Little green dot: Singapore’s budding sustainable ecosystem
With the impact of climate change growing in severity and the Singapore Green Plan 2030 drawing ever closer, local organisations face a pivotal moment. The urgency to act swiftly is fuelled not just by environmental responsibility but also by the imperative to ensure business resilience in our increasingly volatile world. This article delves into actionable strategies and transformative benefits that come with riding the green wave.
Upskilling for a greener future
As environmental stewardship becomes integral to the financial landscape, Singapore's Financial Services (FS) sector needs a strong talent pool to unlock new business opportunities and drive the region's transition to net zero.
Commissioned by the Monetary Authority of Singapore (MAS) and The Institute of Banking and Finance Singapore (IBFSG) with the support of Workforce Singapore (WSG), the Sustainable Finance: Jobs Transformation Map (JTM) report by KPMG in Singapore offers actionable strategies for workforce upskilling.
The JTM emphasises the increasing demand for professionals skilled in managing environmental, social and governance (ESG) risks and strategies. Integrating these considerations into job roles empowers organisations to thrive in a changing regulatory and market landscape. Moreover, a skilled workforce equipped with ESG expertise can catalyse the development of innovative financial products and solutions that support the transition to a low-carbon economy.
This initiative helps foster a talent pool proficient in sustainable finance, strengthening the FS sector's global competitiveness and cementing Singapore’s position as a key player in attracting talent and advancing the green finance agenda.
KPMG in Singapore is leading by example with a S$100 million investment in workforce development and quality , as shared by our Managing Partner, Ms Lee Sze Yeng. This initiative helps foster a talent pool proficient in sustainable finance, strengthening the FS sector's global competitiveness and cementing Singapore’s position as a key player in attracting talent and advancing the green finance agenda.
Driving innovation for better public service
Building on this momentum, governments must now supercharge their innovation engines to unleash a new era of responsive and efficient public services. As the report Innovating governments highlights, governments worldwide are embracing innovation to address societal challenges and enhance lives. This approach not only boosts public sector efficiency but also promotes economic development and ensures governments remain relevant and responsive to evolving needs.
To foster innovation, governments must cultivate a supportive environment that encourages experimentation and collaboration. This includes allowing a culture where failure is accepted as a part of the learning process, investing in building people's capabilities in innovation and enabling robust innovation ecosystems.
Singapore exemplifies this approach, by continuously adopting new technologies, and rethinking processes and structures to create value for its citizens. One notable example is the One Service initiative, a citizen-centric strategy that consolidates various government services into a single platform, offering a seamless and efficient way to access information and report issues. By reducing bureaucracy and improving response times, the One Service app has significantly enhanced citizen satisfaction and operational efficiency.
Powering up a cleaner future with electric vehicles
With Singapore revving up its green engines, electric vehicles (EVs) are set to become a familiar sight on our roads. According to KPMG in Singapore's Sharad Somani, Partner, Head of KPMG ESG, in his interview with CNA938’s Singapore Today , electric car adoption is on the rise, with sales constituting about 15 percent of total car sales. However, numerous concerns such as 'range anxiety' — the fear of running out of power before finding a charging station — hinder faster adoption.
To address this, the government is committed to installing 40,000 charging stations by 2030. This rapid expansion of charging infrastructure, alongside financial incentives, is designed to encourage overcoming consumer range anxiety and accelerate EV adoption. Technological advancements in battery range and cost reduction are also making EVs more appealing.
Beyond EVs, hydrogen cars are emerging as a potential future option. As EV and hydrogen technologies evolve, they offer promising pathways for Singapore to achieve its clean energy goals.
Tackling decarbonisation together in ASEAN
According to the KPMG 2023 CEO Outlook survey , Singapore CEOs are prioritising ESG considerations in their business strategies, viewing ESG as a value-creation opportunity. Organisations are increasingly recognising their role in mitigating climate change as businesses with a purpose. Balancing planet with profit involves reducing their carbon footprint, a crucial step in the transition to net zero. However, achieving decarbonisation requires a concerted effort which can be accelerated by a helping hand.
The ASEAN Decarbonisation Hub , a collaborative alliance led by KPMG in Singapore and four partner organisations, thus aims to empower businesses across the ASEAN region to navigate the complexities of overcoming climate change. The Hub offers plug-and-play solutions, expertise and decarbonisation training to address these concerns and support Singapore in achieving its goal of reducing emissions to 60 million tonnes by 2030. In addition, the decarbonisation push is expected to generate 50,000 jobs in Singapore by 2030. These jobs may include those in areas such as energy efficiency, supply chain decarbonisation, green procurement, new energy technologies, carbon trading and green finance.
Navigating forward
By embracing environmentally responsible practices, upskilling their workforce and collaborating with initiatives like the ASEAN Decarbonisation Hub, local organisations can make the difference in climate action. This collective effort not only contributes to a healthier planet but also positions businesses for long-term success and resilience.