The business environment has experienced drastic changes in Singapore, especially with the Singapore Green Plan Development Plan. Singapore Green Plan 2030 is a national agenda on sustainability with strategic approaches that strengthen the country’s commitment to the UN’s 2030 SDGs (Sustainable Development Goals) and Paris Agreements, which require countries to achieve zero carbon emissions by 2050 (Green Plan, n.d.). The Green Plan is very significant as climate change is a national and international challenge, and Singapore is taking firm action to play its part in building a sustainable future through it. Some of the Green Plan targets are to plant approximately 1 million trees, reduce waste dumped in landfills by 30% by 2030, all newly registered vehicles to be cleaner energy models by 2030, quadruple solar energy deployments by 2025, and at least 20 percent of learning institutions to be carbon neutral by 2030 (Green Plan, n.d.). This context explores how The Singapore Green Plan has transformed the country’s business environment, analyzing how it has provided threats and opportunities for businesses.
Environment
Change Management Theory
The Green Plan blueprint is based on the principles of change management theory and principles of the VUCA theory. Change management theory is a business model applied by institutions as an approach to transition processes, resources, and people to achieve better outcomes (Hofmann & Jaeger‐Erben, 2020). These models help organizations and people focus on the future market and make the right decisions to achieve that vision. Today, businesses are increasingly recognizing the significance of sustainable practices. Climate change is caused by natural causes and human causes such as land use, deforestation, and fossil fuels (Fakana, 2020). National Climate Change Secretariat (n.d.) states that Singapore Green Plan 2030 is a blueprint for reducing greenhouse gas emissions, such as switching from fuel oil to natural gas. These Green Plans set the initiatives and strategies to achieve a suitable living environment and economic growth. VUCA is a leadership model that requires leaders to navigate and focus on the vision, values, understanding, collaborative decision-making, and planning for the future (Kolga, 2021). The Singapore Green Plan 2030 is an environmental initiative that aims to address sustainable challenges and promote a sustainable future for the country. It involves policy changes, strategies, and actions to reduce environmental impact, promote conservation efforts, and enhance energy efficiency. Several interconnected factors cause climate change, and how some developed policies and technical advancements address this concern is pretty uncertain. Therefore, the Singapore Green Plan has been designed under the volatility, uncertainty, complexity, and ambiguity principles of the VUCA model.
SWOT Analysis
Opportunities
The introduction of the Singapore Green Plan strategies for sustainability and environmental protection has presented several opportunities, such as creating demand for green technologies, eco-friendly products, and renewable energy in Singapore. To balance this crisis, it is critical to transition toward green and sustainable practices. Bradu et al. (2023) state that there is a need for innovative green technologies and IoT (Internet of Things) technologies to develop durable, green, biodegradable, and economically friendly goods for a sustainable future. Green technology includes all innovations contributing to development processes, products, and services that reduce environmental harm. Ms. Grace Fu, the Minister for Sustainability and the Environment, stated that climate change has significantly impacted climate change. It is this industry’s responsibility to rectify its impacts on the environment by playing a part in reducing emissions and taking the first row in the fight against climate change (Ministry of Sustainability and the Environment, n.d.). Singapore Marine Center is working toward greening international shipping with other like-minded partners to create a sustainable marine ecosystem by establishing digital and green shipping corridors to Asia, Europe, and America (Ministry of Sustainability and the Environment, n.d.). Additionally, the country aims to switch energy supplies by building a sustainable energy mix using solar, natural gas, regional power grind, and other low-carbon options (Ministry of Sustainability and the Environment, n.d.). These supply switches increase the bargaining power of the buyers, and these could reduce the cost of energy in the country. The change in business practices toward green and sustainable practices has presented Singapore with new opportunities, such as investing in green technologies and increasing demand for eco-friendly products.
Threats
Transitioning to sustainable business practices may present some threats, especially to industries highly reliant on conventional and carbon-intensive carbon emissions. Zenghelis (2023) posits that even though the transition to a sustainable economy creates excellent opportunities for resource efficiency and new clans, it also presents a growing risk of devaluation and disruption to the existing carbon and resource-intensive sectors. To achieve the Green Plan goals, the Green Skill Committee requires the country to provide skill development programs for green jobs (Ministry of Trade and Industry Singapore, n.d). Additionally, Singapore aims to phase out coal power by 2050 (Ministry of Trade and Industry Singapore, n.d.). Moreover, these changes in the business environment require the implementation of new policies, and these may mean additional costs for businesses to comply with these environmental standards. These may make Singapore undesirable to international businesses, especially those heavily relying on carbon-intensive practices. Therefore, meeting the new climate change target may require a country to eliminate its current resources. These may require innovation to increase productivity and improve processes to match the market demand. This process is likely expensive and may take more time than expected.
