Can you provide updates on Environmental Resources Management (ERM), especially within the chemicals industry?

As a leading sustainability consulting company, we have grown from 7,000 to over 8,000 employees globally, an increase of more than 10%, both organically and inorganically. Our revenue has doubled over the last two years, a key achievement for us. As for Singapore, it is growing rapidly in line with the global demand for sustainability-related services.

We have made several strategic acquisitions in Europe related to the chemicals sector. For instance, Libryo, a digital platform that helps companies understand regulations applicable to their business, and OPEX, an AI-powered digital solution that helps carbon-intensive industries measure and reduce their emissions. Additionally, we have acquired E4tech, a company specializing in innovative low-carbon solutions for the chemical industry, and Element Energy, which offers low-carbon energy solutions like hydrogen, ammonia and battery storage. These solutions are particularly relevant for Singapore, where the potential for renewable energy generation is limited due to geographical constraints.

Singapore currently relies heavily on natural gas for electricity, and its small size limits the potential for solar or wind energy generation. To overcome this, the government is exploring options like power import from overseas and hydrogen as a form of energy storage. ERM is actively involved in these initiatives, providing our expertise for feasibility studies, technical risks, and environmental and social impact assessments related to these projects.

Could you provide insights into the regulatory environment in Singapore regarding ESG, especially the impact on manufacturers?

The Task Force on Climate-related Financial Disclosures (TCFD) regulations, which will be mandatory for some sectors from 2024, will significantly impact businesses. The regulations require firms to disclose their climate-related risks and opportunities. Another key factor is the carbon tax, which will escalate from S$5 per tonne to S$50 - 80 by 2030. This tax could have a significant impact on high emitters, especially industries on Jurong Island. Lastly, the Extended Producer Responsibility (EPR) initiative mandates companies to report their packaging usage and their “Reduce, Reuse, Recycle” plans.

Are there any noteworthy plastic recycling initiatives undertaken by the Singapore government?

There are initiatives tied to the broader circular economy concept. The government is exploring various feedstocks, with plastic being one of them. For instance, recycled plastics could be used as an alternative to fossil fuels in plastic production. Additionally, biomass sources like wood chips, rice husks, and palm oil waste can be transformed into potential chemical feedstocks or even biofuels. The government has even issued a tender for a feasibility study on importing regional feedstocks into Singapore, illustrating its commitment to reducing the use of fossil fuels.

Could you share a bit about the role of AI and sustainability, particularly regarding disclosure and the CSRD initiative?

AI can play a crucial role in ensuring sustainability and compliance with initiatives such as the Corporate Sustainability Reporting Disclosure (CSRD). For multinational companies with assets spread around the world, maintaining, and disclosing their ESG performance is a complex task. For instance, one of our clients in the real estate industry has 2,700 assets globally. Our role was to advise and implement the most suitable digital solution for them, integrating it into their systems to pull their ESG data into a single platform.

Our partnered solution offers a way to track and predict safety incidents, acting as a preventive tool. Using AI, we analyze patterns from gathered safety data to anticipate potential risks.

Could you talk about the emissions.AI tool?

Our “emissions.AI” tool assists carbon-intensive companies in identifying hidden operational inefficiencies using AI, which then proposes ways to optimize their energy use. As for the future, we are observing a growing need in the chemical industry.

Where do you foresee demand in 2024?

ERM is often engaged by clients to conduct climate-related assessments and permitting for new plants. We are also involved heavily in M&A activities, conducting environmental, technical, and social due diligence due to our expertise. A high-demand area is lifecycle assessment and carbon footprinting due to the changing nature of traditional value chains. We are being asked to help redefine carbon footprints from an end-to-end perspective for new value chains with recycled feedstock. Despite regulatory challenges, we are excited about the innovative products and solutions emerging in the space.