Singapore is taking bold steps towards a greener and more sustainable future with the Singapore Green Plan 2030. As climate change and environmental concerns become more pressing, businesses of all sizes have a role to play in ensuring a sustainable future. Small and medium-sized enterprises (SMEs), which make up a significant portion of Singapore’s economy, have a unique opportunity to lead the way in adopting sustainable practices. By embracing green initiatives, SMEs can not only contribute to national sustainability goals but also enhance their competitiveness, reduce costs, and attract eco-conscious customers.
Understanding the Singapore Green Plan 2030
The Singapore Green Plan 2030 is a comprehensive national strategy aimed at advancing the country’s sustainable development agenda. Launched in February 2021, the plan is structured around five key pillars:
- City in Nature: Expanding green spaces and promoting urban biodiversity by planting 1 million trees and increasing nature parkland area by over 50%. Every household will be within a 10-minute walk from a park by 2030.
- Sustainable Living: Reducing waste, promoting cleaner energy vehicles, and creating eco-friendly towns. Targets include a 30% reduction in waste sent to landfills and requiring all new car and taxi registrations to be cleaner-energy models from 2030.
- Energy Reset: Transitioning to cleaner energy sources by quadrupling solar energy deployment by 2025 and ensuring 80% of new buildings meet Super Low Energy standards from 2030.
- Green Economy: Developing new green jobs, transforming industries, and positioning Singapore as a leader in sustainability, including turning Jurong Island into a sustainable energy and chemicals hub.
- Resilient Future: Enhancing Singapore’s climate resilience and food security through research, innovation, and sustainable solutions.
These pillars aim to address critical environmental challenges, positioning Singapore as a leader in sustainability while ensuring long-term economic growth.
How SMEs Can Contribute to the Green Plan
As small and medium-sized enterprises (SMEs) form the backbone of Singapore’s economy, their participation is crucial in achieving the plan’s goals. By integrating sustainability into their business operations, SMEs can contribute to this green vision while ensuring long-term resilience and competitiveness.
1. Adopt Sustainable Practices
SMEs can take meaningful steps toward sustainability by implementing the following measures:
- Energy Efficiency: Switch to LED lighting, use energy-efficient appliances, and optimize HVAC systems to reduce energy consumption. Implement smart energy management systems to monitor and reduce electricity use.
- Waste Reduction: Set targets to minimize waste sent to landfills, aiming for a 20% reduction by 2026. Implement recycling programs, reduce single-use plastics, and explore sustainable packaging solutions.
- Green Transportation: Transition to electric vehicles for company transport, supporting Singapore’s goal of having all new car registrations be cleaner-energy models by 2030. Encourage employees to use public transport or carpooling to further reduce carbon footprints.
2. Leverage Government Support
The Singapore government has implemented several initiatives to support SMEs in their sustainability journey:
Enterprise Sustainability Programme (ESP)
The ESP, launched by Enterprise Singapore (ESG), aims to help local companies, especially SMEs, develop capabilities and capture opportunities in the green economy. Key features include:
- A budget of up to S$180 million to support various sustainability initiatives.
- Assistance for at least 6,000 enterprises over four years.
- Support for training workshops, capability, and product development projects, and key enablers such as certification and financing.
- A series of sustainability courses in partnership with organizations like Global Compact Network Singapore, PwC Singapore, and Singapore Environment Council.
- These courses help business leaders build awareness, assess sustainability readiness, and develop clear sustainability plans.
Energy Efficiency Fund (E2F)
The E2F is designed to help manufacturing companies improve their energy efficiency:
- It supports companies with an annual group sales turnover of less than S$500 million.
- The fund covers up to 70% of qualifying costs for energy-efficient equipment and technologies.
- Eligible equipment includes LED lighting, air-conditioners, motors, chilled water systems, refrigeration systems, compressed air systems, boiler systems, furnaces, ovens, and heat recovery systems.
