Organisation:
Standard Chartered Bank
Resource Link:
2021, Link
My Key Takeaways
According to Standard Chartered Bank’s latest survey of multinational corporations (MNC), and global markets (8 of the 12 surveyed markets are in Asia):
Supply chain is a top priority in MNCs decarbonisation plans
Supply chain emissions account for around 73% of MNCs’ total emissions.
Two-thirds of MNCs would tackle supply chain emissions as their first step in net-zero transition as compared to reducing their own carbon outputs.
The future is bleak for suppliers that don’t take sustainability seriously
78% of MNCs plan to remove suppliers that endanger their carbon transition plan by 2025. These decarbonisation efforts will result in MNCs cutting 35% of their CURRENT suppliers.
For suppliers who still don’t see the urgency, 15% of MNCs have already begun.
47% and 30% of MNCs offer sustainable companies “preferred-supplier-status” and “preferential pricing” respectively – this is a huge sales advantage 🚀
MNCs would pay more and even give grants to their suppliers for greater sustainability
45% would pay an average premium of 7% for a product or service from a net-zero supplier. The above translates to a huge sales advantage for sustainable suppliers.
To rub more salt to their injuries, some MNCs are even offering grants or loans to their suppliers to invest in the reduction of emissions (18%) or data collection (13%).
Sustainability adoption continues to accelerate in Singapore
Singapore has already been a key driver of sustainability in the region, especially with the launch of the Singapore Green Plan 2030.
91% of MNCs with a supply chain in Singapore have asked their suppliers to reduce carbon emissions by an average of 30% by 2025.
Singapore-based suppliers stand to lose US$146.6B (that’s two fifth of Singapore’s economy in 2020!) in annual export revenue if they fail to cut carbon emissions in line with their MNC clients’ net zero plans.
Now that’s what I call a compelling business case to fund plenty of sustainability co-innovation projects between corporates and global startups. 😏
My LinkedIn post here.
About Zhilin SIM
Having worked and lived in Singapore, the Nordics, China, Spain, UK, I’m now based in Paris.
I’m fluent in English, French and Mandarin, and I’m learning Arabic because it’s a beautiful and fascinating language.
My team creates and supports one-many initiatives connecting Corporate and Startup ecosystems in Europe to business and innovation opportunities in Singapore and Southeast Asia.
I’m passionate about horticulture, watercolour, startups/tech as well as French cuisine, Peranakan kueh techniques and other global cuisines.
Feel free to connect with me if you think my network in Europe and Asia could be of benefit to your business and innovation activities.
