Singapore SMEs can no longer ignore sustainability
SGTech event outlines the whys and the hows.
Sustainability is gaining momentum and can no longer be ignored or deferred by SMEs here.
I was at SGTech's event on "Tech enabling sustainability" this morning, where I heard from several speakers and a couple of panel discussions.
And oh, data centre operators and cloud providers were mentioned, too. More on this later.
Why Singapore is pushing ahead
But first, why is Singapore pushing ahead with sustainability initiatives and "creating problems" for SMEs here?
In the words of Senior Minister of State Dr Amy Khor: "We have to be a player in the global marketplace... if we want to stay competitive and [be taken seriously]."
Singapore is hence doing its part to achieve net zero emissions by 2050 - the government will take the lead by achieving net zero by 2045.
The current goal is for all government procurement to have sustainability requirements by 2028, though Dr Khor emphasised that this isn't "cast in stone".
I heard that at SGTech
Some pointers that caught my attention:
- Needed to thrive
Stakeholders are increasingly looking at companies' sustainability performance, according to Michael Tang from SGX.
In fact, sustainability is a key consideration when evaluating suppliers, says Kenneth Ng of Razer.
- Benefits to starting early
Speaking on a panel, Sharon Teo shared her firm's journey. She noted that starting earlier means the team gets educated sooner.
And as adjustments are made to sustainability requirements over time, it is easier for businesses to adapt to new requirements.
- It's time to jump on the bandwagon
Ultimately, there's no time left for SMEs to dither. As noted by Dr Khor:
- Customers already asking for sustainability reports.
- It's needed to do business in regions like the EU.
- Like it or not, "the writing is on the wall".
Did you say data centre?
While the ICT sector is among the first to be included in the government green procurement plan, data centre operators and cloud service providers are next, says Dr Khor.
The criteria will also be expanded to the MICE sector and events organized by public sector agencies from fiscal year 2025.
FYI, all listed companies in S'pore will be required to make climate-related disclosures starting from FY 2025.
PS: This means that suppliers with customers in these sectors will likely be asked for their sustainability reports.
So even if you are an SME, sustainability is needed to thrive. So just do it.
