by jiawen
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In today’s competitive business world, key stakeholders and investors have become increasingly concerned about the sustainability strategies of a company. This is because companies engaging in ESG initiatives and prioritizing social good over economic profits can create sustainable competitive advantage and consequently bring about attractive returns to investors. As such, the efforts a company puts in to integrate ESG into their business model will influence the investment decisions among the socially conscious investors. We can relate this trend to a recent news article published on Nikkei Asia. In the article, the Chief Investment Officer for Fixed Income of GIC pointed out that sustainability is a key determinant of their investment selection decisions. Bearing in mind the sustainability factor, they are more keen to support companies with ESG practices.
To elaborate further, The Business Times has reported that there is a growing awareness of the importance of ESG across generations in Singapore. This includes the older generation which was previously thought to be less concerned about ESG issues. They tend to emphasise more on ESG outcomes once they have gained a better understanding of the overall ESG concept, and how it can be a value add investment strategy. With the acceleration of the trend to sustainable investing among investors in Singapore, it is now a good time for companies to consider the adoption of ESG initiatives so that they can maintain long term sustainability of the companies and create values that last.
Conclusion
In order to address the stakeholders’ concerns in ESG, companies should proactively incorporate ESG pillars into their business strategies. Companies with future-oriented mindsets can create a positive impact through various ESG practices such as improving resource efficiency, promoting equality and diversity in the workplace, implementing anti-bribery and corruption measures and so on. To sum up, a holistic and long-term approach towards sustainability is necessary. Business nowadays is not just about profits – it is about how to maintain a balance between driving revenue and protecting the welfare of society at large and the environment at the same time.
How We Can Help
- Assist to set up ESG frameworks
- Provide support on ESG reporting
- Provide ongoing ESG advice and support
- Facilitate effective communication of the company’s ESG approach with internal and external stakeholders
- Review and rate the existing governance framework
Reference Materials
Iwamoto, K. (2021). ‘Singapore’s GIC keen on companies with potential to improve ESG’, Nikkei Asia, 6 September. Available at: https://asia.nikkei.com/Editor-s-Picks/Interview/Singapore-s-GIC-keen-on-companies-with-potential-to-improve-ESG
Shiao, V. (2021). ‘ESG fast becoming a key focus across generations’, The Business Times, 21 July. Available at: https://www.businesstimes.com.sg/banking-finance/futureproof-an-esg-series/esg-fast-becoming-a-key-focus-across-generations
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.
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.
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.
