(Photo: iStock)
Singapore's largest telecommunications company, Singtel, has announced the expansion of its internal carbon pricing policy. Going forward, any project with total carbon emissions exceeding 100 tons will be subject to a carbon price of SGD 50 per ton (about USD 37). Previously, this threshold applied only to projects exceeding 1,000 tons. By tightening these regulations, Singtel ensures that the cost of carbon is considered in all new infrastructure and equipment investments.
Internal carbon pricing is a method for companies to manage their carbon costs by internalizing the external cost of carbon emissions. The two most common forms are the shadow carbon price and the internal carbon fee. The key difference between the two is that the shadow price serves as an internal reference without actual taxation, whereas the carbon fee requires payment based on set rates, supporting sustainable corporate development. Experts believe internal carbon pricing offers three major benefits: guiding investment decisions, accelerating low-carbon innovation, and helping companies achieve emission reduction goals.
After first trialing a shadow carbon price in 2022, Singtel confirmed its effectiveness in changing corporate behavior. This includes more proactive investment in energy-saving projects and reducing the risk of stranded assets in high-carbon industries. According to Singtel’s 2023 Sustainability Report, measures such as enhancing energy efficiency, using renewable energy certificates, and adopting hybrid working models led to an 11% reduction in the company’s operational emissions.
Since 2019, the Singapore government has imposed a carbon tax, which has now increased to SGD 25 per ton (about USD 18.5), with plans to raise it to SGD 50-80 per ton (about USD 37-59) by 2030. Singtel's proactive measures not only align with but exceed these regulatory standards, with their internal price being higher than most Asian peers, though still below the Carbon Pricing Leadership Coalition's recommended USD 40-80 per ton.
Solar panels installed on one of Singtel’s buildings in Singapore. The telecom giant states it is maximizing its solar energy usage and improving operational efficiency to meet its sustainability goals. (Photo: Singtel)
Singtel's financial reports indicate a sharp 64% drop in net profit for the fiscal year 2024, primarily due to a decline in its fixed network business. However, this has not deterred the company’s commitment to achieving net zero emissions. Singtel has upheld its net zero target set for 2045 and has increased its 2030 operational emission reduction target from 42% to 55%, while also raising its Scope 3 emission reduction target from 30% to 40%.
Singapore's sustainability-focused media, Eco-Business, highlights Singtel’s net zero target as one of the most ambitious among its Asian counterparts. Singtel is the first Southeast Asian telecom company to receive the highest A leadership rating from the Carbon Disclosure Project (CDP). Aileen Tan, Singtel’s Chief People and Sustainability Officer, stated, "Customers, including Singapore's public service, are accelerating their net zero targets to 2045 or 2040. If we want to continue to do business with them, I can't stay at 2050."
Source: Eco-business, CSO Future, Singtel
