Singapore companies lagging in TNFD framework adoption, study finds

SINGAPORE: A recent study by the National University of Singapore (NUS) and luxury group Kering revealed that while 76% of Singaporean companies include nature-related issues in their sustainability reports, only 14% align with the Taskforce on Nature-related Financial Disclosures (TNFD) framework.

This disparity highlights significant room for improvement in adopting global sustainability standards.

The research found that 66% of companies identified their dependencies and impacts on nature, yet only 39% incorporated these considerations into their overall risk management frameworks.

This indicates a gap between acknowledging nature-related risks and taking concrete steps to integrate them into broader corporate strategies.

Singaporean companies have made progress in addressing nature-related risks and opportunities. Risks frequently cited include physical impacts, such as extreme weather events, while opportunities often focus on ecosystem conservation and enhancing resource efficiency.

Despite these efforts, setting measurable goals remains a challenge; only 30% of companies disclosed specific targets related to nature.

Leadership and governance on nature-related issues are mixed. Half of the companies reported board-level involvement, with management playing an active role in overseeing these dependencies.

However, the study suggests a stronger emphasis on aligning with frameworks like TNFD, which could bolster Singapore’s corporate sustainability efforts.