A recent study has revealed that merely 37% of companies in Singapore’s manufacturing sector have implemented sustainability initiatives. However, this figure is projected to double in the coming years, with an additional 38% of manufacturers expected to launch their own sustainability efforts within the next one to three years.

The sustainability initiatives focus on six key areas: the circular economy, reducing greenhouse gas emissions, renewable energy and energy efficiency, preventing pollution, sustainability reporting, and sustainable finance. Lennon Tan, president of the Singapore Manufacturing Federation (SMF), noted that this 37% figure aligns with his expectations, reflecting that about one-third of companies are beginning their sustainability journeys.

The study also highlighted a concerning lack of transparency, as only 21% of respondents have previously reported on their sustainability efforts. This suggests that 79% of manufacturing companies have significant room to improve their sustainability practices and reporting.

Conducted by the Institute of Singapore Chartered Accountants (ISCA), SMF, Deloitte, and Singapore Management University (SMU), the study surveyed 115 SMF members, predominantly small and medium-sized enterprises (SMEs). Interviews with key executives from 20 companies and focus group discussions supplemented the survey findings.

Holly Yang, an associate professor at SMU, emphasized that reducing emissions is a critical area of concern, with more than half of respondents indicating they have started or plan to reduce their emissions. However, many face challenges in translating their investments and efforts into measurable progress.

One recommendation from the study suggests that manufacturers consider creating a C-suite position for a Chief Financial and Sustainability Officer to better integrate sustainability metrics into their financial performance. While establishing such a role may be challenging for SMEs with limited resources, Tan encouraged these businesses to designate and train at least one person for sustainability-related responsibilities. Additionally, SMEs can leverage on-demand chief sustainability officer services for expert guidance.