ESG Considerations for Organisations: Trends & Regulations in Singapore

Environmental, Social, and Governance (ESG) considerations have increasingly become a critical component of corporate strategy, emphasizing transparency and accountability.

In Singapore, this trend is reinforced by regulations and a proactive government stance on sustainability, initiating a Mandatory Energy Improvement regime targeting the most energy-intensive buildings across four typologies – commercial buildings, healthcare facilities, institutional buildings, as well as sports and recreation centres, set to kick in from the third quarter of 2025.

This progressive policy is not just a response to climate change, but a key step towards a more sustainable urban future.

Climate Reporting Obligations in Singapore

Starting in 2025, all Singapore Exchange (SGX) listed companies must make climate-related disclosures, while large non-listed companies with at least S$1 billion in annual revenue must comply by 2027. These disclosures will align with local reporting standards based on the International Sustainability Standards Board (ISSB) guidelines.

Are Organisations Prepared?

A recent Bain & Company report revealed that only 24% of companies are equipped with the technology and processes to meet forthcoming reporting requirements.?

In Singapore, a study conducted by the Institute of Singapore Chartered Accountants and the Sustainable and Green Finance Institute at the National University of Singapore revealed that although 82% of companies surveyed are already disclosing climate-related information, significant challenges persist—particularly in ensuring the consistency and comprehensiveness of ESG disclosures.

Preparing for Mandatory Reporting — Leveraging Technology for ESG Success

As organisations prepare for mandatory reporting, technology adoption will be crucial in ensuring compliance and enhancing?ESG performance.

IoT solutions enable real-time data collection and analysis, streamlining the tracking of sustainability metrics and key performance indicators. For example, smart sensors can monitor energy consumption, enabling companies to identify inefficiencies, make informed decisions about resource allocation, and enhance overall efficiency and building performance. Additionally, AI and machine learning can help organisations process and analyze vast amounts of data to uncover actionable insights, driving smarter decision-making and strategic development.?

For example, UnaBiz, GreenA Consultants, and StorHub, Asia Pacific’s leading self storage platform, collaborated on multiple energy strategy reductions and digital-led smart enabling solutions to push energy optimisation, achieving green certification for StorHub to become the largest LEED-certified portfolio of self storage buildings in Singapore (18 sites).

UnaBiz also recently won DB-Schenker’s Digital Challenge Call to decarbonise its operations and reach net zero for all its sites by 2030, with digital twin platform leader, Akila. This win validates our innovative approach to addressing real-world challenges with IoT, particularly in sustainability and environmental impact, a commitment we've upheld for the past eight years.

Unlocking the Value of ESG Beyond Compliance

1. Cost Savings: Energy-efficient practices can reduce utility bills, while waste management improvements can lower disposal costs. Companies that emphasize sustainability and technology often find innovative ways to minimise operational expenses, ultimately improving their bottom line.
2. Risk Mitigation: Identifying and addressing potential environmental and social risks helps to mitigate liabilities and safeguard business operations. For example, according to WBCSD’s Business Leaders Guide to Climate Adaptation & Resilience, businesses that invest in climate resilience are better positioned to adapt to changing regulations and environmental conditions.
3. Enhanced Brand Reputation: A strong commitment to ESG reflects a brand’s values and demonstrates its commitment to responsible business practices and sustainable growth; positioning organisations as leaders in an increasingly conscious market.
4. Better Access to Capital: Investors are increasingly channeling funds into businesses with robust ESG profiles. Companies that prioritise transparency and accountability are often viewed as lower risk, leading to improved access to capital, green bonds, and sustainable finance options.

Are You Prepared? Begin Your Early-Stage Preparations Now!?

The ESG landscape is rapidly evolving, particularly in Singapore, where regulatory frameworks demand greater accountability and transparency. Organisations that recognise the importance of early-stage preparations, embrace technology and understand the multi-faceted benefits of ESG in driving long-term value will emerge as leaders in their industries, paving the way for a more sustainable future.

Explore the digital transformation of green buildings with UnaBiz ! Schedule a meeting with our team today.