Greater focus on sustainability. Climate change has been brought to the fore with the government highlighting sustainability as one of two key themes that must underpin Singapore’s future economy. The country’s 2030 Green Plan highlights various targets for the next decade, while the Low Emissions Development Strategy (LEDS) and various masterplans will shape the longer-term emissions strategy. Singapore’s emissions are expected to peak at ~65 mn tCO2e around 2030 and reduce thereafter.  

Evaluating the carbon transition risk. Utilising our ESG team’s Carbon Transition Risk Tool (CTRT) concludes that the Singapore market has a low transition risk, given lower intensity and earnings at risk relative to APAC. This is partly due to the sector mix of the market and an estimated 67% (by number) of companies under our coverage having emissions reduction targets, compared to <40% globally. Screening the Singapore market for emissions intensity results in several laggards, but we focus on initiatives to lower emissions, which could lead to upside opportunities.