Leading entrepreneurs in Singapore view climate change as growing strategic concern

Channel NewsAsia 20 Nov 08;

SINGAPORE: Six in 10 leading entrepreneurs view climate change as a growing strategic concern, according to a survey by Ernst & Young.

The poll also found that 70 per cent of entrepreneurs have increased their focus on climate change initiatives over the past 12 to 24 months.

In line with broader corporate trends, 80 per cent of them expect to increase their cleantech spending over the next five years. These are to improve their internal operations and supply chain and to meet their corporate responsibility requirements.

44 per cent have budgeted at least US$1 million for climate change investments over the next five years. About six per cent of those surveyed anticipate spending upwards of US$20 million over a five-year period.

The poll said investment in cleantech are likely to be in the areas of water efficiency, solar power and electric grid management.

Ernst & Young said entrepreneurs are recognising that responding to climate change can lead to strategic opportunities to enhance their market position or create efficiencies.

Nearly seven in 10 cited the opportunity to enhance competitive position as an important strategic driver. But there are risks, such as the cost of energy and other resources.

Just over a quarter of respondents also said regulatory uncertainty is the single greatest challenge in responding effectively to climate change.

In terms of financial return, about 70 per cent said their response to climate change would have a positive or neutral impact on the bottom line over the next 10 years.

The survey polled leading entrepreneurs from Ernst & Young's World Entrepreneur of the Year Academy. - CNA/vm