Over half of S’pore companies not reporting Scope 3 emissions

This is expected to improve as exchanges make reporting mandatory.

Whilst there are efforts, more than half of companies in Singapore have not yet disclosed their Scope 3 data, or indirect emissions  related to the company's supply chain, transportation, employee commuting, waste disposal, product use, and investments.

In a report entitled “Unlocking the Scope 3 opportunity,” KPMG cited data from the Pacific Basin Economic Council that revealed 57% of companies in Singapore have yet to mention Scope 3 in their environmental, social, and governance reporting. The remaining 43% have done otherwise.

The city-state was fifth in the Asia Pacific region for the percentage of companies disclosing emissions, following Hong Kong (47%). Japan led the region with 88%.

According to KPMG, companies have responded to regulations, but mandatory Scope 3 reporting is still largely absent. This is expected to change as Asian exchanges such as the Shanghai Stock Exchange, the Shenzhen Stock Exchange, the Singapore Exchange, and the Japan Exchange Group implement IFRS S2 compliance.

“These forthcoming developments make it imperative that companies begin preparing to implement these plans into their longer-term strategies,” it added.

To help companies get started with Scope 3 reporting, KPMG cited six steps:

1. Engage the c-suite and board: Confirm that everyone understands the implications of Scope 3 emissions and how it will affect their area of the business.
2. Measure emissions: Identify high-emission hot spots and work on those decarbonisation programs first.
3. Model supply chain risk: Assess how climate change and other disruptions create risks specific to your business. Then prioritise ways to address these vulnerabilities swiftly. 
4. Find low-carbon opportunities: For manufacturing companies, these opportunities may be related to product design, sourcing and production. Put these into action to achieve resilient decarbonized value chains. 
5. Work with your suppliers: Collaborate with your suppliers to measure and manage Scope 3 emissions.=
6. Explore potential partnerships: Consider how external organisations can deepen efforts to research and innovate solutions.