Climate Action Envoy Tells Firms To Prepare Early For Transition

Those Who Wait Will Scramble To Adjust Later Amid Abrupt Shifts, Says Ravi Menon

- Chin Hui Shan

As the climate crisis intensifies, governments and markets will be forced to act. Businesses must prepare for this transition despite current geopolitics, Singapore's Ambassador for Climate Action Ravi Menon warned on March 17.

Speaking to business leaders at an event organised by the Singapore Business Federation (SBF), Mr Menon warned about risks that climate change will pose to businesses.

This includes extreme weather affecting supply chains and carbon pricing schemes that will increase costs for businesses that do not cut emissions.

Companies that fail to account for their climate-related vulnerabilities could also face higher borrowing or financing costs, Mr Menon said, citing how the real estate sector in the Asia-Pacific is already experiencing higher insurance premiums for properties exposed to extreme weather and flooding.

"Companies that act early will be able to shape their strategies on their own terms, secure market leadership and attract capital that increasingly prioritises sustainability," said the former chief of the Monetary Authority of Singapore.

"Those who wait will scramble to adjust amid abrupt regulatory shifts, supply chain disruptions and dwindling investor confidence."

He acknowledged that there are political headwinds confronting climate action today.

But Mr Menon urged businesses to implement their own transition plans despite the inertia.

"The question is not whether the transition will happen, but how prepared we are for it. The choice is not whether to start transition planning but whether you do it on your own terms or are forced to react later," Mr Menon said.