Kickstarting Your Sustainability Journey in Food Manufacturing - Ms Grace Fu

SPEECH BY MS GRACE FU, MINISTER FOR SUSTAINABILITY AND THE ENVIRONMENT, AT KICKSTARTING YOUR SUSTAINABILITY JOURNEY IN FOOD MANUFACTURING ON 28 NOVEMBER 2023

Distinguished guests,

Ladies and gentlemen,

Good morning, everyone. I am delighted to join everyone today for the “Kickstarting Your Sustainability Journey in Food Manufacturing” event organised by Enterprise Singapore, Republic Polytechnic, and Singapore Polytechnic.

Global Outlook on Sustainability

2 Sustainability is not a new concept. Put simply, sustainability is about being accountable for our actions on our resources and the environment. Decades of omission of greenhouse gas emissions from our consideration, whether in business or from our lives, has resulted in global warming. Climate change is no longer an abstract concept, but real. Its effects have been sorely felt by millions worldwide and at home.

3 Just last month, we experienced the highest-ever October temperature of a sweltering 36.3°C. 2013 to 2022, was Singapore’s warmest on record. Rising global mean temperatures have resulted in detrimental impact on society, including increased biodiversity loss, compromises to human health and well-being, and economic losses. The food industry has not been spared. Just this year alone, we have seen record temperatures and wildfires affecting global crop yields, which are estimated to further decline by up to 20 per cent by the end of this century. This will cause further volatility in food production and food prices.

4 However, food production is not just an effect of climate change. It is also a contributor to climate change. According to the UN Food and Agriculture Organization, the global food system, from production to consumption, is responsible for a third of global greenhouse gas emissions and is the number one source of methane and biodiversity loss. And earlier this year, researchers found that half the global food system’s total emissions was contributedby food waste generated in the post-production processes. Climate action is about joining the dots and understanding how our ecosystem works and understanding the effects.

5 Food waste therefore exacerbates the climate change crisis, which in turn threatens our food security. It is a vicious cycle – we cut down trees for agriculture, resulting in hotter and drier conditions that give rise to more wildfires. These in turn generate more greenhouse gases.

6 Reducing food waste will boost our food security, foster greater productivity, promote resource and energy conservation and mitigate climate change. Hence, for greater resilience, we have to reduce food waste. If we can eliminate food waste totally, we can survive on 70 per cent of current food production. It is good for businesses. It is good for the planet. It is good for us.

7 In Singapore, food and packaging wastes are the main waste streams to which food manufacturers contribute. In 2022, 813,000 tonnes of food waste, or 11 per cent of total waste in Singapore, were generated. Only 18 per cent was recycled. And we disposed additionally and collectively, a staggering 620,000 tonnes of packaging waste, which is about one-third of the domestic waste in Singapore.

8 To manage our waste holistically, we have our Singapore Green Plan 2030, which charts concrete sectoral targets and plans to achieve our long-term aspiration of Net Zero emissions by 2050, and becoming a Zero-Waste nation. Under the Mandatory Packaging Reporting scheme, producers of packaged products, such as manufacturers and retailers, are required to submit packaging data and Reduce, Reuse, Recycle plans to the National Environment Agency (NEA) since 2022. To reduce the amount of plastic waste generated, we announced the Beverage Container Return Scheme, under which producers of beverages will be made responsible for the collection and recycling of beverage containers like plastic bottles and metal cans that they put into the market. To promote resource recovery from food waste, industrial and commercial buildings are required to segregate and treat their food waste. From 2024, building managers will also be required to submit food waste reports to NEA. This will further raise awareness of the amount of food waste generated, and encourage building managers to pursue waste minimisation opportunities.

Key Areas of Focus for Food Manufacturers

9 To further decarbonise our food industry, I would propose three strategies: resource optimisation, food resource valorisation, and sustainable food packaging.

10 First, resource optimisation. This involves switching to energy-efficient alternatives or adopting more productive manufacturing processes. Consider the example of People Bee Hoon. They have embraced solar power and it now supplies 30 per cent of their electricity consumption, reducing their electricity bills and generating Renewable Energy Credits for them. Similarly, through installing water recirculation tanks for their cooling line, Ice Cream Cookie & Co. has reduced their water consumption by at least 8 times, which has brought down their utility costs.

