A joint study by Schneider Electric and the Institute of Singapore Chartered Accountants (ISCA), Counting to 3: Navigating Singapore’s Emissions Journey Together, reveals that 94% of Singapore organisations are not fully measuring and analysing Scope 3 emissions, which is impacting the readiness to report.
A distinct lack of knowledge
Only 39% of respondents claim to have a strong understanding of Scope 3 emissions, which is overall much lower than for Scope 1 (52%) and 2 (34%). This gap is significant among less senior team members: 58% of board members and 51% of C-level executives claim strong knowledge of Scope 3, while only 27% of senior managers report the same.
Differences are also seen based on roles and responsibilities, with 47% and 42% of those in General Management and Sustainability roles saying they have a strong knowledge of Scope 3, while only 33% of those in Operations & Supply chain say the same.
Respondents cite the correlation between greater seniority and greater knowledge exists due to senior executives having increased access to briefings on emissions management and strategies. However, the importance of knowledge being equally distributed across all functions and divisions within organisations was also emphasised, as change management programmes require both strategic understanding coupled with the capability to implement the step changes needed for Scope 3 reporting requirements in Singapore.
Knowledge deficits linked to inaction
While 76% of business leaders say they have completed feasibility studies to better understand their organisation’s readiness to measure, report, and manage its Scope 3 emissions, only 6% say their organisation is fully measuring and analysing Scope 3 emissions, lagging significantly behind Scope 1 (52%) and Scope 2 (30%) emissions.
As a result, confidence in meeting their Scope 3 emissions targets is significantly lower, with only 27% believing these are highly achievable, compared to 40% for Scope 1 and 31% for Scope 2 emissions.
Leaders from larger businesses are significantly more likely to indicate they have set targets for Scope 3 (54%) compared with those at small businesses at 31%.
In further findings, only 32% believe their organisation’s net zero targets are achievable, but in a show of optimism 64% of those whose organisations have not yet set emissions targets believe they should have done so. Business leaders who adopted science-based targets (SBTis) were more likely to drive meaningful action within their organisations, helping define a clear and credible path to sustainability success.
Four groups of organisations identified
The report identifies four groupings of organisations in Singapore concerning progress around managing Scope 3 emissions and the degree of management required: High Adopters (10%), Moderate Adopters (30%), Low Adopters (38%), and Emerging Adopters (22%).
From this analysis, the industries in Singapore identified as containing the highest proportion of High and Moderate Adopters combined are Consumer Goods, Energy & Mining, Healthcare & Pharmaceuticals, Financial Services, and Engineering & Construction.
Expertise, resources, motivation and technology are key barriers to progress
Overall, a lack of human and financial resources, commercial motivation, and access to fit-for-purpose technological infrastructure are highlighted by respondents as the top barriers to progressing Scope 3 emissions reduction agendas and initiatives.
However, there are differences in impact, based on segment status. For instance, while High Adopters and Moderate Adopters identify a lack of human resources or expertise as the biggest barrier to reducing Scope 3 emissions, Low Adopters and Emerging Adopters cite a lack of technological infrastructure as the biggest.
Yoon Young Kim, cluster president for Schneider Electric Singapore and Brunei said, “Scope 3 presents the next frontier of emissions management and still unchartered territory for many organisations in Singapore.
“Education is critical for advancing Singapore’s green agenda. We see correlations throughout the findings of this study that a lack of understanding of key areas of management of greenhouse gas (GHG) emissions leads to a lower level of planning, target setting, and ultimately action,” he continued.
