CO2X signed a Memorandum of Understanding (MoU) with key industry and association leaders from the Transport and Logistics, and Finance sectors.
Witnessed by Law Chung Ming, the Executive Director for Transport and Logistics at Enterprise Singapore, and Kwok Quek Sin, the Executive Director of Green FinTech, FinTech and Innovation Group, and the Monetary Authority of Singapore (MAS), the MoU signals the start of the ongoing commitment to jointly develop a platform that will provide local small and medium enterprises (SMEs) with accessible carbon tracking solutions and green financial services through a data-driven approach.
CO2X is a company founded by 3 homegrown technology companies: Ascent, Evercomm, and STACS, and was established to achieve the sustainability aspirations of the Founders through their respective expertise in emerging technologies such as the Internet of Things (IoT), Data Analytics and Blockchain.
The CO2X platform leverages these technologies to help businesses and the financial sector navigate the complex regulatory and costly certification frameworks that hinder the adoption and financing of sustainability practices, especially for SMEs.
Leveraging on the CO2X platform, companies are able to track their carbon footprint to achieve benchmarking and devise data-driven emission reduction strategies that in turn help reduce the fuel and energy costs of doing business.
They can also use the data and reports offered by CO2X to undergo green certification against international standards. CO2X also goes one step further to attract green financial services like sustainability-linked loans and insurance products through the issuance of certified carbon avoidance certificates captured on the blockchain. Financial service providers like OCBC, UOB, and Aviva Singlife have also joined the MoU signing with CO2X to explore this further.
CO2X will begin testing its beta platform next month, with key industry partners including Bok Seng, Chuan Lim Construction, CWT, EVFY, FoodXervices, Tiong Seng, and contractors. CO2X has strategically chosen to focus on the Transport and Logistics sector as it contributes to 14.8% of Singapore’s carbon emissions, making it the third-largest polluting sector in the nation.
While initially focusing on the Transport and Logistics sector, CO2X aims to expand its offering in the future to other sectors such as construction, manufacturing, hospitality, and facilities management given the adaptability of the platform.
Lim Chee Kean, Chairman and Co-founder of CO2X, and the CEO of Ascent, commented: “Sustainability is an increasingly important and necessary strategy for all companies, across all industries, to stay competitive today. Companies need to expand their business success metrics beyond the bottom line and recognise the long-term value sustainability creates. The CO2X platform is the best starting point for companies keen to embark on their sustainability journey. Our inclusive platform will lower the barriers for SMEs to incorporate sustainability practices and bridge the gap between businesses and financial services in a data-driven approach.”
“Sustainable development strategies are a priority for many companies,” added Ricky Loo, CEO of CWT. “At CWT, we embed ESG and technology in the company to optimise operating and cost efficiency, reduce carbon footprint and create a great workplace culture while ensuring effective corporate governance. By taking responsibility for changing the way we operate, we benefit the environment, help customers succeed and communities thrive.”
Linus Goh, Head of Global Commercial Banking, OCBC, shared: “The case for going green today is becoming clearer for businesses across all industries and regions, but for real change to take place, SMEs need to have practical ways to measure and monitor their carbon footprint. We at OCBC are happy to partner with CO2X as it sets out to address this gap across a broad range of industries. We believe technology solutions like this will combine well with our green and sustainability-linked loans to help our SME customers across the region to successfully transition their businesses and projects.