Singapore firms still slow to adopt sustainability practices: survey

Singapore

SINGAPORE mid-market enterprises (MMEs) - defined as companies with turnover of US$50 million to US$500 million - lag their global peers in their adoption of sustainable business policies and practices, findings in a HSBC report released on Monday show.

According to the report, almost half (47 per cent) of Singapore MME respondents recognise that their customers demand more environmentally sustainable and ethical products.

Some 54 per cent also believe that sustainable business practices will improve their growth and profitability, compared to 59 per cent globally.

Yet there seems to be a gap between their walk and their talk - although this is also a consistent pattern with other countries.

Despite recognising that there will likely be good customer reception and a positive impact on financial performance, only 26 per cent of the Singapore respondents (versus a global average of 30 per cent) consider sustainability as one of their top three long-term objectives.

In addition, only a quarter of respondents say that they prioritise investments into becoming a more sustainable business, compared to the global average of 27 per cent.

Commenting on the findings, Alan Turner, head of commercial banking at HSBC Singapore, said this is expected for businesses that are still starting out in their sustainability initiatives.

"Many companies here and in Asia are embarking on their sustainability journey and this is often an uphill task, with some employees sceptical or shying away from the additional effort and costs associated with tracking, reporting or certification."

"Practical steps to begin embedding more sustainable business practices can include seeking efficiencies in their supply chain that can be both green and cost-effective; publicly committing to sustainable targets; and sourcing ecologically sound raw materials," he said.

For Singapore firms, employment diversity seems to be the most popular tactical sustainability approach that companies want to focus on in the next three years.

Twenty-three per cent of Singapore respondents said they want to work on external communication of their firms' ethical goals, while 61 per cent plan to set targets and make progress towards their employment diversity goals within the next three years.

The findings came from a HSBC report, Hidden Impact - Unlocking the Growth Potential of Mid-Market Enterprises, which captured the views of more than 1,400 decision-makers across 14 countries, from companies that have 200 to 2,000 employees.

It studies the level of importance mid-sized firms accord to the ethical impact of their businesses as part of their companies' strategies and growth ambitions.