Opening Remarks By Ms Indranee Rajah, Minister In The Prime Minister's Office, Second Minister For Finance And National Development At The Sustainability Apex Programme Event On Opportunities In Sustainability For Professional Services In Singapore

Distinguished Guests

Ladies and Gentlemen

A.    Introduction

1.                 A very good afternoon to everyone. I am delighted to join you and open today’s Sustainability Apex Programme (SAP) event, a unique gathering of legal and accounting professionals committed to navigating one of the defining challenges of our time – sustainability.

B.    Evolving Global Sustainability Landscape

2.     The world is at a critical juncture in the sustainability transition.

a.     Climate risks, regulatory shifts and market expectations are driving unprecedented change.

b.     Businesses are no longer asking whether sustainability matters, but rather, how they can adapt, innovate, and integrate sustainable practices to remain competitive in a rapidly evolving global economy.

3.     However, shifting political tides hint at potential headwinds to global climate action.

a.     The US has withdrawn from the Paris Agreement and is increasing oil and gas production.

b.     More recently, with political tides in Europe turning to the right, the European Commission has proposed an “Omnibus” package to streamline ESG reporting rules, leaving investors concerned about weakened accountability for businesses.

4.                 Given these developments, it is understandable for businesses to be concerned about what these developments mean for you. Will there still be demand for sustainability-related professional services? Is this the right time to invest resources and strengthen capabilities? These are questions I’m sure you are asking yourselves.

5.                 The reality of climate change transcends political discourse. The science and data are clear – climate change is not a distant threat but a present reality. Singapore’s response must be grounded in this scientific truth. As a small country, we cannot afford the luxury of not being ready for climate change. We have no high hills in which to retreat, we have no hinterlands in which to expand. Singapore is a small island faced with rising sea levels. For us, this is an existential issue. So, we have no choice but to deal with these issues squarely. Singapore needs to be ready, regardless of trends elsewhere; we have to take decisive and proactive actions to seize the opportunities.

6.                 Aside from politics, there are two other important drivers of climate action.

a.                 First, economics. Scaling up key green technologies has made the cost of renewable energy more affordable. The average levelised cost of solar energy globally, for instance, is now 50% lower than that of fossil fuels. This explains why two-third of global energy investment in 2024 went to clean energy technologies and infrastructure. Green growth opportunities remain, and continue to be driven by market forces.

b.                 Second and more importantly, nature. Nature is not going to wait for us. As climate change accelerates, the devastation wrought on people and on infrastructure will intensify; the last 10 years alone have been the hottest years on record. The public will demand that governments and companies take urgent action. Nature will force the world to take decisive actions to reduce greenhouse gas emissions.

7.                 Against this backdrop, organisations must prepare for the long term and be ready to reap the green economic opportunities that have and will continue to arise. Those which lag behind will be forced to act eventually and will experience a more disruptive transition. So, the essence is to change before you are made to change.

C.    Growth Opportunities in Sustainability

8.                 Professional services firms here play an important role in strengthening the sustainability ecosystem.

9.                 As companies across industries face growing regulatory requirements, investor scrutiny, and customer demand for responsible business practices, they are turning to professional services for guidance to navigate this transition. In short, they will be running to many people in this room.  

a.                 Today, organisations increasingly turn to consultants to help develop and implement sustainability strategies, integrate sustainability into corporate decision-making, and identify opportunities for innovation amidst the sustainability push.

b.                 Lawyers are increasingly called upon to navigate the complexities of sustainability regulations, manage climate-related litigation and compliance risks, and advise on green financing disclosures.

c.                  Accountants are stepping up as gatekeepers of financial integrity, ensuring companies accurately measure, report, and verify sustainability data in ways that are robust and auditable.

10.               I encourage professional services firms to proactively adapt to such needs - by expanding your service offerings, integrating emerging technologies and develop specialised expertise.

a.     This allows your firms to unlock new market opportunities arising from sustainability, build client trust at an early stage, and lead the transition to a green economy.

D.    Singapore as a sustainability hub

11.               Singapore is the ideal hub for professional services firm looking to seize new opportunities in sustainability. Let me share three key factors.

