Press on with sustainability for resilience

Business Times

28-04-2025

THE sustainability landscape has seen significant developments in recent months. Following the announcement by the United States on its plans to withdraw from the Paris Agreement, the European Union unveiled the Omnibus Simplification Package on sustainability that includes the delaying of the implementation of the Corporate Sustainability Reporting Directive and the Corporate Due Diligence Directive.
For the untrained, these developments can look like governments are taking a step back in their push for sustainability. On closer examination, it is anything but that.
In fact, the Omnibus Package highlights the EU's recognition that sustainability goes beyond merely reporting. Instead of overcomplicating sustainability reporting and assurance, it seeks to steer companies to focus on the actual measures that can help to reduce carbon emissions.
That said, understandably, these sudden policy shifts and regulatory developments can add to the uncertainty that companies face. Some may be misdirected to pause sustainability initiatives or turn their focus towards short-term performance at the expense of potential longer-term gains from environmental, social and governance investments.
Investors continue to pay attention to climate risk management and sustainability. More than half of the investors surveyed in the latest EY Institutional Investor Survey said the impact of climate change will affect their investment strategies.
These findings underscore the need for businesses to adopt a strategic and pragmatic approach to sustainability. It is important that companies not lose sight of the real purpose of climate change and sustainability actions – that is to go beyond addressing regulatory requirements. Further, sustainability is not just a compliance obligation but also a driver of efficiency, risk management and profitability.
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Stepping up on support for sustainability
In February 2025, Singapore pledged to further reduce its emissions to between 45 and 50 million tonnes of carbon dioxide equivalent (MtCO2e) by 2035. This builds on the country's earlier announcement to reduce emissions to 60 MtCO2e by 2030.
The government has also demonstrated its unrelenting commitment to the fight against climate change through measures such as the S$5 billion top-up to the Future Energy Fund; the increase in Coastal and Flood Protection Fund; as well as disbursement of climate vouchers to Singaporean households.
The top-up for the Future Energy Fund supports critical infrastructure for the energy transition – such as undersea cables for low-carbon electricity and hydrogen terminals – and helps foster innovation and technological advancement. Businesses that tap this initiative can potentially enhance resilience and competitiveness. The additional investment into the Coastal and Flood Protection Fund will help to strengthen the country's infrastructure to protect against risks of rising sea levels and storm surges. This is critical for supporting a stable long-term environment and a sustainable future for all.
Government interventions aside, achieving national decarbonisation targets will require the collaborative and collective actions of individuals and companies. The journey towards sustainability is not without challenge, even for the most committed organisations. In Singapore, the oft-cited challenges faced are the lack of capital, manpower and knowledge.
To this end, Singapore has a robust suite of initiatives to support companies on their sustainability journeys. These include the Enterprise Sustainability Programme (ESP), which is administered by Enterprise Singapore. The programme encompasses a host of initiatives including the Energy Efficiency Grant for the adoption of resource-efficient equipment; the Enterprise Development Grant for Sustainability Projects; the Sustainability Reporting Grant; and the SME Sustainability Reporting Programme (SME SRP). By 2023, more than 4,000 organisations had benefitted from the ESP. These grants from the ESP, together with government-supported green loans, help to alleviate companies' capital burden.
For manpower concerns, the Career Conversion Programme for Sustainability supports new hires or transfers from other functions, while the SME SRP and other consultancy support schemes help to provide companies with the necessary knowledge to advance their sustainability initiatives.
No room for U-turns
As Singapore's ambassador for climate action, Ravi Menon, said: 'We stay the course not because it is easy but because it is necessary for Singapore, so that we can be resilient in a climate-impaired world and competitive in a carbon-constrained world.'
Indeed, amid global geopolitical and regulatory shifts, Singapore should and needs to remain steadfast on its position on sustainability. Businesses that proactively adapt to these winds of change while continuing to embed sustainability into their strategies will be better positioned to emerge stronger in the long run. With climate risks continuing, there is no reason for climate action to stop.
Praveen Tekchandani and Nhan Quang are the Singapore leader, and partner, for climate change and sustainability services at Ernst & Young LLP, respectively.
The views here are the writers' and do not necessarily reflect those of the global EY organisation or its member firms