Singapore Achieves Progress in Sustainability Reporting, Outperforming Global Benchmarks

• Singapore is one of only seven countries globally where all top 100 companies report on sustainability, surpassing the global average of 79 percent.
• Singapore’s top 100 companies outperformed global benchmarks in six of 12 key sustainability reporting indicators, including board-level accountability, ESG integration and climate risk recognition.
• 76 percent of Singapore companies now recognise climate change as a financial risk, well above the global average of 55 percent and up from 49 percent in 2022.
• However, the percentage of Singapore companies seeking assurance for their sustainability information (37 percent) remains below the global average of 54 percent.

SINGAPORE –
Media OutReach Newswire – 28 November 2024 – Singapore’s top 100 companies have made significant strides in sustainability reporting for 2024, exceeding global averages across six of twelve key indicators (see Table 1). The city-state is also uniquely positioned as one of only seven countries globally where all top 100 companies report on sustainability, in contrast to a global average of 79 percent.

The findings come from
KPMG’s 2024 Survey of Sustainability Reporting, which examines the sustainability reporting approaches of the largest 100 companies (termed ‘N100’) in 58 countries or jurisdictions, representing a total of 5,800 companies.

Notably, Singapore’s top 100 companies demonstrated significant progress in three key areas compared to 2022, further surpassing global averages in these domains:

• Climate Change as a Financial Risk: 76 percent of Singapore’s top 100 companies now recognise climate change as a financial risk to their business, a considerable rise from 49 percent in 2022. This also exceeds the 2024 global average of 55 percent, underscoring a broader corporate acknowledgment of climate-related risks.
• Strengthening Governance Leadership: The proportion of companies with a board or leadership representative responsible for sustainability governance rose to 55 percent in 2024, up from 35 percent in 2022. This increase highlights an enhanced commitment to embedding sustainability principles within corporate leadership.
• Integration of ESG in Reporting: 84 percent of Singapore companies now integrate Environmental, Social, and Governance (ESG) information into their annual reports, up from 68 percent in 2022. This achievement also stands well ahead of the 2024 global average of 62 percent, emphasising stronger corporate integration of sustainability disclosures.

Cherine Fok, Partner, ESG Consulting, KPMG in Singapore, said:

“This year’s data marks a pivotal moment for sustainability reporting in Singapore, showcasing significant progress in how companies address climate-related risks. The increase from 49 percent in 2022 to 76 percent of firms recognising climate change as a financial concern highlights a deepening corporate understanding of its pervasive impact on business resilience and value creation.

This advancement has been driven by the strong alignment between public and private sector initiatives. Government-led efforts, such as the impending adoption of International Sustainability Standards Board (ISSB) standards in 2025, have set a clear framework for corporate transparency, while the rise in board-level responsibility and the integration of ESG factors into annual reports—now at 84 percent compared to 68 percent two years ago—reflects growing accountability at leadership levels.

However, there are areas that warrant further attention. Challenges in quantifying climate risks, obtaining third-party assurance, and linking sustainability metrics to executive remuneration present key opportunities for improvement. For instance, independent assurance can offer an impartial perspective that builds trust among investors and partners while clarifying an organisation’s long-term ESG strategy. The slight dip in companies tying sustainability to pay may reflect boards exercising caution around disclosure, particularly as climate-linked remuneration becomes a disclosure requirement under the ISSB framework, prompting strategic recalibrations.

Emerging areas such as biodiversity and social-related risk categories are also gaining traction. Initiatives like the Singapore Sustainable Finance Association’s biodiversity workstream and national movements such as Forward Singapore provide platforms for progress. Globally, forthcoming reporting standards are poised to enhance disclosures on these topics. While the Sustainable Development Goals serve as an overarching aspirational framework, companies might choose to adopt more specific standards like the Global Reporting Initiative (GRI) or the Task Force on Climate-related Financial Disclosures (TCFD) for detailed guidance.

To sustain this momentum, Singapore must pivot challenges into strengths, leveraging innovation, collaboration, and cultural transformation to embed sustainability at the core of business strategies. Tools like KPMG’s ESG Assurance Maturity Index can help companies better navigate the evolving landscape of reporting, regulations, and insights, ensuring they remain positioned for leadership in corporate sustainability.”

Performance against global averages

Singapore’s top 100 companies outpaced global benchmarks in six sustainability reporting indicators. Key areas include the acknowledgment of climate change as a financial risk, identification of material topics, inclusion of ESG information in annual reports, reporting of carbon reduction targets, and governance leadership.

However, some aspects of sustainability reporting show room for improvement. For instance, 38 percent of Singapore companies now link sustainability to executive remuneration, reflecting a decrease from 67 percent in 2022, though still notably ahead of the global average of 30 percent. In addition, 37 percent of Singapore’s top 100 companies have sought assurance for their ESG or sustainability-related information, an encouraging increase from 2022, though below the global standard of 54 percent. Singapore’s progress in sustainability reporting can be expanded further in areas such as integrated reporting, alignment with the Sustainable Development Goals, enhanced biodiversity disclosures, and addressing social and governance-related risks. These dimensions present opportunities to build on Singapore’s strong foundations and drive continued improvement in corporate sustainability practices.

