The Economics of Mutuality, a school of thought and business model developed by Mars Inc. and Oxford University’s Saïd Business School, posits that companies must consider their impact on society and the environment to thrive in the long run. Our ESG Monitor research reinforces this view, with 76% of Singaporeans attaching importance to companies taking action on environmental, social, and governance (ESG) issues.

With greater awareness of the ESG concerns of their stakeholders, many local companies have started to escalate their ESG endeavours, particularly focusing on the environmental aspect. Similarly, the Singapore government has shown greater commitment by appointing a Government Chief Sustainability Officer to drive sustainability efforts under The Singapore Green Plan 2030. Local statutory boards have also bolstered their support for sustainability initiatives. For instance, the Monetary Authority of Singapore has introduced “Gprnt,” an integrated digital platform aiding the financial sector and real economy in collecting, accessing, and leveraging ESG data. Meanwhile, Enterprise Singapore, an agency advocating enterprise development, launched an e-guide aimed at assisting small and medium enterprises in initiating their green initiatives.

Signs of Widespread Apathy

Despite the support from the Singapore government and regulatory bodies for companies in their ESG endeavours, some remain sceptical of these ESG efforts. Our results reveal that only 48% of employed Singaporeans believe that their employer is genuinely trying to do the right thing when it comes to ESG, compared to the global average of 50%. Furthermore, 45% of Singaporeans do not trust what companies claim about their ESG activities or performance, below the global average of 52%.

The level of distrust suggests that companies might not be prioritising their ESG efforts adequately or may not be effectively communicating these initiatives to their stakeholders. This could also be attributed to a general sense of apathy prevalent among Singaporeans regarding ESG issues. While 67% of Singaporean respondents expect corporate action on ESG matters, only 41% actively seek information about companies’ ESG activities and performance.

Significance of ESG Communication

Singapore’s recent proposal for mandatory climate disclosures, starting with all listed companies from FY2025 and extending to all large non-listed companies from FY2027, represents a substantial shift in how our top regulatory bodies approach and monitor ESG. The latest generation of employees also increasingly favours employers with a defined company purpose. In a competitive environment for talent, a company’s ESG endeavours will become a critical factor in attracting top talent.

As ESG transitions from being a choice to being a necessity, companies will have to step up their ESG efforts, as well as improve how they communicate about what they are doing. We foresee rising demand for effective ESG communications, alongside green skillsets such as carbon footprint management and ESG auditing.

Download the Singapore report here: https://secnewgate.com/esg-monitor/reports/singapore-report-2023/