[CDx Launch Session Summary] Fishbowl 2: Target Setting

The session explored the complexities of setting and achieving decarbonization targets, highlighting the interplay between corporate motivations, financial mechanisms, and regulatory landscapes. Yulia Dobrolyubova emphasized the need for SMART — Specific, Measurable, Achievable, Relevant, and Time-bound— targets. David Yeo from Valores Global, shed light on the high demand and limited supply of Renewable Energy Certificates (RECs) in Singapore, while Sorwait Treeprasertsuk of Frasers Property shared practical insights on navigating financial incentives like sustainability-linked loans. Liam Salter from Reset Carbon stressed the critical role of a clear business case and management commitment in ensuring decarbonization success. The panel also tackled challenges such as Scope 3 emissions, which require value chain collaboration, and the particular struggles of SMEs in accessing resources and expertise.

Key Takeaways

• Target Framework: Clear, actionable targets are essential to drive genuine progress and ensure accountability.

• Financial Incentives: Sustainability-linked loans and carbon taxes as effective tools, although government policies must balance incentives with cost management.

• Scope 3 Emissions: Addressing these emissions remains a major challenge due to the reliance on value chain partners. Collaboration and standardized data platforms are critical for tracking and influence.

• SME Challenges: There is a need for tailored financial support, capacity-building initiatives, and accessible carbon accounting tools to help SMEs actively decarbonize.

• Corporate Accountability: Linking management KPIs to sustainability goals and ensuring reporting on regular progress reporting.

• Transparency: High-quality data and transparent reporting are crucial to maintain credibility and avoid greenwashing.