More firms aware lack of focus on sustainability hurts bottom line

78% of small firms in survey lost existing or potential business due to emission demands

- Sue-Ann Tan

Just a few years ago, some companies were under the impression that employing sustainable practices would come at a cost to business.

But more firms are now realising that the lack of sustainability is actually hitting them where it hurts the most their bottom lines.

Companies that neglect sustainability may face various risks and challenges that ultimately impact their financial success, including reputational damage, limited access to capital, and non-compliance with regulations.

Said Mr Kim Yoon Young, Schneider Electric's cluster president for Singapore and Brunei: "Businesses failing to meet stringent greenhouse gas emission measures risk facing significantly reduced business prospects." However, smaller companies often encounter challenges in meeting sustainability requirements, especially those that are in the business of supplying goods to larger firms, or global or European Union-based firms, which are known for their stringent greenhouse gas emission standards, Mr Kim said.

According to a May 8 survey by Schneider Electric, 78 per cent of business leaders from small companies said they have lost either existing or potential new business due to stringent greenhouse gas emission demands.

The survey included over 500 senior business leaders in Singapore who are involved in leading the sustainability strategies for their organisations, which range from small firms to large multinational corporations across various industries.

Hence, Schneider Electric is working with organisations to help firms on their sustainability journey, such as through its partnership with Enterprise Singapore to launch a kick-starter decarbonisation plan for small and medium sized enterprises.