Leadership, technology and commitment key to sustainability efforts: Grace Fu

STRONG leadership, harnessing technology and establishing a commitment to finding long-term solutions are key areas in which businesses can contribute to Singapore's journey towards sustainability, said Minister for Sustainability and the Environment Grace Fu.

Speaking at the Association of Chartered Certified Accountants (ACCA) virtual annual conference 2021 on Tuesday, she said that Singapore's business community is important to the country's sustainability efforts.

Operating in a carbon and resource-strapped environment requires making "hard decisions and trade-offs". While the government will lead the way in implementing green initiatives such as the GreenGov.SG together with the public service, professional leaders should also take the lead to transform business practices and inspire others to do so, Ms Fu said.

Leveraging on technology can also aid in transiting to a low-carbon economy, she added. Using data, fintech and artificial intelligence can enhance decision-making, reduce wastage and optimise the use of resources.

Acknowledging the long-drawn nature of climate change, it is important that businesses make a commitment to find long-term solutions to the challenges faced, noted Ms Fu. This could be achieved by pushing for adequate environmental, social and governance processes in organisations, which could have "long-lasting effects" on sustainable practices.

Said Ms Fu: "We need to be resolute in achieving our climate and environmental goals, and bring ideas and resources to bear for decades to come."

Singapore has been ramping up efforts to drive its sustainability goals, including rolling out the Singapore Green Plan 2030. Ms Fu said as more countries transition into a low-carbon future, demand for products and services that meet sustainability criteria is set to rise. This necessitates businesses to build their capabilities early.

In her speech, Ms Fu shared that under the green economy pillar of the Green Plan, some measures will be introduced to transform industries to harness sustainability as a competitive advantage.

An Enterprise Sustainability Programme to help small and medium enterprises, along with other enterprises, will be introduced to help them embrace sustainability. Additionally, innovation will be promoted under the Research, Innovation and Enterprise 2025 to develop sustainability solutions in segments including carbon capture and low-carbon fuel for maritime and aviation.

Green finance will also be a key driver of green growth, added Ms Fu. Outlining the various measures set out to boost Singapore's green finance market, she said the Monetary Authority of Singapore has been driving the Green Finance Action Plan. This includes establishing a US$2 billion green investments programme to finance green solutions and set up environmental risk management guidelines across the banking, insurance, and asset management sectors.

"Along with all these new growth areas in green products and services, a new demand for measurement and reporting, management and mitigation of sustainability footprints will surface and rest on the shoulders of many of you present today," added Ms Fu.

A report released by ACCA, the Singapore Accountancy Commission and Shanghai National Accounting Institute revealed that due to the pandemic, demand for non-regulated services is seeing continued growth. This is fuelled by technological advancements and globalisation, among other factors. The service that saw the highest demand from professional accountants was in the IT advisory category, including services related to digital transformations for businesses. The category in least demand was sustainability and climate change.