Singapore businesses must pay attention to ESG

THE awareness of business impact on the environment could be seen as a relatively new phenomenon, perhaps dramatically encapsulated by Greta Thunberg's "how-dare-you" speech in 2019.

Certainly, global appreciation of human activity's environmental impact has sharpened, ironically in part due to the Covid-19 pandemic. In the last few months, photos of pristine waters and dolphins returning to Italy's coastline have made the link between human activity and the environment visceral.

On another view, addressing climate change concerns is part of a trend that sees corporate governance in a more holistic manner. Other than environmental issues, social issues (including employee relations and labour standards), businesses' impact on local communities, promotion of diversity and inclusion, and collaboration with clients, partners and supply chains to uphold these standards are also coming to the fore.