Plan Your ESG Journey
Embarking on Your ESG Journey
Sustainability is emerging as a critical priority for long-term resilient economic growth. International and national sustainability targets, such as the United Nations’ 17 Sustainable Development Goals (SDGs) and the Singapore Green Plan 2030 have taken shape to mobilise businesses and citizens for the advancement of sustainable development efforts. With the spotlight on climate change and its associated transitional, operational, and physical threats, businesses must act decisively to mitigate risks and capture new opportunities.
Small and medium-sized enterprises (SMEs) play an intrinsic role in the global and local sustainability movement. By embracing sustainable practices and meeting the demands of corporates, employees, and consumers for sustainable value creation, SMEs can offer products and services that make a positive impact. This can lead to increased revenue, talent attraction and retention, improved productivity, and better access to financing.
Start assessing your organisation’s sustainability performance and take action to embark on your sustainability journey today!
Choose your path
Are you new to ESG?
Click below to learn more about the concepts before embarking on your journey.
Are you ready to embark on your ESG journey?
Click below to learn more about each stage of the journey.
Are you looking for publications, tools, and other resources to accelerate your journey?
Click below to access them directly.
What is ESG and how does it impact businesses?
What is ESG?
ESG, which stands for Environmental, Social, and Governance, is more than just a buzzword in today's world. It's a framework that helps companies operate responsibly and sustainably.
Businesses must prioritise
and integrate sustainability into their strategies to meet current needs and ensure
resources are preserved for future generations. By adopting an ESG lens, businesses
can adopt a comprehensive approach to assessing both financial and non-financial
risks as well as opportunities related to their operations.
Environmental
Management of natural resources and businesses impact on the environment
Examples
- Greenhouse Gas (GHG) Emissions
- Air Quality
- Energy Management
- Water and Wastewater Management
- Waste and Hazardous Materials Management
- Ecological Impacts
Social
Ways in which businesses engage with their employees and communities
Examples
- Human Rights and Community Relations
- Data Security
- Labour Practices
- Employee Health and Safety
Governance
Policies to govern businesses’ decision-making process
Examples
- Business Ethics
- Critical Incident Risk Management
While there may be initial investment costs, SMEs can benefit from having a sustainability-anchored business strategy. Here are some of the key benefits identified for you:
Better Performance
Business leaders who embrace and pursue ESG goals will be able to tackle challenges and meet stakeholder needs to build their business capabilities.
Optimise Resources
Companies can improve efficiency and save costs by optimising resources like energy, water, and waste.
Access to Funding
Investors and lenders increasingly prioritise supporting companies with sustainable practices as they factor ESG in their portfolios.
Attract and Retain Talent
By prioritising fairness, safety and community, the workplace can earn employee trust, engagement, and loyalty while reducing turnover costs.
Capture New Growth Opportunities
Regulators, customers, and suppliers are starting to place emphasis on sustainability in their operations and purchases. Businesses with sustainable measurement and reporting practices will be more adept in meeting consumers’ and corporate suppliers’ requirements.
Mitigate Risks
Businesses that identify major ESG risks can act proactively to put in place risk mitigation measures. Examples of ESG-related risks include regulatory/ compliance risk, operational risk, and reputational risk.
The 3 Stages to Your ESG Journey
To effectively pursue sustainability as a business, start by building your team's awareness of key concepts and understanding of how sustainability applies to your business. Then, to integrate sustainability efforts into your operations, pinpoint key areas for improvement, and gather and analyse ESG data over time.
This will help you evaluate performance, set clear priorities, develop strategies, and implement targeted actions.
Stage 1: Build Awareness in Sustainability
Stage 2: Identify Relevant Areas for First Step Intervention
Stage 3: Embark on Projects to Improve and Meet Targets
Explore each stage in detail below!
Stage 1: Build Awareness in
Sustainability
Start by understanding key sustainability concepts and identifying relevant trends and sustainability requirements
Achieving sustainability involves more than just pursuing eco-friendly solutions. It requires a comprehensive strategy. Businesses can build up ESG knowledge through training, capability building, and understanding best practices.
