A QBE study has found that fewer Singapore small and medium-sized enterprises (SMEs) are conducting environmental, social, and governance (ESG) initiatives.
Despite 76% considering ESG relevant to their business, only 52% are implementing these initiatives annually.
The study showed a 7% drop since 2021, with cost named as the main obstacle by 32% of the participants.
There’s also a rising concern about worsening workplace safety and health (WSH) performance.
The number of SMEs reporting workplace incidents has increased by 8% since 2021.
Ronak Shah, QBE Singapore CEO, warned that ignoring the necessity of sustainability initiatives could expose SMEs to risks in labour conditions, brand reputation, and customer loyalty.
Amidst these challenges, environmental preservation remains the primary initiative for 54% of the SMEs surveyed, while 38% acknowledged climate change’s impact on consumer demand for eco-friendly products.