Roundtable panellists:

• Deborah Heng, country manager, Singapore, Mastercard

• Jayotika Mohan, head of Apac SMB sales, Google Cloud

• Lee Hwee Boon, managing director, head of middle market and services enterprises, Global Enterprise Banking, OCBC Bank

• Puneet Arora, CEO, Singapore and the Philippines, GroupM

• Tan Sze Wee, assistant chief executive, enterprise division, A*STAR

• Terence Ang, partner and head of advisory, RSM Singapore

Moderator: Tan Nai Lun, journalist, The Business Times

What are Singaporean firms doing to go green, and how does that compare to what others are doing overseas?

Deborah Heng: Globally, countries are transitioning to a low-carbon future and moving towards "net zero" with a sense of urgency.

The demand for products and services that meet sustainability criteria will rise over time, and now more than ever, it is critical for businesses to get ahead of the curve and build capability early.

Today, sustainability in business is much wider than taking an environmental lens to the business. It's the way we position ourselves as a force for good.

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That includes social impact for communities, our ethical practices, how we treat employees as well as our contribution to a healthy planet.

Lee Hwee Boon: We see Singapore firms across a range of industries embarking on the transition to sustainable business practices, such as through investments in energy efficiency, renewable energy or by tapping technology like Internet of Things to track and better manage energy use.

Singapore's small and medium-sized enterprises (SMEs) are also eco-innovators.

We have seen high-tech, novel solutions emerging in industries like wastewater management and food tech, as well as in the smart transportation space.

These Singapore-developed innovations have the potential to be exported globally as enablers to achieve environmental, social, and governance (ESG) goals.

Terence Ang: The concept of sustainability has seen increased attention among Singaporean firms in the last 2 to 3 years, due in part to the global attention on sustainability as well as the Singapore government's initiative and incentives.

That said, Singaporean firms, specifically SMEs, have some way to go in terms of going green compared to other countries in embracing sustainability and placing emphasis on sustainable practices.

While the government initiatives and assistance would help, there needs to be a mindset shift towards sustainability practices.

Firms need to recognise the long-term value they bring to the companies and their stakeholders and integrate sustainability into their businesses in order to remain competitive, both locally and globally.

How can Singaporean firms improve sustainability efforts while ensuring it is not a trade-off for profitability?

Puneet Arora: Firstly, it is important for any company to establish their efforts on sustainability: Why are they doing it? Is it because of compliance? Or is it because of competitive advantage?

Addressing these questions allows firms to set a path that allows them to develop their strategies and be focused on how they integrate sustainability into their business, while keeping an eye on the business fundamentals and profitability.

Secondly, firms must be proactive in looking "through the line" of the ecosystem they are in. They will need to constantly engage with it to be able to sustain their efforts.

Lastly, the management of the sustainability efforts must be clear and precise. There must be unwavering commitment and transparency within the firms to see it through.

Lee Hwee Boon: Going green need not be at the expense of profitability. For example, changing the approach on equipment maintenance from reactive to predictive optimises the operation of the equipment, leading to lower energy consumption and cost savings.

In a way, this shift towards sustainable practices is reminiscent of the digital transformation journey.

Before the pandemic, some still felt that going digital was not a necessity.

But having gone through this crisis, more businesses recognise the importance of building resilience and being future ready. Sustainability can help them achieve these goals.

Terence Ang: Sustainability should not be viewed as a trade-off to profitability. Instead, firms should explore how embracing sustainability can lead to long-term value creation for their businesses and stakeholders.

Consumer demands and shareholders' expectations are key in shaping the sustainability agenda. The wider customer base is increasingly focused on the environmental impact of the products and services they consume.

Efforts to improve resource utilisation and operational efficiency could reduce wastage, resulting in better margins and lower spending on transportation, materials, and waste disposal.

Both strategic and financial investors are also increasingly focused on ESG factors when making investment decisions. There is growing precedence and literature suggesting that socially conscious companies can be viewed as more valuable than those that are not.

How important is going green when some firms are still hit by the effects of the pandemic?

