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- Climate Risk Acknowledgment: KPMG Survey reveals 76% of Singapore’s top 100 companies recognize climate change as a financial risk, exceeding the global average of 55%.
- Governance Leadership: Board-level accountability for sustainability rose from 35% in 2022 to 55% in 2024, showcasing stronger corporate governance.
- ESG Integration: 84% of Singapore companies include ESG information in their annual reports, outperforming the global average of 62%.
Singapore has solidified its leadership in sustainability reporting, surpassing global benchmarks in six of twelve key indicators, according to KPMG’s 2024 Survey of Sustainability Reporting. The city-state is one of only seven countries where all top 100 companies report on sustainability, compared to a global average of 79%.
Sustainability Reporting Highlights
Climate Change as a Financial Risk:
Singapore’s progress in recognizing climate risks is striking, with 76% of companies acknowledging climate change as a financial risk in 2024, up from 49% in 2022. This is well above the global average of 55%.
“This year’s data marks a pivotal moment for sustainability reporting in Singapore,” said Cherine Fok, Partner, ESG Consulting, KPMG in Singapore. “The increase from 49% in 2022 to 76% reflects a deepening corporate understanding of climate change’s pervasive impact on business resilience and value creation.”
Enhanced Governance Leadership:
Board or leadership-level accountability for sustainability governance climbed from 35% in 2022 to 55% in 2024, demonstrating growing integration of sustainability into corporate leadership.
ESG Reporting Integration:
84% of Singapore companies now incorporate ESG information into their annual reports, up from 68% in 2022 and well above the 2024 global average of 62%. This reflects a stronger commitment to transparency and integrated reporting.
Challenges and Opportunities
Despite notable achievements, Singapore has room for growth in some areas:
- Assurance for ESG Data: Only 37% of companies sought third-party assurance for their sustainability information, below the global average of 54%.
- Linking Sustainability to Pay: The proportion of companies tying sustainability metrics to executive remuneration dropped from 67% in 2022 to 38% in 2024, though it remains above the global average of 30%.
“Independent assurance builds trust among investors and partners while clarifying an organisation’s long-term ESG strategy,” Fok added, emphasizing the importance of addressing these gaps.
Global Context from KPMG Survey
Globally, KPMG’s survey highlights several trends in sustainability reporting:
- Mandatory Reporting on the Rise: The EU’s Corporate Sustainability Reporting Directive (CSRD) is driving changes in sustainability disclosures.
- Biodiversity Reporting Grows: Half of the top global companies now report on biodiversity, showing progress but leaving room for improvement.
- TCFD Adoption: Nearly 75% of G250 companies align their climate risk reporting with the TCFD framework.
Looking Ahead
Singapore’s alignment with global sustainability reporting standards, coupled with government initiatives like the adoption of ISSB standards in 2025, positions the nation to further its leadership. However, advancing assurance, biodiversity disclosures, and social risk reporting will be key to sustaining momentum.
“Singapore must pivot challenges into strengths, leveraging innovation, collaboration, and cultural transformation to embed sustainability at the core of business strategies,” Fok concluded.
With continuous improvement and strategic focus, Singapore remains poised to lead in corporate sustainability practices globally.