• Stepping up efforts. As a sustainability policy covering the entire nation, the Singapore Green Plan (SGP) 2030 outlines ambitious goals across multiple sectors to convert Singapore into a more sustainable, resource-efficient, and climate-resilient nation. Our review of the consumer, real estate, and transport sectors suggests that while many initiatives and regulations have been rolled out, the path to achieving the targets has not been linear, with COVID-19 slowing the progress. With 2030 only six years away, we expect the Government and companies to accelerate efforts to achieve the targets.

• SGP 2030. As a small, low-lying city-state that relies heavily on imported food and energy for survival, and also depends on the connectivity of global product supply chains for growth, Singapore is extremely vulnerable to global climate change. The SGP 2030 is a comprehensive long-term policy that will drive a whole-of-nation sustainability movement. The SGP outlines concrete sectoral plans and targets that position the country to reach its long-term net-zero emissions goal as soon as possible, while also strengthening its climate, resource, and economic resilience.

• Consumer (F&B). The SGP 2030 focuses on strengthening the country’s food security for sustainable living. Agriculture and food production remain small in Singapore with most of its food supply imported. To safeguard Singapore’s food security, the SGP 2030 is incentivising an increase in local food production, diversification of import sources, and growth and cultivation of food overseas. Immediate beneficiaries would be local urban farms, while listed F&B players would be limited beneficiaries, as most would be practicing more sustainable management of resources.

• Real estate and REITs. In the highly urbanised Singapore, the building and household sectors account for >20% of carbon emissions. As buildings have long life cycles, green buildings have become crucial in Singapore’s climate change strategy. To mitigate the real estate environmental impact, the Singapore Green Building Master Plan (introduced in 2021), aims to deliver three key targets of “80-80-80”(more details in the report) by 2030. We view the sector as one of the key pillars in Singapore’s green transition, with various incentives and government initiatives driving the change.

• Transport. As transportation is Singapore’s third largest CO2e emitter, measures under SGP 2030 aim to cut 80% of peak land transport emissions by 2050 by promoting public transport, green public transport fleets and private vehicles, and encouraging active mobility modes. Good progress is noted for measures under the Land Transport Master Plan 2040. The Sustainable Air Hub Blueprint and Maritime Singapore Decarbonisation Blueprint incorporate the decarbonisation action plans for the aviation and maritime industries. Key beneficiaries will be land transport operators, airlines, aviation service providers, and port and shipping companies.

Source: RHB Securities Research - 2 Oct 2024