17th United Nations Global Compact Network Singapore Summit - 2M Indranee Rajah

Dr Bicky Bhangu, President of the UN Global Compact Network Singapore 

Distinguished Guests

Ladies and Gentlemen

Introduction

1.   It’s a great pleasure to be here with you today, and thank you for having me at the 17th UN Global Compact Network Singapore Summit. 

2.   With each passing year, there is greater urgency to address climate change. The data is clear:

a.   Asia is warming nearly twice as fast as the global average.

b.   Closer to home, 2024 was Singapore’s warmest year on record.

c.   Extreme weather events are becoming more intense and unpredictable. 

3.   But internationally, the climate agenda is being squeezed by economic and geopolitical uncertainties. 

a.   It was already challenging to secure international commitments and societal buy-in when inflation was low and economic conditions were more favourable.

b.   Developments over the past few years have exacerbated the challenges.

c.   The trade-offs have become much sharper when energy security is top of mind amidst conflicts, and additional costs of going green have become more stark with cost-of-living pressures around the world.

d.   These are realities we cannot ignore. Climate change will not wait for us to get our act together, and the clock continues to tick on the 2030 Agenda for the UN Sustainable Development Goals.

4.   The key challenge of our time is how we can mobilise and sustain the collective will to act. This is why the theme of this year’s Summit is so aptly named “Forward Faster: Collective Action and Leadership for a Sustainable Future”. 

5.   There is no doubt that we must press on with urgency. But we also need to understand that the path ahead will not be a smooth, straight line to net zero. 

a.   We have to keep adapting and advancing the agenda.

b.   Most importantly, by managing the trade-offs instead of ignoring them.

c.   And we need to bring all stakeholders alongside this journey instead of leaving them behind, as we push ahead on the shifts needed for the transition. 

d.   More haste may lead to less speed. But it is far better to keep moving forward in the same direction, while investing the effort to engage, convince and garner support. 

e.   Otherwise, it risks becoming a situation of one step forward and two steps backward.

6.   It is critical to build this capacity for collective action – as governments, businesses, non-profits and people – so that we can move forward together. This is the only way we can move “Forward Faster”.

7.   This morning, I will touch on three ways we can so. First, by paving the path with credible standards. Second, by cultivating confidence with the right tools. And third, by advancing our ambition with grounded action.

Paving the path with credible standards

8.   The path towards a low-carbon future must be paved with credible and transparent standards, to set the right conditions to mobilise capital.

a.   By some estimates, there is a shortfall of over 800 billion US Dollars in climate financing for the Asia-Pacific region to meet its mitigation and adaptation needs.

b.   But investments will not flow without credible standards.

c.   Investors need to know that their money is going towards initiatives with tangible impact.

9.   This is why we launched the Singapore-Asia Taxonomy for Sustainable Finance, or SAT, in 2023. 

a.   The SAT is the first taxonomy globally to include a “transition category”, recognising the need to contextualise the pathway towards net zero for the Asian region, instead of jumping from brown to green.

b.   Adoption of the SAT has been very encouraging so far.

c.   Since its launch, Singapore banks like DBS, OCBC, and UOB have integrated the SAT in their sustainable financing frameworks. 

d.   Corporates such as OUE have also referenced the SAT to structure their sustainable financing solutions.

10.   The Government also takes a leadership role in financing and budgeting for the green transition, to pave the way for more private sector participation. 

a.   The Ministry of Finance published our updated Singapore Green Bond Framework in January this year, which is aligned with the SAT, as well as a Green Budgeting Occasional Paper that showcases how we incorporate sustainability considerations into our financial policies and planning. 

b.   Beyond financing our sustainability agenda, our issuances have deepened market liquidity for green bonds and encouraged more private sector green financing. Take Equinix for example – the data centre developer raised over S$1 billion across two issuances this year.

Cultivating confidence with the right tools 

11.   Next, we must equip businesses with the right tools to make clear and informed decisions, to cultivate confidence in their sustainability journey. This means, for example, having access to reliable and up-to-date emissions data.

a.   With the rapid growth of cloud services and data centres, our lead digitalisation agency IMDA is looking into ways to support companies to measure and track their emissions from such infrastructure and services, in a more accurate and standardised manner.

12.   We also have a single reference point for localised emission factors data – the Singapore Emissions Factors Registry, or SEFR, jointly developed by the Singapore Business Federation and A*STAR. 

13.   I am pleased to share that the SEFR will expand its database of emission factors, to help companies accurately measure their Scope 3 emissions.

a.   By the end of this year, the Registry will include new sector-specific emissions factors, namely for cleaning, security, and professional services. Emissions factors for info-communications technology will be released in 2026.

b.   In addition, emission factors for specific products and services will be added early next year. This also enables suppliers to showcase their green credentials, which will enable procurers to make more informed decisions.

14.   More resources for businesses will also be provided through enhancements to NetZeroHub.SG. 

a.   New tools will be launched on the portal, to help businesses stay informed on the latest sustainability events, and connect with other partners. 

b.   Businesses can also better source for partners for their sustainability initiatives, with an expanded directory of solutions providers, including sustainability consultancy and communications.

Advancing ambition with grounded action

15.   Further, as we advance our climate ambitions, it must stay grounded in business readiness. This applies to requirements such as climate reporting.

a.   We recognise that some companies may need more runway to build internal capabilities and prepare for the rigour of more comprehensive disclosures.

16.   ACRA and the Singapore Exchange recently provided an update on the latest climate reporting requirements.

a.   While Scope 1 and 2 emissions reporting remains mandatory for all listed companies from this Financial Year, full disclosure requirements will be phased and depend on the company’s size and market capitalisation. 

17.   Does this mean we have lowered reporting standards? Not at all. 

a.   Even as we advance our ambition, our climate reporting regime will remain robust, yet practical. 

b.   We will continue to work with stakeholders to ensure that our requirements consider local readiness, while aligned with international standards.

18.   Finally, I am especially excited by what our youth can do to advance our climate ambitions.

a.   We must empower and encourage them to be part of the conversation, as they will shape the future of climate action.

b.   So, I look forward to presenting the Young Sustainable Development Goals Leaders Awards to the winning teams later. 

c.   These exemplary young people have thought of meaningful ways that private sector organisations can move forward faster towards the Sustainable Development Goals. 

Conclusion

19.   Let me conclude by reaffirming Singapore’s commitment to climate action.

a.   In spite of global headwinds, we will press on with the right thing to do.

b.   For us, there is added urgency. As a low-lying state, it is not only about economic competitiveness. 

c.   Our very survival depends on each country, and the world, taking collective action to address climate change.

20.   This Summit is itself a beacon for collective action, as we come together to exchange notes on concrete actions to develop capabilities and manage trade-offs needed, to move Forward Faster towards a more sustainable future. 

21.   Thank you, and I wish you all an enriching Summit ahead.