SINGAPORE: As the world faces increasingly severe climate disruptions and the inevitability of stringent carbon regulations, businesses are being urged to proactively plan for their transition to sustainability. At the Singapore Business Federation Dialogue on March 17, Singapore’s Ambassador for Climate Action emphasised that the global shift towards a “climate-impaired” and “carbon-constrained” world is no longer a matter of “if”, but “when”.
Three key forces driving the transition
In his address that was featured in a recent Singapore Business Review report, the ambassador outlined three powerful forces pushing the transition to a sustainable future — politics, economics, and nature. While political uncertainties, such as the fluctuating climate agenda of the US, may create temporary obstacles, the ambassador pointed out that nature’s accelerating climate crises and the growing economic appeal of affordable renewable energy are undeniable drivers of change.
Governments and markets, he asserted, will eventually be compelled to act as the urgency of extreme weather events and rising costs continue to accelerate. The pressures from these forces make the transition to sustainability not just desirable, but necessary.
Singapore’s commitment to climate action
Singapore remains firmly committed to taking bold steps in addressing climate change. With ambitious goals to reduce emissions and boost reliance on clean energy, the country aims to achieve net-zero emissions by 2050. Key initiatives to reach this target include raising the carbon tax and expanding efforts to import low-carbon electricity to supply one-third of Singapore’s energy needs by 2035.
These actions underline the nation’s resolve in the global fight against climate change, setting an example for businesses to follow.
Businesses must begin transition planning now
The ambassador also emphasised the critical need for businesses to start planning their transition towards sustainability without delay. Recent reports revealed that nearly 6,000 companies disclosed their climate transition plans in 2023, a figure expected to rise dramatically in the coming years.
As multinational companies increasingly demand lower-carbon products, businesses that fail to act quickly risk losing their market position and investor confidence. The ambassador stressed that waiting for perfect conditions or clearer political signals will only put companies further behind.
To successfully navigate this transition, companies must begin by accurately measuring their carbon footprint and assessing both transition and physical climate risks. This includes the impact of extreme weather events and the shifting dynamics of global supply chains. Setting science-based targets for emissions reductions and developing customised decarbonisation strategies are essential steps in ensuring long-term sustainability.
With multinational companies pushing for more sustainable practices, businesses that fail to transition may find themselves at a competitive disadvantage, unable to meet the rising demand for environmentally responsible products and services.
The unavoidable path towards sustainability
In his closing remarks, the ambassador made it clear that the shift towards sustainability is not a matter of choice, but necessity. Businesses that begin planning and acting now will be better positioned to thrive in a carbon-constrained world. As climate disruptions become more frequent and carbon regulations tighten globally, those who hesitate may find themselves on the back foot in an increasingly sustainable global economy.
The message is clear — now is the time for businesses to act, or risk being left behind as the world embraces a future shaped by climate-conscious policies and practices.