SBF and Bain & Company has launched the SME Sectoral Net Zero Transition Programme to help Singapore small- and medium-sized enterprises (SMEs) accelerate decarbonisation and realise material benefits.

Our programme is underpinned by a joint study by Bain & Company and SBF, ‘Overcoming Barriers to Singapore SME Decarbonisation’, Singapore’s first large-scale survey on SMEs’ decarbonisation efforts. The study surveyed nearly 500 SMEs across more than 20 sectors in Singapore between May and August 2024. Learn more about the key takeaways from the joint study in our press release.

Our programme is designed to tackle the unique challenges faced by SMEs by providing a cost-effective, scalable, and action-oriented decarbonisation solution powered by Gen AI and Bain & Company’s deep decarbonisation expertise. It provides SMEs with end-to-end support via four cornerstone components, offering distinct advantages:

1. Sector-specific focus - Participating SMEs learn from experts about decarbonisation levers most relevant to their industries, through structured and guided workshops which consider circumstances inherent to their sector and decarbonisation maturity.
2. Unique AI-powered DecarboniSME tool - This provides SMEs with sector-specific materiality assessments (i.e. identify relevant emission sources), enables SMEs to understand their emissions baseline, and create “chief sustainability officer-quality” sector-specific decarbonisation strategies, pathways and targets with minimal expertise and effort (approximately 75% faster than the traditional processes). DecarboniSME also includes a chatbot which provides general decarbonisation support on a wide range of common inquiries.
3. Access to ecosystem partners - Matchmaking with network of sustainability-focused funding and green solution providers.
4. Ongoing advisory support - SMEs will receive continued guidance, such as on supplier evaluations, cost estimations, etc. from decarbonisation advisors. Check-ins with SMEs are scheduled two, four and six months after the final workshop.

The programme’s pilot run, designed to assist SMEs in the Food Manufacturing sector, was supported by Enterprise Singapore and the Singapore Food Manufacturers’ Association. Involving 21 food manufacturers which produce beverages to noodles, it was held from July to August 2024 and received strong positive feedback from participants.

Some key highlights include:

1. 80% of the participating SMEs established their emissions baseline for the first time.
2. SMEs identified company-specific levers to decarbonise, which could potentially reduce Scope 1 and 2 emissions by between 50% and 70%, increase EBIDTA margins by 4%-5%, and lower energy cost per unit by 40% to 50%.
3. The programme empowered the SMEs to set ambitious decarbonisation targets of 50% reduction to their Scope 1 and 2 emissions by 2030. This is timely given that SMEs in the pilot programme have an average carbon emission intensity that is twice the global average level.

Following the successful pilot, Bain & Company and SBF aim to work with relevant Trade Associations and Chambers (TACs) and Enterprise Singapore to expand the programme to more food manufacturing SMEs and other sectors.

Sign-ups for the next cohort of the SME Decarbonisation Programme, tailored for SMEs in the Food Manufacturing sector, are now open. To indicate your interest, please complete the form at the following link: https://forms.office.com/r/qYTQr55hkJ