Singapore is a global trading hub, located at the beating heart of many global supply chains that provide both regional and national drivers of growth. In the global race towards decarbonisation, there is growing pressure to recognise and address the carbon emissions burden of supply chains. Singapore could become a valuable regional leader on this journey.
Recent research published by the World Economic Forum (WEF) and Boston Consulting Group (BCG) reveals how tackling supply-chain emissions can transform the global fight against climate change. The WEF-BCG report, “Net-Zero Challenge: The Supply Chain Opportunity”, analyses the top eight global supply chains, which together account for more than 50% of global greenhouse gas (GHG) emissions. The report shows that end-to-end decarbonisation of these supply chains would add as little as 1% to 4% to end-consumer costs in the medium term by introducing key levers that can be easily and affordably deployed today.
Taking a lead on net-zero supply chain transformation could be a valuable opportunity for Singapore in attracting global businesses and trade partnerships. For example, Sony recently suggested it would move factories abroad if the Japanese government did not lower barriers for renewable energy adoption. This reflects a growing global push by corporations and consumers for more low-carbon ecosystems. The market for sustainable products demonstrates this journey, growing seven times faster than contemporary counterparts over the last five years. Now is the time to embrace change and double down on Singapore’s low-carbon credentials.