PROPOSED FRAMEWORK FOR THE REGULATION OF GREENWASHING IN THE BUILT ENVIRONMENT IN SINGAPORE

Abstract

The lack of regulations and legislation in Singapore regarding greenwashing and green finance has led the consumers or the authorities to bear the burden in determining what constitutes greenwashing. This results in difficulties in proving what acts constitute unfair business practices, or to prove that damage has occurred from misrepresentation due to greenwashing. The Singapore government has been working to reduce carbon emission in recent years and provides businesses with various incentives to be environmentally friendly. With the amount of money the Singapore government invested, it is critical to monitor and ensure that this money is channelled to the right projects and businesses. Greenwashing is closely related to green finance. Green finance is not new as its roots can be traced back to the 1970s. However, it only came to the public attention in 2015, with the launch of the Sustainable Development Goals and Paris Agreement (Bechtel, 2021).1 In 2021, the release of the Singapore Green Plan 2030 by the Singapore government created Singapores' own target in chasing net zero emission aspiration. Today, as climate change becomes one of the main challenges in the 21st century, the urge of investing in green projects and making sustainable investments have become a necessity instead of a choice. The needs of incorporating environmental, social and governance ('ESG') into investment decisions have been unprecedentedly strong. Although there are various legislation and frameworks regulating the behaviours of the economy, carbon emissions and energy conservations, there is no direct legislation or codes guiding greenwashing the investment and construction industries in Singapore. The absence of a standardised legal framework regarding greenwashing has created opportunities for unfair business practices to occur. Therefore, establishing a legal framework to govern greenwashing can promote green and sustainable investments and at the same time maintain the financial stability of green finance. This dissertation, through thorough literature review and analyses of relevant terminologies, stakeholders, existing legislation and frameworks and case studies both in Singapore and abroad, provides a holistic view of Singapores' position in preventing greenwashing and assesses the adequacy of the existing laws regulating greenwashing in Singapore. Comprehensive analysis of existing international best practices is provided to understand the key requirements to be included in the proposed legal framework. Following the analysis, interviews are conducted with experts and professionals in the relevant industries to understand the challenges, limitations, area of improvements and necessary requirements regarding the implementation of the proposed legal framework to regulate greenwashing in the built environment in Singapore. The author has endeavoured to state the law as at 1 March 2024.