Singapore businesses reaffirm sustainability focus amid market volatility

Cost considerations and return on investment remain the biggest constraints on further spending.

Sustainability remains a priority for businesses in Singapore, although many are recalibrating timelines and disclosing less publicly amid ongoing economic and geopolitical uncertainty, according to a joint survey by Schneider Electric and the United Nations Global Compact Network Singapore (UNGCNS).

The survey found that 91% of respondents continue to view sustainability as a priority, with 49% describing it as a high priority. However, around three-quarters of businesses said they have pushed back sustainability targets by one to two years as they navigate market turbulence.

Tracking and governance practices have strengthened. Regular monitoring of sustainability performance and the use of third-party verification rose by 12 percentage points compared with prior years.

At the same time, public disclosure has declined, with only 33% of firms publishing sustainability information, down from 58% in 2023 and 37% in 2024.

Energy security is the main driver of sustainability spending. 62% of respondents cited it as their top motivation, with companies prioritising investments in digitisation, green solutions, and supply-chain sustainability.

Cost considerations and return on investment remain the biggest constraints on further spending.

AI is emerging as a key enabler. 93% of businesses said they are already using or plan to use AI to support sustainability goals, particularly for predictive fault detection, energy optimisation, and transport planning.

Engagement with national and regional frameworks is also increasing. 83% of respondents reported greater engagement with government-led initiatives such as the Singapore Green Plan 2030.

About three-quarters believe Singapore businesses play a significant or leading role in regional sustainability cooperation, whilst 59% said they are more actively involved in regional sustainability networks.