Over half of Singapore firms plan to invest S$700,000 or more in digital sustainability efforts: report
Yet, they still face barriers to further sustainability investment, with economic uncertainty, budget constraints and poor incentives cited as the main reasons for holding back
MORE than half of Singapore companies plan to invest at least S$700,000 in sustainable transitions over the next two years, with digitalisation ranking as the top investment priority, a recent study has found.
Around 53 per cent of businesses here intend to adopt digital solutions as part of their sustainability efforts, Schneider Electric said in its report, released on Wednesday (Oct 16).
These solutions include reporting platforms, artificial intelligence-driven process automation, and carbon management tools aimed at enhancing resource efficiency and streamlining green initiatives.
Respondents were asked to indicate their planned investment in sustainable transitions over the next two years, with 53 per cent selecting investment brackets of S$700,000 or more.
The survey, conducted between April and May this year, polled 500 business leaders across different industries.
“(Digitalisation) ranks in priority ahead of supply chain sustainability, which involves working with suppliers on sustainability sourcing, as well as green solutions, which cover product design and circularity,” Schneider Electric said.
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The energy management company also found that compliance and commercial value were seen as “equal drivers for sustainability initiatives”.
While 37 per cent of companies cited regulatory compliance as a key motivator, an equal proportion is driven by the potential to increase business opportunities for long-term profitability.
Other motivators include improving brand perception and reputation (33 per cent), and managing climate risks (32 per cent).
Additionally, 62 per cent of companies prioritising digitalisation as a key investment are also focused on meeting near-term targets within the next five years.
Businesses with advanced digital capabilities are more likely to set shorter-term goals, as their ability to track progress allows for quicker returns on sustainability initiatives, the report found.
“From streamlining reporting processes to enhancing supply chain transparency and optimising operations, digital tools are critical enablers of long-term success,” said Yoon Young Kim, cluster president of Schneider Electric Singapore and Brunei.
Yet, businesses still face barriers to further sustainability investment. Singapore business leaders point to economic uncertainty (45 per cent), budget constraints (41 per cent), and poor incentives (40 per cent) as the main reasons for holding back.
Greenwashing is also a concern, with 73 per cent of leaders worried about future accusations, while nearly half (49 per cent) have already faced criticism.
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