For firms, going green can mean bigger profits

Alvin Foo, Straits Times 1 Sep 09;

GOING green in manufacturing can go hand in hand with boosting a company's bottom line, participants at a seminar on sustainable manufacturing were told yesterday.

In fact, it is the way forward for Singapore-based electronics and precision engineering firms, as global businesses move towards sustainable manufacturing, according to trade promotion agency International Enterprise (IE) Singapore. This means such firms need to adopt sustainable manufacturing practices to remain globally competitive and relevant.

Mr Yew Sung Pei, IE Singapore's assistant chief executive, said local companies can do their part to protect the environment while keeping the bottom line in mind.

He said: 'Heightened awareness of environmental sustainability is affecting business and consumer decisions. It is more important than ever for companies to look into reducing their carbon footprint.'

Going green could translate into brighter profits. Mr Yew said it can help a company save the environment, cut down energy costs, reach out to more global customers and expand the business.

It could also boost a firm's branding by attracting new customers who are seeking environmentally friendly products and processes, said IE Singapore.

This means companies in sectors that use green manufacturing measures can enhance their export competitiveness in markets such as the European Union, the United States and Japan.

Dr Howard Lightfoot of Britain's Cranfield University noted that many opportunities now exist for companies to gain competitive advantages via a reputation for having green behaviour.

He said: 'Product performance and quality no longer guarantee you a position at the front row of the grid.'

However, several challenges stand in the way of companies adopting green manufacturing.

For instance, a cultural shift is required. Dr Lee Hui Mien, an assistant research scientist from the Singapore Institute of Manufacturing Technology (SIMTech), said: 'It's not something that will happen overnight...you need a mindset change first.'

She urged firms to take the first step by assessing their current carbon footprint.

Organised by IE Singapore together with SIMTech and the Singapore High Technology Association, the seminar aimed to help local companies understand the increasing focus on green manufacturing, its global opportunities and how firms here can go green.

It drew about 120 participants from 70 organisations.