Fewer SMEs ran environmental and social programmes in 2022: survey
Renald Yeo
THE proportion of Singapore’s small and medium-sized enterprises (SMEs) which conducted environmental and social initiatives at least once a year fell to 52 per cent in 2022, an annual survey has found.
This was down 7 percentage points from 2021’s figures, reported insurance provider QBE Insurance in the eighth edition of the survey. The poll, conducted in the fourth quarter of 2022, surveyed 416 SMEs across various industries in Singapore.
“This is despite the fact that 76 per cent (of SMEs) consider environmental, social and governance (ESG) issues to be relevant to their business,” said the group on Wednesday (May 24).
Cost (32 per cent) remained the biggest barrier preventing SMEs from focusing more intently on environmental and social issues in 2022, the survey found.
Other barriers highlighted included a lack of staff with relevant skills (28 per cent), and such initiatives requiring too much time to conduct (27 per cent).
“SMEs continue to deprioritise social and environmental initiatives by lessening their number annually,” QBE Insurance said.
A NEWSLETTER FOR YOU
Friday, 12.30 pm
ESG Insights
An exclusive weekly report on the latest environmental, social and governance issues.
Some 23 per cent of SMEs surveyed in 2022 conducted environmental and social initiatives less than once every four years, the insurer added.
The survey results suggest that the “deprioritising of social and environmental initiatives by SMEs is potentially leading to worsening workplace safety and health (WSH) performance”, QBE Insurance said.
In 2022, 51 per cent of SMEs experienced workplace incidents, the survey found, 8 percentage points more than in 2021, and 27 percentage points more than in 2020.
“These findings should serve as a wake-up call for SMEs,” said Ronak Shah, chief executive of QBE Insurance Singapore. “At a time when there has been a recorded uptick in workplace incidents, implementing the appropriate WSH measures is more critical than ever.”
Other findings from the survey also suggest that “SMEs are concerned only with the immediate impacts of climate change, rather than acting on long-term risks”, the insurer said.
For instance, 38 per cent of SMEs surveyed indicated that climate change had an impact on consumer demand, as buyers expected more environmentally-friendly goods.
SMEs also reported that climate change had negatively impacted working conditions (35 per cent), along with resource availability and cost (34 per cent).
“Ignoring the growing sentiment that sustainability initiatives are a must, as opposed to a nice-to-have, could expose SMEs to unnecessary risks across different areas of their businesses, such as labour conditions, brand and reputation, customer loyalty and resource efficiencies,” said Shah.
Copyright SPH Media. All rights reserved.
