Mr Tan Tong Hai, Chairman, Nanyang Polytechnic,
Mr Russell Chan, Principal & CEO, Nanyang Polytechnic,
Founding Fellows of the Alliance for Sustainability Innovation (ASI),
Distinguished guests,
Ladies and gentlemen,
1. A very good morning to you. Thank you for inviting me to the launch of the Alliance for Sustainability Innovation (ASI).
Importance of sustainability innovation to Singapore’s industry
2. We all know that climate change is a global challenge.
3. As a low-lying island, Singapore is particularly vulnerable to the threat of rising sea levels and extreme weather events.
- Given our position as a geographically small and densely populated country, we have a greater impetus to adopt a whole-of-society approach to embracing sustainability initiatives. Each and every one of us today, particularly the businesspeople like yourselves have a big role to play in this effort.
4. Our efforts to mitigate the risks of climate change are not just a matter of environmental stewardship. They are also vital for our economic stability.
5. A widely cited report by the Swiss Re Institute warned that the global economy could lose 10% of its total economic value by 2050 due to climate change.
6. For businesses, the impact of global warming will likely lead to higher operating costs. They will have to:
- Pay higher premiums to insure against extreme weather events, and
- Outbid one another to obtain the raw materials needed to produce goods.
7. At the same time, consumers may increasingly demand for sustainable goods and services.
8. Hence, it is really important for companies to transform their businesses and create greater long-term business value.
- For example, companies can adopt innovative solutions to reduce the carbon footprint of their businesses, and
- Attract an increasing number of environmentally conscious consumers and employees.
9. In Singapore, the green economy is a key engine of economic growth and job opportunities.
- Under the Singapore Green Plan 2030, we are pursuing growth opportunities in areas such as green finance, carbon services and trading, and sustainable tourism. The Government is partnering businesses and workers to help Singapore adapt and leverage these economic opportunities.
- SkillsFuture Singapore (SSG)'s Skills Demand for the Future Economy report published last year found that many existing jobs will increasingly require green skills. These include helping companies adopt more environmentally sustainable practices and managing compliance and reporting requirements.
- New jobs will also be created in emerging areas of the green economy, such as carbon traders and energy storage system engineers.
10. At the industry level, both large companies and small and medium-sized enterprises (SMEs) need to work together to create a healthy ecosystem of sustainability innovation.
- As industry leaders, large and globally competitive enterprises play an important role in spearheading the transformation towards sustainable business models and setting best practices for the industry to thrive in the green economy.
- On the other hand, SMEs account for 99% of enterprises in Singapore and support more than 70% of Singapore's total employment. It is therefore vital that our SMEs adopt sustainable practices and prepare their workers for the transition to the green economy, so that we can collectively advance our national sustainability efforts.
How IHLs and companies partner each other in sustainability innovation
11. Companies also play a key role as education partners to our Institutes of Higher Learning (IHLs) in preparing our students for the workplace, amidst this green transition.
12. Industry partners have been working closely with the IHLs to co-develop and co-deliver Work-Study Programmes. Such programmes provide pathways for individuals to upskill on the job, and importantly, allow companies to bring in the manpower that they need, and equip them with the most up-to-date knowledge and skills, including in sustainability-related areas.
- For example, Nanosun Pte Ltd has been partnering NYP for the Work-Study Post-Diploma (WSPostDip) in Environmental Management & Applied Water Technology.
- As part of the programme, Nanosun developed an On-the-Job-Training (OJT) blueprint for the WSPostDip learners and attached a mentor to each learner to provide guidance on job projects. Nanosun also created opportunities for the WSPostDip learners to get involved in end-to-end operations and see their projects come to fruition.
13. Leveraging their innovation capabilities, the IHLs have also been supporting companies, especially SMEs, to advance sustainability efforts through products and services that can tackle challenges faced by the companies.
14. For example, NYP, together with Schneider Electric, has been working closely with SMEs to support their implementation of sustainability business strategies and processes.
- Mr Poh Boon Kiat from NYP's School of Engineering had an attachment to Schneider, where he worked together with the Schneider team to help two SMEs, Convergent Smart Technologies Pte Ltd and Seng Heng Engineering Pte Ltd, to develop their decarbonisation roadmap.
- The roadmap covers how to establish the company's current carbon footprint, assess which work processes within the company have the highest carbon footprint, and formulate recommendations on reducing the company's carbon footprint.
15. To facilitate knowledge sharing for sustainability innovation, NYP recently organised a seminar on "Carbon Management Strategies for Companies: Best Practices and Innovative Solutions", featuring speakers from Schneider and TUV SUD. More than a hundred attendees from 90 SMEs attended the seminar to learn and exchange views on the importance of carbon management, and various ways to kickstart their decarbonisation plans.
16. There is room for more companies, especially SMEs, to collaborate with the IHLs in adopting and scaling up sustainable business practices, and to partner the IHLs in programmes that equip the workforce and our graduates with green knowledge and green skills.
Value of adopting a community-of-practice approach through the new ASI platform
17. I am therefore delighted to see that companies are taking a more proactive stance to come together to share and promote innovative practices in sustainability, through the formation of the Alliance for Sustainability Innovation (ASI), which we are launching today. I would like to commend the good effort of NYP in convening this platform, which provides a new model of industry-academia partnership in sustainability innovation through a community of practice.
18. The ASI is an avenue for SMEs to connect to sustainability experts who can support them in implementing sustainable initiatives in their business.
19. Through the ASI, diverse groups of enterprises within the same industry can also exchange ideas, share best practices, and collaborate on projects that are relevant to their respective sectors.
20. Companies can also tap on NYP's one-stop solutioning and training approach to explore and refine the feasibility of innovative ideas and systems.
21. The ASI is a collective commitment to sustainability innovation. We welcome all stakeholders – startups, SMEs, MNCs, researchers and policymakers – to contribute your respective expertise, insights, and perspectives in our sustainability efforts.
22. I wish NYP and the ASI every success in its mission to support more companies in adopting sustainable business practices and for ASI to be sustainable for the longest time.
23. Thank you.