SMEs in Singapore and ASEAN are facing greater pressure to adopt sustainability practices from both consumers and regulators.

On the consumer front, there is an increasing demand for sustainable products with PwC’s 2024 Voice of the Consumer Survey stating that 85 per cent of consumers have experienced the disruptive impacts of climate change, leading to 46 per cent of them buying more sustainable products.

At the same time, regulators are tightening sustainability reporting measures with the Singapore Exchange extending their mandatory climate reporting to all listed companies in the materials and buildings, and transportation industries – increasing the number of industries from three to five in the previous year.

The complexities of changing consumer preferences and increasing regulatory requirements to go green have never been more challenging for SMEs and they often struggle with how and where to begin. UOB’s Business (SME and Large Enterprises) Outlook Study 2024 showed that 87 per cent of ASEAN companies view sustainability as important to their business, but only 44 per cent have adopted green practices. SMEs face significant barriers to implementation such as increased costs to customers, the impact it will have on their profits and the lack of proper infrastructure for renewable energy.

Tailored programmes such as SIP now play a crucial role for SMEs to achieve their sustainability goals by gaining access to industry experts and solutions providers.