Only 38% of Singapore's largest 100 firms link exec pay to green goals

Survey shows this is lower than the 67% in 2022 but ahead of the global average of 30%

Only 38 per cent of the largest 100 companies in Singapore have tied the remuneration of their executives to the achievement of sustainability goals, a survey by KPMG has found.

While this was ahead of the global average of 30 per cent, it was lower than the 67 per cent figure in 2022, the professional services firm noted in a Nov 28 statement.

The decline could be a reflection of company boards exercising caution around disclosure, particularly as climate-linked remuneration becomes a disclosure requirement under the new reporting framework developed by the International Sustainability Standards Board (ISSB).

This has prompted strategic recalibrations, said Ms Cherine Fok, a partner of ESG Consulting at KPMG in Singapore.

The Singapore Exchange has mandated that listed companies report their climate- or sustainability-related disclosures in line with the ISSB framework from financial year 2025, though this rule excludes Scope 3 emissions.

Such emissions arise from a company's supply chain, rather than from its operational activities (Scope 1) or its purchase of electricity (Scope 2).

Nonetheless, corporates in the Republic still outperformed their global peers in sustainability reporting, KPMG's survey of sustainability reporting in 2024 has found.

Companies here exceeded the global averages in six out of 12 key indicators.