In today’s global business landscape, sustainability has evolved from being merely a buzzword to becoming an integral component of long-term business strategy. As the world moves towards a future where environmental consciousness and action are paramount, Singaporean businesses must keep pace with their international counterparts. They need to transition from being merely ‘green’ to ‘deep green’ by embedding sustainability at the core of their operations and harnessing the associated opportunities to drive superior performance.
Cognizant Research, a leading global research firm, is at the forefront of driving the understanding of sustainability in Singapore with its groundbreaking program called “Deep Green.” This initiative delves into how data, technology, and collaboration will propel the next phase of the green revolution. Cognizant has recently released research findings that aim to guide and comprehend the transition to ‘deep green’ through a comprehensive survey of 3,000 business executives across 16 regions and 11 industries, including 170 respondents from Singapore. This survey examines how Singapore measures up globally in its sustainability plans, challenges, and leadership.
Sustainability as a Strategic Imperative
Constance Ho, Senior Director at Cognizant, underscores the urgency of incorporating sustainability into business operations by emphasising the importance of “green skilling” and technological solutions for enhanced environmental, social, and governance (ESG) data management. She states, “ESG-aligned transformation is essential to foster innovation and future-proof businesses in an increasingly climate-action aware world. It is no longer just a ‘nice to have’ but a critical part of every company’s planning.”
Challenges in Singapore’s Sustainability Landscape
However, Singapore faces some notable challenges in integrating sustainability into its business culture. Unlike two-thirds of global respondents (66%) who believe they work for organisations with strong sustainability cultures, only 51% of respondents in Singapore share this belief, placing the nation last in this aspect. Additionally, just 48% of respondents in Singapore believe that their colleagues are convinced of the authenticity of their company’s sustainability strategy.
Singapore also struggles with employees’ awareness of how they can contribute to the company’s sustainability mission (58%) and their understanding of ESG efforts (56%), scoring lower than the global averages.
Slow Growth in Green Transformation
When it comes to achieving ESG targets, Singapore falls behind significantly. Only 34% of Singaporean business leaders agreed that they have met their ESG targets over the past two years, which is the lowest among all the nations surveyed and lags far behind the global leader, Finland, at 59%. Moreover, only 40% of respondents in Singapore believe they have established targets and budgets for planned improvements in environmental initiatives, the lowest among all nations, as compared to the global mean of 49%. This also partly explains the challenges in implementing ESG targets, as 47% of respondents find it difficult to do so.
Green Initiatives and Incentives
On a positive note, 55% of Singaporean respondents believe they have the analytic tools required to generate insights for improving sustainability, placing Singapore second only to Switzerland and exceeding the global average of 46%. However, there is still room for improvement in incentivizing research and development (R&D) and innovation efforts, with 40% of respondents agreeing that these efforts are appropriately incentivized, compared to the global figure of 50%.
Government Initiatives and Singapore’s Sustainable Future
Constance Ho sheds light on the ongoing efforts in Singapore to propel the shift towards sustainability. The Singaporean government has issued SGD$35 billion in ‘green bonds,’ which supports the nation’s sustainable finance initiatives and provides investors with greater confidence that resources will be aligned with the country’s increasingly determined ESG agenda. Singapore aspires to become a hub for green fintech, creating new opportunities for businesses to engage in sustainable practices.
Singaporean businesses need to accelerate their journey from being ‘green’ to ‘deep green’ by embedding sustainability into their core strategies and leveraging the related opportunities. The challenges faced in implementing sustainability must be addressed, and incentives for R&D and innovation should be improved. With the government’s support and initiatives such as ‘green bonds,’ Singapore is poised to become a sustainable business leader in the region. As organisations embrace sustainability as a fundamental pillar of their strategies, they will not only contribute to a greener future but also secure a more resilient and prosperous future for themselves.
