SINGAPORE – A new initiative has been launched to help businesses here measure their carbon emissions more accurately, so that they can make more informed sustainability decisions.
The new Emissions Factor Registry, launched by Minister for Sustainability and the Environment Grace Fu at the opening of Ecosperity week on April 15, is a database of emissions factors spearheaded by the Singapore Business Federation (SBF) and localised to Singapore.
These emission factors act as conversion factors that translate metrics of various business activities, like water, energy, transportation and waste generation, into their corresponding amount of greenhouse gas emissions.
Currently, many businesses calculate their emissions using data from international sources, like the United States and the United Kingdom.
But Singapore’s emission factor for energy use is significantly different from places where the electricity grid is fed by coal generated power.
The SBF said that more emissions factors for new categories and activities will be developed and released based on industry consultations and demand.
All listed companies here must make climate-related disclosures from their 2025 financial year, followed by large non-listed companies from FY2027. These disclosures, which include measuring the size of a company’s carbon footprint, have to be aligned with the standards set by the International Sustainability Standards Board.
There are three types of greenhouse gas emissions. Scope 1 emissions refer to a company’s direct emissions from its facilities, while Scope 2 emissions are emissions from its energy use. Scope 3, which usually makes up around 85 per cent of a company’s total emissions, includes indirect emissions across its value chain, such as its supplier’s emissions.
The idea for such a registry emerged from a Forward SG conversation in 2022, where companies highlighted the difficulties presented in reporting Scope 3 emissions, Ms Fu said.
“This (registry) will help our businesses track and report their emissions more easily and accurately, saving time and effort. In turn, it will empower them to make informed sustainability decisions based on data and (their) environmental impact,” she added.
The Ecosperity conference from Feb 15 to 17 focuses on the role of finance in the sustainability drive, and is held at the Sands Expo & Convention Centre.
Aside from implementing a slew of measures to decarbonise Singapore’s economy, achieving the global transition to net-zero emissions will also require international collaboration, Ms Fu noted.
She said Singapore’s finance hub status allows the country to punch above its weight in international climate action by facilitating financial flows to climate-friendly investments in the region.
For instance, at the COP28 climate conference in Dubai last year, Singapore launched the Financing Asia’s Transition Partnerships (Fast-P), a blended finance initiative that will mobilise up to US$5 billion (S$6.7 billion) to finance projects relating to green energy and the upgrade of electricity grid infrastructure, among others.
Historically, it has been difficult for such green and transition projects to raise capital because of issues such as lack of expertise in project development, and regulatory, political and foreign exchange risks.