (SMEs) with accessible carbon tracking solutions and green financial services through a data-driven approach.

Leveraging the sustainability platform, companies are able to track their carbon footprint to achieve benchmarking and devise data-driven emission reduction strategies that in turn help reduce the fuel and energy costs of doing business. Additionally, these companies can also use the data and reports by the platform to undergo green certification against international standards, CO2X highlighted.

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With the support of financial service providers like OCBC, UOB and Aviva Singlife, who also joined the MOU signing - the platform also aims to explore attracting green financial services like sustainability-linked loans and insurance products through the issuance of certified carbon avoidance certificates captured on the blockchain, the statement added.

The MOU signing was witnessed by Enterprise Singapore executive director for transport and logistics, Law Chung Ming, and MAS executive director (green fintech), fintech and innovation group, Kwok Quek Sin.

Sustainability is an increasingly important strategy for all companies to stay competitive today, pointed out chairman and co-founder of CO2X, and the chief executive officer (CEO) of Ascent, Lim Chee Kean.

"Our inclusive platform will lower the barriers for SMEs to incorporate sustainability practices and bridge the gap between businesses and financial services in a data-driven approach," said Lim.

Oh Bee Lock, CEO of Singapore Logistics Association, commented that as the global economy emerges from Covid-19, governments and businesses need to shift to be more environmentally responsible.

"This transition to decarbonisation will also reconfigure the way global supply chains are organised and executed. Logistics service providers therefore have to stay up-to-date on climate policies and develop capabilities to comply with new sustainability measurements and emission reduction," he added.

Chairwoman of Singapore Transport Association (STA) and CEO of West Street Carrier, Cherie Goh, said: "STA recognises the importance of these developments but is determined to adopt sustainable development strategies to address the risk of this global crisis through an introduction of events, courses, sustainable best practices, policies and technology to encourage businesses towards building a sustainable future."

President of Container Depot and Logistics Association (Singapore) (CDAS), and CEO of Wing Seng Logistics, Peter Ho, said: "CDAS is proud to be supporting Singapore's Green Plan road map to reduce carbon emissions in the industry, and will support efforts to reduce its carbon footprint through automation, digitalisation, smart technology, as well as exploration of alternative fuels."

For more of our SWITCH 2021 coverage, go to bt.sg/switch21