SINGAPORE, October 3, 2024 – As environmental concerns continue to dominate global business agendas, Singapore Post (SingPost) is positioning itself as a leader in sustainability within the logistics and postal services sector. With a comprehensive sustainability strategy in place, SingPost is committed to achieving ambitious environmental, social, and governance (ESG) goals.
In a conversation with Carbon Wire, Michelle Lee, SingPost’s Chief Sustainability Officer, discussed the company’s sustainability roadmap, its initiatives to reduce carbon emissions, and how it integrates sustainability into its corporate culture and operations.
Strategic Framework
At the heart of SingPost’s sustainability efforts is a strategy built on three core pillars: Cherishing Our Planet, Collaborative Partnerships, and a Culture of Trust. Lee emphasizes that these pillars form the foundation of the company’s approach to addressing sustainability across environmental, social, and governance dimensions.
“We’ve made significant strides, but we are aware that there’s more to be done,” says Lee. “We’re committed to achieving net-zero carbon emissions for Scope 1 and 2 in Singapore by 2030, and globally across all scopes by 2050. These goals drive our strategy and shape the initiatives we’ve implemented to reduce our carbon footprint.”
SingPost has already made considerable progress toward its carbon reduction goals. By the end of the 2023 fiscal year, the company had reduced its Scope 1 and 2 emissions in Singapore by 26% compared to 2018-19 levels, and its global operations saw an 11% decrease year-on-year. Lee notes that the company is also developing its Scope 3 emissions inventory, which tracks indirect emissions from its supply chain and business operations.
“Our phased approach to creating a Scope 3 emissions inventory has enabled us to identify targeted initiatives to decarbonize our value chain,” explains Lee. “This will allow us to gain visibility into our value chain emissions and be more proactive in reducing them.”
Driving Innovations
SingPost’s efforts to reduce its carbon footprint extend across several key initiatives, including the electrification of its delivery fleet and a focus on renewable energy. According to Lee, about 37% of SingPost’s owned delivery vehicles in Singapore are now electric, reducing Scope 1 emissions by 8.5% in FY22/23. The company has also expanded its use of solar energy, with solar panel installations at multiple facilities in Singapore and Australia.
“We are committed to reducing our reliance on grid electricity by expanding our onsite solar generation,” says Lee. “Since the installation of solar panels at our Regional eCommerce Logistics Hub in 2021/22, we’ve extended this to more of our operations, including SingPost Centre.”
In addition to fleet electrification and renewable energy adoption, SingPost has set a target to increase its operational recycling rate to 30% by 2025. Currently, the company has achieved a 23% recycling rate, with plans to further enhance its waste management and recycling initiatives.
Lee also highlights SingPost’s internal carbon pricing mechanism, which aims to encourage low-carbon investments and integrate climate considerations into business decisions. “By incorporating carbon pricing, we can better evaluate the full lifecycle costs of our investments, including their carbon footprint,” she says. “This allows us to embed sustainability into our decision-making processes.”
Community Engagement
Beyond its operational goals, SingPost is deeply invested in engaging with its stakeholders to promote sustainable practices across its entire value chain. “Our sustainability efforts extend beyond our immediate operations,” Lee notes. “We actively engage with our suppliers and customers to promote responsible business practices and reduce our collective carbon footprint.”
One notable example of this collaborative approach is SingPost’s partnership with its Australian subsidiary, CouriersPlease (CP), to trial the use of electric vehicles (EVs) within its franchise model. The trial gave franchise partners firsthand experience with EV operations, and the feedback was overwhelmingly positive. Following the trial, CP successfully onboarded a new franchise partner with support to ease the upfront costs associated with transitioning to electric vehicles.
SingPost’s commitment to sustainability also extends to its engagement with local communities. Through its Community Investment Framework, the company focuses on initiatives related to community resilience, digital inclusion, and environmental stewardship. Notably, SingPost collaborated with Singapore’s National Parks Board to launch commemorative stamps featuring critically endangered local flora, raising awareness about environmental conservation. Additionally, the company’s volunteer efforts, including meal deliveries through the non-profit soup kitchen Willing Hearts, reflect its dedication to social causes.
“Our community engagement efforts are a reflection of our broader mission to create long-term value for society,” says Lee. “Whether it’s supporting environmental initiatives, enhancing digital inclusion, or promoting diversity and inclusion, we believe in contributing positively to the communities we serve.”
SingPost’s sustainability strategy is not just focused on environmental goals; it also encompasses social and governance factors, with a strong emphasis on creating a culture of trust, inclusion, and employee well-being. “Our most valuable asset is our people,” Lee affirms. “Their skills, safety, and alignment with the company’s purpose are key to driving sustainable business practices.”
SingPost has been recognized as a Great Place to Work® certified company in several markets, including Singapore and Australia. The company also maintains at least 30% female representation in senior management, with women currently holding approximately 36% of these positions. “We are proud to promote diversity and inclusion within our leadership team,” says Lee. “Fostering a workplace where everyone feels valued and included is essential to our long-term success.”
In addition to promoting diversity, SingPost conducts regular employee engagement surveys to ensure the voices of its workforce are heard. The company’s most recent survey saw a 90% completion rate, indicating strong participation and a commitment to understanding and addressing employee concerns.
Sustainability Drivers
Innovation and technology are key components of SingPost’s sustainability journey. The company has invested in digitalization and automation to enhance operational efficiency and reduce its environmental impact. For instance, the integration of artificial intelligence (AI) in procurement processes has enabled SingPost to assess suppliers’ ESG credentials more effectively, ensuring ethical sourcing and sustainable supply chain practices.
“We’ve integrated AI into our procurement software to expand our analysis of suppliers’ ESG performance,” says Lee. “This allows us to evaluate our supply chain more comprehensively and ensure that our sustainability standards are met across the board.”
Fleet optimization is another area where technology plays a critical role. By streamlining fleet configurations and consolidating regional bases, SingPost is not only reducing fuel consumption but also minimizing its carbon emissions. Lee explains, “Our efforts to optimize fleet usage and introduce automation technologies in our logistics hubs have had a positive impact on both our operational efficiency and our sustainability performance.”
Transparent Reporting
In the realm of sustainability, transparency is key to building trust with stakeholders. SingPost adheres to the Global Reporting Initiative (GRI) Standards 2021, which provide a framework for measuring and reporting its sustainability performance. The company also follows the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), ensuring that climate risks and opportunities are disclosed in its reporting.
“We believe in maintaining transparency and accountability in our sustainability reporting,” says Lee. “By adhering to global standards like GRI and TCFD, we can clearly communicate our progress and performance across key ESG metrics.”
As SingPost continues its journey towards sustainability, the company is poised to play a leading role in driving positive environmental and social change. With ambitious goals, innovative initiatives, and a strong commitment to transparency and collaboration, SingPost’s sustainability strategy is a blueprint for the future.
“We’re proud of the progress we’ve made so far,” says Lee. “But we know there’s still more work to be done. Our goal is to create long-term value for our stakeholders, minimize our environmental impact, and contribute positively to the communities we serve.”