Singapore companies prioritise digitalisation to accelerate sustainability efforts, according to a new report by Schneider Electric titled “Schneider Electric Green IMPACT Gap Survey 2024”.
Digitalisation tops the list of the focus areas for investment ahead of supply chain sustainability and green solutions.
Digitalisation includes reporting platforms, systems optimisation, AI-driven process automation, and carbon management platforms.
Sustainability
Based on a survey of 500 business leaders in Singapore, the report shows a significant commitment to sustainability. More than half (53%) of Singapore companies intend to invest S$700k or more in sustainable transitions over the next two years.
Over half (52%) of Singapore business leaders said reporting on sustainability strategies and goals in the past year has become more accessible due to enhanced corporate strategies with clearer targets (44%), technological advancements (36%), and a better understanding of regulatory requirements (36%).
Yoon Young Kim, cluster president of Schneider Electric Singapore and Brunei, expressed a hopeful outlook for the future. He said: “Looking ahead, AI and digital technologies will continue to be central in driving impactful, measurable climate action and helping businesses meet their sustainability goals more effectively.”
Holding back
However, the study revealed that the private sector is still holding back from investing more in sustainability-related initiatives due to economic uncertainty (45%), budget constraints (41%), and poor incentives (40%).
Singapore businesses are also concerned about greenwashing. Most leaders in Singapore (73%) are apprehensive about greenwashing in the future, and almost half (49%) have already faced criticism.
Reassuringly, an overwhelming 90% of the respondents are already planning concrete steps to prevent greenwashing. These proactive measures include regular risk assessments, employee training and education on greenwashing, and regular auditing of activities to ensure transparency and accountability.
