Investors and consumers are increasingly alert to the growing climate and social issues, both locally and internationally, and have shown increased favour towards companies with transparent, environmentally and socially responsible business practices. Against this backdrop, the regulatory environment has evolved; the Singapore Exchange (“SGX”) has mandated annual climate reporting for listed issuers from FY2022. Companies with a proactive Environmental, Social, and Governance ("ESG") strategy are best-placed to navigate this increasingly complex business and regulatory environment, but efforts are often complicated by various competing ESG frameworks and standards.
How can a successful ESG strategy benefit you?
A growing number of companies actively integrate ESG strategies in their business implementation, not only to comply with regulations, but also to achieve higher and sustainable long-term growth. In other words, having strong ESG credentials help companies realise actual benefits. These include:
MINIMISE LONG-TERM RISKS
Organisations can identify and minimise climate-related material risks. | GROWTH OPPORTUNITY
Organisations can assess their ESG performance and perform benchmarking to strengthen business strategies. | APPEAL TO INVESTORS
With transparent performance reports, organisations are better able to attract sustainability-conscious investors. |
COST | LONG-TERM LOYALTY
ESG principles prioritise sustainable, long-term growth that can help organisations build the trust of investors. | IMPROVED BRANDING
Organisations can brand themselves with a strong ESG culture and attract talents passionate in doing good. |