More Singapore firms value green approach to business

Clear public policies can provide push towards sustainability: Report
Cheryl Lim Straits Times 11 Mar 11;

ADOPTING an environmentally sustainable approach to doing business has become increasingly important to companies worldwide.

A soon-to-be-released report by KPMG has found that 62 per cent of companies surveyed have a corporate sustainability strategy, an almost 12 per cent increase from a similar 2008 survey.

Conducted in October last year, the survey polled 378 senior executives from various sectors worldwide. An executive summary of the KPMG report has been obtained by The Straits Times.

Meeting regulatory requirements was the key driver for many companies to make the switch towards becoming sustainable, said the report. Other factors include risk management, brand enhancement and meeting cost reductions.

Public policies, like taxes that favour sustainable products and services, can motivate more companies to go green.

But many businesses are hindered by a lack of awareness about how to use these existing policies to their competitive advantage, said KPMG's special global adviser on climate change and sustainability, Mr Yvo de Boer.

Mr de Boer, a former top United Nations climate-change official, said this behaviour is more common in countries such as Singapore which have economies that are vulnerable to international competition. 'I think Singapore is showing leadership in a number of areas. Water is a very clear one,' he said.

The report also pointed out that taking a greener approach to running businesses could spur companies to improve or create new products.

Mr de Boer said many energy-intensive companies are keen to reduce emissions and change the way they operate, but felt they would be able to do so only if there was an international framework that would impose the same constraints and penalties on all companies globally.

He said: '(Companies) need clarity from the government to get a clear sense of direction on where they want to go in policy terms. If the result of climate-change policy is that economic activity just moves somewhere else, then what's the point.'