Table 1: Results of sustainability key data points by N100 companies in Singapore versus global average

Legend:

For each data point, the country has been ranked and grouped into one of four quartiles:

Top quartile (High) = Countries ranked 1 – 15

Middle – high quartile (Medium/High) = Countries ranked 16 – 30

Low – middle quartile (Medium/Low) = Countries ranked 31 – 44

Bottom quartile (Low) = Countries ranked 45 – 58

KPMG 2024 Survey of Sustainability Reporting

Globally, the findings of KPMG’s Survey of Sustainability Reporting 2024 indicate six major trends:

1. Reporting on sustainability and setting carbon targets has become part of business as usual. Both sustainability reporting and carbon targets have been adopted by almost all of the G250 global group of companies and four-fifths of the N100 groups.
2. Some companies have already changed practices in advance of the move to mandatory reporting on sustainability under the EU’s CSRD. The directive applies to an initial group of companies for reports on financial years ending from 31 December 2024, with some having until 2029 to publish their first compliant reports. However, some companies, mainly European-headquartered or with activities in Europe, are already preparing for CSRD such as by reporting material topics in accordance with the ESRS. Nearly half of European companies in the research already make disclosures using the EU Taxonomy.
3. Double materiality, required under CSRD, is now used by half of the largest companies. Nearly four-fifths of both the G250 and N100 groups use materiality assessments. The larger G250 companies are more likely to use double materiality processes that assess both impacts on society and the environment and how this affects their financial performance. Double materiality is the most complete form of materiality assessment and is a cornerstone of compliance with the EU’s CSRD, so some of those adopting it are likely to be doing so to prepare for it becoming mandatory.
4. Despite moves towards mandatory reporting, voluntary guidelines and standards remain widely-used. GRI remains the most popular standard, with three-quarters of G250 companies using it and nearly as high a proportion of the N100 groups. There have been bigger increases in use for both SASB and stock exchange guidelines over the last two years, although from lower bases. Their adoption varies significantly by country and region, with all surveyed companies in Saudi Arabia using its stock exchange guidelines and two-thirds of those in the Americas using SASB.
5. Reporting on biodiversity continues to increase. Around half of both the G250 and N100 groups now report on biodiversity, up from around one-quarter four years ago, although growth has been slower in the last two years. Significant differences between regions on adoption rates found two years ago have narrowed since, with companies in the Middle East and Africa moving closer to the global average.
6. Adoption of TCFD recommendations continues to rise. Nearly three-quarters of G250 companies report climate risks in line with TCFD.

The world is facing complex climate, social and geopolitical issues and addressing ESG priorities is more important than ever. The last two years have seen some companies and investors weakening and, in some cases, abandoning ESG commitments. However, KPMG’s Survey of Sustainability Reporting shows that the largest companies worldwide are engaged with at least some elements of its agenda, such as, by setting carbon reduction targets.

John McCalla-Leacy, Head of Global ESG at KPMG International, said:

“KPMG’s findings – and the fact that there are more sustainability leaders within executive teams at the boardroom than ever before – are clear evidence that we’re making solid progress on the journey toward greater transparency and positive corporate actions to address environmental, societal and governance challenges. An increasing number of today’s investors are now taking non-financial data just as seriously as financial data. The mainstream view today is that businesses that measure and report ESG risks – clearly and in-depth – are also likely to manage these risks better and deliver greater long-term value.

“2025 is slated to be a milestone year for sustainability reporting. The Survey of Sustainability Reporting shows that companies are addressing the challenges and getting ahead of the new rules and regulatory frameworks. We are making noticeable progress with ESG reporting in a way that supports short-term and long-term business objectives. With years of analysis on the books, we are building an evidence base which shows how a robust sustainability reporting ecosystem helps businesses not only measure progress on executing their ESG strategy, but also drives value while mobilising capital markets to help support the development of ever-increasing much-needed solutions to the many environmental and societal issues we face. The business world is making progress. Let’s keep going.”

Jan-Hendrik Gnändiger, Head of Global ESG Advisory at KPMG International, commented:

“Our research shows that sustainability reporting has become part of business as usual for almost all of the world’s largest 250 companies and a large majority of the top 100 companies in each country, territory or jurisdiction. The last two years have also seen significant increases in the proportion of companies publishing carbon reduction targets to levels equivalent to those for sustainability reporting. The proportion of companies reporting on biodiversity remains lower but has similarly increased since 2022. While next year will see some companies having to report on sustainability, our research shows that many others are commencing or increasing their work in this area voluntarily. There are excellent reasons to do so, whether to prepare for mandatory requirements or to offer better information to investors, customers, employees, regulators or other stakeholders.”

About the KPMG Survey of Sustainability Reporting

This survey is based on detailed research by KPMG professionals representing 58 member firms, with each reviewing annual financial, integrated and ESG/sustainability reporting published by the largest 100 companies in their countries, territories and jurisdictions. With data from 5,800 companies, this year’s survey is the same size as 2022’s.

This makes it jointly the most comprehensive in the series, which has run since 1993. For each company, staff at a KPMG member firm have examined its most recent available report to gather up to 52 pieces of data using a standard questionnaire.

The responses from each country, territory and jurisdiction have been combined into a single dataset of more than 180,000 items which has been validated and analyzed to produce the results.

This report also draws on the expertise of KPMG subject matter specialists worldwide through interviews and other input. We have drawn primarily on reports published between 1 July 2023 and 30 June 2024. If a company did not report during this period we have used reports published since 1 July 2022 at the earliest.

If a subsidiary company reports on sustainability only through its parent or group company, we leverage the KPMG network and apply the parent company results to the subsidiaries as well. For example, in more than one case the group sustainability results for an international food and drink manufacturer have also been applied to some of its national subsidiaries.

Survey findings are based purely on analysis of publicly available information. No information was submitted directly by companies to KPMG firms.

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