Boston Consulting Team (BCG) has launched a new initiative in Singapore focusing on funding and advising sustainable business in Asia.
The American firm is the hottest multinational corporation to set up these kinds of a assistance in Singapore in the past handful of months, and the last of the “Big Three” consulting companies to do so, after McKinsey & Organization in November and Bain & Organization in 2020. Accounting large PwC set up a related company in December.
BCG explained the new initiative, named the “Climate and Sustainability Hub for Innovation in Asia”, will lover firms to spend in sustainable corporations, offer you complex local climate awareness and offer schooling options via internships and accreditation.
It will be headed by Michael Tan, who sales opportunities BCG’s general public sector apply in Southeast Asia, and Dave Sivaprasad, BCG’s Southeast Asia lead for climate and sustainability. BCG explained it will be selecting extra authorities and bringing in staff members from world wide workplaces.
“Singapore’s spot in the coronary heart of Southeast Asia as very well as getting a regional trade hub delivers a special vantage position,” explained Neeraj Aggarwal, BCG’s Asia Pacific chair, at the launch occasion in BCG’s Singapore place of work.
The move has the backing of Singapore’s federal government.
“Carbon companies will be desired as we make investments in new systems and methods in mitigation and adaptation, establish the carbon credit history industry, and mobilise money for new expansion sectors in sustainability,” claimed sustainability and ecosystem minister Grace Fu.
Singapore sustainability and setting minister Grace Fu (remaining) and Boston Consulting Group’s Asia Pacific chair Neeraj Aggarwal (proper) at the launch of the Local climate and Sustainability Hub for Innovation in Asia. Image: Boston Consulting Group.
Combining expertise and know-how
BCG mentioned the hub will help to accelerate its current climate perform in the area by buying talent and forming new partnerships, including with climate buyers.
It added it is searching to use software program and technological know-how to clear up 4 issues – decarbonisation, applying uncooked products additional proficiently, food stuff and water protection, as nicely as adapting to local weather adjust.
BCG’s existing perform in Asia Pacific includes supporting carbon capture and storage initiatives, as properly as setting up for catastrophe adaptation. The company has places of work in about 10 nations around the world in the area.
The consultancy also has partnerships with teams these as the Planet Financial Discussion board and international environmental non-financial gain WWF. It explained more tie-ups will be declared in the coming months.
The sustainability consulting marketplace is escalating quick as the private sector warms to the strategy of responding early to local climate risks. The market place price is established to double to US$16 billion by 2027, in accordance to modern study by analytics firm Vertandix.
Sustainability consultancy acquisitions tripled in 2021, reflecting competitors in the sector and soaring need for sustainability providers.
Singapore’s govt sees the growth as an chance to progress its eco-friendly economic system ambitions, by positioning the region as a carbon solutions and trading hub. It statements to be internet hosting about 70 companies supplying carbon services.
A condition-commissioned paper posted last yr said that Singapore benefits from getting close to huge swaths of Southeast Asia’s forests, which could be employed to deliver carbon credits. The paper also highlighted Singapore’s small business acumen and technological know-how in legalities and emissions checking.
The country launched a voluntary world wide carbon exchange, Weather Impression X, with area money establishments final 12 months. The exchange opened an e-commerce-styled marketplace this month for uncomplicated trading of carbon credits produced from overseas forest conservation jobs.
At previous year’s COP26 world local climate summit, Singapore co-led endeavours for a frequent rulebook for carbon buying and selling, which bundled safeguards towards double-counting of carbon personal savings.
Having said that, critics contend that lots of forest initiatives miss their environmental targets. Indigenous folks who depend on earmarked land may well also be denied a honest share of positive aspects, or get misplaced in red tape.
Singapore was the initially Southeast Asia region to carry out a carbon tax in 2019 at S$5 for each tonne of emissions. It recently announced a rate hike to S$25 in 2024 and up to S$80 by 2030.
Singapore ranks in the top 20 for every cent of nations by emissions for each capita, as it depends just about entirely on normal gas for electric power generation. The country is searching to inexperienced its power and industrial sector applying performance technology, clean hydrogen gasoline, carbon seize and vitality imports.
In February, the town-state announced this yr its intention to achieve net-zero greenhouse gas emissions by all around mid-century.