SINGAPORE: A recent survey by Schneider Electric revealed the challenges business leaders face due to stringent emissions reporting requirements. Six out of ten respondents reported losing existing or prospective new business opportunities.
According to The Edge Singapore, the survey involved 500 executives and highlighted a significant discrepancy in the impact on small and large enterprises.
52% of larger companies are affected, and 78% of small businesses in Singapore have experienced business losses due to compliance issues.
The findings also showed concern among business leaders, with almost half (47%) expressing concerns over the escalating costs associated with meeting emissions reduction mandates within their supply chains.
In response, a significant majority of business leaders (81%) offer financial incentives, 74% extend access to expertise, and 28% provide training to assist suppliers in lowering emissions.
Despite the pressing need to address emissions, the survey revealed a gap in emissions measurement and analysis, with nearly two-thirds (63%) of respondents admitting they have not fully assessed their greenhouse gas emissions.
This deficiency is attributed to a lack of appropriate technology, with only 44% of business leaders stating their companies possess the necessary tools and infrastructure to measure and analyse their carbon footprint effectively.
Schneider Electric noted that perceptions regarding technology readiness vary across sectors and hierarchical levels within organisations.
Board members (58%) and C-suite executives (56%) are more likely to believe their companies have the requisite technology than senior managers (25%).
Singapore’s real estate sector emerges as the most prepared, with 81% fully implementing the necessary technology and infrastructure. Conversely, sectors like engineering and education lag significantly, tied at 13% readiness.
Despite these challenges, Singaporean businesses are taking proactive steps to green their supply chains.
Initiatives include switching transportation and distribution routes (63%), imposing stricter requirements on suppliers (55%), and even changing suppliers altogether (47%).
In addressing the technological gap, Mr Kim Yoon Young, cluster president at Schneider Electric, Singapore and Brunei, emphasised the importance of collaboration between public and private sectors.
He stressed that “more data and training are required to ensure the impact of supply chain adjustments on small businesses can be better managed and wider economic consequences avoided.”
He added, “This will require increasing cooperation between public and private sector stakeholders to manage, and it is pleasing to see the positive reaction to the Singapore government’s recently enhanced measures in this area.” /TISG
Read also: 97% of Singaporeans value integrated financial and sustainability reporting: Survey
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