SINGAPORE: Businesses in the city-state, alongside Thailand, have emerged as leaders in driving sustainability across the ASEAN region, with 32% of companies reporting year-on-year improvements in their sustainability initiatives, according to a new report by Kyndryl published by the Singapore Business Review.
This marks a significant step in the region’s commitment to addressing environmental concerns, with companies increasingly recognizing the importance of sustainability in their operations.
A growing momentum
The report highlights that, across ASEAN, 26% of organizations have ramped up their sustainability efforts over the past year, signalling growing momentum towards environmental responsibility.
However, despite these advances, the report also reveals some important gaps in how technology is being utilized to support these efforts.
Currently, only 28% of ASEAN businesses are fully leveraging technology to advance sustainability, falling short of the global average of 40%.
While many organizations in the region have prioritized sustainability within their strategic goals, the adoption of technology to track and implement these objectives is still in its early stages.
Technological gaps
In particular, the report notes that only 22% of companies recognize the dual role of technology in both reducing carbon footprints and advancing broader sustainability efforts.
The majority of businesses appear to be focusing primarily on internal impacts, such as server virtualization, rather than using technology to drive more comprehensive, outward-facing sustainability initiatives.
While the integration of sustainability goals into existing reporting processes is widespread, with 75% of businesses reporting alignment, there is a striking disconnect when it comes to leveraging data for strategic decision-making.
Just 4% of organizations report fully utilizing sustainability data in their planning and operations, revealing a significant opportunity for improvement.
The report also explores the growing role of artificial intelligence (AI) in driving sustainability initiatives, with 37% of businesses acknowledging that AI will play a crucial role in achieving their environmental goals.
However, this potential is tempered by the challenges faced by 54% of organizations in measuring the environmental impact of AI itself, pointing to the complexity of aligning cutting-edge technology with sustainable practices.
While ASEAN businesses, particularly in Singapore and Thailand, are making notable strides in sustainability, there remains much to be done.
The region faces significant challenges in fully embracing technology to optimize sustainability efforts, and businesses must work to overcome these barriers to make a more substantial impact on both the environment and their long-term strategic objectives.