Large businesses fail Singapore’s ESG expectation test

Respondents split on trade-offs: 67% favour emissions cuts over profit, but 52% prioritise lower prices over cuts.

A gap remains between what Singaporeans expect from organisations on sustainability and what they believe is being delivered, with large businesses facing the widest shortfall, according to SEC Newgate.

In its study, the firm found that 84% of respondents expect leadership from large businesses on ESG issues, but only 68% feel those expectations are being met.

For government agencies, expectations stood at 86% versus perceived performance of 77%, whilst SMEs recorded a gap of 71% compared with 57%.

In Singapore, 88% of respondents said the country is heading in the right direction, up 2 percentage points from 2024 and well above the global average of 48%.

Climate action remains a high priority among Singaporeans. About 73% said it is highly important for Singapore to act decisively on climate change, and 77% said transitioning to renewable and clean energy is highly important.

The survey also found that 68% would feel more positive towards a business that uses renewable energy, and 66% towards one that demonstrates a clear commitment to environmental sustainability.

However, only about 40% believe large businesses currently place sufficient emphasis on climate action.

Views on trade-offs between sustainability and costs were mixed. Whilst 67% said businesses should prioritise reducing carbon emissions over profitability, 52% felt companies should instead focus on keeping consumer costs low rather than cutting emissions.

The study also highlighted strong localisation preferences. More than half of respondents said there is insufficient local food production, whilst 47% cited a lack of local manufacturing and 45% pointed to limited energy independence.

Majorities said they view businesses more positively if they manufacture locally, are headquartered in Singapore, or source materials locally, although 64% still favour global sourcing if it results in lower prices.

On business conduct more broadly, 72% said companies should prioritise sourcing from suppliers with responsible practices, and 71% said businesses should invest in local communities even if it affects profitability.

The survey also found that 60% believe companies should deploy artificial intelligence only if it does not lead to job losses among existing employees.