S’pore firms lead the way in sustainability and employee welfare—but can they sustain it with rising costs?

SINGAPORE: As sustainability and employee wellness take centre stage in the business world, Singaporean companies are increasingly stepping up to create greener, more supportive work environments. A recent UOB report featured in a Singapore Business Review article shows that nearly half of local businesses are taking proactive steps to integrate energy-efficient practices and enhance employee well-being.

The study, conducted in January 2025, reveals that 48% of businesses prioritise resource efficiency, minimise waste, and utilise energy-efficient equipment to lower their environmental footprint. Another 40% of companies are adopting energy-saving strategies, while 35% are putting clear operational policies in place to streamline processes for sustainability.

Employee welfare is also gaining traction, with 37% of companies offering mental wellness support in the workplace and 33% actively focusing on improving overall employee well-being. These initiatives reflect the growing recognition that a healthy, engaged workforce is a cornerstone of a successful business.

However, implementing these progressive practices is not without its challenges. UOB’s survey, which reached 900 companies of various sizes across different sectors, identifies several obstacles businesses face in pursuing sustainability and employee welfare goals. Rising costs are one of the most significant barriers: 33% of companies report that higher product costs are being passed down to consumers, while 29% note a negative impact on profits. Additionally, 27% of businesses cite insufficient knowledge as a major hurdle to fully implementing these initiatives.

Awareness and resources also pose challenges, with 25% of respondents highlighting a lack of understanding and another 25% pointing to a shortage of manpower and resources to execute these important strategies.

As businesses continue to champion sustainability and employee welfare, the question remains — can they balance these priorities with the pressure of rising operational costs? While many companies recognize the long-term value of these investments, the road ahead may require innovation and strategic planning to ensure both the planet and their people thrive without compromising financial stability.