Singapore has solidified its position at the top of the global class for sustainability reporting, according to KPMG’s 2024 Survey of Sustainability Reporting. The leading companies in Singapore outstripped international benchmarks, thereby securing the city-state’s dominance at the top of this new global class. The new KPMG survey suggests significant progress by Singapore’s corporate sector in recognizing the financial effects of climate change and integrating sustainable development into their business processes. In a year of intense scrutiny on global sustainability efforts, Singapore’s top companies are leading the way, surpassing global averages in six out of twelve key sustainability indicators.
Climate Change Recognition as a Financial Risk
One of the most important findings in KPMG’s survey is that 76% of Singapore’s top 100 companies now recognize climate change as a financial risk. This is a truly impressive increase from 49% in 2022 and much higher than the global average of 55%. This recognition of climate change as a financial risk marks a turning point in how companies view sustainability, not just as a moral imperative but as a vital factor in long-term resilience and value creation.
Cherine Fok, Partner at ESG Consulting at KPMG in Singapore, commented, “The increase from 49% in 2022 to 76% reflects a deeper understanding within Singapore’s corporate sector of climate change’s widespread impact on business operations, supply chains, and financial health.”
Corporate Governance and Leadership Accountability
The report also underscores the growing importance of governance in driving sustainability efforts. Board-level accountability for sustainability has increased dramatically, with an increase from 35% in 2022 to 55% in 2024. This represents the increasing integration of sustainability into corporate decision-making processes, with leaders being increasingly accountable for driving sustainability within their organizations. This is evidence that sustainability is not a mere functional area but rather a strategic priority for the long-term success of the business.
ESG Reporting Integration
The Environmental, Social, and Governance (ESG) reporting in Singapore has been well-adopted by its top companies, with the inclusion of ESG information in annual reports at 84%. This is an increase from 68% in 2022 and far surpasses the global average of 62%. The integration of ESG reporting into corporate disclosures reflects the city’s commitment to creating a more transparent and responsible business environment, driven by the need to address environmental and social issues while maintaining profitability.
Fok of KPMG pointed out that “such a sharp upswing in ESG integration testifies to the commitment Singapore has shown for not just financial transparency but also for environmental and social accountability. This is crucial for business entities aiming for stakeholder trust and avoidance of ESG risk”.
Despite these encouraging trends, there are still challenges that Singapore’s top companies must address. For instance, only 37% of companies obtained third-party assurance for their sustainability information, which is below the global average of 54%. Independent assurance is critical in ensuring the reliability and credibility of ESG data, especially as investors and regulators increasingly demand transparency.
Additionally, while 38% of companies are linking sustainability metrics to executive pay—a decline from 67% in 2022—this is still above the global average of 30%. Linking sustainability performance to executive remuneration ensures that leaders are financially incentivized to prioritize long-term sustainable growth.
Fok emphasized, “Independent assurance builds trust among investors and partners, offering clarity on an organization’s long-term sustainability strategy. This is an area where Singapore’s businesses must focus on to build greater credibility in their sustainability practices.”
Global Context and Future Outlook
The KPMG survey also places Singapore’s performance in a global context, pointing out several key trends in sustainability reporting. A greater push for mandatory sustainability reporting has been witnessed globally, led by the European Union’s Corporate Sustainability Reporting Directive (CSRD), which will lead to a major shift in regulation. In addition, biodiversity reporting is becoming more popular, with half of the world’s top companies reporting their efforts in this field, though there is much still to be done. Moreover, nearly 75% of the G250 companies align their climate risk reporting with the Task Force on Climate-related Financial Disclosures (TCFD) framework.
Looking ahead, Singapore will be well-positioned to strengthen its leadership position further by adopting international sustainability reporting standards in 2025, including the ISSB guidelines. However, experts have underscored the need to bridge gaps in ESG data assurance, biodiversity disclosures, and social risk reporting to ensure continued momentum in Singapore’s sustainability efforts.
Fok concluded, “Singapore must continue to turn its challenges into opportunities. With innovation, collaboration, and a cultural shift toward sustainability, businesses can ensure sustainability within their core strategies and move ahead with the global pack.”
The top 100 companies are making examples in how integrating sustainability into their business practices is going to help them advance economically while ensuring environmental development.