Understand key sustainability trends, regulations, risks, and opportunities
Senior leadership knowledge and commitment are essential to drive and sustain the ESG efforts of businesses in the longer term. Senior leaders need to build their knowledge and capabilities in systems thinking and keep up with megatrends in sustainability. They also need to understand the link between ESG and risk, and their companies’ impact on society and the planet. They must also build a better understanding of their key market regulations and client requirements (including standards and certifications required).
Guiding questions
- Does your company’s management have a basic understanding and awareness of sustainability trends and concepts (e.g. E-S-G, decarbonisation etc.)?
- Is your company aware of the key regulations (including standards and conformity assessment practices that may be required) in the market?
- Is your company aware of your clients’ sustainability requirements (including standards and conformity assessment practices that may be required)?
- Does your company know of the risks and opportunities associated with sustainability?
Standards and Conformance:
- Standards Supporting Sustainable Business Practices: Guide on Singapore's key national standards that can help organisations implement good practices for sustainable management systems, methodologies, and solutions, mapped to the United Nations SDGs.
- International Trade Centre Standards Map: List of standards, with key information on compliance details provided for each standard.
Management of the Legal and Regulatory Environment:
- Executive Guide to Corporate Reporting Standards: Guide that provides an overview of three key sustainability reporting frameworks and standards that business leaders should be aware of in sustainability decision process.
Business Model Resilience:
- Business Continuity Planning Guide: Guide that provides video and introductory resources on business continuity planning, risk assessment, and analysis.
- Company of Good Portal: Organisation that provides resources, programmes, and networks to guide companies on their journey to be socially responsible businesses while maintaining a high level of employee engagement and corporate citizenship.
GHG Emissions, Energy Management, Water and Wastewater Management, Waste and Hazardous Materials Management:
- Green Compass: Programme that includes an environmental sustainability assessment, training, and strategic roadmapping tool to help organisations better manage their carbon, energy, water, and waste emissions.
Human Capital Development:
- ESG Training Catalogue: List of SkillsFuture funded courses and programmes in ESG awareness curated for enterprises, employees, and individuals. Businesses can refer to the list and map out the training roadmap for enterprises and employees.
Business Model Resilience:
- Enterprise Sustainability Programme - Sustainability Courses (Foundational): Introductory courses that provide a fundamental understanding of sustainability, covering key topics in decarbonisation, circular economy, sustainability reporting, and waste management.
- Enterprise Sustainability Programme - Sustainability Courses (Sustainable Finance): Courses covering topics including global and local trends in sustainable finance, sustainable finance instruments, and the process of accessing various financing instruments.
Greenhouse Gas (GHG) Emissions:
- Enterprise Sustainability Programme - Sustainability Courses (Decarbonisation): Courses which provide in-depth knowledge of decarbonisation, covering topics such as carbon accounting, how to set decarbonisation targets and implementation plans, and carbon disclosures and reporting.
Stage 2: Identify Relevant
Areas for First Step Intervention
Establish baselines and use assessment tools to identify areas in ESG that matter the most to your business
Understanding and prioritising ESG issues is crucial to identifying the next course of action for businesses. The following tools and resources will help businesses identify baselines of their ESG performance and potential areas of improvement in ESG.
Engage stakeholders to identify material areas
Focus areas
and sustainability requirements differ depending on the company's
readiness, stakeholders’ priorities, and the industry’s ESG impact.
Businesses can assess key ESG areas that matter to them (“material
areas”) by considering the potential impact on the company and its
importance to stakeholders.
Guiding questions
- Has your company identified different stakeholders for your business to respond to from a sustainability standpoint?
- Has your company engaged stakeholders to understand their ESG needs?
- Has your company weighed the impacts of ESG factors (e.g. energy, water, waste, carbon emissions) to identify critical material areas that matter to the business and your stakeholders?
Collect data to determine your company’s level of readiness and baselines
After identifying material areas, companies will need to gather data on the current performance and impact of operations, as well as health and resilience of the environmental and social systems through online complimentary assessment tools. There is increasing emphasis on carbon management, and companies should prioritise measurement of their carbon emissions to identify key material areas to focus on and lower their carbon footprint. This is to understand each company’s baseline performance before setting targets to monitor their progress.