Tan Sze Wee: Despite the pandemic, firms with a strong ESG practice and a focus on going green will be able to differentiate and position themselves for long-term success, particularly given today's heightened social, government and consumer attention on the environmental impact of companies.

This megatrend, accelerated by Covid-19, is potentially set to last decades, offering opportunities for companies to tap into emerging areas such as renewable energy, electric vehicles, novel materials and smart cities solutions, among others. Climate change can no longer be dismissed as a remote threat as it is already causing extensive damage to societies.

Puneet Arora: New consumer attitudes in the wake of the pandemic are accelerating the demand for change and many of these will remain post pandemic.

The unique impact of the last year has made many of us hit the pause button, heightening the awareness of our individual choices on the planet as we see it unfold in the constant news of freakish weather conditions and the effects of global warming.

As pandemic life recedes, the result may be a greener recovery and an expectation that the brands we choose will turn our good intentions into actions.

Jayotika Mohan: The global pandemic redefined the priorities of many businesses. We saw a reckoning in which organisations had to not only declare their ethos but align their business models. Both customers and employees began to more closely examine their role in supporting organisations that align to their personal ethos.

Leaders are increasingly seeing sustainability as a key component of their business and are starting to build it into their mission, their principles and their strategy.

It is critical to differentiation, growth, product and business success and I think this decade will be pivotal in the fight against climate change, and leaders need to implement new strategies and partner with companies across industries to achieve sustainability goals.

What should firms do to keep their green efforts sustainable in the longer term?

Deborah Heng: Long-term sustainability means staying ahead of the curve. Simply put, understanding the unmet needs of consumers and the environment, and crafting products and services to address them is critical to the success of a business.

To do so successfully, businesses should focus on the following items: align strategy with sustainability, companies - which often relates to regulations in waste management, pollution, and energy efficiency as well as human rights and labour responsibility - and transparency.

Tan Sze Wee: Companies should take a proactive approach to building up robust ESG programmes, which can help attract investments and collaborations from both public and private institutions. These institutions are increasingly keen on partnering businesses with strong ESG practices to jointly build long-term value.

By allocating capital and resources to more sustainable opportunities, such as adopting energy-efficient equipment or investing in R&D, companies can enhance investment returns and keep their green efforts sustainable.

Changing government policies are expected to add incentives for companies to upkeep their green efforts, such as the push for ESG disclosures and the release of disclosure standards.

The government provides investments and funding support for companies' transition to a lower carbon future.

Jayotika Mohan: More than 80 per cent of greenhouse gas emissions are found in the supply chain given its end-to-end impact from sourcing, manufacturing and distribution. Leveraging the power of data to provide visibility and intelligence across the network is key in making supply chains more sustainable.

Companies can do this by focussing on 3 core processes:

• Supply chain design, a holistic view of product innovation and network design which predetermines the carbon footprint of the product;

• Supply chain monitoring, which entails building an effective track and trace process across the value chain which include sources such as tapping into satellites to monitor deforestation, water and our natural habitats;

• Supply chain execution, by using data to guide decisions in operations.

How should firms avoid greenwashing?

Lee Hwee Boon: One of the ways to avoid greenwashing is to back up your sustainability claims with facts for example by referencing international standards by trusted organisations such as ISO or using an independent third-party certification.

There are now many international and locally recognised certification schemes and eco-labels that businesses can tap for their green products or services.

Equally, it is important for businesses to be honest and upfront about their sustainability efforts. As sustainability is new to many businesses, I think it is important to acknowledge that the business is progressively transitioning to more environmentally friendly practices and give concrete information about your initiatives and efforts on areas that are not yet green.

Tan Sze Wee: Chief sustainability officers will play an important role to mitigate greenwashing by closely monitoring company governance on sustainability disclosures.

Implementing robust corporate sustainability advisory and transparent carbon accounting with qualified third-party auditing and verification, are other ways in which companies can step up their game.

Some companies are also making it mandatory for directors to attend training on sustainability.

Puneet Arora: Firms should use the right language to build authenticity into their sustainability efforts. As consumers become savvier, the higher the chances of having unsubstantiated claims called out.

Be factual and build a narrative from this source of truth. Misleading consumers will create an adverse reaction and this curbs the trust in your brand.