With Singapore aiming to achieve net-zero emissions by 2050, everyone, including corporations, has a part to play in reducing their carbon emissions. Earlier this year, the nation announced that large non-listed and listed firms will have to report climate-related information from 2025, with scope 1, 2 and 3 emissions soon to follow.

It is thus imperative that companies, regardless of size, find a way to not only incorporate environmental sustainability reporting into their business operations but also actively find ways to reduce their emissions.

There remains a pressing need for businesses to align their business operations with sustainability targets. Despite that, the multitude of portfolios and business units present in each company proves it difficult to integrate all sustainability efforts into a seamless and cohesive solution.

This often results in fragmented and siloed sustainability strategies, isolated within various business units rather than being integrated across the entire organisation, which affects the overall effectiveness and impact of such efforts.

Sustainability silos: More harm than good?

Although working in silos can be efficient at times, it often results in overlooking combined efforts to achieve sustainability and business goals. Exploratory strategies in sustainability require oversight across all business units to ensure the net meaningful impact is maximised. Simply put, we must ensure that a positive impact in one area does not cause a negative impact in another.

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To better explain this, take tree planting, for example. While planting trees is a great way to restore nature back to our city, the net impact will be minimised or even negated if substantial amounts of paper are still used in the company’s day-to-day operations. There needs to be a bird’s eye view across such activities for a better, more comprehensive understanding of how our intended sustainability efforts can actually result in a trackable positive impact.

Economic and environmental gains through integrated sustainability strategies

Research has shown that a unified sustainability strategy not only drives progress but also enhances an organisation’s credibility and provides long-term guidance for its business model, thus securing future profitability. Weaving sustainability into the fabric ethos of a business, where each business unit plays a unique role in advancing our sustainability efforts, allows us to form a network of sustainable collectives that deliver tangible value, including financial.

An example of how that is exemplified at LHN Group is our Space Optimisation business, where we revitalise old, unused spaces to their fullest potential. Through unique design techniques honed over three decades of experience in the industry, we enhance buildings’ interior facilities and usability without demolition, mitigating noise and air pollution. These are then transformed into productive environments such as vibrant co-living spaces or storage solutions, which are as efficient as new buildings.

Furthermore, each property we manage is retrofitted with solar panel installations and electric vehicle (EV) charging facilities from our energy business, LHN Energy, facilitating the use of renewable energy to power our buildings and offering EV charging facilities to our tenants.

This forward-looking approach, where each business unit complements one another, not only futureproofs our operations but also empowers us to diligently monitor and diminish our carbon footprint at every link in the chain.

Tackling diverse portfolios

For larger enterprises like LHN Group, determining where to begin can be daunting, but there are solutions to create greater synergy across various business units.

Starting with an Environmental, Social, and Governance (ESG) framework that aligns with industry regulatory mandates, national targets, and Sustainability Development Goals (SDGs) can allow us to assess and understand the various components in our portfolios to apply sustainability initiatives.

Establishing a dedicated sustainability committee enables the creation of action plans, goals, and targets to integrate these initiatives. LHN’s Sustainability Innovations Committee consists of Heads of Department and members of the Board of Directors, who regularly explore new technology, exchange ideas, and identify areas in daily operations where sustainability strategies can be effectively incorporated.

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This approach provides us with specialised expertise and focus and, more crucially, promotes collaboration amongst the various business units. Through this, companies will be able to ensure ESG efforts are implemented effectively and contribute to broader local, regional, and even global sustainability objectives.

Getting everyone onboard sustainability synergies

While climate-related activities are crucial in working towards a greener future, a key aspect that is often neglected is the part that employees play. There is a need to highlight the importance of cultivating a culture of environmental sustainability across all levels; beyond direction from top management, even on-ground staff must be informed and educated, getting them excited about the topic.

To foster widespread understanding and adoption of sustainability, company’s ESG strategy should be communicated in an engaging and easily understandable manner for all employees. Besides high-level corporate messages, clear instructions for integrating sustainable practices into daily operations and personal lives should be provided. This approach allows employees to gradually acquaint themselves with the concept without feeling overwhelmed by jargon.

Moreover, providing opportunities for employees to engage in practical environmental activities, such as tree planting, upcycling workshops, or learning about new sustainability technologies, is an effective way to expand their knowledge and cultivate awareness in this field.

In addition, it’s important for companies to engage the supply chain in the ESG communication to ensure a thorough alignment on sustainability vision. This process goes beyond open discussions and sharing of best practices; it entails setting expectations, benchmarks, and targets for ESG compliance across the supply chain.

Sustainable success through integrated environmental stewardship

Corporate Social Responsibility (CSR) and sustainability can no longer be considered an afterthought for businesses, but rather an essential consideration in day-to-day operations. Companies must develop a holistic and actionable approach across all teams, be it supply chains, procurement, people and more.

Implementing an integrated sustainability strategy allows businesses to streamline sustainability efforts, ensure cohesiveness across various business units and, more importantly, seize new opportunities in the green economy fuelled by consumer and investor demand. Only then can we create and maximise proper, trackable positive impact in the world that we live in today, paving the way forward for a more sustainable tomorrow.

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