Singapore leads in sustainability goals but tech adoption lags

The recent "Tech-Driven Sustainability Trends and Index 2024" report by Alibaba Cloud highlights the sustainability landscape among businesses in Singapore.

The report reveals that Singapore leads the surveyed markets with a sustainability index of 91%, indicating the highest percentage of businesses with established sustainability targets. Despite the high establishment rate of sustainability goals, more than half of these businesses, accounting for 53%, still depend on manual methods like spreadsheets and emails to track their progress.

The study surveyed businesses across Asia, Europe, and the Middle East and found that Singaporean companies are heavily motivated by regulatory compliance. A significant 68% of businesses cited regulations as a primary driver for setting sustainability targets, alongside directives from global headquarters and the potential for growth, both motivating 53% of the respondents.

While the enthusiasm for sustainability targets is apparent, with 91% of businesses having set goals, only 30% of Singaporean businesses have committed to science-based net-zero targets. Of those with sustainability targets, nearly all (98%) have set emissions reduction targets.

A substantial 86% of Singaporean businesses recognise the critical role of technology in achieving global sustainability goals. A belief shared by 81% of businesses is that the adoption of digital technologies such as cloud computing and artificial intelligence can accelerate progress. Singapore demonstrates significant adoption of digital solutions, with 48% using cloud platforms for tracking sustainability performance, which is notably higher than the average usage of 38% reported across all surveyed regions.

The report also sheds light on the barriers organisations face in meeting their sustainability targets. Chief among these are inaccurate or overly ambitious targets, as noted by 31% of businesses, followed closely by technological limitations at 30% and budget constraints affecting 27% of respondents. Time constraints, complex supply chains, and financial limitations are significant barriers for businesses yet to set sustainability targets.

Selina Yuan, President of International Business at Alibaba Cloud Intelligence, commented, "The survey findings underscore the urgent need for organisations to reassess their sustainability measurement methodologies and embrace advanced technological solutions like cloud-based platforms and AI services. These digital tools not only streamline the measurement process but also provide actionable insights that can drive meaningful progress for sustainability."

Yuan further expressed the company's commitment, saying, "As a dedicated cloud service provider, we are committed to providing innovative and AI-powered solutions such as Energy Expert to enable enterprises to effectively measure and analyse carbon emission and energy consumptions to advance their sustainability goals. By addressing existing barriers and investing in such advancements, organisations can better align their sustainability initiatives with established targets."

Alibaba Cloud's report provides a comprehensive view of the current state of sustainability efforts among companies and underscores the pivotal role that technology plays in driving forward these initiatives efficiently.