DPM Heng Swee Keat at the United Nations Global Compact Network Singapore (GCNS) 20th Anniversary

Dr Bicky Bhangu, President, UN Global Compact Network Singapore or UN GCNS,
Mr Kok Ping Soon, CEO of the Singapore Business Federation and Vice-President, UN GCNS,
Ms Esther Chang, Executive Director, UN GCNS,
Ladies and gentlemen,

A very good evening. I am delighted to join UN GCNS, your members and your partners to mark this milestone 20th anniversary.

Over the past 2 decades, UN GCNS, as the local chapter of the UN Global Compact, has advanced the cause of corporate sustainability in Singapore.

You have done so by working with companies of different sizes, scales and expertise.

Today, you have more than 250 members across industries – large multinational companies as well as small-and-medium enterprises.

I was happy to hear Bicky mention the linkages between UN GCNS and the wider ecosystem.

Indeed, UN GCNS has built fruitful and constructive partnerships not only with businesses but also other organisations in Singapore – academic institutions like our universities, business associations like the Singapore Business Federation (SBF), and various unions.

When UN GCNS was set up in 2004, terms like sustainability and Corporate Social Responsibility, or CSR, were not as prominent as they are today.

From the start, your goal was based on a simple but meaningful premise – to encourage businesses to “operate responsibly”. 

Responsible businesses recognise that even as they pursue profits, as they should, they also have an important role to play in building stronger, more cohesive and more resilient societies.

This sense of responsibility is important as corporates have a range of capabilities to contribute to issues which affect the broader environment that they ultimately operate in. 

Responsible businesses that uphold good corporate governance and operate with a clear purpose uplift people and communities and protect the planet for future generations.

Put another way, it is about thinking of and building our long-term future.

To nurture such businesses, UN GCNS first worked with companies to align their activities with the 10 Principles of the UN Global Compact.

Over the last decade, you have also supported them in taking action to achieve the UN Sustainable Development Goals.

I am encouraged to see that this goal, of nurturing responsible businesses, remains enshrined in your vision statement today, and in fact, you want to go further.

Tackling global challenges we share today, including the major one of climate change, requires the active mobilisation of a whole-of-society effort, especially businesses.

Countries around the world recognise that climate change is a clear and urgent challenge.

For island nations like Singapore, it is existential.

In the 20 years since 2004 when UN GCNS was first started, sustainability has evolved from a good-to-have to a necessity.

But global climate action continues to lag behind what is needed.

Many groups of scientists in the US and Europe have declared 2024 to be the warmest year on record globally.

Here in Singapore, a report released by our Meteorological Service last week found that 2024 was also our warmest year on record.

We have all seen the news of devastating wildfires in California since last week.

These extreme weather patterns, brought about by climate change, will impose a high cost on societies and economies globally.

In 2024 alone, extreme weather incidents are estimated to have cost US$320 billion in overall losses globally.

Against this backdrop, the urgency and importance of making a global green transition is clear. Notwithstanding climate scepticism from some quarters, we can expect to see even more emphasis placed on sustainability and the SDGs in the years ahead.

Governments alone cannot successfully implement the green transition. Involving the private sector and the people sector is critical.

For the private sector, embracing sustainability can enhance resilience, and manage reputational risk as investors, consumers and stakeholders place greater value on this.

If it is a necessity, then we should seek not only to address this, but also to turn this into a new source of competitive advantage. 

This is in fact one of the key areas of work for the Future Economy Advisory Panel, which I chair and which Bicky is a member of.

One of the key pillars under our Singapore Green Plan 2030 is to build a Green Economy – creating new jobs, transforming existing industries and harnessing sustainability as a competitive advantage.

This includes developing new growth sectors such as green finance, low-carbon technologies, and carbon services and trading.

At the same time, we are also working with companies to green their operations through innovative new solutions and business models.

The revenue from our carbon tax, currently priced at S$25 per tonne of CO2 equivalent since last year, will also be used to support decarbonisation efforts and to make the transition to a green economy.

The private sector has a crucial role to play for Singapore to realise our green ambitions, including our goal of achieving net-zero emissions by 2050. 

Every company, large or small, can contribute to building a greener future for our country, our economy and our planet.

Nevertheless, making this green transition is likely to entail higher costs for businesses – whether in terms of upgrading infrastructure, deploying new technologies, or meeting new regulatory requirements.

So how can enterprises be supported to harness sustainability as a competitive advantage?

One way is by building enterprise capabilities.

This means both deploying new infrastructure and technological solutions, and equipping companies and workers with new expertise and competencies to harness sustainability as an advantage.

In Singapore, the Government has established a Future Energy Fund to support investments into clean energy technology, with an initial injection of S$5 billion.

The infrastructure supported by this Fund will allow businesses to tap on low-carbon energy supplies and meet their long-term sustainability goals.

We have also introduced a range of support schemes to accelerate businesses’ efforts to green their operations and build new expertise.

For example, the Energy Efficiency Grant or EEG provides support to local businesses to adopt energy-efficient equipment in the manufacturing, food services and retail sectors. 

Since the start of this year, the EEG has been expanded to include construction and maritime sectors as well as users of data centres.

Through the Enterprise Sustainability Programme, Enterprise Singapore also supports companies to develop relevant capabilities, strengthen corporates’ sustainability value chains, and build a vibrant sustainability ecosystem.

This includes subsidised courses to raise awareness, and grant support for companies to build capabilities in sustainability strategy, resource optimisation, sustainability standards and sustainable product development.

Enterprise Singapore also partners banks such as DBS and UOB to help businesses adopt sustainable practices and access sustainable financing.

