The global pandemic has accelerated the call for societal change and added further scrutiny from stakeholders on businesses and their leaders. 72 per cent of CEOs in Singapore say they have had to re-evaluate their organisations’ purpose as a result of COVID-19.
In the face of the pandemic, leaders have put aside the relentless pursuit of growth, to spend time relooking at the purpose of their businesses. An intangible attribute that arises from the alignment of purpose is trust. Trust strengthens brand loyalty, and in circumstances such as a pandemic, this trust can be the key differentiator for who can emerge from the crisis faster.
A climate for change
The government’s plan to transition into a green economy will position the nation as a key player in the green recovery. CEOs in Singapore recognise that managing climate risks is a leadership priority. Climate risks increasingly play a critical role given the risk exposure to organisations’ operations directly or via their supply chain. A failure to understand and manage climate risks can potentially impact businesses in categories such as operational credit, liquidity or counterparty risks.
Traditional risk approaches may not adequately address climate-related exposures as the repercussions usually impact over the long-term, with Year 2030 or 2050 commonly applied as timeframes.
Taking personal responsibility
The Government’s plan to transition into a green economy will position the nation as a key player in green recovery, allowing it to build upon strong foundations and its 5G digital strategy to continue attracting capital and talent for competitive advantage. Mitigating climate risks has also evolved into a personal responsibility for business leaders in Singapore. 60 per cent of CEOs feel that their ability to manage climate-related risks will ultimately determine whether they keep their jobs over the next five years.