ESG is not just important for multi-national companies (MNCs), in fact small and medium enterprises (SMEs) should realise how big of a role ESG plays in sustainable brands. Starting 2025, large listed companies in Singapore will have to complete their mandatory climate reporting. With phases already planned for large non-listed companies in the near future, it is good for SMEs to start observing how they can incorporate ESG guidelines into their business and operations before they are rushed for it! We’ll look at how SMEs can begin their journey by bringing brand and sustainability together to become an impactful sustainable business.

In this blog, we’ll explore 4 inspiring SMEs in Southeast Asia that have successfully integrated ESG principles through sustainability initiatives and the valuable lessons we can learn from them.

SMEs should focus on sustainability and brand reputation

While SMEs in Singapore don’t need to be ESG compliant and start reporting on it now, it is good for them to start taking steps to be a more sustainable brand. Why do you say brands need to focus on sustainability? Researchers from NYU Stern in 2021 have found that corporate sustainability initiatives seem to enhance financial performance by fostering better risk management and driving greater innovation.

Closer to home, Professor Lawrence Loh, Director of the NUS Centre for Governance and Sustainability, said that compliance requirements will not only help businesses lower risks such as changes in consumer and investor expectations, but also help them “see where they are being inefficient in their energy use or supply chains, and rectify it”. Minding ESG compliance can further help their financing, marketing and even supply chain management in the long run. Further, he added that SMEs should also note that “some investors cannot invest in firms without clear environmental, social and governance (ESG) metrics.”

Are you an SME looking for more reasons why ESG can benefit and boost your company’s business and brand? We’ve got more for you to explore here.

Are consumers shopping for sustainable brands?

Some sustainable brands may be a bit pricier now, and this is due to the market still trying to expand its R&D on producing and delivering more sustainable products. After all, creating steps to assure that your brand continues to be sustainable may require some investments, as brands look toward specialised manufacturing process and alternative materials.

Yet, consumers care about ESG-friendly brands. A 2020 Consumer Sentiment Survey by McKinsey US found that when asked if they care about buying environmentally and ethically sustainable products, most consumers said yes. Think about it—when a product comes in eco-friendly packaging, consumers don’t have to worry as much about the 3Rs (reduce, reuse, recycle) and feel better about their purchase. In the UK, around 60% of consumers also dedicate time each month to learn how they can shop more sustainably.

More interesting, the research also showed that over 60% of consumers are willing to spend a bit more on products with sustainable packaging. In Singapore the younger generations have a stronger urgency to be more sustainable and green too, and they want to start now. Research purports that Millennials and Gen Zs in Singapore are more willing to pay more for sustainable products and brands even. Helping things along is the convenience online shopping brings, making it easy for us to purchase from sustainable brands with a good reputation from everywhere in the world. (However, to keep things greener it is always better to shop local!)

4 sustainable brands that are setting an example

Companies should start to note that brand and sustainability goes hand-in-hand. Here are 4 brands that I love that have shown that branding and sustainability can go well together. Taking steps to be more sustainable will eventually help them when the reporting is due. At the same time, they show fans like me how to take steps to be more sustainable myself, giving me more opportunities to be greener.

1. Née Vintage

Née Vintage sources 2nd-hand or pre-loved items and gives them a 2nd life—from bags and clothes to jewellery. More and more consumers today are looking to shop more mindfully. I don’t know about you, but seeing the younger generation bring back low-rise jeans and crop tops is a bit terrifying. Though it’s also a great reminder that we don’t have to follow every trend and can shop more consciously instead. This explores how sustainability and brand reputation goes a long way, when the brand shows governance in consumer’s trust. With tens of thousands of social media followers, Née Vintage has built a thriving community through its online platforms. Hundreds of consumers regularly join their TikTok Lives to shop, building a strong relationship with their community.

Beyond promoting sustainable shopping, Née Vintage also does a great job engaging with their audience. They keep stakeholders involved and continue hitting marketing sweet spots, like selling through TikTok Live. This not only boosts visibility but also supports good governance. By being transparent, responsive, and building trust with their community through open, real-time interactions.

2. From This Island

From This Island is an Indonesian beauty brand that is vegan, clean and halal, creating products that is inclusive. Their skincare products use exclusive ingredients found only in Indonesia. This makes them more sustainable than brands that rely on sourcing from multiple regions. Such practices often aren’t viable in the long term. From This Island also gives back to the communities where their ingredients are sourced. Providing funds for the local communities to educate the importance of their surroundings and empowering the local community.

Social factors (ESG) are now seen as essential for ensuring long-term business growth and sustainable practices. From ensuring that the supply chain of the product, establishing that the ingredient in the products are both safe for the consumers and also the environment. From This Island have shown that as a sustainable brand, they have created confidence in their consumers that there is a long-term impact from their purchases.

3. Outfyt

When you hear “bowls and bras” in the same sentence, you might picture the seashell tops mermaids wear — right?

Now, you can channel that same sustainable style Ariel had under the sea, but for your workouts! Activewear made from recycled materials lets you shop guilt-free while staying eco-conscious. And hey, maybe you’ll be inspired to walk instead of drive in your new outfit—every step counts. Certified by the Global Recycle Standard (GRS) and Global Organic Textile Standard (GOTS), these products carry a meaningful past and a promising future. It is also important that the sustainable brands also have partners in their supply chain with the same ethos. This establishes that the sustainable brand also governs their resources also follows ESG guidelines. It’s important to remember that buying products made from recycled materials can impact climate, water, waste, and even social sustainability.

Plus, your purchase supports Healthy Seas, a non-profit working to restore cleaner, waste-free oceans.

4. UnPackt

UnPackt is a pioneer in zero-waste retail, championing a more conscious and sustainable way of living. As Singapore’s first packaging-free grocery store, UnPackt encourages consumers to bring their own containers and buy only what they need—reducing food and packaging waste in the process. Their business model supports environmental sustainability and fosters social responsibility by educating communities on low-waste living through transparent practices and ethical sourcing. UnPackt proves that small daily habits can lead to meaningful change—one refill at a time.

How your brand can start being ESG friendly!

Consumers are being realistic—they’re not expecting brands to tick every box when it comes to sustainability. Taking small steps, like switching to more eco-friendly packaging is already a move in the right direction. Since ESG regulations requires brands to prove that they are sustainable too, why shouldn’t SMEs focus on shifting to be more sustainable first? Sustainable brands in Singapore is starting to boom with demand from younger consumers, making it a good choice for more SMEs to shift as well!

Trying to follow all the ESG guidelines on your own isn’t easy. There are multiple steps to take—from paperwork to government grants you might not even know exist. But by starting small, SMEs can begin their sustainability journey in manageable ways. Sustainability consulting firms in Singapore will also help with providing research on SME grants in Singapore. Lifting the weight off some of the costs that SMEs might worry about to take the step. Once progress is made, they can start communicating their efforts. After all, how else will consumers know what’s been done? And if it all feels too overwhelming, marketing agencies are here to help make that journey smoother.