THE ongoing climate emergency still prevails, and climate change can no longer be dismissed as a remote threat. In the recent report from the United Nation (UN)'s Intergovernmental Panel on Climate Change (IPCC), the world's leading climate scientists made clear that minor, reactive or incremental changes are no longer sufficient to tackle the climate emergency.
In addition, Kaveh Zahedi, deputy executive secretary at the UN Economic and Social Commission for Asia and the Pacific (Escap), recently noted that Asia-Pacific is not on track to achieving any of its sustainability targets by 2030, citing the pandemic having an impact on progress in many areas.
Closer to home, Singapore is not insulated from the impact of climate change. From 1980 to 2020, the annual mean temperature has increased from 26.9 degrees Celsius to 28.0 deg C, and the nation state has seen increasingly intense rainfall in recent years.
Business not as usual: Investing in the planet
In light of this critical situation, this year's Earth Day theme is "Invest in Our Planet", which focuses on the importance of taking action, and how individuals and organisations can make a difference.
As we emerge in recovery from the pandemic, investment flows are already on the uptrend. OECD (Organisation for Economic Co-operation and Development) data shows that global investments in the first half of 2021 reached US$870 billion, exceeding pre-pandemic levels by 43 per cent and more than double those of the second half of 2020.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
But how much of it is going into driving positive environmental and social impacts? Given that our future hinges on our efforts to reduce the effects of climate change, sustain our limited natural resources, as well as coping with the demands of a rapidly growing global population, is investing in the planet not the best option for the future?
A green future is a prosperous future, and this is why governments, industry and individuals need to work together to achieve sustainable solutions for climate change and pollution. As we reflect on this year's Earth Day, companies of all sizes need to take action and embrace the benefits of a green economy, and for business leaders to get on board with a sustainable future approach.
Invest in resource efficiency
One of the most crucial areas to address is tackling our energy and water efficiencies, both of which are core to the functioning of industries, municipalities, and buildings. In our increasingly industrialised and populated world, our water and energy usage continue to skyrocket, amid our limited resources.
Not only that, with fossil fuels being the source of most of the energy produced today, water processes are indirectly responsible for producing large amounts of greenhouse gases, consequently contributing to climate change.
Singapore has taken important steps towards incentivising businesses to be more resource-efficient, such as the Resource Efficiency Grant for Energy, which supports manufacturing facilities and data centres to be more energy-efficient and improve competitiveness. Against the strong support extended by the government, one of the ways businesses can reduce their energy and water consumption is by implementing intelligent, resource-efficient technologies.
With energy, businesses can look to utilise smart technology that regulates supply with demand. Notably, conventional cooling in buildings can be energy-intensive, given the need to move large amounts of water constantly. Intelligent technology today can now intuitively adjust chilled water flow to meet changing cooling demands, ensuring efficient energy use without compromising performance.
Meanwhile, water efficiency can be achieved through improving infrastructure to reduce water loss during the distribution process. A World Bank study puts the global estimate of physical water losses at 32 billion cubic metres each year. Today's smart water management systems can now automatically adjust water flow through the use of remote sensors. As this reduces excessive pressures in water pipes, the risk of water leakages is minimised, in turn mitigating any unnecessary water losses.
Invest in a circular economy
Going beyond resource efficiency, companies also need to look at embedding circular principles throughout their business. Circularity focuses on designing waste out of the resource ecosystem and maximising the value of resources by keeping them in use for as long as possible. Currently, the global supply chain is still driven by the linear economy, where raw materials are processed, used, and then discarded as waste.
However, a linear approach is not sustainable in the long run. If we continue on this path, by 2050, global demand for resources will almost triple to 130 billion tons annually, which would overuse the Earth's capacity by over fourfold. Meanwhile, a circular economy greatly reduces our impact on the environment, with experts noting its potential of reducing 40 per cent of global carbon emissions.
Singapore is well underway with adopting a circular economy approach across the value chain, having launched its Zero Waste Masterplan back in 2019 which charts the government's strategies to build a sustainable, resource-efficient, and climate-resilient Singapore.
To implement circularity comprehensively, it is important that manufacturers ensure it has a place every step of the life cycle, as they have a hand in everything from sourcing raw materials down to delivering the final product.
Solution providers like Grundfos are increasingly integrating circularity by promoting reuse, repair, re-manufacturing, and recycling, notably through recycling and reuse initiatives and implementing take-back programmes.
Water reuse is also a big part of circularity - by ensuring wastewater is effectively treated to a quality that makes it possible to feed back into our water cycles, it allows water to be saved in a time of scarcity. Water treatment solutions now can enable companies to reuse their wastewater, reduce costs, and do their part to ensure that our natural water sources are not unnecessarily exploited.
Invest in greater water access
Last but not least, it is important to invest towards innovation and partnerships that can help people in poor areas and remote communities have better access to clean water. Key sectors like agriculture, industry, and services rely heavily on water, which means improved water access and management can contribute substantially to economic growth.
Investing in water access reaps tremendous economic benefits. Every dollar invested in water access and sanitation yields an average US$6.80 in returns. The World Bank found that failing to implement better water management policies could result in regional gross domestic product losses from 2 to 10 per cent by 2050.
Going from a water-scarce nation to achieving 100 per cent access to improved water sources and modern sanitation in the 1990s, Singapore recognises the importance of water access in uplifting countries and economies, and regularly shares its experiences and learnings with other countries over the years.
Businesses should also play a role, given their industry expertise, resources, and networks. For example, together with World Vision, Water Mission, and the International Committee of the Red Cross, Grundfos SafeWater reached 1.6 million people in 2021. This establishes a cumulative result of 2.5 million people reached in 2020 to 2021.
While a timely reminder, we need to recognise that climate action is not something we just consider on Earth Day; climate action is a year-round effort. It is crucial that we collectively work together to effectively tackle climate change. To create meaningful and effective change, all of us - from governments to businesses to individuals - have a role to play.
The writer is senior director, group sustainability, at Grundfos.
Keyword added to your list