Why is ESG & Sustainability important for a business in Singapore? Reason For Considering A Career In Sustainability

25 September 2024

What is ESG & Sustainability?

In today's business landscape, understanding ESG and sustainability is crucial for anyone considering a career in this field. ESG stands for Environmental, Social, and Governance, which are three key factors used to measure a company's sustainability and societal impact. Here's a closer look at each component:

Environmental factors consider a company's impact on the natural world, including carbon emissions, waste management, and resource conservation.
Social factors: examine a company's relationships with its employees, customers, suppliers, and the communities in which it operates. This includes diversity and inclusion, labor practices, and community engagement, all of which fall under the umbrella of social responsibility.
Governance factors: assess a company's leadership, executive pay, audits, internal controls, and shareholder rights, ensuring transparency and accountability. This aspect is integral to understanding corporate responsibility and sustainability.

What Is Sustainability in Business?

Sustainability in business refers to the practice of creating long-term value by considering the environmental, social, and economic impact of business decisions. This holistic approach aims to balance profit-making with corporate sustainability.

Sustainability encompasses a wide range of issues, such as climate change, resource scarcity, social inequality, and corporate governance. These factors can have significant implications for a company's operations and financial performance.

Why is ESG & Sustainability Important for a Business?

Integrating ESG and sustainability practices into a business model can yield numerous benefits, making it a critical consideration for modern enterprises. ESG and sustainability are crucial for businesses as they manage risks, improve efficiency, attract talent, and enhance brand reputation. By incorporating these practices, companies can mitigate financial risks, reduce costs, appeal to a conscious workforce, and build stronger customer loyalty. Here's why it's essential:

Risk Management
It helps manage risks such as climate change, resource scarcity, and social unrest, which can have significant financial implications. By adopting corporate sustainability measures, businesses can better anticipate and mitigate these risks.

Operational Efficiency and Cost Savings
Sustainable businesses often experience improved operational efficiency and cost savings through resource conservation, waste reduction, and energy efficiency initiatives.

Attracting and Retaining Talent
Implementing ESG and sustainability practices can help businesses attract and retain top talent. Employees today increasingly seek to work for companies that demonstrate strong social responsibility and environmental values. Thus, corporate responsibility and sustainability become key factors in recruitment and employee satisfaction.

Brand Reputation and Customer Loyalty
Sustainable companies often enjoy better brand reputation and customer loyalty as consumers become more conscious of the environmental and social impact of their purchases.

Sustainability Trends & Why You Should Consider a Career in Sustainability

The field of sustainability is not only expanding rapidly but also becoming integral to various industries. Sustainability is a booming field with high demand for professionals. A career in sustainability allows you to align your values with your work, contributing to positive change while advancing your career. Diverse opportunities exist across industries, from traditional environmental roles to leadership positions in supply chain, product development, and strategic planning. Here’s why you should consider a career in ESG and sustainability:

Growing Demand for Sustainability Professionals:
According to the Skills Demand for the Future Economy 2023/24 report, the job market for sustainability professionals in Singapore is expanding significantly. The report highlights that roles in the green economy, including sustainability specialists and environmental engineers, are among the top emerging jobs. This surge reflects the high demand for professionals skilled in sustainability and management. [2]
Aligning Personal Values with Professional Goals
Pursuing a career in sustainability allows professionals to align their personal values with their work, contributing to positive environmental and social change while building a rewarding career. For example, a sustainability manager in a major retail company might oversee the development of sustainable product lines or implement green supply chain practices that reduce environmental impact and enhance efficiency. This integration of sustainability and management skills positions professionals to influence strategic decisions and drive organizational success.
Diverse Career Opportunities and Leadership Roles
As sustainability becomes increasingly integrated into business decision-making, professionals with sustainability expertise are well-positioned for leadership roles and career advancement. Opportunities extend beyond traditional environmental protection roles to include areas such as supply chain management, product development, and corporate strategic planning. For instance, a sustainability manager might develop strategies to reduce a company's carbon footprint, while a supply chain analyst could ensure ethical sourcing practices.

What Are the Emerging Sustainability Roles in the Job Market?

The sustainability trend is shaping the future job market, making working in sustainability a promising and impactful career choice. As sustainability becomes integral to business strategies, understanding which jobs are most in demand in Singapore can guide career planning for those looking to make a difference. Here are some of the fastest-growing sustainability positions. [1]

Sustainability Specialists is on the top of the list of fast-growing jobs, with a total growth of approximately 1 million of jobs in 5 years.
Jobs in renewable energy and those related to climate change mitigation are expected to grow quickly as well, for example, Renewable Energy Engineers and Solar Energy Installation and System Engineers.
The same holds true for Sustainability Specialists and Environmental Protection Professionals that are expected to grow by 33% and 34% respectively, translating to growth of approximately 1 million jobs.

For those aspiring to build a career in ESG and other sustainability roles, specific skills and qualifications are essential:

Educational Background: Degrees in environmental science, engineering, sustainability, or related fields are often required.
Professional Skills: Key skills include project management, data analysis, regulatory compliance, and technical expertise in renewable energy technologies.
Experience: Practical experience through internships, volunteer work, or previous roles in sustainability projects is highly valued.

Sustainability Courses Offered at SIM

For those looking to enhance their knowledge and skills in sustainability, SIM offers a range of comprehensive courses designed to equip professionals with the necessary expertise to drive corporate sustainability. Here are some of the key courses available:

SIM’s sustainability courses are tailored to meet the growing demand for professionals skilled in sustainability in business. By enrolling in these programmes, you can gain the knowledge and practical skills needed to drive sustainable initiatives within your organization and stay ahead of the sustainability trend. Whether you are looking to develop a solid foundation in ESG and sustainability or specialize in specific areas like carbon footprint management and circular economy practices, SIM offers the right courses to help you achieve your career goals.

Sources:
[1] World Economic Forum, Future of Jobs Survey 2023
[2] SSG’s Skills Demand for Future Economy report https://www.skillsfuture.gov.sg/skillsreport