The Business Solution

How Can Businesses in Singapore Shift Towards A Sustainable Environment?

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I feel that the business sector in Singapore and consumers of their products can play a critical role towards a sustainable environment. Efforts must be made to ensure that their products and services are environmentally friendly. As consumers, we can help and encourage these efforts by actively supporting those businesses that strive to conserve and and sustain the forests.

Through research I have identified two primary agricultural products that are sold here and are crucial to prevent deforestation: production of palm oil and paper products. Businesses in these sectors can play a meaningful role in significantly reducing deforestation, especially with support by consumers.

Zero Deforestation of Palm Oil:

  • Malaysian and Indonesian Manufacturers should strive to use palm oil that can be traced back to deforestation-free sources–and consumers and governments should reward companies who do so by purchasing their products and providing grants.
  • Businesses should work to strengthen the Roundtable on Sustainable Palm Oil (RSPO), a group of stakeholders in the palm oil supply chain that have come together to develop and implement global standards for producing deforestation-free palm oil.
  • In some cases of businesses that rely heavily on palm oil. They can switch to oils that have less impact, such as sunflower or rapeseed oil, though purchasing responsibly produced palm oil is a better choice to encourage more sustainable operations.

Encouraging Sustainable Forestry Practices:

  • Businesses should know the source of the wood and paper they use and ensure that the products they sell and promote do not drive tropical deforestation.
  • Whenever possible, products should be certified as having been legally and sustainably produced and procured. Two of the most rigorous wood product certification programs are managed by the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC). It is therefore important that businesses work with NGOs and other local stakeholders to support efforts to promote certification and ensure that wood is not coming from primary tropical forests.
  • Businesses should work to eliminate waste (through decreases in shipping, building materials, paperwork, and packaging); by recycling materials, which reduces the need for virgin wood; and by purchasing goods made from post-consumer recycled materials.

What You Should Look Out For

Consumers should look out for businesses that are taking concrete and specific steps to reduce tropical deforestation. Businesses can:

  • Publicly pledge to become deforestation-free. Businesses should make a strong, clear pledge to ensure that none of the materials they use in manufacturing, production, or the products they sell contributes directly or indirectly towards tropical deforestation.
  • Source, sell, and promote deforestation-free goods. A strong market for deforestation-free goods is vital to promoting sustainable practices in tropical regions.
  • Build transparent supply chains and maintain good relationships with suppliers. A commitment to zero deforestation means knowing the source of materials used in their products and making sure that suppliers share the deforestation-free values. Do not close a blind eye just because it is cheaper.
  • Work with other organizations and Roundtables. Businesses should determine whether there is a certification scheme. This is to ensure that specific standards pertaining to these concerns are met in their products. Businesses may need to go above and beyond existing standards to ensure their products are truly deforestation-free.

 


How Can The Government Play It’s Part In Encouraging A Sustainable Business? Creating a department for it.

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So I’ve generally talked about how businesses can move towards more sustainable practices. But without government backing, things won’t be easy and there won’t be an added incentive for them as some businesses view conservation as a set-back in economic losses. So let’s take a look at some of the agencies and departments currently where businesses that want to venture on this sustainable path can get advice from.

I’ve compiled a list below which shows the different agencies for specific environmental purposes:

  • Reduce energy consumption and improve energy efficiency: You approach the National Environment Agency (NEA).
  • Water Conservation: PUB, the national water agency.
  • Waste reduction and recycling: NEA.
  • Green buildings: Building and Construction Authority (BCA).
  • Climate change: NEA or National Climate Change Secretariat (NCCS).
  • Renewable energy: Energy Market Authority (EMA) or Economic Development Board (EDB).
  • Green transport: Land Transport Authority (LTA) or EMA.
  • Sustainable manufacturing: Singapore Institute of Manufacturing Technology (SIMTech).
  • Sustainable events: Singapore Tourism Board (STB) or NEA.
  • Green shipping: Maritime and Port Authority of Singapore (MPA).
  • Expanding green businesses overseas: International Enterprise (IE) Singapore.
  • Green foreign companies setting up here: EDB.
  • Green standards: SPRING Singapore.
  • Green IT: Infocomm Development Authority of Singapore (IDA).

What about other aspects?

  • What about Entrepreneurs who want to “go green”? There isn’t a department so far. But the government would encourage you to participate in a broader program called SPRING.
  • Green Products: It is one of the most crucial aspects however, there is no government agency that falls under this line. But there are NGOs such as Singapore Environment Council and Singapore Green Building Council that help to advise on making environmentally-friendly products.
  • CSR (Company Social Responsibility): None. But this can be a useful strategy adopted by companies that wish to gain consumer support. Eg. Apple’s Red Products.
  • What about green design? None.

So it seems like there are numerous government agencies and departments that are working on different environmental policies, initiatives and funding schemes. But it is obvious that there is no single department that is in-charge of helping businesses in Singapore to become sustainable in a holistic fashion. There still exists a gap at the operational level and businesses that are interested to become more sustainable and they usually have to seek help from different agencies and departments separately. This deters companies as it is time consuming and the right advice may not given because each department focuses on only one specialized area.

One Department for Sustainable Businesses

The government can perhaps create a holistic department for sustainable business. If the government wants to help businesses to embrace sustainability and to gain a green competitive advantage, it has to look into having a dedicated one-stop department that advises businesses on sustainability and green practices.

Rather than having a piecemeal approach to business sustainability, a strategic and holistic approach would be better and more effective. The government department responsible for helping local companies to be more sustainable could become a one-stop channel that provides tips, best practices, case studies, resources, funding, and research on business sustainability. With this single focus, companies only have to approach this department instead of speaking to multiple agencies, thus saving time and resources.

In addition, this department can help businesses look at sustainability holistically and address the various environmental risks and opportunities.

Setting Up Such A Department

This is just one suggestion that I came up with which focuses on two key aspects in sustainability:

1. Reduce Environmental Risks and Costs

This department would help companies to gauge and assess environmental impacts and risks, reduce the use of resources such as energy, water, fuel, materials and chemicals, and look into climate change issues.

The advice can help companies to identify and monitor their environmental risks, and reduce those risks over time. In addition, businesses can save costs and be more efficient by reducing the consumption and disposal of resources.

2. Increase Revenue and Branding

This department can also help companies to explore green products and services; achieve environmental standards; use eco-labels; promote green marketing and sustainability reporting.

And these in turn may help businesses meet the market demand for green products and services, gain a competitive advantage and increase their revenue. In addition, the companies can build up their reputation through implementing the various green initiatives, standards, labels or reporting, and enhance their brand as a sustainable business.

More importantly, this department should take responsibility for setting and promoting the national strategy to drive local businesses to be more sustainable and to adopt green practices. Without a government organisation dedicated to this cause, the shift towards sustainable businesses is not possible.