Strengths
Singapore can leverage and capitalize on the evolving business landscape by adopting sustainable business practices. The green plan encourages organizations in Singapore to adopt and develop sustainable business practices businesses, investing in research, developments, and technology advancements. Additionally, embracing sustainability can provide a competitive advantage for Singapore. Consumers are increasingly prioritizing innovative and eco-friendly choices. Auktor (2020) posits that seeking green growth opportunities will create new jobs, transform vital industrial sectors, and harness sustainability as a sustainable advantage. National Climate Change Secretariat (n.d.) States that further investments in decarbonization will enable Singapore to achieve zero carbon emissions earlier. These will help the country establish its competitive edge early in the regional and international markets and create new growth opportunities in different sectors. Therefore, the changing business environment enables Singapore to explore it, and investing in sustainability and innovation increases Singapore’s competitive advantage in the regional and international markets.
Conclusion
Climate change is one of the key concerns affecting Singapore’s business environment. However, governments have developed the Green Plan Framework to achieve the UN’s sustainable development goals and the Paris Agreement. Singapore has applied the change management model and the VUCA theories rationales while drafting the Green Plan. However, implementing the Green Plan has provided Singapore new opportunities, threats, and strengths. For instance, the country’s commitments to sustainability practices increase the country’s competitive advantage in the global market. Additionally, it allows the state to be innovative and create demand for eco-friendly products. However, these may result in implementing practices and policies, and the overall process can be expensive. However, despite the weaknesses and threats presented by the Green Plan, it is recommendable to prioritize innovation in sustainable practices as these will not only help businesses achieve the requirements of the Green Plant but will also help them gain a competitive advantage in the market with rising demand for environmental sustainability.
References
Auktor, G. V. (2020). Green industrial skills for a sustainable future. United Nations Industrial Development Organization, Vienna. https://downloads.unido.org/ot/26/86/26862685/Study%20-%20Green%20Skills%20for%20a%20Sustainable%20Future.pdf
Bradu, P., Biswas, A., Nair, C., Sreevalsakumar, S., Patil, M., Kannampuzha, S., … & Gopalakrishnan, A. V. (2023). Recent advances in green technology and Industrial Revolution 4.0 for a sustainable future. Environmental Science and Pollution Research, 30(60), 124488–124519. https://link.springer.com/article/10.1007/s11356-022-20024-4
Fakana, S. T. (2020). Causes of climate change. Global Journal of Science Frontier Research, 20, 7-12. https://www.researchgate.net/profile/Selemon-Fakana/publication/342452772_Causes_of_Climate_Change_Review_Article/links/5ef4ff3092851c52d6fdb650/Causes-of-Climate-Change-Review-Article.pdf
Green Plan. (n.d.). Singapore Green Plan 2030. https://www.greenplan.gov.sg/
Hofmann, F., & Jaeger‐Erben, M. (2020). Organizational transition management of circular business model innovations. Business strategy and the environment, 29(6), 2770-2788. https://onlinelibrary.wiley.com/doi/full/10.1002/bse.2542
Kolga, M. (2021). Initiating leadership development in a VUCA environment. https://ir.lib.uwo.ca/oip/197/
Ministry of Sustainability and the Environment. (n.d.). HN5506 LNG dual-fuel VLCC ship-naming ceremony – Ms grace Fu. MSE. https://www.mse.gov.sg/resource-room/category/2024-01-23-speech-by-minister-grace-fu-at-the-hn5506-lng-dual-fuel-vlcc-ship-naming-ceremony
Ministry of Trade and Industry Singapore. (n.d.). A new green skills committee will support skills development for green jobs. Ministry of Trade & Industry. https://www.mti.gov.sg/Newsroom/Press-Releases/2023/11/New-Green-Skills-Committee-to-support-Skills-Development-for-Green-Jobs
National Climate Change Secretariat. (n.d.). Overview. https://www.nccs.gov.sg/singapores-climate-action/overview/national-circumstances/
Zenghelis, D. (2023, May 5). What are the likely costs of the transition to a sustainable economy? Economics Observatory. https://www.economicsobservatory.com/what-are-the-likely-costs-of-the-transition-to-a-sustainable-economy
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