Singapore forges ahead in sustainability with new localised emissions registry

In a major stride towards environmental accountability, the Singapore Business Federation (SBF), in collaboration with A*STAR, PwC, and Singtel, has announced the establishment of the Singapore Emission Factors Registry (SEFR). This initiative, unveiled by Ms. Grace Fu, Minister for Sustainability and the Environment, during the Ecosperity Week 2024, aims to provide Singapore-based businesses with a crucial tool for accurate carbon emissions reporting.

The SEFR seeks to address a significant challenge faced by local enterprises — the lack of localised data for emissions calculation. Currently, many businesses rely on international sources like the US EPA and UK DEFRA, particularly for Scope 3 emissions which include indirect emissions from activities such as business travel, procurement, and waste disposal. 

The reliance on data that does not reflect local conditions can lead to inaccuracies in sustainability reporting and environmental impact assessments.

This new registry will offer a repository of emission factors tailored to Singapore's unique environmental and business landscape. Emission factors are essentially conversion metrics that enable businesses to translate various operational activities into equivalent greenhouse gas emissions. 

This localised approach is expected to enhance the precision of sustainability reports and help companies make more informed decisions regarding their environmental impact.

The initiative is backed by the Ministry of Trade and Industry and the Ministry of Sustainability and the Environment and will support existing tools and solutions within the ecosystem, assisting enterprises in automating their sustainability reporting processes.

A phased approach

According to the National Business Survey 2023/2024 by SBF, while three-quarters of local businesses are engaged in or planning to engage in Environmental, Social, and Governance (ESG) activities, many express the need for more support. This includes access to funding for ESG transformation, clearer ESG metrics for reporting, and better technology for tracking and measuring their sustainability efforts.

The development of the SEFR will be a phased process, with an initial set of data to be ready by the end of 2024. This will include factors related to transportation, energy, water, and general waste management, with more categories to be added based on industry feedback and demand.

Mr. Kok Ping Soon, CEO of SBF, emphasised the registry's role in supporting Singapore's companies on their journey to net zero emissions. “The SEFR will be a critical and timely resource for Singapore to support companies to overcome their current challenges and accelerate their carbon accounting journey. With the development of localised EFs, local businesses will be able to report their emissions more accurately. The SEFR is part of a broader suite of programmes that SBF will be progressively rolling out to support businesses in their net zero transition.”

Partners in the project have also expressed their commitment to the success of the SEFR. Dr. David Low from A*STAR remarked on the potential of the collaboration to enhance local business understanding and management of emissions. Meanwhile, Mr. Marcus Lam of PwC Singapore stressed the importance of public-private partnerships in achieving decarbonization goals.

As businesses around the world ramp up efforts to mitigate their environmental impact, Singapore's proactive approach in establishing the SEFR could serve as a model for other nations striving towards sustainability and more accurate emissions reporting.