ESG is important to Singaporeans despite other immediate concerns: survey
Three quarters of those polled consider transitioning to renewable energy sources as vital to the country’s future
MOST Singaporeans care about broader environmental issues although they remain much focused on their immediate needs.
Singaporeans think companies have a role to play in environmental, social and governance (ESG) issues and should do more in society, according to an ESG monitor report by Milan-based communications and advocacy group SEC Newgate on Wednesday (Oct 16).
The report, which surveyed 1,022 respondents, found that more than three quarters of those polled considered transitioning to clean or renewable energy sources and acting decisively on climate change as important for their country’s future.
Still, addressing rising costs of living, ensuring quality and affordable healthcare for everyone, as well as ensuring secure and affordable food emerged as Singaporeans’ top concerns.
SEC Newgate Australia managing partner and managing director of research Sue Vercoe said: “Despite other pressing concerns of the public in their day-to-day lives, most still see environmental, social and governance issues as important to address.”
The report also revealed that 71 per cent of Singaporeans think companies should act in the best interest of all their stakeholders instead of only prioritising shareholders’ interests.
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Despite this, core business functions still rank as the top priorities Singaporeans think companies should focus on.
Providing high-quality products and services was ranked as the most important priority for businesses, with 81 per cent of Singaporeans scoring it a seven and above out of 10 in terms of importance.
On the other hand, speaking out on environmental, social, and political issues ranked among the bottom five priorities that respondents thought companies should focus on.
While relatively lower importance was placed on companies speaking out on issues as compared to other factors, Singaporeans still considered it necessaryfor them to do so where relevant – as 74 per cent of respondents said businesses should speak out on issues importantto their employees and customers.
Over 70 per cent also agreed that companies should moreclearly communicate what they are doing to address stakeholders’ needs as well as to improve their performance on ESG-related issues.
When it came to investing, financial factors were Singaporeans’ top considerations but ethical and environmental concerns were regarded as highly important as well.
Respondents scored companies’ growth prospects and anticipated financial returns as the top drivers behind their investment decisions but more than half said they would sell their investments in a company if it engaged in unethical behaviours or practices.
Companies must also expect and be ready to respond to public scrutiny, as 55 per cent of respondents said that greenwashing is a big problem in Singapore and two in five said they distrust businesses’ claims about their ESG activities and performance.
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