12.               First, the Singapore Government is committed to sustainability.

13.               Singapore has made clear our stance on climate action and continues to drive initiatives to support the green transition.

a.                 Through the Singapore Green Plan 2030, we have laid out a comprehensive roadmap, outlining key targets to advance sustainable development, green infrastructure, and carbon reduction efforts. Businesses are able to tap into a structured framework that supports their sustainability ambitions.

b.                 We have also introduced the first carbon pricing scheme in Southeast Asia, with carbon tax increasing from S$5 per tonne in 2019 to between S$50 and S$80 by 2030, creating stronger incentives for decarbonisation.

c.                  In addition, the government has also rolled out a suite of sustainable finance initiatives to encourage responsible investment and accelerate green financing. Singapore is a trusted financial centre and is also ASEAN’s largest sustainable debt market. Sustainable debt issuances grew year-on-year by 7% in 2023, to about S$38 billion. Over S$130 billion of sustainable bonds and loans were issued between 2018 and 2023.

d.                 To spur green and transition activities and mitigate the risks of greenwashing, the Monetary Authority of Singapore (MAS) launched the Singapore-Asia Taxonomy, or SAT in short, in end 2023. Companies and financial institutions can use the SAT in various ways such as developing sustainability frameworks or structuring green and transition financing solutions that are aligned with or refer to the SAT criteria.

e.                 In particular, the three local banks have either completed or are in the process of updating their sustainable financing frameworks to integrate the SAT, and will be using the SAT as a key reference tool in the structuring of green or transition financing solutions going forward.

f.                   Singapore’s professional services sector plays a vital role in advancing the sustainable finance agenda and is well-placed to participate in these opportunities. Let me give you an example:

i.         Sembcorp’s updated Green Financing Framework 2024, draws reference from the SAT in defining what is “green” for its energy projects. To ensure credibility of the framework, Sembcorp has engaged a professional services firm for its pre-issuance external assurance. Moving forward, Sembcorp also intends to engage external review providers for its post-issuance reviews.

g.                 MAS has recently published an Information Note that showcases practical applications of the SAT by corporates and financial institutions. I encourage the sector to take a look at the SAT, and contribute your specialised expertise and knowledge in the area of sustainable finance because your clients will need your advice.   

14.               Second, there is growing demand for sustainability solutions in Singapore.

15.               As a global business hub, Singapore is home to a wide range of regional headquarters, financial institutions and multinational corporations. Many of these companies are embedding sustainability at the core of their strategies – driven either by their corporate commitment to sustainability, or due to sustainability regulations. Corporate demand for sustainability reporting and advisory, carbon accounting and other carbon services will only increase.

16.  Beyond that, Singapore’s green economy is also growing.

a.     Singapore is emerging as Asia’s green finance hub, with sustainable investment flows increasing across multiple sectors.

b.     Singapore is also investing heavily in green technology, sustainable urban development and clean energy – all of these will unlock new service opportunities for professional services firms.

17.               Third, Singapore has a high concentration of sustainability players here.

18.               We host an increasing number of global sustainability leaders – from large corporates, to major renewable energy firms and carbon market players; ESG-focused investment funds, private equity firms and banks; and a comprehensive range of sustainability solutions providers, such as yourself.

19.               With a robust network of sustainability players concentrated in Singapore, professional services firms have the opportunity to leverage partnerships, deepen expertise, and expand your sustainability service offerings.

E.     Seizing Opportunities in Sustainability

20.               Collaboration is key to capturing the opportunities from sustainability.

a.     The sustainability challenge is complex, spanning multiple industries and disciplines. No single firm can address these issues alone.

21.               The Singapore Government is committed to supporting professional services firms harness new opportunities arising from sustainability.

a.     We recognise that professional services firms play a crucial role in shaping sustainable business practices, and are actively creating platforms to facilitate engagement, knowledge-sharing and capacity building.

b.     Initiatives such as the Sustainability Apex Programme (SAP), spearheaded by ISCA (Institute of Singapore Chartered Accountants) and LawSoc (Law Society of Singapore) and enabled by Enterprise Singapore, were designed precisely to provide a space for firms to come together, exchange insights, and explore collaboration opportunities. This builds on the earlier Committee of Future Economy’s work, where we identified that greater collaboration among professional services firms such as accounting and legal will benefit from the synergies, and in time to come, we will see how we can add on other types of professional services, but this is a good start. 

c.     The Ministry of Law, Singapore Economic Development Board and Enterprise Singapore have also commissioned PwC Singapore to conduct a study to map out sustainability opportunities for the legal services sector – PwC will be sharing key findings from this study later.

d.     These initiatives underscore our commitment to ensuring that professional services firms have the necessary resources, networks, and policy support to succeed in the green economy.

F.     Conclusion

22.               In closing, sustainability is not just an imperative – it is an opportunity for the professional services sector to develop new capabilities and work together to create new growth engines.

23.               I would like to thank all of you for taking time off your busy schedules to join us for this event as well as PwC for supporting us throughout this journey. Additionally, I would like to express my appreciation to the panellists, whom you will hear from later, for sharing their valuable insights.

24.               I wish all of you a fruitful event and I hope you gain new insights and connections today to seize opportunities in sustainability. Thank you.