Pillar 3 – Corporate Sustainability Strategy

Pillar 3
Corporate Sustainability Strategy

SGFIN’s third pillar focuses on guiding firms toward sustainability strategies that are both economically viable and socially responsible. It develops decision frameworks, assesses supply chain impacts, and builds tools to enhance transparency in corporate and SME sustainability performance, while also analysing consumer behaviour and financial market responses to help firms align with evolving standards and drive meaningful change.

SGFIN research on corporate sustainability strategy delves into how firms embed sustainability considerations into strategy, governance and financial decision-making. It spans environmental and climate-related investments, organisational and managerial incentives, and the strategic implications of sustainability commitments, providing evidence on how corporate actions shape performance, risk management and long-term value creation in a changing economic and regulatory landscape.

Same-Race Voting Preferences in Director Elections

Journal Publication

J. Sulaeman, and Q. Ye. (2026) Who Do You Vote For? Same-Race Voting Preferences in Director Elections. European Corporate Governance Institute – Finance Working Paper No. 872/2023, Review of Finance, accepted. https://dx.doi.org/10.2139/ssrn.4333509

This paper highlights racial and ethnic preferences in corporate director elections. Using a comprehensive dataset of mutual fund voting records, we discover that mutual fund managers are more likely to vote for director nominees who share their racial or ethnic identity. Funds managed by White-dominated teams exhibit the strongest same-race preferences, particularly those in fund families with scarce minority representation. Same-race voting preferences have detrimental implications for the career outcomes of minority director candidates, and are associated with worse fund performance primarily when fund managers operate under weaker accountability. We investigate various potential mechanisms—including statistical discrimination, value maximization, conflicts of interest, social networks, and taste-based biases—and find that the evidence aligns most closely with a taste-based explanation for same-race preferential voting.

Closing the Sustainability Action Gap: Insights from the Singlife-SGFIN Sustainable Future Index 2026

Whitepaper

2026

The Singlife-SGFIN Sustainable Future Index (SFI) 2026 assesses sustainability motivation and action among 1,500 Singaporeans using the Awareness-Knowledge-Ownership-Action (AKOA) framework. The Index records an overall action score of 56 out of 100, revealing a gap between intention and everyday sustainable behaviour. Adoption varies across generations and sustainability areas, while Ownership, reflecting personal responsibility, values, perceived impact, and costs and benefits, emerges as the strongest driver of action.

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Sustainability Integrated Valuation Toolkit for SMEs

Whitepaper

2026

We present a simple toolkit for sustainability reporting and integrated valuation tailored to Small and Medium Enterprises (SMEs) in Singapore. The toolkit utilises the causality models that map the sustainability-related operational activities to the direct effect on company’s financial statements (“financial value”) and externalities generated (“impact value”). By systematising sustainability disclosure and impact assessment, our toolkit supports SMEs in progressing along the sustainability journey. The toolkit differs from some existing sustainability assessment frameworks/methods in three key respects. First, it incorporates an SME-oriented sustainability survey designed to streamline the data collection. Upon submission and verification of sustainability-related operational inputs, participating SMEs receive a simple and standardised sustainability statement. Second, it utilises a comprehensive set of financial proxies from the literature, government websites, well-established industry databases, and industry research to establish evidence-based linkages between operational activities and measurable impacts. Third, the integrated value statement that incorporates both financial values and impact values of the sustainability drivers can provide managerial insights for SMEs to make better decisions in sustainability initiatives.

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Financial Disclosures & Corporate Sustainability

Journal Publication

Jing, C., Xu, B. & Zuo, L. (2026). Do financial disclosures affect corporate sustainability practices? Journal of Accounting & Economics, 101901, ISSN 0165-4101. https://doi.org/10.1016/j.jacceco.2026.101901

We examine whether financial disclosures affect firm sustainability practices. Using mandatory segment reporting in the United States as the setting, we find that disclosing financial information about previously hidden segments in polluting industries reduces toxic emissions from firm plants. This effect is consistent with the notion that segment disclosures enhance monitoring of firm pollution by highlighting the financial materiality of polluting segments and drawing stakeholders’ attention to their environmental impact. The effect is stronger when the newly disclosed segments are more polluting. Disclosing firms achieve this reduction by implementing better pollution prevention practices, reducing waste generation, and increasing green innovation. Overall, our study highlights the role of mandatory financial disclosures in shaping corporate practices beyond the scope of the disclosed information.

