Is ESG is at the core of your purpose?

Welcome to KPMG Insights, a monthly newsletter capturing the top business trends and insights you might have missed this month.

There is no better time to make changes for a more sustainable future. From climate change to environmental degradation, the consequences of an upended natural world is leaving lasting ramifications. Beyond developing and implementing sustainable solutions, we also recognise the need to improve wellbeing and interactions both with and in nature. This led to our partnership with National Parks Board to create a first-of-its-kind multi-generational garden, as part of our 80th anniversary in 2021.

This month, we witness our seed of an idea come to fruition, with the completed KPMG Wellness Garden officially open. Located at East Coast Park Area D, the 1.1 hectare garden is part of efforts to transform Singapore into a City and features 4 zones: a nature play garden, therapeutic garden, fitness area and pond trail.

This commitment to shaping a more sustainable future is a shared one, based on our poll results. A majority of respondents indicated that making a positive environmental impact resonates most strongly with them. In this issue of KPMG Insights, we spotlight 3 industries commonly encountered in our daily lives — electric vehicles, utilities and insurance — and share how they can move ESG to the core of their organisation.

Fuelling cleaner mobility through circularity

Electric vehicles (EVs) have green-lighted more sustainable modes of transport. The next step: exploring how to reduce waste and create a circular economy that retains business value at every stage.

Here are 4 ways to power up sustainably with EVs:

1. Improve operational efficiencies by optimising battery design and tech.
2. Explore new business models and enter new markets through partnerships to build a circular ecosystem.
3. Leverage low initial volumes to start small-scale waste battery recycling and repurposing projects.
4. Sort out an end-of-life collection strategy to lower costs and optimise profitability.

Read more on how you can accelerate your journey to net zero.

A galaxy of opportunities with next-gen utilities

Utilities are the life blood of the modern state. The production, storage and distribution of energy and water are critical for all manner of businesses and daily life. Yet, these precious utilities are frequently reliant on depreciated assets and highly vulnerable to compromise by a range of natural or deliberate events. The solution to better outcomes for utilities and ESG might just lie beyond this world.

Here are 4 key areas where revolutionary space tech can help to boost the efficiency of utilities on the ground:

1. Predictive maintenance: Monitoring grids and assets in real time reduces the need for costly human inspections and improves predictive capabilities, minimising future risks.
2. Disaster risk reduction and response: Satellites and sensors can help with load forecasting and identify assets in need of repair more quickly.
3. Power generation: 24/7 solar power from space can potentially power hard-to-reach locations and lighten the load on grids.
4. Grid optimisation: Space capabilities can improve our understanding of solar asset performance and risks, optimising planning and placement of future networks and infrastructure.

Read more here.

Becoming agents of change in insurance

Insurance companies, as the second-largest group of asset owners behind pension funds, are critical players in the transition to a greener economy. Not only can they drive change through responsible operations and asset allocation, but they can also incentivise other businesses and individuals by considering ESG factors in underwriting. How can you become an agent of change in the industry? Here are 5 quick tips:

1. Understand the link between ESG topics and balance your products and investment portfolios to support progress across all 3 pillars.
2. Improve your organisation’s stakeholders’ understanding of ESG through training, open dialogues and feedback channels.
3. Embed ESG factors into your underwriting so your clients are encouraged to build sustainable business models.
4. Meet evolving ESG standards by ensuring your data is reliable, processes well designed and controls robust.
5. Articulate a clear and compelling ESG story to stakeholders and set goals in higher areas.

Step up to your role of being a changemaker. Read more here.