Overview

In a significant step towards sustainability, FairPrice and Sheng Siong supermarkets in Singapore have reported more than S$2.26 million generated from their Disposable Carrier Bag Charge (DCBC) initiative, benefitting numerous social and environmental projects.

Initiation of the DCBC Initiative

Launched in 2019, FairPrice was the pioneer in Singapore's plastic bag charge, initially testing the program at seven FairPrice and Cheers locations. Since then, due to its overwhelming success, the initiative has expanded to a total of 178 Cheers and FairPrice Xpress outlets along with 11 major supermarkets.

Government Support

Grace Fu, Singapore’s Minister for Sustainability and Environment, highlighted the initiative during a parliamentary session in March 2022, stating, “There is broad recognition that we can reduce wastage of plastic bags. An increasing number of retailers are implementing a charge for disposable carrier bags, which effectively encourages the use of reusable alternatives.” FairPrice's 'No Plastic Bag' movement alone has saved over 30 million plastic bags in two years, with a staggering 70% of customers opting to bring their own bags.

Formal Mandate under the Resource Sustainability Act 2019

The DCBC initiative was formally mandated under the Resource Sustainability Act 2019, obligating larger supermarket chains with an annual turnover exceeding $100 million to charge customers at least five cents for each disposable bag.

Financial Impact and Donations

The initial report following this charge was published on December 20, detailing the funds accrued from July to December 2023. During this period, NTUC FairPrice alone issued approximately 33.6 million plastic bags, leading to S$1,684,420.65 collected in DCBC fees, of which S$1 million was donated to the FairPrice Foundation, while S$556,961.30 was allocated to various sustainability programs.

Beneficiaries of the Support

Among the notable recipients of this financial support are the World Wide Fund for Nature (WWF) Singapore, which received S$204,312.65, and Zero Waste SG, benefiting from S$60,000. Additionally, investments were made towards promoting clean energy solutions, notably S$292,648.65 to Lim Kim Hai Electric Co for developing fast-speed electric vehicle (EV) charging infrastructure.

Sheng Siong's Contributions

Sheng Siong also released a report on December 27, detailing their DCBC contributions, which totalled S$760,106.45 from 15 million disposable bags. They donated a noteworthy S$703,802.27 to the President's Challenge, all while complying with the GST requirements.

Broader Retail Participation

Moreover, this charge extends beyond FairPrice and Sheng Siong, with other major retailers like Cold Storage and Ang Mo Supermarket also participating. A recent wave of sustainability initiatives has even seen Japan's Don Don Donki chain abolish their plastic bag sales entirely, further emphasizing the shift toward eco-friendly practices in Singapore’s retail landscape.

Conclusion

These initiatives not only reflect a growing environmental consciousness among Singaporeans but also set a precedent for responsible consumption. With such endeavors, both FairPrice and Sheng Siong are well on their way to fostering a more sustainable future for the nation.