A Strong Majority of Singaporeans Believe Integrated Reporting Enhances Decision-Making and Financial Performance

A recent survey conducted by Workiva, the 2024 ESG Practitioner Survey, reveals that 97% of Singaporeans believe integrated financial and sustainability reporting improves decision-making and enhances financial performance. This finding indicates strong local support for transparency in corporate reporting, which combines financial data with sustainability metrics.

The survey shows that Singapore outpaces the global average in terms of belief in the positive impact of good financial reporting on businesses. Moreover, 96% of respondents reported prioritizing Environmental, Social, and Governance (ESG) reporting more than in previous years, reflecting a growing emphasis on corporate responsibility.

Paul Dickinson, a member of Workiva’s ESG Advisory Council and Founder Chair of CDP, highlighted that evolving regulations are driving innovation in corporate reporting, making integrated financial and sustainability reporting the new standard. He underscored how this shift demonstrates the adaptability of practitioners in a rapidly changing environment focused on corporate transparency. However, Dickinson also noted that while confidence in data collection is high, regulatory compliance remains a significant challenge for many companies.

Despite the enthusiasm for integrated reporting, challenges remain. A significant portion of respondents (73%) expressed concern about the need to comply with the upcoming Corporate Sustainability Reporting Directive (CSRD). However, 79% of respondents anticipate difficulties in collecting accurate data to meet these new requirements. Additionally, 92% of Singaporean businesses are worried about their ability to collect and distribute information effectively across their value and supply chains.

Looking ahead, Singaporean companies are preparing to invest in technology and digital transformation to better handle ESG reporting. An impressive 96% of firms plan to allocate additional budget to ESG initiatives, while 87% are investing in digital projects to improve collaboration between reporting teams. This proactive approach signals the country’s readiness to adapt to the evolving landscape of corporate transparency and sustainability reporting.