KPMG Unveils ESG Playbook to Empower Singapore Charities on Their ESG Journey
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- Comprehensive ESG Framework: Designed to assist over 2,300 charities and IPCs in Singapore.
- Customized Integration Pathways: Provides tailored steps and best practices for charities of varying maturity levels.
- Strategic Enhancement: Aims to improve charities’ governance, public trust, and attractiveness to corporate donors.
In a significant move to bolster the environmental, social, and governance (ESG) capabilities of its charitable sector, KPMG in Singapore has introduced an ESG Playbook for Charities. This initiative, developed in collaboration with the Ministry of Culture, Community and Youth, is designed to guide over 2,300 charities and Institutions of Public Character (IPCs) in starting or enhancing their ESG journeys.
Tailored Guidance for Diverse Needs
The ESG Playbook addresses the various maturity levels within the charity sector by offering structured pathways for integrating ESG principles into daily operations. It includes a spectrum of actionable steps and industry best practices that enable organizations to effectively navigate their unique challenges. This approach supports charities in aligning operationally with sustainability goals and equipping them with the strategic capabilities needed for enhanced stakeholder engagement.
Cherine Fok, Partner, ESG Consulting at KPMG in Singapore, emphasized the playbook’s strategic impact: “While the social aspect naturally resonates with the social sector, the ESG playbook urges charities to think bigger and how they can deepen the impact they have on the communities they serve. By adopting strong ESG practices, charities can boost public trust, improve their governance, and build trust. This will not only benefit charities but also positions them as attractive partners for corporate donors with strong ESG goals and strategies.”
Related Article: 61% of EMA Investors Prioritize ESG Due Diligence for Monetary Gains, 2024 KPMG Study Finds
Steps to Effective ESG Integration
Stage 1: Integrating ESG into the Board Agenda
- Establish an ESG governance structure.
- Integrate ESG into existing Enterprise Risk Management frameworks.
Stage 2: Defining an ESG Strategy
- Identify and prioritize ESG topics critical to stakeholders.
- Assess current ESG maturity levels and set clear ESG action ambitions.
Stage 3: Driving ESG Initiatives
- Align initiatives with strategic ESG goals, particularly focusing on environmental efforts such as decarbonization.
Stage 4: Communicating ESG Performance
- Utilize various methods to communicate ESG achievements, aligning with established sustainability reporting frameworks.
Empowering Charities for Regional Leadership
By adopting these practices, Singaporean charities not only align with national sustainability goals but also strengthen their positions within the broader philanthropic landscape. This playbook serves as a critical tool in Singapore’s aspiration to become a regional hub for philanthropy, ensuring that charities can meet the increasing demands of donors for sustainable and responsible practices.
The collaboration between KPMG and governmental bodies highlights a unified approach to enhancing the strategic capabilities of charities, making them more effective and impactful in their operations and contributions to society.