Understanding Net Zero Commitments by Singaporean Firms

Whitepaper

David C. Broadstock | Sean Shin | Weina Zhang | Johan Sulaeman

2026

As Singapore advances toward its national goal of net zero emissions by 2050, understanding how listed companies in Singapore are responding is critical for investors, policymakers, and businesses alike. This whitepaper provides a comprehensive, evidence-based assessment of net zero commitments made by Singapore-headquartered listed firms, based on detailed manual screening of annual and sustainability reports.

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Rethinking Value Creation in Building Sustainable and Regenerative Cities

Industry Publication

Zhang, W., Or, F., Zhang, F., & Jefferson. (2025). Rethinking value creation in building sustainable and regenerative cities. Urban Solutions, 27, Centre for Liveable Cities. https://isomer-user-content.by.gov.sg/50/4219c964-8255-4fd4-8ffa-c0c2340285f8/Issue27%20-%20Essay_Cross-System%20Relationships_Weina%20Zhang.pdf

Sustainable Consumption

The research on water and electricity consumption focuses on Singapore policies and households, and examines how environmental risks and relevant public policy, specifically price announcements and subsidies on water and electricity consumption, impact conservation efforts by households. Emphasizing the importance of calibrated information provision, particularly for vulnerable socio-economic groups, the research guides the public and policymakers toward more effective behaviours and strategies for balancing environmental conservation with societal and economic well-being.

Our commitment to a holistic understanding of sustainable consumption extends to the real estate market. The research examining the consequences of environmental punishments on housing prices sheds light on the delicate balance between regulatory measures, public awareness, and property values. These insights contribute to shaping sustainable urban development strategies that consider the nuanced relationships between regulatory interventions and societal responses in the climate change era.

In our latest endeavour, SGFIN is developing the Consumer Carbon Scorecard, with the aim of empowering individual consumers to consume more sustainably with insights into the carbon emissions linked to their consumption of goods and services. By estimating each individual consumer’s carbon footprint and establishing a benchmarking system for their carbon usage relative to their peers, the research aims to enhance carbon literacy among end consumers, raise public awareness on climate actions, and promote sustainable lifestyle choices, thereby advancing long-term sustainability.

Case Studies

Greenpac Singapore: Doing Good in a Sustainable Way

Weina Zhang, Samantha Sue Yen Ho, Lorraine Chian Wey Tan, Mengjing Xu and Chunyu Yang
25 October 2021, IVEY Case No. 9B21N008

Greenpac (Singapore) Private Limited (Greenpac) was a green packaging solution provider, aimed to become a world-class knowledge-based company that offered innovative and environmentally friendly packaging solutions. Greenpac was also a champion of corporate social responsibility (CSR), advocating for environmental sustainability and social issues. The case will allow students to: 1) analyze the environmental and social impact of a leading small and medium enterprise (SME) in Singapore; 2) apply three published sustainability frameworks to evaluate the impact of CSR in an SME; 3) using survey results, analyze the challenges SMEs face when conducting CSR initiatives; and 4) provide a sustainable strategy for an SME for effective CSR initiatives with better employee engagement.

SingTel: Philanthropic or Strategic Corporate Social Responsibility?

Weina Zhang, Ruth S.K. Tan, Shirley Jing Min Lim, Joan Jia Xin Loke, Wei Lim and Su Yuan Liow
18 June 2019, IVEY Case Publishing No. 9B19M053

In 2014, the vice-president of Group Corporate Social Responsibility at Singtel, a Singapore-based provider of telecommunications products and services, was scrutinizing his proposal for the company’s corporate social responsibility (CSR) transformation. He wanted to reposition Singtel’s CSR approach to create greater social impact while demonstrating greater benefit to the company beyond promoting its branding and reputation. Students will be able to acquire skills in formulating a comprehensive and strategic CSR framework that aligns well with both the external market trends and the fundamental values of the organization. These change management skills will prepare students for the diverse challenges of a dynamic work environment that is more demanding in value creation of CSR activities.