“The idea of the registry emerged from a Forward SG conversation in 2022, where companies highlighted the difficulties presented in reporting scope 3 emissions,” Ms Fu, who is also Minister-in-charge of Trade Relations, noted in her keynote address.
Scope 3 emissions typically refer to indirect emissions from entities up and down a company’s value chain, such as business travel, commuting, waste disposal and water consumption.
The registry works by capturing a database of emission factors developed based on Singapore’s context. These emission factors will convert operational data from business activities into corresponding greenhouse gas emissions.
In a separate press release, the SBF said that the registry supports existing reporting tools and solutions that help enterprises automate their sustainability reporting process.
It added that most Singapore businesses currently use emission factors from international sources for sustainability and carbon emissions reporting, especially for scope 3 emissions.
“The Singapore Emissions Factor Registry which contains localised emission factors will help Singapore-based businesses to track and report their emissions more accurately, and in turn, empower businesses to make informed decisions on how to reduce their carbon footprint based on their environmental impact,” the federation said.
The emission factors will be developed in phases. An initial baseload with data collected and consolidated from government agencies will be ready by the end of this year.
These include emission factors related to transportation, water, general waste, and energy. Emission factors for new categories and activities will be developed and released based on industry consultations and demand.
The registry comes ahead of Singapore’s requirement for all listed companies to make climate-related disclosures from financial year (FY) 2025. Large non-listed companies will be required to do so from FY2027.
Disclosures will need to be aligned with the standards set out by the International Sustainability Standards Board, a global accounting standards body.
“It is important to help our businesses to understand and measure their carbon footprint, and integrate sustainability into their management frameworks systematically,” said Ms Fu.
Climate reporting, including disclosure of companies’ climate-related data, such as carbon emissions, will enable consumers, investors and financiers to make more informed choices in their purchases and investments. They will be able to direct their finances to businesses with strong sustainability practices.
Source: CNA
