The first cut is the deepest, but in Scope 3, multiple cuts will be needed

I refer to the article “A closer look at Singtel’s greenhouse gas emissions” (The Business Times, Jul 8). I commend BT for reviewing our latest Singtel Group Sustainability Report 2024. Companies need to expect this level of scrutiny from stakeholders given the importance of transparency in ESG (environmental, social, and governance).

The Singtel Group has always had the practice of aligning disclosures with global standards, science-based targets and explained methodologies. We have obtained external assurance on our key ESG metrics for the last 10 years, including Scope 3 data for the past three years. As with previous years, the external assurance that our auditor EY performed on the 2024 report included our Scope 3 calculation methodology and numbers and its alignment to the Global Reporting Initiative, which is the most widely adopted standard among Singapore-listed companies.

Scope 3 accounting efforts

As Scope 3 emissions occur in the value chain of a reporting company, they are referred to as “indirect emissions”. A collective and concerted approach from all parties across the value chain is needed to deliver improvements, and this is not an overnight journey. A recent survey on Scope 3 by Greenhouse Gas (GHG) Protocol – which provides standards, guidance and tools for business and government to measure and manage climate-warming emissions – highlighted that data collection remains one of the main challenges for Scope 3 accounting. Many respondents found the lack of supplier-specific emissions data and “paywalled” life-cycle inventory emission factor databases to be major hurdles for market-wide adoption.