KPMG calls for urgent support in ESG and AI for companies before Budget 2025

On January 8, 2025, in Singapore, KPMG and the Singapore Institute of Directors (SID) published a report outlining key recommendations for the upcoming Budget 2025, focusing on the need for enhanced government support in sustainability and technology transitions for local companies. The report emphasizes the increasing necessity for businesses to develop strong sustainability capabilities and effectively utilize advancements in artificial intelligence. This initiative comes amidst growing concerns about climate change and the pressure for companies to align with environmental, social and governance (ESG) standards. The organizations suggest the creation of a centralized hub for firms to navigate ESG reporting requirements more effectively. They also advocate for clearer transparency regarding carbon tax funds, focusing on the importance of detailed disclosures that will help businesses align investments with Singapore’s climate agenda. These recommendations are expected to complement existing initiatives, including the recently launched Gprnt platform by the Monetary Authority of Singapore, which aims to automate the ESG reporting process for companies. Additionally, KPMG and SID call for more talent development efforts, including board apprenticeship programs designed to ensure effective succession planning within companies. There is a recognition that board leadership is crucial in guiding businesses to adapt to evolving societal expectations while balancing profitability and positive social impact. In response to the growing talent gap in high-demand fields such as AI and sustainability, the report suggests increasing access to micro-credentials and SkillsFuture funding for short-term certifications. The overarching goal of these recommendations is to enhance the technological competencies of businesses to encourage innovation, foster a competitive economic landscape, and ensure that Singapore’s economy becomes climate-resilient and future-ready. KPMG’s Mr. Sanganeria emphasized that these measures are vital to prepare the nation’s businesses and workforce for ongoing global challenges.