11 Second, food manufacturers can embrace food resource valorisation and upcycling – the repurposing of food manufacturing by-products into high value food or food ingredient products. Food manufacturers can utilise nutrient-rich side streams such as spent grains, okara, or fruits and vegetables, as a spin-off food product. For example, bread producer Tiong Bahru Bakery produced a line of sustainable beers made from surplus bread by collaborating with LESS&Co., a company that turns food manufacturing by-products and surplus food into unique products. To facilitate emerging food waste treatment methods, NEA’s revised regulatory framework provides greater flexibility in allowing segregated food waste to be treated off-site. We are giving space for innovative ways of treating food waste.

12 Third, using sustainable food packaging for your products can reduce packaging waste and thus saving cost, pre-empt new packaging regulations that are being rolled out in the international markets and appeal to environmentally conscious consumers. The European Union Packaging Directive will require Member States to implement extended producer responsibility, or EPR, schemes by next year. This means all packaging placed on the EU market will have to be recovered through systems set up for its collection. The Member States are also legally obliged to meet the EU recovery and recycling targets. In Singapore, we have also recently called a consultancy tender to review best practices and recommend an EPR scheme to manage other types of packaging waste beyond beverage containers.

Support Available for Food Manufacturers

13 To support food manufacturers in this transition, the Government has put in place several schemes. The Enterprise Sustainability Programme or ESP under EnterpriseSG, offers training courses, playbooks, and various programmes to develop sustainability capabilities and seize opportunities for growth. NEA’s Energy Efficiency Fund and EnterpriseSG’s Energy Efficiency Grant support food manufacturers in improving energy efficiency and adopt energy-efficient equipment. NEA has also published food waste minimisation and segregation guidebooks on its website. PUB’s Water Efficiency Fund supports eligible companies in implementing water recycling measures, innovative technologies for water conservation, and conducting studies to identify water saving opportunities in operations. The Food Manufacturing Centres of Innovation (FM COI) located at Singapore Polytechnic, Nanyang Polytechnic, Republic Polytechnic and Temasek Polytechnic are knowledge partners that serve food manufacturers with guidance and solutions for sustainable operations.

Launch of the Sustainability Resources for Food Manufacturers

14 And today, to help food manufacturers embark on their sustainability journey, I am pleased to announce the launch of the Sustainability Playbook for Food Manufacturers by EnterpriseSG. This Sustainability Playbook will be an all-in-one resource guide for food manufacturers to kickstart their journey. It includes a comprehensive list of sustainability partners and support under the three key sustainability strategies I shared earlier.

15 Also being launched today is the Sustainability Course for food manufacturers by Accenture, designed in collaboration with the Singapore Food Manufacturers’ Association and EnterpriseSG. This course aims to build capability in the industry with tools and skillsets, and help companies embark on their sustainability journey. If you are in this sector and have always wondered how and where to start on sustainability, these are the resources for you.

Conclusion

16 The fact that you have joined us here today is an important first step and shows your interest in making sustainability part of your business. I encourage you to tap on the available resources to strengthen your capabilities in greening your operations. Adopt existing solutions that promote resource optimisation and waste reduction. Explore partnerships to develop industry-specific solutions. I hope that today’s session will be a fruitful one for you, and we look forward to even more food manufacturers adopting sustainable practices in the near future.

17 At the moment, we have many challenges such as manpower and high utility costs. The core purpose of sustainability is about resource optimisation. By reducing the amount of resource we use, and the carbon footprint that we create, the payback will come in cost savings, better asset utilisation, lower utility bills and better resource resilience.

18 We will need less because we waste less. This will hopefully reduce the volatility in the global market. The alternative of not doing anything will be quite stark and negatively impacting our future. There will be continuing global warming, further volatility in food prices, uncertainty in supply, and many other impacts on us, including more intense rain, rising sea levels and droughts in other parts of the world.

19 It is important for us to start taking action now, and here where you are operating, and do whatever you can for a better future for all of us. It is good for your business and the legacy you leave behind for your children.

20 Thank you.