It is no surprise the weather has become a little heavier, a little more humid, and a little more unbearable each day. The annual mean temperature in Singapore has increased from 26.9°C in 1980, to 28.0°C in 2020, according to the National Climate Change Secretariat. Air conditioning has now become a basic requirement to go about our day to day business, and for us to feel comfort amidst the humidity.
There is one very simple explanation for all of this – climate change. With rising sea levels and warmer oceans, climate change is threatening our very existence on planet earth. However, there is hope, and it is evident that Singapore is taking a step to be part of the solution. The Singapore Green Plan 2030 is a national sustainability movement which seeks to rally bold and collective action to tackle climate change. Joining the movement to mitigate climate change is a decision that is undeniable. One of the most impactful and simplest ways for SMEs to make a difference for both their business and the environment will be through various Green Financing loans that are available in Singapore.
What is green financing?
Green Financing focuses on growing the volume of financial movement towards sustainable economic priorities. It supports investments in a business that promotes environmentally friendly, sustainable methods of conducting operations. This form of financing, while relatively novel, is extremely vital for the future of our planet — Carbon footprint of fast growth in businesses will be lower, as support in environmentally responsible businesses increases.
As stated in Singapore’s Green Plan 2030, the newly introduced New Enterprise Sustainability Programme will help local enterprises adopt sustainability practices, and will seek to create a business landscape that is best in energy or carbon efficiency. The Singapore Green Plan 2030 lays out the path for Singapore to be developed into a carbon services hub and a leading centre for green finance in Asia and beyond. In addition, The Monetary Association of Singapore (MAS) recently launched the world’s first grant scheme to support Green and Sustainability-Linked Loan Grant Scheme (GSLS) in November 2020.
In an article by The Straits Times in May 2021, Minister for Sustainability and the Environment Grace Fu stated that the pursuit of green growth will open up new opportunities and help secure Singapore’s long-term future, ensuring continued success and growth to our economy, because of the existential threat of climate change being contained.
Taking up a Green Financing loan improves corporate image and reaffirms its values, identity and beliefs – qualities that are highly valued by stakeholders and potential investors. Employees and management would feel a higher sense of purpose in working for a company that focuses on other important issues, like the environment, instead of allowing profits to be the sole motivator.
Armed with the increased knowledge and awareness of environmental impacts, consumers are now wary of the goods and services that they purchase from, and are more inclined towards companies with sustainability in their corporate culture. As such, it is clear that being environmentally conscious is a factor that not just helps you as an SME now, but is crucial as well as essential for development and growth in the future for your company.
Eager to get started on your green journey?
Funding Societies is no stranger to Green Financing Loans. We have recently launched our Green Microloans, in line with the goals of Singapore’s Green Plan to support SMEs keen to start their journey towards a green and sustainable future.
For starters, SMEs in Green Industries (e.g. SSIC 71123) or possessing Green Certifications (BCA Greenmark, GreenDNA) are eligible to apply for said Green loan. However, our focus will be on SMEs who would like to start going Green, no matter how small a step it may be. An example of this would be a SME that supports energy efficiency and conservation with new energy storage smart grids, appliances and products.
Funding Societies is making a stand for becoming more environmentally conscious, and we want to help those who feel the same way. We can start by helping you, our local SMEs – which ultimately allows us to help globally. Get in touch with us at firstname.lastname@example.org if you are keen to explore Green Financing.
Change starts from you – let us help you with it.
Update as of 6 Jan 2023: The pilot period for Green Micro Financing has ended. For other SME financing options, visit our website for more details.
Disclaimer: The information provided to you in this blog post is intended only for general information purposes only and does not constitute legal or other professional advice on any subject matter. The materials and the information provided are not intended to be and do not constitute an advertisement or solicitation. In no event will Funding Societies be liable to any party for any direct, indirect, incidental, special, consequential or punitive damages for use of such information by you or any unauthorised third party.