Green business practices could become the new black for the corporate world in 2012.
But going green these days means a lot more than just recycling and reducing carbon emissions.
Since July, Maersk Line has switched to low sulphur fuel in Singapore, helping to reduce air pollution.
The company estimates it will spend US$600,000 annually on the more environmentally-friendly fuel, even after offsetting Maritime Port Authority of Singapore’s 15 per cent discount on port dues, as part of the S$100 million Maritime Singapore Green Initiative for using low-sulphur fuel.
As low sulphur fuel is costlier, Maersk Line vessels will only make the switch to such fuel that contains a maximum of one per cent sulphur when it is closer to the port of Singapore.
So far, 98.7 per cent of its vessels have made the switch.
But sustainability is key to retaining clients, according to a recent Maersk survey, where 41 per cent of its more than 300 customers worldwide have made sustainability a key criterion when choosing suppliers.
To improve energy efficiency and reduce emissions, the world’s largest container shipper by volume has also introduced slow steaming in 2008, saving the company an estimated US$300 million every year.
It said this has lowered carbon emissions by seven per cent per container.
Maersk Line Asia Pacific CEO Thomas Riber Knudsen said: “We have reduced the speeds on our ships on a number of corridors, which is reducing the fuel consumption.
“And that has a very positive impact. We are also introducing new technology, new ship designs and so on. Again, reducing the cost of fuel.
“I think in general, most people want to work for a company that is environmentally sound and healthy. That’s why we have seen that among our employees, there’s been a lot of support for this.”
From the breakthrough global talks on climate change in Durban South Africa this year, to the continuing success of Earth Hour, the green momentum seems unstoppable.
And the corporate world is waking up to the potential of sustainable practices.
Director of Corporate Engagement and Earth Hour Singapore, World Wildlife Fund, Carine Seror, said: “Sustainability is not about philanthropy. It’s not how you give away your money - it’s actually about how you make your money.”
Professional services firm KMPG said it is no longer as simplistic as publishing figures on recycling, or how much less carbon is produced for every dollar of revenue.
KPMG Singapore director of Climate Change and Sustainability Graham Owens said: “They are very different for different sectors.
“You know you can’t have this all-encompassing definition of sustainability for every single company in Singapore.
“If you are in financial services, you have one set of issues - things like responsible lending, people are very much an asset.
“In manufacturing, it might be more like technology, emissions and energy efficiency.”
KPMG said it expects more regulatory pressure in 2012, as the Monetary Authority of Singapore is now considering proposed amendments to the Code of Corporate Governance to include consideration on sustainability issues.
The SGX also recently published a non-compulsory guide to help listed companies with their sustainability reports.
