Singaporean food manufacturers are being warned that green operations have shifted from a voluntary goal to a commercial necessity due to stricter environmental regulations in major export markets. In response, Enterprise Singapore has released a refreshed Sustainability Playbook for Food Manufacturers to help the sector navigate these evolving requirements.
The updated guide, published on 21 April, introduces specific progress indicators across three strategic pillars: market access, resource cost reduction, and circular economy opportunities.
The food manufacturing sector is a vital component of Singapore’s economy, consisting of over 1,500 companies and 60,000 employees. In 2023, the industry generated SGD 11.2 billion in sales, with approximately 65% of production exported to key markets including the United States, Japan, and Australia.
The playbook highlights three critical challenges facing the industry:
The Scope 3 gap: Indirect emissions across the value chain (Scope 3) account for 65% of the sector’s total carbon footprint. Despite their impact, these emissions remain the least addressed area, creating a significant accountability gap as global reporting standards become more stringent.
Mandatory compliance: Sustainability is increasingly becoming a “de facto” requirement for international trade. However, a recent survey indicates that nearly half of Singapore’s food manufacturers have no active sustainability initiatives in place.
Efficiency targets: Resource management is identified as the most effective tool for immediate cost reduction. The sector has established 2030 targets to reduce energy intensity and water consumption by 15% to 25%.