SINGAPOREANS are now less convinced than a year ago that companies can balance high profitability and excellent performance in the environmental, social, and governance (ESG) arena.

They are also less willing to pay more for products from companies with better ESG performance, according to an ESG monitor report released by Milan-based communications and advocacy group SEC Newgate on Wednesday (Oct 11).

Among the 1,010 Singaporeans surveyed between late July and early August, 40 per cent said they are prepared to pay more for stronger ESG performance, six percentage points lower than last year’s results.

A majority of respondents still believe that companies can be profitable and excel in ESG at the same time, but the percentage has dropped seven percentage points to 64 per cent from 71 per cent.

Nonetheless, three-quarters of Singaporean respondents think it is important for companies to take action on ESG issues, despite a drop of three percentage points from 2022.

On different aspects of decision-making, ESG considerations are the most influential among Singapore consumers in food choices, and the least so in choosing clothing brands.

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Addressing the rising living cost, ensuring affordable healthcare, and strengthening the economy remain the top three priorities for the surveyed Singaporeans. Climate and environment concerns are still down in the list.

The managing partner of SEC Newgate Singapore, Terence Foo, said: “Singaporeans are pragmatists at heart, and continue to prioritise financial security, health and food security over environmental concerns.

“This is likely to have been exacerbated by the ongoing global economic uncertainty,” he added.

Sue Vercoe, managing director of SEC Newgate research and partner at SEC Newgate Australia, said that the research results offer the companies a reality check on consumers’ expectations of their ESG efforts and the effectiveness of their ESG communications.

The survey respondent quotas were set by age, gender and location to ensure a nationally representative sample of citizens aged 18 or older. The final results were also weighted by the actual age and gender proportions within each country or region.