Environmental, Social & Governance (ESG)

With growing investor demand for transparency, more companies are publishing sustainability reports — yet many still face challenges with consistent ESG data and reporting standards. Fintech is stepping in to close these gaps. Through initiatives like MAS’s Project Greenprint, Singapore is leading the way in digital ESG reporting with platforms such as ESGenome and ESGpedia. As global frameworks like GRI and TCFD gain traction, companies are encouraged to view sustainability reporting not as a compliance task, but as a vital step toward achieving long-term resilience and net-zero goals.

The majority of today’s investors no longer focus solely on potential returns. Many now look beyond projections to understand how companies achieve their goals responsibly and sustainably. As a result, Environmental, Social and Governance (ESG) factors have become a key consideration in modern investment decisions.

Singapore is stepping up its climate action with a higher carbon tax and stronger green initiatives to drive decarbonisation. Businesses are now encouraged to manage their carbon footprint, explore carbon credits, and strengthen their ESG strategies. By taking proactive steps toward sustainability, companies can stay competitive while supporting Singapore’s transition to a low-carbon future.

Investors today increasingly prioritise companies with strong ESG practices. With growing awareness across all generations in Singapore, sustainability has become a key factor in investment decisions. Businesses that embed ESG into their strategies can enhance long-term value while contributing positively to society and the environment.

The urgency to tackle climate change has never been greater. From COP26 commitments to phase out coal and end deforestation, to Singapore’s own green finance initiatives under Project Greenprint and membership in the Powering Past Coal Alliance, global and regional efforts are accelerating toward a net-zero future. Collective action from governments, businesses, and financial institutions is essential to drive meaningful progress and align ESG practices with global climate goals.

Singapore continues to advance its sustainability agenda through initiatives like joining the First Movers Coalition and launching the Green Plan 2030. These efforts aim to cut emissions, promote clean technologies, and drive green transformation across industries. As businesses face increasing pressure to adopt sustainable practices, embracing ESG strategies is key to long-term resilience and success in a low-carbon future.

As sustainability takes centre stage, banks are under growing pressure to manage environmental risks and align with ESG principles. In Singapore, the Monetary Authority of Singapore (MAS) has introduced the Environmental Risk Management Guidelines and the Environmental Risk Questionnaire (ERQ) to help banks identify, assess, and mitigate climate-related risks. These tools not only strengthen banks’ resilience but also guide corporate clients in transitioning toward a greener, low-carbon economy.