How to start your sustainability journey Now — Not When It’s Mandated as Singapore marches towards net-zero emissions by 2050 and tightens regulations on corporate sustainability reporting, small and medium enterprises (SMEs) must ask: Will you lead the transition or scramble to catch up?
Starting your Sustainability Journey today offers powerful advantages from unlocking carbon credit revenue streams to enjoying early and better access to government grants. Here’s how and why.
🌍Laying the Groundwork: Establishing a Validated ESG Baseline
Why an ESG Baseline Matters
A validated ESG baseline enables your SME to:
- Identify emission hotspots (Scopes 1, 2, and 3*)
- Set reduction targets backed by data
- Benchmark progress over time
- Build trust with financiers, partners, and customers
Without it, sustainability efforts become superficial and ineffective—lacking measurable progress and credibility.
ESG Metrics to Capture
- Environmental: Energy use, emissions, waste, water intensity
- Social: Employment diversity, workplace safety, employee training
- Governance: Board structure, anti-corruption policies, risk management
Tools and Standards (Singapore-Relevant)
- ISO 14064 for carbon accounting
- GRI, SASB, and TCFD (ISSB) for sustainability disclosures
- COSIRI Assessments: Localized framework aligned with international standards
- Energy Efficiency National Partnership (EENP): Data benchmarking tools supported by NEA
💨From Decarbonization to Carbon Credits & Revenue
Decarbonization = Lower Costs + New Income
Once your baseline is set, you can reduce emissions by:
- Retrofitting with LED lighting or efficient HVAC systems
- Installing solar PV panels on rooftops
- Optimizing logistics to reduce transportation emissions
These actions may yield carbon credits, which could be:
- Used for internal offsets (against carbon tax or reporting targets)
- Sold in voluntary markets, generating additional revenue
Accessing Carbon Credit Markets
- Singapore Carbon Credit Exchange (SCCX): New exchange for trading voluntary carbon credits
- Project Standards: Verra VCS, Gold Standard, or local equivalents
- Eligibility: Only projects with credible, verifiable emission reductions can qualify
By starting early, you can generate and monetize carbon credits before competition floods the market.
📊 Sustainability Reporting: Reputation, Trust & Growth
Mandatory Reporting is Coming
- By FY2025, large non-listed firms and SGX-listed entities must follow mandatory climate-related disclosures, aligned with ISSB (based on TCFD).
- More sectors (including FMCG, manufacturing, logistics) are expected to follow suit under progressive mandates from MAS and NEA.
- This fact makes COSIRI Certification more attractive.
Branding and Stakeholder Value
Companies with strong ESG narratives:
- Win public and private tenders more easily
- Attract premium customers and eco-conscious millennials
- Enjoy lower cost of capital from banks offering green financing
- Strengthen employee retention and recruitment
A 2024 UOB report found that 67% of consumers in Singapore are willing to pay more for sustainable products.
💰 Grants & Support for Early Movers
Enterprise Development Grant (EDG)
- Up to 70% funding for:
- ESG consulting services
- Carbon footprint assessments
- Sustainability roadmap development
- Implementation of sustainability reporting or certifications (e.g. ISO 14001, GRI)
Must engage Registered Management Consultants (RMC); Finnex qualifies.
Energy Efficiency Fund (E2F) – NEA
- Co-funds up to 50% of qualifying costs for:
- Energy-efficient equipment (motors, chillers, air compressors)
- Measurement and Verification (M&V) tools
- Applicable to manufacturing SMEs
Resource Efficiency Grant for Energy (REG(E))
- Designed for high energy-consuming facilities
- Funds system-level upgrades such as process redesigns
- Aimed at long-term energy savings and carbon reduction
Enterprise Financing Scheme – Green (EFS-G)
- Green project financing support (solar, waste-to-energy, electric fleets)
- Up to S$15 million in loan quantum, risk-shared with local banks
- Ideal for SMEs scaling their sustainable infrastructure
⏳ Why Waiting Will Cost You More
| 🔍 Comparison | Start Today | Wait for Mandate |
| Government Grants | Up to 70% funding for planning and CapEx | May be unavailable or shift toward compliance enforcement |
| Carbon Tax Impact | Reduce exposure before 2030 hike to S$80/tCO₂* | Face higher taxes with limited mitigation levers |
| Carbon Credit Value | Lock in early-generation offsets at lower cost | Credits become expensive and harder to obtain |
| Market Perception | Seen as forward-thinking, eco-conscious brand | Viewed as reactive or forced to comply |
| Operational Planning | Spread cost over time with better vendor access | Last-minute rush = bottlenecks and price surges |
| Talent Attraction | Appeal to ESG-minded workforce | Lose appeal to next-gen talent pool |
Conclusion: Move Now, Reap the Rewards
Singapore SMEs that act before mandates position themselves for long-term gains:
- Reduced operating costs
- Access to green financing
- Eligibility for carbon trading
- Enhanced customer and investor trust
- Stronger internal culture aligned with global sustainability goals
By validating your ESG baseline today, decarbonizing with intent, and reporting transparently, you transform compliance into competitive edge.
👉 Next Steps
- Engage a Registered Management Consultant (RMC) to help you scope a sustainability roadmap under EDG.
- Audit your carbon footprint and identify eligible decarbonization projects.
- Apply for EDG Grant or NEA grants based on project type (energy, reporting, branding).
- Pilot a sustainability report using GRI or COSIRI format before mandates take effect.
➡️Book an appointment with us and start your Sustainability Journey with Finnex today!😌