- With this commitment, SGX joins the Race to Zero and Business Ambition for 1.5°C campaigns
- Initiatives to address emissions include improving energy efficiency of data processing requirements
Singapore Exchange (SGX) is committing to a 42 per cent reduction in Scope 2[1] emissions by FY2031 from the base as at FY2021 (July 2020 to June 2021), pledging to set science-based emissions reduction targets that are consistent with keeping global warming to 1.5°C above pre-industrial levels. For Scope 3 emissions, we plan to engage our co-location data centre supplier for them to set science-based targets within five years.
The commitments are based on the criteria and recommendations of the Science Based Targets initiative (SBTi)[2], making SGX the first Asian exchange to join Race to Zero[3] and Business Ambition for 1.5°C[4]. SGX will submit its verifiable targets to SBTi for validation.
Planned initiatives to achieve the Scope 2 reductions include:
- improving the energy efficiency and reducing the carbon intensity of our data processing requirements in line with best practices,
- introducing energy-efficient equipment, processes and policies, and;
- purchasing Renewable Energy Certificates that meet the Scope 2 greenhouse gas (GHG) Protocol quality criteria through its subsidiary Energy Market Company.
These actions follow the six steps that corporates are recommended to adopt when reducing GHG emissions, as outlined in the guide on “Credible decarbonisation and transition for corporates in Asia” that SGX launched in June 2021. Written in collaboration with CDP, the Climate Bonds Initiative and HFW, the guide contextualises the myriad of climate action initiatives and provides corporates with a set of actionable corporate climate mitigation steps.
“Taking climate action is critical and we must do so urgently. Corporates can play a significant role in reducing GHG emissions globally and are encouraged to adopt an internationally accepted carbon mitigation plan. Leading by example, SGX is taking science-based steps and setting ambitious emission reduction targets which contribute to global efforts to reach net-zero emissions by 2050. We believe we must do our part and more, to ensure the continued wellness and prosperity of our society, economies, and businesses,” said Loh Boon Chye, CEO of SGX.
SGX will disclose further details in its upcoming FY2021 annual report. The report will cover for the first time Scope 1, 2, 3 carbon footprint measurements[5] and science-based GHG targets.
[1] We have excluded Scope 1 from our targets as our Scope 1 emissions are <2 per cent of combined Scope 1 and 2 emissions and have been deemed immaterial.
[2] The Science Based Targets initiative (SBTi) is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi defines and promotes science-based target setting and independently assesses companies’ targets.
[3] Race to Zero is a global campaign convened by the UNFCCC to rally leadership and support from businesses, cities, regions and investors to develop a healthy, resilient, zero carbon future.
[4] The Business Ambition for 1.5°C is a campaign led by SBTi in partnership with the UN Global Compact and the We Mean Business coalition. It is an urgent call-to-action for companies to set emissions reduction targets in line with a 1.5°C future.
[5] Scope 1: direct emissions from owned or controlled sources.
Scope 2: indirect emissions from generation of purchased electricity, steam, heating and cooling consumed by the reporting company.
Scope 3: all other indirect emissions that occur in a company’s value chain.
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