Digitalisation tops sustainability investments for Singapore companies: report

Businesses are focusing on systems optimisation and AI-driven process automation, amongst others.

In Singapore, 53% of companies plan to invest $700,000 or more in sustainable transitions over the next two years, according to Schneider Electric.

Ranking above supply chain sustainability, which involves sustainability sourcing and green solutions for product design and circulatory, digitalisation is the top investment focus.

This includes reporting platforms, systems optimisation, AI-driven process automation, and carbon management platforms to improve office processes, monitoring of resource usages, and for risk and opportunity management to streamline sustainability initiatives.

In terms of motivators, companies cite regulatory compliance and long-term profitability as the top drivers, both at 37%, followed by brand perception and reputation (33%) and climate risk management (32%).

Schneider Electric also found that 52% of Singapore business leaders say sustainability reporting has become easier in the past year, due to enhanced corporate strategies with clearer targets (44%), technological advancements (36%), and a better understanding of regulatory requirements (36%).

On the flip side, 35% of companies within the healthcare, heavy machinery, retail, and real estate sectors find sustainability reporting more challenging, potentially due to industry-specific hurdles that require more tailored incentives and fit-for-purpose solutions.

Schneider Electric surveyed 500 business leaders in Singapore from various industries and was conducted between April and May.