How Singapore companies are going green

With the haze problem persisting in the region year after year, Channel NewsAsia takes a look at what it takes for companies to go green. While there is greater awareness, for small and medium enterprises, it is still about the bottom line.
Imelda Saad, Channel NewsAsia 13 Oct 15;

SINGAPORE: Singapore printing company Asiawide Print Holdings’ business model is built on sustainability. Everything in its printing process is eco-friendly - from the soy-based ink it uses, to the printing plates for mass production.

Eco-friendly material costs about 10 to 30 per cent more.

The company said there is greater interest in environmentally-friendly material, but only from multinational firms. Eight in 10 of its customers do not ask for paper products which are Forest Stewardship Council (FSC)-certified. FSC is an international certification which promotes responsible management of the world's forests.

"In the end, if the cost matters to our customer, definitely going green may not be one of the considerations,” explained Mr Terrence Hong, chief business officer at Asiawide Print Holdings.

The Singapore Environment Council (SEC) said that on average, it will cost a company about S$5,000 per product line to get it green-certified. The more complex the test requirement, the higher the fee.

Mr Kavickumar M, head of eco-certifications at SEC, said: "There are also more complex product categories, which require, for example, biodegradability testing - that takes a long period and that could easily cost up to about S$5,000 to S$6,000. Different test labs have different price requirements. So it is also a very competitive industry.

“Small and medium-sized enterprises usually tend to feel the pinch because this is a voluntary scheme. How can they compete with the big players who have more funds and capital for this sort of endorsement projects and programmes?"

Mr Hong added: “In Asia, Japan is more green-focused. In other parts of Asia, we are not so well-equipped about this green direction yet.”

Singapore has its own green labelling certification, called the Singapore Green Label, and about 3,000 products have been given this stamp of approval. They cover a range of products, from building material and fittings to cosmetics, appliances and office equipment.

In the wake of air pollution caused by haze, some products which carry the label were taken off the shelves. The products are related to Asia Pulp and Paper Group, which is one of the companies being investigated for causing the forest fires in Indonesia.

Still, SEC is engaging companies to make the switch. It is also lobbying consumers to choose eco-friendly products.

"We will continue to work both with businesses and consumers to drive the demand base. So obviously, if you increase the demand for green products, it will definitely help to bring the cost to almost the same as products which are not sustainably produced,” said Mr Edwin Seah, executive director of SEC.

Mr Kavickumar added that interested SMEs can start small: "This being a voluntary scheme, they can choose not to certify all their products. They can come forward to certify products that they think are more marketable, more saleable in the market and obviously those that have more demand in the market.

"So as and when they feel that the demand changes and they have a new line of product coming in, they can choose not to re-certify these products. So they can choose a selected group and not a whole range of products."

Separately, the SEC and the Consumers Association of Singapore have reached out to more than 3,000 companies, urging them to declare that they procure wood, paper and pulp material only from sustainable sources. These companies include retailers, bookstores, manufacturers, printing companies, as well as distributors of recycled material.

- CNA/xq