Guiding questions
- Does your company put in place systems or frameworks based on suitable standards (such as ISO 14001) to track and collect data for the identified material areas, i.e. energy, water, and waste?
- Has your company implemented and documented policies based on suitable standards to initiate and track the identified social areas – e.g. HR policy on training and development, fair employment, and workplace safety?
- Has your company set policies to monitor the identified governance practices, e.g. anti-corruption, procurement practices, cybersecurity, and data protection etc. based on suitable standards such as ISO 37001 Anti-Bribery Management System and ISO 27001 Information Security Management Systems?
Business Model Resilience:
- SDG Compass: Guide for companies to align strategies and measure contribution to actualisation of Sustainable Development Goals (SDGs).
- Industry Guide to SDGs: Guide which maps Sustainability Accounting Standards Board (SASB) industry-disclosure topics to SDG targets to help companies identify financially relevant SDG targets by industry and prioritise activities to address the SDGs that are aligned with industry-specific drivers of value.
- Corporate Purpose: A Framework and Blueprint for Businesses in Singapore: Framework and blueprint that provides insights on the principles, practices, and indicators pertaining to corporate purpose through tangible actions across 5 impact areas - People, Society, Governance, Environment, and Economic.
- Sustainability Guide for Boards: Guide to support Boards in the strategic formulation and execution of company’s sustainability vision.
- Responsibility Index Communicator for Enterprises: Assessment tool that provides a report which helps companies to summarise their sustainability efforts and indicate areas of improvement.
Greenhouse Gas (GHG) Emissions:
- LowCarbonSG Programme: Capability building programme to help businesses monitor and reduce their carbon emissions. Provides access to the Carbon and Emissions Recording Tool (CERT), and carbon management workshops.
- Decarbonisation for Singapore Enterprises: Playbook to equip businesses, especially SMEs, with knowledge to kickstart the journey towards low carbon business operations for long-term sustainability.
GHG Emissions, Energy Management, Water and Wastewater Management, Waste and Hazardous Materials Management:
- Green Compass: Programme that includes an environmental sustainability assessment, course and strategic roadmapping tool to help organisations better manage their carbon, energy, water, and waste emissions.
Human Capital Development:
- ESG Training Catalogue: List of SkillsFuture funded courses and programmes in ESG awareness curated for enterprises, employees, and individuals. Businesses can refer to the list and map out the training roadmap for enterprises and employees.
Stage 3: Embark on Projects
to Improve and Meet Targets
Review business processes, set targets, and determine concrete steps aligned with currently available standards with eventual ESG disclosures in mind
Businesses should start taking action by integrating sustainability considerations into the core business strategies, and building internal capabilities to sustain efforts.
Formulate a plan and set targets
Based on priorities, determine credible and measurable goals with stakeholders’ support. Businesses can set goals by identifying and working towards 1 to 2 United Nations SDGs at the target level or aligning with the standards adopted by key clients. This enables businesses to better track sustainability progress and enhances their credibility.
Guiding questions
- Are there plans and targets set according to ESG disclosure, reporting frameworks and standards, e.g. Science Based Targets initiative (SBTi), Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB) etc.?
- Is there management commitment to the plans and targets? There should be management support and continued involvement in sustainability initiatives’ planning, implementation, and reviewing process.
- Are there resources set aside to achieve the targets?
- Is there a team or key personnel to oversee and drive the sustainability efforts and develop a strategy within the company? Management should also be involved in setting direction, introducing plans, instituting change, and driving action.
Implement action, plan, and review
There are many resources and standards that can provide valuable frameworks to build up a business’s sustainability capabilities. Independent third-party conformity assessment (e.g. certification and verification) against internationally recognised standards can offer a credible way for businesses to communicate sustainability efforts. Companies should identify upfront the standards and conformity assessment practices that best suit their needs (e.g. meet market and client requirements; differentiate products and services from competitors) and support your company’s objectives (e.g. facilitate market access, clinch new business).
