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impactSMEshaveanextensivepresenceacrossSingaporesbusinesslandscapeembeddedinproductionlines tradesupplychainsbusiness valuechainsandenterprisenetworks Theirinfluencespansnumeroussectorsandcollectively theiractionscansignificantlydriveorhinder thenationsdecarbonisationeffortsHoweverembarkingonthepathtonet-zeroposesuniquechallengesforSMEsmanyofwhommaylacktheresourcesorexpertisethatlargercorporationshaveThe2024SingaporeBusinessFederation(SBF)Bain&CompanySMEDecarbonisationSurveyrevealedthat60%ofSMEslackin-housecapabilityfordecarbonisationand46%arenotevenawareofpotentialsolutionsAsaresultonlyathirdofSMEshavemadesignificantprogressintheirdecarbonisationeffortsinstarkcontrasttolargerenterpriseswhereapproximately80%haveadvancedtheirsustainabilityagendasTheBenefitsofDecarbonisationWhyGoingGreenisGoodBusinessWhilebarrierstodecarbonisationexistsustainabledevelopmentandvaluecreationcanoftengohand-in-handAccordingtothe2024SBFBainSMEDecarbonisationSurveywhichsurveyedapproximately500SingaporeSMEsaroundhalfofthoseactivelyengagedindecarbonisationeffortshaveunlockedtangibleeconomicbenefitsTheseincludemarketdifferentiationwhichenablesSMEstoincreasetheirmarketshareorcommandhigherpricepremiumsaswellasoperationalcostsavingseligibilityforgreengrantsandfundingandreducedregulatorycompliancerisksandcostsOneprominentexampleistheGryphonTeaCompany(GryphonTea)aSingapore-basedteamanufacturerthathassuccessfullyincorporatedenvironmental social and governance (ESG) goals into its core business strategy and operations Gryphon Tea transitioned to FSC-certified paper for packagingplastic-free and compostable tea bags and has optimised its Heating Ventilation and Air Conditioning (HVAC) systems These initiatives have not only led to costsavingsofapproximately5%butalsoelevatedGryphonTeassustainabilitycredentialshelpingitpositionitselfasabrandofchoiceforeco-consciousconsumersGryphonTeasstoryillustratesthatsustainablepracticescanyieldeconomicbenefitsandstrengthenbrandloyaltyinincreasinglyeco-awaremarketsAnotherexampleisPeopleBeeHoonFactoryaricevermicelliproducerthathasseenconsiderableeconomicreturnsthroughitscommitmenttosustainabilityByinstallingsolarpanelsontherooftopofitsfacilityPeopleBeeHoonFactorynowgeneratesapproximately30%ofitselectricityneedsfromsolarpowerresultinginsignificantcostsavingsAdditionallythereductionincarbonemissions–estimatedat138tonnesannually–isequivalenttoplanting189treesandunderlinestheenvironmentalimpactoftheirinvestmentBeyondelectricitythecompanyhasoptimiseditswashingprocessreducingwaterconsumptionbyabout50%andfurthercuttingwasteandoperationalcostsSupportingSMEsinTheirSustainabilityJourneyRecognisingthechallengesfacedbySMEsintheirdecarbonisationjourneytheSingaporegovernmentoffersawiderangeofgrantsandfundingoptionstosupportsustainabilityeffortsTheseschemesaredesignedtoassistSMEsatdifferentstagesoftheirsustainabilityjourneyfromthosejuststartingouttoinnovation-drivenenterpriseswithresearchanddevelopment(R&D)capabilitiesGovernment-backedprogrammesoffermuch-neededfinancialsupportandresourceswhichareessentialinhelpingSMEsdevelopandimplementsustainablepracticesSINGAPOREENVIRONMENTALINDUSTRYDIRECTORY2025/2026