Small and medium-sized enterprises in Singapore are lagging behind their larger peers when it comes to sustainability, a new study by Gprnt and PwC Singapore has found.
The 2025 SME Sustainability Barometer, supported by the Singapore Business Federation (SBF) and the Sustainability Alliance (SA), found that the majority of SMEs cite limited financial resources, technical capacity, and time as the main obstacles to kickstarting their sustainability journey.
The survey of more than 560 SMEs across 19 sectors also found that more than 70% of businesses have not accessed any form of government assistance or available support, despite the widespread availability of various schemes.
Business strategy
“We must enable SMEs to view sustainability not as a cost to bear, but as a business strategy for securing their place in the carbon constrained economy of the future.” said Ravi Menon, Singapore’s ambassador for climate action.
“Environmental sustainability will become an increasingly important driver of competitiveness and new growth, as climate change intensifies in the years and decades ahead. Supply chains and customers have begun to prioritise companies that demonstrate credible climate action and will increasingly do so. Going green is not about compliance – it is about staying relevant and resilient.”
‘Hard to justify’
Other findings from the study include that more than half of SMEs find sustainability ‘hard to justify’ due to tight operating margins, while three quarters state that they lack the technical know-how to translate sustainability into concrete action plans.
In addition, more than 40% said that limited availability of time and resources, compounded by rising economic pressures, prevents them from having the headspace necessary to embark on a sustainability journey.
“Nearly three-quarters of Singapore’s SMEs have yet to tap available sustainability support,” added Lee Bing Yi, financial services assurance, sustainability and climate change partner at PwC Singapore.
“Closing this gap is critical to help them start and sustain their green journey – a key objective of this study. Through collective action and a coordinated ecosystem approach, we can lower barriers and build a compelling business case for SMEs to take action.” Read more here.