Another way to support businesses through the green transition is to have credible regulatory regimes with clear signposting that identify paths toward stronger and more responsible enterprise sustainability.

Since 2022, for example, the Singapore Exchange has progressively introduced climate disclosure requirements for all listed companies.

From financial year 2025, all listed companies are required to start incorporating the International Sustainability Standards Board or ISSB standards into their climate-related disclosures.

Through proper accounting of climate-related risks and opportunities, investors are equipped with the necessary information to efficiently allocate capital towards sustainable outcomes. I know of many asset managers, for example, who are also looking at whether companies are taking steps towards greater sustainability.

Proper disclosures will allow our companies to showcase leadership in sustainable development and remain globally competitive.

To encourage regular reporting and greater transparency, we have also rolled out funding support for sustainability reporting. 

The Sustainability Reporting Grant, for example, offers partial coverage of costs for listed and large non-listed companies to develop their first sustainability reports incorporating the ISSB standards.

Given the increasing trend of large and multinational corporations to assess sustainability across their supply and value chains, sustainability reporting is also becoming a critical capability for SMEs.

To better support this, Enterprise Singapore has partnered with service providers on the SME Sustainability Reporting Programme.

This will help non-listed SMEs also develop their first sustainability reports aligned with standards set by the Global Reporting Initiative and the Taskforce on Climate-Related Financial Disclosures.

So I encourage all eligible GCNS members and companies to make the most of these schemes.

The green transition will not be straightforward and will require the collective action and ideas of multiple stakeholders. As Bicky mentioned, this is a whole-of-society effort, and I would add, a whole-of-planet effort.

So in this regard, partnerships – across domains and borders – can amplify overall impact and achieve stronger outcomes.

Through collaboration, we can build stronger capabilities, develop groundbreaking new solutions and technologies, and support one another in enhancing our accountability in the green transition.

For example, the Agency for Science, Technology and Research or A*STAR and our universities are partnering industry leaders like ExxonMobil and Alibaba through Corporate Labs focused on sustainable technologies and low-carbon solutions.

A*STAR has also worked with the SBF and other partners to develop the Singapore Emission Factors Registry.

This gives businesses access to a database of emission factors tailored to Singapore’s context, enabling them to calculate Scope 1 and Scope 2 emissions and thus enhancing the accuracy of their carbon reporting.

The National Research Foundation has a very active research programme in urban solutions and sustainability. Through the Campus for Research Excellence and Technological Enterprise or CREATE, NRF launched a new Thematic Programme on Decarbonisation last July. 

This brings international research partners from around the world to work on new energy and industry-relevant green solutions.

Enterprise Singapore has also launched the 6th Sustainability Open Innovation Challenge, to bring SMEs and startups from Singapore and around the world together with industry leaders to catalyse useful innovations.

I am encouraged that the UN GCNS has also contributed to this growing ecosystem of collaboration and partnership, accelerating Singapore’s efforts in sustainability.

For example, since 2021, UN GCNS has organised the LowCarbonSG programme, an 18-month capability-building programme that equips businesses with tools, resources and mentorship to adopt sustainable solutions and decarbonise their business operations.

This includes tools such as the Carbon Emissions Recording Tool, or CERT, that helps businesses calculate their greenhouse gas emissions more conveniently and accurately.

I am glad to hear from SBF that many SMEs have benefitted from this programme.

UN GCNS has also organised carbon workshops for the Sustainability Alliance, a grouping of 18 Trade Associations and Chambers, to build sustainability expertise among their member businesses.

I earlier mentioned the Singapore Emission Factors Registry co-developed by SBF and A*STAR.

The Registry is housed under SBF’s NetZeroHub.SG platform, which also features a Resource Portal.

UN GCNS and various Trade Associations and Chambers contribute to this Resource Portal. It provides a repository of guides, toolkits, case studies, and directory of training programmes and solution providers to help businesses in their decarbonisation journey. 

Besides these contributions, another way to build capabilities is to provide a platform for the sharing of experiences and expertise among enterprises.

I am therefore glad that we are launching this UN GCNS new publication “The Business of Better: A Collection of SDG Driven Success Stories” in conjunction with today’s celebration.

As Bicky mentioned earlier, this brings together stories of Singapore-based SMEs that are embracing innovation to drive greater sustainability and striving to integrate sustainability across their business operations.

Some of them have a long-standing commitment to environmental sustainability. Others have had to pivot their operations to adapt to evolving regulations and changing customer demands.

The profiles in this volume exhibit resilience and determination in making the green transition. By championing sustainability, these SMEs are creating positive change across industries and communities. 

I hope that reading them inspires many others to follow in their footsteps and chart their own sustainability journeys.

So let me conclude.

Congratulations once again to UN GCNS, as well as your partners and members, on the good work you have collectively done over the past two decades.

As we mark your 20th anniversary in the early weeks of 2025, we are also gearing up for a year-long celebration of SG60 – Singapore’s 60th year of independence.

It is a good opportunity for us to take stock of how far we have come as a nation, and reflect on the shared goals we should strive for in the years and decades ahead.

As part of our Forward Singapore agenda, the Government is committed to working with businesses, industry and the community to embrace greater sustainability and seize opportunities in a low-carbon economy.

Stewarding our resources responsibly and sustainably is an important aspect of strengthening our inter-generational social compact.

It helps us deal with the challenges of today and provides a strong foundation for those who come after us.

So I look forward to UN GCNS continuing the momentum of your efforts going forward – working with and growing the ecosystem to accelerate our progress towards a more sustainable future.

Thank you and I wish you a great start to 2025.