Sustainable investing has long been a central part of Singapore’s development strategy – the country unveiled its first ever green plan in 1992. Lately, in February 2021, the country has released a new sustainability outlook whereby the ‘Singapore Green Plan 2030’ sets an ambitious target to peak carbon dioxide emissions by 65 million tonnes by 2030 and halve emissions to 33 millions tonnes by 2050.
In order to achieve this, the nation is committed to using cleaner forms of fossil fuels in the short term while exploring greener options. Till date, over 95% of Singapore’s fuel mix comes from natural gas – coals comprises only 1% of the country’s fuel consumption, compared to nearly 30% in Japan and Germany.
Furthermore, Singapore is expanding into renewable energy and recently completed construction of one of the world’s largest inland floating solar energy systems. Having grown its solar capacity by seven times since 2015, it is now one of the most solar dense cities in the world and on course to meet its target capacity by two gwp of solar energy by 2030.
This long and pioneering role in sustainable development has garnered global recognition as well – Singapore was ranked the ninth smartest and most sustainable city in the world last year according to the IESE Cities in Motion Index of 174 countries.
Why invest sustainably?
Going ahead, sustainability considerations are likely to drive a plethora of new business opportunities for Singapore companies and the three themes that are i) Reducing environmental pollution, ii) Climate change and iii) Green financing
Reducing environmental pollution: Within this space, business opportunities include helping clients to transit to renewable energy; i) solutions for more sustainable methods for power generation, transmission and distribution, ii) solutions for more resilient supply chains and waste and water treatment and recycling. In addition, businesses will also be able to tap into the concrete targets set out in the Singapore Green Plan to help solidify their opportunities – includes installation of 60,000 electric vehicles (EVs) charging point nationwide and an 80% improvement in energy efficiency over 2005 levels for the best-in-class green buildings.
Climate change: Over the next decade, Singapore aims to diversify its imported food sources while growing 30% of the nation’s nutritional needs locally. To achieve this, incentives are in place for the agri-food sector to increase productivity and adopt innovative practices. Companies are encouraged to participate in building an R&D ecosystem for urban food production and alternative proteins technology. There are corresponding business opportunities in areas such as specialised logistics with cold chains, agriculture and food technology, to name a few.
Green financing: The sustainability push is creating a growing need for loans and bonds that are specifically granted for green and sustainable projects. The Monetary Authority of Singapore (MAS) estimates that within the ASEAN region, green investment of US$200 billion will needed per year for the next nine year.
How to invest sustainably?
So how do you invest sustainably? Investors who are looking to do their part for the environment, while also generating returns can look to the $United Smart Sustainable Singapore Bond A Dis SGD-H(SGXZ87949350.SGD)$ . The fund aims to generate ESG-screened investment opportunities by i) investing in companies with strong ESG mandates and leveraging on Singapore’s national sustainability agenda, ii) using artificial intelligence and machine learning to provide independent ESG scoring for all investment and iii) providing stable income and capital appreciation for investors.
Credits to @UOBAM
Disclaimer: Tiger Brokers do not take into account the financial situation, time horizon, existing portfolio and risk profile of an individual investor. It is the investor's responsibility to decide if these funds are suitable for him or her. If in doubt, please seek the advice of professional advisers.
We have another gift for your valentines this year!
In the vein of sustainable investing, we have another gift for your valentine’s day this year aside from the fund recommendation. This valentine’s day, we will be giving away a 1 Night stay worth $452 at Fullerton Premier Courtyard.
To stand a chance to win yourself and your date a staycation,
- Simply comment down in the comment section on the type of sustainable gift you can give your love ones,
- Share this post via facebook [make sure your post is set to public view]
- and remember to include #ilaohuyou
To qualify for this draw, make sure to comment your sustainable gift ideas during the period of 25th Jan to 10th Feb 2359. Best answer will be picked as the winner and will be contacted on the 11th of Feb. Do note that the staycation dates cannot be changed – check in on 13 Feb 2022, check out on 14th Feb 2022
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