Survey: Singapore business’ sustainability goals are lacking

Sustainability goals are becoming increasingly important, and in some cases, essential, for businesses worldwide. In this regard, Singaporean companies stand out, with the highest proportion of businesses setting sustainability targets among all countries surveyed in Alibaba Cloud’s recent report, “Tech-Driven Sustainability Trends and Index 2024.

The report, conducted by Yonder Consulting and supported by Asia-based sustainability consultancy The Purpose Business, surveyed 1,300 business leaders across a range of industries in Asia, Europe, and the Middle East. It provides insights into how Singaporean enterprises are approaching sustainability and ways they can improve. 

Singapore’s sustainable businesses

As mentioned, Singapore was the country with the strongest commitment to sustainability. 91% of businesses in the local market have set sustainability, seconded by Germany at 89% and Indonesia at 86%. Such a large proportion is likely related to considerable government support and incentives for sustainable business practices, under national initiatives like the Green Plan 2030. 

Of these businesses with sustainable goals, nearly all (98%) of them have set emissions related targets — but less than a third (30%) are committed to science-based targets (SBTs). SBTs are essential to bring meaningful climate action, as they guide companies to reduce emissions based on climate science. Without SBTs, a company looks, at best, ill-informed and ignorant, and at worse, as though they are greenwashing, by claiming progress for social capital without making substantial changes.

Achievable goals, meaningful change

The report does not delve into why so few Singaporean businesses commit to SBTs, but it seems to suggest that most Singaporean businesses fall under the former category. Alibaba Cloud points out how, of the businesses with sustainability targets, 53% rely on manual methods to measure its progress. Manual tracking not only limits the accuracy of sustainability metrics, but also reduces a company’s ability to recognise the actual impact of its efforts, leading to potential overestimations of progress. As a result, companies may not realise that their targets are not actually significantly impactful.

The report then posits that digital technologies like cloud computing and AI can significantly improve this process by making operations more efficient and automating data collection. With the ability to gather and analyse large volumes of data, these technologies can help identify inefficiencies, monitor real-time progress, and inform more sustainable decision-making. This could help companies better understand their environmental impact and set more achievable, science-backed goals.

Being able to reassess a company's goals is essential, as the report names overly ambitious targets as the number one barrier that Singaporean companies face when trying to meet their climate goals. Being able to see its progress can help businesses set better goals. 31% of companies found overly ambitious goals a problem, while 30% saw technology limitations as a larger issue, and 27% cited budget constraints. Insufficient internal capabilities further complicate the efforts for 19% of businesses, impacting the execution of effective action plans.

For businesses that have yet to set sustainability targets, time constraints (44%), complex supply chains (44%), and budget limitations (33%) are the primary obstacles. The report posits that the challenges faced by businesses with and without sustainability targets can be partially alleviated through the use of digital technology.

Technology and the local company

Most Singaporean business leaders corroborate this as well, with 86% of surveyed companies agreeing that technology is essential to achieving global sustainability goals, and 81% believe that adopting digital technologies, such as cloud computing and AI, will accelerate their progress toward these goals.

After all, cloud computing facilitates scalability and collaboration by quickly transmitting information across teams, reducing inefficiencies. In another case, AI can automate data collection and analysis on a company’s environmental impact, helping to identify inefficiencies, optimise resource use, and track meaningful progress.

The report does subtly advocate for local companies to update their technology, and by extension monitoring systems. This point is explicitised by Selina Yuan, the President of International Business of Alibaba Cloud Intelligence. 

She said: “The survey findings underscore the urgent need for organisations to reassess their sustainability measurement methodologies and embrace advanced technological solutions like cloud-based platforms and AI services. These digital tools not only streamline the measurement process but also provide actionable insights that can drive meaningful progress for sustainability.”

As AI technology becomes less novel, we are likely to see a growing number of organisations integrating technology into their sustainability efforts as they see the benefits brought to other companies that use AI and cloud computing. Hopefully, companies will not only update their technology, but also increasingly set targets that align with science based goals. If so, these businesses will be closer to bringing back the results that are desired from setting such sustainability targets to begin with.