In addition, companies should consider engaging an accredited conformity assessment service provider (i.e. a third-party testing, inspection, validation, or verification service provider) to ensure robustness in their practices and recognition by regulators and customers. Accreditation enhances the credibility of laboratory tests, inspection, validation and verification reports or certificates by providing reliable third party assurance that these services are conducted professionally and meet globally recognised standards. It may also shorten the time to market due to mutual recognition arrangements amongst national accreditation bodies.
For instance, companies may engage a Singapore Accreditation Council (SAC)-accredited certification body or its equivalent Mutual Recognition Arrangement (MRA) partners overseas to provide certification service on ISO 14001 Environmental Management System which enables the organisation to manage its environmental responsibilities in a systematic manner. Thereafter, a deeper understanding of their people, processes, and purpose will help them adapt these frameworks to what works for the business.
Guiding questions
- Has your company communicated the ESG plan to key internal and external stakeholders (e.g. suppliers, employees) for alignment?
- Is there a team or employee equipped with the right skill sets to implement the actions?
- Has your company developed a mechanism or framework for regular reporting and a platform for stakeholder engagement to monitor progress internally?
- Does your company regularly review plans and take actions for improvements in ESG efforts?
- Has your company identified relevant standards and undergone independent third-party conformity assessment (e.g. testing/ inspection/ certification/ verification) to verify your sustainability efforts?
- Is there a team, employee, or externally engaged sustainability advisor or consultant equipped with the right skill sets to implement the actions?
Communicate efforts
Sustainability needs to be embedded in the organisation’s core strategy process. It is crucial that sustainability risk is recognised as enterprise risk and that the business allocates the required resources and capital to support the implementation of its near and long-term sustainability objectives. Businesses should also have a plan to communicate their progress externally to build credibility.
Guiding questions
- Does your company ensure timely communication of your sustainability efforts and targets to external stakeholders?
- Does your company produce a sustainability report? If your company produces a report, do you align it with internationally-recognised reporting and conformity assessment standards or frameworks and requirements?
Business Model Resilience:
- Sustainable Finance Programme: A series of courses to help finance industry professionals upskill in the area of sustainability and sustainable finance.
- Enterprise Transformation Projects: Microsite introducing solution providers for enterprise transformation projects to help SMEs translate best practices from industry leaders and Institutes of Higher Learning.
Sustainability Data Benchmarking:
- ESGpedia: One-stop registry of ESG certifications and data from different sectors and global verified sources, and fintech tools to enable ESG finance.
Management of the Legal and Regulatory Environment:
- TCFD Implementation Guide: Guide to help companies in implementing TCFD recommendations for corporate disclosures of climate-related information, through CDSB and SASB’s frameworks and standards.
- Integrated Reporting for SMEs: Implementation Guidance: Guide to help SMEs understand and implement the International Integrated Reporting (IR) Framework.
Standards and Conformance:
- International Organisation for Standardisation: International organisation that shares knowledge on market relevant international standards that support companies to meet UNSDGs.
- International Electrotechnical Commission: Guide to help organisations that are preparing and publishing international standards for all electrical, electronic, and related technologies. Provides information on conformity assessments.
- Singapore Accreditation Council: List of SAC accreditation schemes that apply to the Environment and Sustainability industry. Provides more information on SAC’s Mutual Recognition Arrangements (MRAs). Provides information on Conformity Assessment Bodies (CABs) accredited by SAC.
- Singapore Green Labelling Scheme: Website that provides information on the Singapore Green Label.
- Sustainability-As-A-Service Programme: Programme supporting local companies in meeting customer and regulatory requirements through online self-assessment, training, pre-certification audit and certification.
- Global Ecolabelling Network: Network that provides information on ecolabels.
Greenhouse Gas (GHG) Emissions:
- SME Kickstarter Decarbonisation Programme: Programme that provides training and mentorship to SMEs over 3 years, to chart sustainability strategies by establishing Scope 1 and 2 emissions and develop decarbonisation roadmaps.
GHG Emissions, Energy Management, Water and Wastewater Management, Waste and Hazardous Materials Management:
- Green Compass: Programme that includes an environmental sustainability assessment, training, and strategic roadmapping tool to help organisations better manage their carbon, energy, water, and waste emissions.
- Catalysing Sustainability in Singapore’s SMEs Programme: Environmental disclosure programme that provides a structured framework for Singapore enterprises to disclose their environmental data and performance.
