Singapore – Singapore's equity market is leading the way in green economy exposure across Asia, according to global investment research firm FTSE Russell. As of the end of December 2024, the Singapore Straits Times Index (STI) recorded a green revenue share of 10.9%, surpassing the global average of 8.6%. This figure outpaces major Asian markets including China, Hong Kong, South Korea, Thailand, Malaysia, and India.
The STI index's green revenue share has more than doubled from 4.2% in 2016, with 18 out of the 30 index constituents reporting green revenues by the end of 2024, a significant increase from just seven companies in 2016. The data is based on LSEG's Green Revenues model.
Lili Clements, Head of Applied Sustainable Investment Research at FTSE Russell, explained that Singapore's push towards a green economy aligns with its long-term development goals, including the Singapore Green Plan 2030 and the adoption of the Singapore-Asia Taxonomy for Sustainable Finance in 2023.
Notably, utilities companies such as Keppel Corporation and Sembcorp Industries are significant contributors to the STI index's green revenues through their involvement in renewable energy infrastructure projects across Asia. The real estate sector also plays a crucial role. Representing 14.9% of the STI's market capitalization, the real estate sector accounts for 70% of the index's total green revenue, primarily driven by sustainability initiatives in the built environment.
While green revenues in global markets are predominantly concentrated in the industrials, utilities, and technology sectors, Singapore's green revenue exposure is focused on the real estate and utilities sectors, reflecting the STI index's sectoral composition.
In addition, Yangzijiang Shipbuilding and Seatrium are involved in developing fuel-efficient vessels as part of Singapore's broader green shipping efforts. In the agriculture sector, Wilmar International generates green revenues through its sustainable palm oil and biodiesel businesses, while Singtel and ST Engineering are developing sustainable technologies for various industries.
These achievements indicate Singapore's significant role in driving the green economic transition in the Asian region, with its efforts towards sustainable growth yielding tangible results.
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