Singapore now hosts the EY Center for Sustainable Supply Chains, a new initiative designed to assist companies across Southeast Asia in adopting more sustainable supply chain practices.
The center opened on August 21, 2023, with an official ceremony led by Dr. Koh Poh Koon, Singapore’s Senior Minister of State for Sustainability and the Environment, and Manpower.
Singapore’s selection as the center’s location was deliberate. The city-state is a leading supply chain and logistics hub in Asia, with an intersection of trade flows and a vast number of companies anchored in the country, from multinational corporations to regional and local firms. These factors offer immense potential to create an impact at scale in driving sustainable supply chains.
Supply chains represent a substantial portion of an organization’s greenhouse gas emissions and operating costs. With increasing pressure to meet net-zero targets, companies are examining their supply chains more closely, not just their direct operations.
EY’s Praveen Tekchandani, a partner in Climate Change and Sustainability Services, stated that over 70% of a company’s carbon footprint often stems from indirect emissions linked to upstream and downstream activities. He explained that achieving net zero requires effective stewardship across the entire supply chain. While challenging, this step is essential for companies to reach their sustainability objectives.
The center is led by Atul Chandna, EY’s Asia-Pacific Supply Chain Leader, and Tekchandani. It employs over 50 professionals specializing in climate change, sustainability, and supply chain consulting. Their work assists companies in addressing sustainability challenges, including circular business models, tax incentives, and decarbonization strategies.
The EY Center for Sustainable Supply Chains offers customized solutions for companies at various stages of their sustainability journey. Services include:
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- Assessments of supply chain emissions and sustainability progress
- Guidance on circular business models and waste reduction
- Support for decarbonizing value chains
- Tools for real-time visibility and traceability of supply chain data
- Strategic collaborations with technology partners to integrate innovative solutions
Liew Nam Soon, EY’s Asean Regional Managing Partner and Singapore Country Managing Partner, said the center will support regional companies while strengthening the broader supply chain ecosystem. He noted that the initiative aims to help the sector and its workforce build sustainability capabilities through technology and collaboration.
Supply chains often lack transparency, with limited visibility into suppliers’ practices or emissions data. Regulatory complexities and scalability concerns add further difficulties. The center addresses these gaps by providing practical, actionable strategies instead of generic advice.
The center’s efforts may extend beyond individual businesses. By promoting sustainable practices in Southeast Asia, it could influence global supply chains, given the region’s role as a manufacturing and trading hub.
The transition will not be simple.
Many companies lack the data or tools to measure progress accurately. Others face difficulties balancing short-term costs with long-term benefits. The center combines research, technology, and hands-on consulting to help bridge this gap.
The launch aligns with a period when sustainability is no longer optional. Investors, regulators, and consumers demand greater accountability, viewing supply chains as a critical area for improvement. While the center’s impact remains to be seen, it marks a move toward integrating sustainability into core supply chain management in Asia.
Regional trade trends may also benefit from these efforts. Sustainable practices in logistics could open new opportunities for markets where demand for imported goods continues to rise.
