Introduction

In a groundbreaking first report, FairPrice and Sheng Siong have revealed the impressive impact of their Disposable Carrier Bag Charge (DCBC), contributing over S$2.26 million to vital social and environmental initiatives in Singapore.

Background

FairPrice Group pioneered the plastic bag charge concept in the local supermarket landscape with a pilot program launched in 2019 across seven FairPrice and Cheers locations. Fast forward three years, and the initiative has rapidly expanded to encompass 178 Cheers and FairPrice Xpress outlets, along with 11 additional supermarkets.

Consumer Awareness and Impact

Importantly, awareness around the need to reduce plastic bag waste has grown significantly. The initiative aligns with a broader trend where retailers across Singapore are voluntarily adopting bag charges, leading to a measurable rise in reusable bag usage. Grace Fu, Minister for Sustainability and Environment, noted that FairPrice’s initiative alone has successfully saved over 30 million plastic bags in just two years, with seven out of ten customers choosing to bring their own bags.

Regulatory Framework

Under the Resource Sustainability Act of 2019, which went into effect on July 3, 2023, all supermarket operators making over S$100 million annually must charge customers a minimum of five cents for each disposable carrier bag. The response has been overwhelmingly positive, as consumers increasingly understand the environmental significance of their choices.

Financial Contributions and Beneficiaries

The FairPrice report, published on December 20, outlined that from July to December 2023, NTUC FairPrice distributed over 33.6 million plastic bags, while Cheers accounted for more than 58,000. This usage resulted in approximately S$1.68 million in fees, out of which S$1 million was donated to the FairPrice Foundation, the philanthropic arm of FairPrice Group. Additionally, nearly S$557,000 has been allocated to various sustainability efforts.

Significant Contributions from FairPrice and Sheng Siong

Noteworthy beneficiaries include World Wide Fund for Nature (Singapore), which received S$204,312.65, and Zero Waste SG, awarded S$60,000. In a significant push towards sustainability, FairPrice is also investing S$292,648.65 to enhance electric vehicle (EV) charging infrastructure, encouraging the greening of its operations.

Sheng Siong's Involvement

Sheng Siong, meanwhile, reported S$760,106.45 accumulated from 15.2 million disposable carrier bags issued. Their commitment includes a substantial donation of S$703,802.27 to the President's Challenge, along with GST contributions.

Industry-Wide Movement

The movement towards sustainable practices is not exclusive to FairPrice and Sheng Siong; numerous other supermarket chains—including Cold Storage, Ang Mo Supermarket, Prime Supermarket, and more—are also adopting the DCBC to reduce plastic waste. Additionally, Japanese specialty store Don Don Donki recently announced that it will no longer offer plastic bags at its Singapore locations, marking a significant shift towards more sustainable retail practices.

Conclusion

As the city-state continues its journey towards environmental sustainability, the success of the Disposable Carrier Bag Charge represents a significant milestone, demonstrating the power of collaborative efforts between retailers and consumers to combat plastic waste. With ongoing support and innovative practices, the future looks promising for Singapore's environmental initiatives.