McKinsey launches Asia sustainability innovation hub with HQ in Singapore

Minister for Sustainability and the Environment Grace Fu (right) with Mr Bob Sternfels, global managing partner of McKinsey & Company, at Vivid hub’s launch on Nov 19. 2021. PHOTO: ST FILE

SINGAPORE - Global consulting firm McKinsey & Company on Friday (Nov 19) launched a sustainability innovation hub for Asia, headquartered in Singapore.

The hub, named Vivid, aims to help governments and businesses navigate the risks and opportunities in the transition to a more sustainable future.

McKinsey said the launch is part of the firm's expansion in Asia and acceleration of its client services focused on the implications of climate change and the economic transformation net-zero carbon goals entail.

The launch ceremony at McKinsey's office at One Raffles Quay was attended by Minister for Sustainability and the Environment Grace Fu and Mr Bob Sternfels, who was elected the firm's global managing partner earlier this year.

Mr Vishal Agarwal, senior partner at McKinsey, said that Singapore has always been a strategic regional hub for major flows in trade, capital and data, which makes it an ideal platform to lead conversations on sustainability that are unique to Asia.

"With the launch of Vivid, we look forward to partnering with governments and businesses in tackling some of the most complex sustainability challenges here, while accelerating their transition to a net-zero future," he said.

The launch of the hub comes on the back of McKinsey's recent acquisition of Vivid Economics, a strategic consultancy with broad sustainability and macroeconomic capabilities. The firm also acquired Planetrics, a climate analytics suite that helps quantify, report and manage climate risks.

Ms Dawn Lim, vice-president and head of commercial and professional services at the Economic Development Board, said the establishment of Vivid in Singapore reinforces the findings from a recent study that showed that the Republic is well-positioned to provide a diverse range of carbon services that complement the region's efforts in sustainability.

The study was conducted by Swiss carbon finance consultancy South Pole Carbon Asset Management, Vivid Economics and Engeco, a Singapore-based management consultancy specialising in climate change strategy.

"We look forward to collaborating with McKinsey, and other like-minded companies, to develop innovative sustainability solutions for the region and beyond from Singapore," said Ms Lim.

Ms Fu said the journey towards sustainability will require a lot of policy changes, and restructuring of traditional and new businesses.

She said innovation hubs like Vivid will help build that ecosystem. "Singapore is a small place but we have a big vision and unlimited ambition as well," she added.

The Monetary Authority of Singapore announced in November 2019 the Green Finance Action Plan, with the stated goal of growing Singapore into a regional and global centre for green finance.

The Government unveiled in February the Singapore Green Plan 2030, strengthening the country's commitments under the United Nations 2030 Sustainable Development Agenda and Paris Agreement.

At the recently concluded 26th UN Climate Change Conference of Parties, Singapore committed to phase out the use of unabated coal by 2050.

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