Australia and Singapore to help bolster SMEs ESG credentials
In a nutshell
ESG will be a huge piece in SMEs’ vulnerability to the current supply chain consolidation that is underway in Southeast Asia. Knowing this, the Australian and Singapore governments are prioritising several initiatives to address ESG gaps amongst its SME ranks. But support is clearly needed.
The state of play
A DBS report highlights that more than six in 10 SMEs in Singapore find it challenging to transition to more sustainable models citing:
- Lack of standardised reporting standards (75%)
- Lack of technical know-how to implement ESG frameworks and solutions (70%)
- Lack of funding (48%).
SMEs need to lift their ESG reporting regime
While sustainability reporting is not yet mandatory in Singapore, the direction of travel is clear. This places many firms at the end of these supply chains in a position of commercial vulnerability to begin the journey of putting frameworks in place.
The Singapore and Australian governments are helping SMEs build their ESG armoury
In mid-2024, the two countries launched the second round of its A$20 million Go-Green Co-Innovation Programme where firms across both markets can co-innovate on green projects.
Enterprise Singapore has also sprung into action:
- Extending its Enterprise Financing Scheme-Green until 31 March 2026 to provide green financing for Singapore-based companies that develop green technologies and solutions.
- Launching a Sustainability Reporting Grant to help Singapore-based companies produce their first sustainability reports
- And have slated the introduction of a program in late 2024 to support SMEs develop projects that improve their energy efficiency
What does it mean for SMEs?
SMEs have several schemes that will bolster the ESG and transition credentials, but they won’t magically come to you. Instead, preparation is key so begin to reach out to Enterprise Singapore to understand how to participate in these initiatives
This is a five-part series looking at the opportunities for businesses across the Australia – Southeast Asia corridor. The insights are powered by Via Group: a communications agency focused on supporting international businesses with their cross-border communications needs across Asia. You can check them out at wearevia.com.
See other stories in this series
• How Singapore based SMEs can future proof against supply chain shakeups
• Moves afoot to give Singapore based fintechs a safe landing in Australia
• Unlocking talent amongst Singapore start-ups
• Renewing strategic vows: Australia and Singapore eye AI and digital transformation in 2025