- Grant amounts may exceed S$30,000, with support levels varying based on carbon abatement achieved.
Enterprise Financing Scheme – Green (EFS-Green)
EFS-Green is a government financing scheme to help local companies develop capabilities and capture growth opportunities in the green economy. Key features include:
- Open for applications until March 31, 2026.
- Offers various loan types, including developmental capital, fixed assets, trade loans, project loans, venture debt, and mergers & acquisition loans.
- Maximum loan quantum ranges from S$3 million to S$50 million, depending on the loan type.
- Repayment periods vary from 1 to 20 years, based on the loan type.
- Eligibility criteria include having at least 30% local equity and an annual group sales turnover not exceeding S$500 million.
These initiatives demonstrate the Singapore government’s commitment to supporting SMEs in their transition towards sustainability, providing financial assistance, training, and resources to help businesses adapt to the growing green economy.
3. Invest in Green Innovation
SMEs can contribute to Singapore’s green economy by:
- Developing Sustainable Products: Creating innovative, eco-friendly products or services that address environmental challenges, such as biodegradable packaging or energy-efficient appliances.
- Adopting Green Technologies: Investing in clean technologies, such as solar panels, water-saving systems, and AI-driven efficiency solutions, to reduce carbon emissions and improve resource efficiency.
- Pursuing Green Certifications: Obtaining sustainability certifications, such as the Singapore Green Labelling Scheme (SGLS) or B Corp certification, to enhance credibility and access new markets.
4. Engage in the Circular Economy
SMEs can integrate circular economy principles into their business models by:
- Resource Optimization: Designing products for longevity, reusability, and recyclability. Implementing eco-friendly materials and sustainable manufacturing processes.
- Waste as Resource: Exploring ways to turn waste into valuable resources, such as repurposing manufacturing by-products or partnering with recycling companies to close the production loop.
5. Collaborate and Build Partnerships
SMEs can amplify their sustainability impact by:
- Supply Chain Sustainability: Working with suppliers and partners to green the entire value chain, such as sourcing from eco-friendly vendors and adopting sustainable procurement policies.
- Knowledge Sharing: Participating in industry forums, sustainability networks, and government initiatives to exchange best practices and learn from other businesses.
- Community Engagement: Involving employees and local communities in sustainability initiatives, such as corporate social responsibility (CSR) programs, clean-up drives, and sustainability education campaigns.
- Leverage OCBC SME Start-ESG Programme: Participate in programs like the OCBC SME Start-ESG Programme, in partnership with Enterprise Singapore, to establish a baseline measurement of sustainability metrics, receive expert guidance on sustainable practices, and gain access to sustainability-linked loans. This will enable SMEs to enhance their competitiveness, improve their sustainability performance, and access financing for green initiatives.
6. Measure and Report Progress
To ensure accountability, SMEs should:
- Set Targets: Establish clear, measurable sustainability goals aligned with the Green Plan’s objectives. Define key performance indicators (KPIs) for energy use, waste reduction, and carbon footprint.
- Monitor Performance: Regularly assess and report on sustainability metrics such as carbon emissions, resource consumption, and overall environmental impact. Leverage digital tools to track progress and identify areas for improvement.
- Communicate Sustainability Efforts: Share sustainability achievements with stakeholders, customers, and employees through annual reports, social media, and marketing campaigns to build brand trust and transparency.
Conclusion
By integrating sustainability into their operations, SMEs can play a significant role in realizing the Singapore Green Plan 2030. These efforts not only contribute to national sustainability goals but also help businesses stay competitive in the evolving green economy. With government support and a proactive approach, SMEs can drive meaningful environmental change while securing long-term business success.
At Timcole, we are committed to helping SMEs navigate their sustainability journey. Whether you need guidance on grants, regulatory compliance, or financial planning for green investments, our expert team is here to support you. Contact Timcole today to learn how we can help your business embrace sustainability and thrive in Singapore’s green economy.
