The impact of climate change cannot be understated, and individuals, companies and governments all need to play our part to lessen its effects, such as by reducing our carbon dioxide emissions. <\/p>\n\n\n\n
However, given that\u00a0the top 20 carbon-producing entities are responsible for over 40% of all global carbon dioxide emissions<\/a>, it may seem like our efforts here in Singapore may not contribute significantly to our country\u2019s climate targets, let alone the world.\u00a0<\/p>\n\n\n\n However, as a country that will be directly affected by the effects of climate change, such as hotter days and warmer nights, which may also lead to higher energy consumption, as well as rising sea levels, we must all do our part.<\/p>\n\n\n\n Our government recognises this urgency and has introduced mandatory climate-related disclosures (CRD) for companies listed on the Singapore Exchange (SGX) starting this Financial Year 2025. Large non-listed companies will be required to do the same starting from Financial Year 2027. These companies must file CRD reports with the Accounting and Corporate Regulatory Authority (ACRA).<\/p>\n\n\n\n Singapore is not alone in implementing CRD reports. Other countries in the region, like Malaysia, the Philippines, and Australia, are also taking the similar steps, reflecting a shared commitment to higher-quality and consistent sustainability disclosures.<\/p>\n\n\n\n While these mandatory CRD reporting requirements do not yet apply to non-listed small and medium enterprises (SMEs) in Singapore, ACRA will decide around 2027 if these requirements will change, and sufficient notice will be given to companies to prepare for the new requirements. <\/p>\n\n\n\n However, It is not a stretch to assume that this requirement will eventually extend to SMEs \u2013 especially the larger ones and perhaps those in more relevant industries. <\/p>\n\n\n\n For SME owners, adopting CRD reporting as a practice even before it becomes mandatory may make business sense \u2013 potentially helping advance your competitive edge, especially if your company is a supplier to listed companies and large non-listed companies that will soon require CRD reports.<\/p>\n\n\n\n SMEs may be better positioned to start monitoring their sustainability performance, as they are smaller and would likely require less time and effort to assess. However, the key barriers to SMEs taking climate action are insufficient funding and lack of data,\u00a0according to a 2024 survey by SME Climate Hub<\/a>.<\/p>\n\n\n\n This is what the newly launched\u00a0OCBC SME Start-ESG Programme<\/a>\u00a0hopes to address. Together with Enterprise Singapore (EnterpriseSG), this new programme will empower SMEs in Singapore to obtain a baseline measurement of their sustainability metrics.<\/p>\n\n\n\n The OCBC SME Start-ESG Programme starts with a grant from EnterpriseSG to cover up to 70%, or $3,500 depending on which is lower, of eligible costs for an annual assessment of each SME\u2019s sustainability goals over 3 years. Obtaining these measurements will then qualify the SME to obtain a sustainability-linked loan from OCBC at preferential rates that will help cover the cost of implementing long-term sustainable practices in the SME.<\/p>\n\n\n\n A sustainability-linked loan incentivises companies to meet mutually-agreed sustainability performance goals, such as reducing one\u2019s carbon footprint, by pegging the loan\u2019s interest rate according to how well the company performs during the sustainability assessment.<\/p>\n\n\n\n Read Also: <\/em><\/strong>5 Ways Companies Can Go Green (And Be Part Of The Singapore Green Plan 2030)<\/em><\/strong><\/a><\/p>\n\n\n\n Running an SME can take up much of your time and energy, and it\u2019s easy to put sustainability on the backburner.\u00a0This is why OCBC has partnered with companies like\u00a0ESGpedia<\/a>, a leading carbon management solution provider that streamlines the greenhouse gas emissions assessment and requires as few site visits as possible \u2013 it can even be done online!<\/p>\n\n\n\n According to Benjamin Soh, Founder and Managing Director of ESGpedia, they use a digitalised and simplified self-assessment tool that automatically calculates their greenhouse gas emissions, which is then independently verified by their marketplace partner Bureau Veritas, a global leader in testing, inspection and certification services.<\/p>\n\n\n\n Read Also: <\/em><\/strong>5 Questions With Benjamin Soh, Co-Founder and MD of STACS, An ESG Data Collection and Registration Platform<\/em><\/strong><\/a><\/p>\n\n\n\nGovernments Are Implementing Mandatory Climate-Related Disclosures<\/strong><\/h3>\n\n\n\n
Sustainable Goals Make Business Sense For SMEs<\/strong><\/h3>\n\n\n\n
Assessing An SME\u2019s Carbon Footprint Can Be Easy<\/strong><\/h3>\n\n\n\n