Business Model Resilience:
- Enterprise Development Grant: Grant that supports projects that help companies grow and transform, including sustainability projects.
- Enterprise Financing Scheme: Loan that addresses enterprises’ financing needs in seven areas including green growth projects at various stages of growth.
- Sustainability Loan Grant Scheme: Grant for corporates of all sizes to defray the expenses of engaging independent service providers to validate the green and sustainability credentials of the loan.
- Advanced Digital Solutions: Grant that supports the adoption of advanced technologies (e.g. AI, Robotics, Blockchain and Internet of Things, sustainability solutions) and integrated solutions (e.g. B2B solutions that integrate inventory management) that address common enterprise-level challenges at scale.
Waste and Hazardous Materials Management:
- 3R Fund: Grant to encourage organisations to reduce waste disposed of at NEA’s incineration plants and disposal facilities by implementing waste minimisation and recycling projects.
Human Capital Development:
- ESG Training Catalogue: List of SkillsFuture funded courses and programmes in ESG awareness curated for enterprises, employees, and individuals. Businesses can refer to the list and map out the training roadmap for enterprises and employees.
Management of the Legal and Regulatory Environment
- GRI Professional Certification Programme: Course that enhances knowledge and skills required to apply GRI Standards and improve the quality of sustainability reporting.
Stage 2: Build Awareness in
Sustainability
Write one or two paragraphs describing your product or services. To be successful your content needs to be useful to your readers.
Start with the customer – find out what they want and give it to them.
These terms of service ("Terms", "Agreement") are an agreement between the website ("Website operator", "us", "we" or "our") and you ("User", "you" or "your"). This Agreement sets forth the general terms and conditions of your use of this website and any of its products or services (collectively, "Website" or "Services").
Although this Website may be linked to other websites, we are not, directly or indirectly, implying any approval, association, sponsorship, endorsement, or affiliation with any linked website, unless specifically stated herein.
You should carefully review the legal statements and other conditions of use of any website which you access through a link from this Website. Your linking to any other off-site pages or other websites is at your own risk.
Website may use cookies to personalize and facilitate maximum navigation of the User by this site. The User may configure his / her browser to notify and reject the installation of the cookies sent by us.
Stage 3: Build Awareness in
Sustainability
Write one or two paragraphs describing your product or services. To be successful your content needs to be useful to your readers.
Start with the customer – find out what they want and give it to them.
These terms of service ("Terms", "Agreement") are an agreement between the website ("Website operator", "us", "we" or "our") and you ("User", "you" or "your"). This Agreement sets forth the general terms and conditions of your use of this website and any of its products or services (collectively, "Website" or "Services").
Although this Website may be linked to other websites, we are not, directly or indirectly, implying any approval, association, sponsorship, endorsement, or affiliation with any linked website, unless specifically stated herein.
You should carefully review the legal statements and other conditions of use of any website which you access through a link from this Website. Your linking to any other off-site pages or other websites is at your own risk.
Website may use cookies to personalize and facilitate maximum navigation of the User by this site. The User may configure his / her browser to notify and reject the installation of the cookies sent by us.
Stage 3: Build Awareness in
Sustainability
Write one or two paragraphs describing your product or services. To be successful your content needs to be useful to your readers.
Start with the customer – find out what they want and give it to them.
These terms of service ("Terms", "Agreement") are an agreement between the website ("Website operator", "us", "we" or "our") and you ("User", "you" or "your"). This Agreement sets forth the general terms and conditions of your use of this website and any of its products or services (collectively, "Website" or "Services").
Although this Website may be linked to other websites, we are not, directly or indirectly, implying any approval, association, sponsorship, endorsement, or affiliation with any linked website, unless specifically stated herein.
You should carefully review the legal statements and other conditions of use of any website which you access through a link from this Website. Your linking to any other off-site pages or other websites is at your own risk.
Website may use cookies to personalize and facilitate maximum navigation of the User by this site. The User may configure his / her browser to notify and reject the installation of the cookies sent by us.
Stay in the loop
Subscribe for free to receive updates from NetZeroHub.SG!