Singapore makes significant progress in sustainability for 2024

Singapore’s top 100 companies have made significant strides in sustainability reporting for 2024, exceeding global averages across six of twelve key indicators. 

The city-state is also uniquely positioned as one of only seven countries globally where all top 100 companies report on sustainability, in contrast to a global average of 79 percent.

The findings come from KPMG’s 2024 Survey of Sustainability Reporting, which examines the sustainability reporting approaches of the largest 100 companies in 58 countries or jurisdictions, representing a total of 5,800 companies.

Three notable areas

Notably, Singapore’s top 100 companies demonstrated significant progress in three key areas compared to 2022, further surpassing global averages in these domains:

• Climate Change as a Financial Risk: 76 percent of Singapore’s top 100 companies now recognise climate change as a financial risk to their business, a considerable rise from 49 percent in 2022. This also exceeds the 2024 global average of 55 percent, underscoring a broader corporate acknowledgment of climate-related risks.
• Strengthening Governance Leadership: The proportion of companies with a board or leadership representative responsible for sustainability governance rose to 55 percent in 2024, up from 35 percent in 2022. This increase highlights an enhanced commitment to embedding sustainability principles within corporate leadership.
• Integration of ESG in Reporting: 84 percent of Singapore companies now integrate Environmental, Social, and Governance (ESG) information into their annual reports, up from 68 percent in 2022. This achievement also stands well ahead of the 2024 global average of 62 percent, emphasising stronger corporate integration of sustainability disclosures.

A pivotal moment

According to KPMG Singapore ESG Consulting partner Cherine Fok: “This year’s data marks a pivotal moment for sustainability reporting in Singapore, showcasing significant progress in how companies address climate-related risks. The increase from 49 percent in 2022 to 76 percent of firms recognising climate change as a financial concern highlights a deepening corporate understanding of its pervasive impact on business resilience and value creation.”

Fok added that this advancement has been driven by the strong alignment between public and private sector initiatives. 

Government-led efforts, such as the impending adoption of International Sustainability Standards Board (ISSB) standards in 2025, have set a clear framework for corporate transparency, while the rise in board-level responsibility and the integration of ESG factors into annual reports, now at 84 percent compared to 68 percent two years ago, reflects growing accountability at leadership levels.

Areas for improvement

However, Fok also pointed out there are areas that warrant further attention.

Challenges in quantifying climate risks, obtaining third-party assurance, and linking sustainability metrics to executive remuneration present key opportunities for improvement. 

For instance, independent assurance can offer an impartial perspective that builds trust among investors and partners while clarifying an organisation’s long-term ESG strategy. 

The slight dip in companies tying sustainability to pay may reflect boards exercising caution around disclosure, particularly as climate-linked remuneration becomes a disclosure requirement under the ISSB framework, prompting strategic recalibrations.

Likewise, emerging areas such as biodiversity and social-related risk categories are also gaining traction. 

Initiatives like the Singapore Sustainable Finance Association’s biodiversity workstream and national movements such as Forward Singapore provide platforms for progress.