Six in 10 firms create new business segments to capture climate gains

Nearly all are adopting ISSB standards to attract investor interest.

Six in 10 business leaders of SGX-listed companies said their organisations have identified new business opportunities and created new business segments in response to climate change.

Over half of the respondents reported pursuing partnerships and mergers or acquisitions with climate-focused companies to build internal capabilities, according to a Schneider Electric report supported by SGX RegCo.

Key opportunity areas include renewable energy implementation, the supply of sustainable products and services, climate technology and related digital solutions, infrastructure and urban planning, and green finance.

In line with this, the majority (90%) have begun work to adopt the IFRS Sustainability Disclosure Standards (ISSB Standards), which require companies to disclose sustainability-related financial information.

More than half of respondents said adoption of the ISSB Standards is expected to help attract investors.

"Ultimately, investors want quality disclosures that are robust, comparable and useful for their investment decisions," said Eliza Tan, Head of the Sustainable Development Office and IPO Admissions, SGX RegCo.

Other anticipated benefits include establishing a clearer baseline for sustainability measurement and reputational improvements.

Meanwhile, internal skills gaps were identified as the main challenge to adoption (55%). Other barriers included high implementation costs (52%), data gaps (43%), and skills gaps amongst external service providers (42%).