Businesses Learn About Profits To Be Made By Going Green
SINGAPORE: There are profits to be made from being socially responsible, as companies in Singapore learned at a conference on Business and Climate Change on Tuesday, World Environment Day.
There are obvious ways to go green, like using less paper and switching to energy efficient light bulbs in the office.
Many companies have already caught on.
“Alexandra Technopark has actually conducted an audit, and what they found is that the cost of implementing energy efficiency would be S$260,000, but they would save S$600,000 annually. So the payback is actually less than a year,” said Tan Li Yen, Executive Engineer, Climate Change Unit, National Environment Agency.
But these savings could be mere pocket change compared to the profits to be gained, according to one researcher.
Scott Valentine, from the Centre on Asia & Globalisation at the Lee Kuan Yew School of Public Policy, wants companies to start thinking and innovate on environmental areas they may normally neglect.
He said, “When you think about a chicken farm for example, you don’t really think about energy opportunities. But if you delve deeper into their operations, you realise chickens produce a product that you’d rather not step on and this product produces methane.
“As it degrades, methane is an energy source that can be captured and used as energy. Firms that are in the process of thinking about their day to day activities don’t often think about these types of initiatives.”
And the government is supportive of businesses going green.
The National Environment Agency (NEA), under its energy efficiency improvement assistance scheme, offers a S$10 million grant to co-fund up to half of the cost of energy audits.
It has led to annual energy savings of about S$13.9 million, and a reduction in carbon dioxide emissions of about 113 thousand tonnes, according to Senior Parlimentary Secretary, Environment and Water Resources, Dr Amy Khor.
There are now plans for a nationwide thrust.
“NEA and the government have identified energy efficiency as a strategic priority under the national climate change strategy. So we will be the lead agency to drive and coordinate efforts on energy efficiency and conservation, and we will work hand in hand with other agencies as well as the industry, including, of course, business and individual consumers.
“This drive to promote environmental consciousness and conservation cannot be done by the government alone. We need the efforts of all stakeholders including NGOs, and professional bodies like ACCA,” said Dr Khor.
The National Climate Change Strategy will be launched later this year. - CNA/yy
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