Can you provide an update on recent achievements at EcoVadis?

Established in 2007, EcoVadis is a leading provider of sustainability ratings and performance improvement tools for large organizations and their global supplier networks. In recent years, the discussion surrounding ESG issues has grown exponentially, with investors increasingly focusing on these matters during earnings calls. Today, sustainability has become an essential ingredient for conducting business.

Against this backdrop, EcoVadis has recently launched a science-based targets initiative, and we have demonstrated that over 65% of the companies rated by us have improved their performance upon reassessment. Last year, we raised the largest equity for a sustainability data company, which reflects the value that investors recognize in this realm.

Can you give examples of your offering?

There is a growing trend towards legislation focused on supply chain due diligence. We have created tools to support companies in identifying risks and creating improvement plans. Our IQ Plus risk mapping tool enables quick scanning of thousands of companies in the supply chain, providing an overview of potential risks even before an official assessment.

Our company has also developed an innovative Carbon Action Module that enables businesses to gain a deeper understanding of their partners through advanced carbon reporting. Beyond the standard collection of Scope 1, 2, and 3 data, this tool also facilitates engagement between companies and their suppliers on a journey of continuous improvement.

What opportunities do you see in the Asia-Pacific region?

Given the growing demand for energy, an acceleration of digitalization, and a four-fold increase in corporate commitments to set SBTis, we should all be excited about the immense potential in this region. Our latest Business Sustainability Index shows that the average sustainability score in the Asia-Pacific region has increased for the fifth consecutive year, indicating a positive trend towards greater sustainability practices. In Singapore, the average score has risen to 51.1 - a 2% increase from last year and nine points. This is a testament to the strong performance of Singaporean corporations.

Furthermore, we have observed a significant increase in the importance of the ethics theme in Singapore. As supply chain due diligence gains traction, we have witnessed a 600% increase in assessments since 2018.

Can you describe specific challenges for the chemical industry?

On the environmental side, greenhouse gas emissions, raw materials extraction, waste management, and local pollution are concerns.

On the social side, modern slavery is a major issue. It is also critical for chemical companies to promote diversity, equity, and inclusion (DEI) in the STEM field. Finally, ethics activities have increased substantially, including anti-competitive practices which are a material topic in the chemical industry.

What is your perspective on the carbon tax?

The imposition of a carbon tax sends a strong, positive message to businesses regarding the need to reduce carbon emissions. This move is in line with global best practices and reflects the growing trend towards carbon pricing. The tax is designed to be progressive, enabling businesses to prepare for the necessary transition toward a low-carbon economy. The future cost of not undertaking this transition is likely to be much higher.

However, setting the tax rate alone is not sufficient. The Singapore government must invest the revenue generated from the carbon tax into supporting businesses and society's transition towards sustainability. These funds should be directed towards initiatives such as reskilling the workforce for green jobs, investing in green technology research and development, upgrading infrastructure, and assisting low-income households in coping with potential energy price increases.

What is your focus for the coming year?

Our company places a strong emphasis on not only creating shareholder value but also on making a positive impact on our employees and the wider community. To this end, we have set an ambitious goal of achieving 23,000 companies disclosing their carbon metrics this year, as well as increasing reporting on the number of women in executive positions. Our efforts have already impacted 90 million workers worldwide, and we aim to continue to effect positive change throughout the entire workforce.

Our strategy is centered around providing clients with a comprehensive, one-stop shop for all their sustainability needs. We are particularly excited about the Asia-Pacific region, as we see significant potential for both government and corporate ambition.