Green issues top of mind as industry leaders eye Budget
Singapore
SINGAPORE'S upcoming national Budget should offer businesses grants and other support to promote environmental, social, and governance (ESG) issues, industry leaders have said.
C-suite executives highlighted room to roll out more schemes - earmarked for sectors such as the built environment, and for companies such as small and medium-sized enterprises (SMEs) - in Views from the Top, a weekly feature in The Business Times aimed at collating responses from corporate leaders on topics relevant to their businesses.
"We're looking for the Budget to reveal more detail on Singapore's net-zero transition plans," said Wong Kee Joo, chief executive officer of HSBC Singapore. He cited room for more clarity on carbon tax policy, lower-carbon renewable energy adoption, and "the finalisation of green taxonomies for Singapore and Asean as a whole".
Contributors were asked what Budget measures are needed as policymakers shift from emergency support, amid the Covid-19 pandemic, to longer-term growth.
Chia Ngiang Hong, president of the Real Estate Developers' Association of Singapore, called for extensions of grants or incentives for the real estate and built environment sector, to support productivity, resilience and sustainability.
"This support will also help to spur talent development and investments in areas like design for manufacture and assembly, integrated digital delivery, environmentally sustainable practices and green real estate, as well as provide new opportunities and build a new engine of growth for the sector," he said.
Tang Kok Thye, president of the Singapore Green Building Council, similarly called the built environment sector "in a prime position to effect positive climate action".
These could include tax breaks to retro-fit buildings, and fiscal measures such as funding help for certification, Tang suggested.
Other industries that would benefit from ESG support include the aviation sector, according to Andrew Wong, vice-president of airlines for the Asia-Pacific at manufacturer Honeywell Aerospace.
"We've seen in recent months innovations around sustainable aviation fuel sources and breakthroughs in its usage in actual flights," he said. "However, for sustainable aviation fuel to truly take off, environmental and climate initiatives surrounding electricity, hydrogen and sustainable aviation fuel require institutional support."
Dharmesh Arora, CEO of technology supplier Schaeffler Asia Pacific, added: "As Singapore works to recover from the effects of the pandemic, it is essential for Budget measures to increasingly focus on ESG, where the country can establish itself as a global innovation hub for sustainable development and low-carbon technologies."
Meanwhile, Morgan Terigi, CEO of invoice financing marketplace Incomlend, noted that sustainability may be "a massive undertaking" for smaller businesses, and proposed: "The Budget could look into ESG programmes to help SMEs pivot to robust sustainability strategies to capitalise on green economic benefits, build long-term resilience, and improve business performance."
Said Pulkit Abrol, director of accounting professional body ACCA Asean ANZ: "Budget 2022 should also have significant investments into the education and enhancement of green financing, creation of more 'green jobs' and strengthening corporate accountability."
More broadly, Cheung Pui Yuen, chief executive of Deloitte Singapore, remarked that measures that go towards Singapore's Green Plan will be "top of the Budget agenda, with a focus on carbon taxes and green finance initiatives".
The Singapore Green Plan is a national blueprint for sustainable development, with the Republic now working towards targets for 2030.
Besides Budget support for businesses' ESG ambitions, industry leaders also recommended enhancing training and digitalisation for workers and firms, as well as support for supply-chain resilience and help with cash flow issues.
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