Charting a Sustainable Future

In Singapore’s current economic landscape, corporate sustainability has become a central focus for businesses which are seeking to balance profitability with social and environmental responsibilities.

Commissioned by the Ministry of Culture, Community and Youth, Verian's research on Corporate Social Sustainability provides a comprehensive roadmap for businesses in Singapore to achieve sustainable, inclusive, and equitable growth. This detailed study outlines a multi-phase approach to understanding and implementing effective sustainability practices, providing a detailed guide for corporate entities.

Our research incorporated interdisciplinary methods to uncover subtleties and nuances in corporate sustainability practices:

Phase 1: Distilling the Landscape and Understanding Perspectives

• We begin by understanding corporate sustainability through a meticulous distillation of the existing landscape. Our team embarked on a thorough desk-scan and employed social listening to capture the current sentiments and trends related to Corporate Social Sustainability (CSS). This foundational work was enriched by quantitative surveys targeting two critical groups: 300 managers across various industries and 1,000 people from the general population. These surveys aimed to gather a wide array of perspectives on the importance and implementation of Environmental, Social, and Governance (ESG) practices.
• To deepen these insights, we conducted 10 in-depth interviews with key organizations. These qualitative interviews provided rich, nuanced understandings of the motivations, challenges, and practical implications of adopting sustainable practices. This combination of quantitative and qualitative methods ensured a robust and comprehensive grasp of the current state of corporate sustainability in Singapore.

Phase 2: Exploring Policy Implications and Sustainable Next Steps

• Building on the insights gained from the first phase, we moved to explore the policy implications and identify sustainable next steps for businesses. This phase featured an ideation workshop that brought together business leaders from 21 key organizations to collaboratively brainstorm potential policies and strategies. This workshop was pivotal in tailoring the recommendations to the specific needs and context of the Singaporean market.
• A significant component of this phase was the use of Discrete Choice Experiments (DCE) where participants were presented with hypothetical scenarios to simulate and capture their real-life decision-making behaviours. By involving 219 local SMEs, the DCE provided detailed insights into the preferences and trade-offs businesses might consider when implementing sustainability initiatives. This innovative approach allowed Verian to overcome the limitations of self-reported data, offering a more accurate picture of corporate priorities and challenges.

Applying the ABCDE Framework to drive Corporate Social Sustainability

At the core of Verian’s findings is the ABCDE framework, designed to build stakeholder trust and facilitate the adoption of corporate social sustainability. The framework encompasses the following steps:

Aware: Understanding what stakeholders want.

Our research found that both managers and the general population are increasingly aware of the importance of ESG practices. Among managers, 91% highlighted the significance of these practices, with key desired outcomes including societal benefits and profitability. For the general population, 88% echoed similar sentiments, emphasising the need for companies to do good for society while achieving financial success. This awareness is critical for building a strong foundation for corporate sustainability initiatives.

Balanced: Approaching stakeholder needs with equilibrium.

A balanced approach is essential in addressing stakeholder needs equitably. Our research showed that 86% of consumers prioritise purchasing from responsible companies and are willing to pay a premium for sustainable products, with some willing to pay up to 40% more. However, barriers such as higher costs and the prioritisation of other product qualities were noted. For employees, flexibility and professional growth were identified as top priorities in social sustainability practices. This balance between ethical practices and stakeholder expectations ensures that businesses can meet diverse needs effectively.

Convinced: Demonstrating the compelling business case for sustainability.

Convincing businesses of the tangible benefits of ESG practices is crucial for widespread adoption. Verian's findings demonstrated that employee retention (67%), long-term growth (63%), and employee attraction (62%) are the top benefits of adopting ESG practices. These advantages provide a compelling business case for sustainability, helping to overcome resistance and drive commitment from senior management. In addition, consumer support for responsible companies, reflected in their willingness to pay more, further strengthens this business case.

Decide: Making informed decisions through education, consultation, and funding.

Informed decision-making through education, consultation, and funding is essential for advancing ESG practices. Managers identified several key initiatives as particularly helpful for companies, including government funding/grants (42%), leadership buy-in (42%), and government training programmes (36%). These elements are crucial for creating an enabling environment where businesses can confidently take the necessary steps toward sustainability. At the same time, having clarity on goals and outcomes internally, as well as awareness of available information, are vital for making informed decisions.

Execute: Implementing and monitoring strategies to improve sustainability.

Effective execution of sustainability strategies involves several key actions. Verian's research highlighted the importance of forming strategic corporate partnerships, engaging existing organisations, listening to stakeholders, and tracking and communicating the impact of sustainability practices. Regular monitoring and transparent communication are essential for sustaining momentum and ensuring that the implemented strategies yield desired outcomes. Furthermore, prioritising mental health metrics as part of social sustainability emphasises the holistic nature of these efforts.

1-page insights summary

Verian’s comprehensive research provides a clear and actionable roadmap for businesses in Singapore to achieve sustainable growth. By aligning stakeholder needs, demonstrating the business case for ESG, and navigating challenges through strategic partnerships and clear communication, companies can build a future where profitability and social responsibility coexist harmoniously. The adoption of a journey on corporate social sustainably not only transform business, but more importantly our society, to become more inclusive and equitable. We hope that these findings can serve as a critical guide for businesses striving to make a meaningful impact, positioning Singapore as a global leader in sustainability.