Singapore Exchange (SGX) has pledged to set science-based emissions reduction targets that are consistent with keeping global warming to 1.5 degrees Celsius above pre-industrial levels.

It has committed to a 42% reduction in Scope 2 emissions by 2031 from the base as of 2021.  For Scope 3 emissions, the exchange plans to engage with its co-location data centre supplier for them to set science-based targets within five years.

The commitments are based on the criteria and recommendations of the Science Based Targets initiative (SBTi), making SGX the first Asian exchange to join Race to Zero and Business Ambition for 1.5 degrees Celsius. SGX will submit its verifiable targets to SBTi for validation.

Planned initiatives to achieve the Scope 2 reductions include:

• improving the energy efficiency and reducing the carbon intensity of SGX's data processing requirements in line with best practices
• introducing energy-efficient equipment, processes and policies
• purchasing renewable energy certificates that meet the Scope 2 greenhouse gas (GHG) protocol quality criteria through its subsidiary Energy Market Company.

These actions follow the six steps that corporates are recommended to adopt when reducing GHG emissions, as outlined in the guide on “Credible decarbonisation and transition for corporates in Asia” that SGX launched in June 2021. Written in collaboration with CDP, the Climate Bonds Initiative and HFW, the guide contextualises the myriad of climate action initiatives and provides corporates with a set of actionable corporate climate mitigation steps.

“Taking climate action is critical and we must do so urgently,” says Loh Boon Chye, SGX’s CEO. “Corporates can play a significant role in reducing GHG emissions globally and are encouraged to adopt an internationally accepted carbon mitigation plan. Leading by example, SGX is taking science-based steps and setting ambitious emission reduction targets that contribute to global efforts to reach net-zero emissions by 2050.”