30 June 2023
Explore the successful pilot in the built environment sector, showcasing the seamless exchange of green data and certification, and the potential for expanded opportunities in diverse industries.
In a significant milestone, SGTraDex, a leading platform for trade finance, has successfully completed pilot transactions in the built environment sector, revolutionizing the seamless exchange of green data and certification. By integrating commercial and green data onto a single platform, SGTraDex has extended its capabilities and opened doors for other industries to benefit from its reliable and secure data highway. This article delves into the insights gained from the pilot, highlighting the advantages of SGTraDex and its potential to eliminate bilateral connections, enhance traceability, and unlock new efficiencies and opportunities across diverse sectors.
Streamlining Access to Green Data and Credentials
Supported by a consortium of banks, including UOB, DBS, OCBC, and Standard Chartered, in collaboration with the Building and Construction Authority (BCA), Monetary Authority of Singapore (MAS), and JTC, SGTraDex addresses the challenges of accessing green data and credentials in the built environment ecosystem. The objective was to streamline the evaluation process for Green and Sustainable Trade Finance, particularly during the construction stage. By leveraging platform providers like Doxa Connex, the consortium successfully brought together commercial documents and ESG data, facilitating a digital and traceable workflow while eliminating existing frictions in the financing process.
Successful Pilot Transactions
During the pilot, conducted from May 23rd to June 7th, 2023, SGTraDex facilitated two sets of transactions, showcasing its potential in the green trade finance domain. UOB, for instance, relied on data from ESGpedia to obtain green certification data for the new Punggol Campus of Singapore Institute of Technology (SIT). By harnessing traceability through digital document exchange, UOB extended green and sustainable trade finance to APP Engineering Pte Ltd, a sub-contractor to Kimly Construction Pte Ltd, the main contractor responsible for SIT’s Punggol Campus Plot 2.
Similarly, OCBC Bank successfully completed its initial data exchange transaction on SGTraDex with a home-grown construction and civil engineering company, serving as the main contractor for an industrial project by JTC. The transaction enabled OCBC Bank to verify the project’s Green Mark certification through SGTraDex, solidifying its commitment to supporting sustainable initiatives.
Expanding Use Cases for Wider Adoption
Following the resounding success of the pilot, key stakeholders, including Doxa Connex, ESGpedia, the consortium of banks (DBS, OCBC, Standard Chartered, and UOB), and public sector entities such as BCA, MAS, and JTC, are keen to promote wider industry adoption. SGTraDex acts as a centralized data highway, facilitating the convergence of commercial and ESG-related data, granting ecosystem players access to all the necessary information through a single touchpoint.
BCA’s Super Low Energy Building (SLEB) Smart Hub system and MAS’ ESG Registry under Project Greenprint contribute to the availability of data. The SLEB Smart Hub, a comprehensive digital platform, offers energy efficiency databases and tools to support Singapore’s Green Building Masterplan. When building developers and owners apply for Green Mark certification, they can now share relevant data with financial institutions, further strengthening green financing efforts. Moreover, the ESG Registry, powered by STACS’ ESGpedia, consolidates project certification and green material certification data, fostering green financing in the built environment sector.
Leveraging Data for Seamless Green Financing
UOB, DBS, OCBC, and Standard Chartered are poised to leverage commercial and ESG-related data, utilizing SGTraDex to extend green financing opportunities to a wider pool of suppliers and contractors. By embracing the data-driven approach facilitated by Doxa, ecosystem players can establish transaction traceability back to qualified green projects, reinforcing transparency and efficiency in the financing process.
Driving Green Initiatives and Supply Chain Resilience
SGTraDex’s transparent and efficient process enables businesses to advance their green initiatives while strengthening their supply chain resilience. By supporting the sustainability of Singapore’s supply chains, SGTraDex aims to establish the country as a thriving green trade finance hub.
SGTraDex’s successful pilot transactions in the built environment sector herald a new era of green trade finance. With its ability to seamlessly exchange green data and certification, SGTraDex offers numerous advantages, including enhanced traceability, improved efficiencies, and expanded opportunities across industries. By collaborating with key stakeholders, SGTraDex is poised to transform the financing landscape, enabling a more sustainable and resilient future for Singapore’s trade ecosystem.