Yahoo Finance New e-book on sustainable procurement will raise local suppliers’ competitiveness: Grace Fu
The National Sustainable Procurement Roundtable’s (NSPR)
A new e-book highlighting best practices in sustainability could help raise the competitiveness of Singapore’s suppliers, says Minister for Sustainability and the Environment Grace Fu. This comes ahead of the 2026 deadline for listed companies here to report their Scope 3 emissions, or the emissions from their supply chains.
The National Sustainable Procurement Roundtable (NSPR) launched the e-book, “A Supplier’s Guide to Sustainability”, at the fourth edition of the SG Sustainable Forum on April 19.
Founded in 2019 by DBS Bank, Mandai Wildlife Group, Singapore Telecommunications Z74 (Singtel) and StarHub Cc3, the NSPR is a nation-wide movement to promote sustainable procurement.
According to NSPR, the e-book aims to help companies looking to create a feasible roadmap to navigate complex reporting requirements. It will provide the foundational knowledge they need to launch their journey, while slowly building up their sustainability capabilities.
In a recorded address, Fu says the publication is “particularly timely”. “More companies globally are setting higher standards in sustainability for their business partners.”
According to Fu, more organisations are setting net-zero goals and committing to reduce emissions across all levels, including their supply chain. “Suppliers that wish to do business with these organisations will need to provide greener products and services, or even disclose their carbon footprint. Suppliers that integrate sustainability into their business models and practices will enjoy a competitive edge.”
Companies with strong environmental, social and governance (ESG) credentials enjoy up to 20% faster growth and higher valuation than their competitors, says NSPR, citing a 2021 McKinsey study. Operating costs for these companies are also up to 10% lower, as they focus on resource efficiency.
Singapore’s listed issuers will have to disclose their Scope 3 emissions from FY2026 and conduct external limited assurance on Scope 1 and 2 emissions from FY2027, while large private companies have until FY2029 to meet both requirements.
The NSPR has made “significant strides” in advancing sustainable procurement in Singapore since 2019, Fu adds. “The growth from four founding members to over 20 members today reflects the growing recognition by our companies on the importance of sustainable procurement.”
Over the years, corporate procurement has evolved to encompass sustainability principles and incorporate tangible actions in its practices, says Phui Kai Ling, group head of procurement, DBS Bank. “This e-book aims to empower organisations in adopting more sustainable procurement practices, enabling them to stay ahead of the evolving regulatory landscape and contribute to a more sustainable future.”
GreenGov.SG
The public sector is also incorporating sustainability criteria in procurement, says Fu. “Under GreenGov.SG, we have rolled out green procurement requirements for nine categories of goods and services.”
The government is “progressively introducing” environmental sustainability considerations into its tender evaluation process. This started with large construction and ICT tenders from FY2024, and will be expanded to meetings, incentives, conferences and exhibitions (MICE) tenders and public sector events starting FY2025.
“We are doing this not only because the government has a net-zero target to meet, but to also create the demand for sustainable products and services with the government’s procurement budget,” says Fu.
Under GreenGov.SG, the public sector has committed to achieving net-zero emissions around 2045, five years ahead of Singapore's national target of net zero by 2050, reducing energy and water use by 10% and waste disposed of by 30% respectively in 2030.
At Budget 2024, Deputy Prime Minister Lawrence Wong announced enhanced schemes to support SMEs in adopting low-carbon solutions.
The Energy Efficiency Grant (EEG) will be extended to more sectors including maritime, construction and data centres by year-end, notes Fu. “The EEG complements the Enterprise Sustainability Programme (ESP) to provide holistic end-to-end support. Companies can tap into the ESP for consultancy support to pinpoint areas for efficiency gains before applying to buy energy-efficient equipment under the EEG.”
The government has also extended the Enterprise Financing Scheme (Green), which helps local companies develop capabilities and capture green growth opportunities, till March 2026, says Fu. The government has also expanded its scope to cover companies adopting green solutions. “I encourage companies to utilise these support schemes.”
The e-book is free for download from the NSPR website.
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