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Cost continues to trump sustainability for Singapore SMEs, despite nation's net zero goals

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Cost continues to trump sustainability for Singapore SMEs, despite nation's net zero goals
Business

Business

Cost continues to trump sustainability for Singapore SMEs, despite nation's net zero goals

2025-10-21 09:30 Last Updated At:09:45

SINGAPORE, Oct. 21, 2025 /PRNewswire/ -- A new survey by Flo Energy, Singapore's largest independent renewable electricity retailer, reveals that cost savings remain the top driver for small and medium enterprises (SMEs) when choosing or switching electricity retailers — far ahead of sustainability, despite Singapore's national commitment to the Green Plan 2030.

Flo's SME Renewable Energy Insights Survey found that across all respondents, nearly two-thirds (62%) said price is the most important factor when selecting an energy provider, compared to just 15% who named sustainability. Yet, more than half agreed that sustainability is "quite important" in their wider business decisions. When it comes to switching behaviour, the gap is even clearer: only 13% of SMEs who switched retailers said they did so for sustainability reasons, with most driven by price, reliability of supply and service.

SMEs key to Singapore's sustainability push

SMEs make up over 99% of Singapore's businesses[1] and are critical to the nation's green transition. However, as highlighted in a report[2] by the Organisation for Economic Co-operation and Development (OECD), most small firms face persistent barriers to decarbonisation, such as limited awareness and financial resources, and the complexities of navigating green incentives.

This makes it challenging for SMEs to embark on a more sustainable path. As observed in the survey, sustainability rose sharply to second place — just behind faster service and technical support — when respondents were asked what improvements they wanted from their current retailer. This suggests that while cost drives switching decisions upfront, SMEs increasingly expect greener commitments once they are onboard.

"Singapore has a clear roadmap to reach net zero by 2050, but our research shows that many SMEs are still putting cost ahead of sustainability," said Flo CEO Matthijs Guichelaar. "The good news is that sustainability is increasingly seen as an area for improvement, which shows growing awareness and demand. This is an opportunity for providers like Flo to help SMEs align their business choices with national climate goals."

Summary of key findings:

  • Cost continues to outweigh climate goals: Nearly two-thirds (62%) of SMEs say price is the most important factor when choosing an electricity retailer, compared to just 15% who cite sustainability. This cost-first mindset highlights a key challenge in Singapore's green transition.
  • Short-term savings drive switch behaviour: Only 13% of SMEs who switched energy providers did so for sustainability reasons. Most changed retailers for promotions, contract expiry, or flexible terms, suggesting that short-term savings continue to trump longer-term environmental considerations.
  • Awareness remains a major hurdle to adoption: While 45% of SMEs have considered renewable energy, more than half remain unfamiliar with Renewable Energy Certificates (RECs). Among switchers, awareness is higher, showing that education and exposure can accelerate green adoption.
  • Systemic barriers persist for smaller businesses: High upfront costs and the lack of information are the most cited reasons SMEs avoid renewables. These barriers echo global trends identified by the OECD that smaller businesses will only 'green' faster when cost, capability, and complexity barriers are removed.

Against the current climate crisis, this survey highlights the need for greater SME support as a key factor to Singapore's net zero 2050 aspirations. This presents both an opportunity — and responsibility — for electricity to meet customer energy needs.

About Flo Energy Singapore

Flo Energy Singapore is the country's fastest-growing and largest independent electricity retailer on a mission to switch as many people as possible to affordable, renewable solutions. Part of Flo Holding, Flo expanded its reach in 2024 with the launch of Flo Energy Australia. Flo's robust in-house tech infrastructure allows Flo to keep costs down and share the savings with customers, while Flo's local support team provides a seamless customer experience. Beyond supplying renewable electricity, the company also helps businesses harness solar energy and optimise their operations with smart energy management and metering solutions.

Media contact
Gindelin Low
+65 9668 9469
gindelin@museandmotif.com 

[1] SingStat 2024 – Singapore Economy

[2] OECD 2021 – No Net Zero Without SMEs

[1] SingStat 2024 – Singapore Economy

[2] OECD 2021 – No Net Zero Without SMEs

 

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

Cost continues to trump sustainability for Singapore SMEs, despite nation's net zero goals

Cost continues to trump sustainability for Singapore SMEs, despite nation's net zero goals

  • New framework brings together Aon's Risk Capital and Human Capital data with public sentiment analysis from Gallup to create a portfolio view of risk
  • Creates further clarity into how risks compound across four megatrends, how resilience is built and activated and where targeted actions can most effectively influence performance
  • DUBLIN, Jan. 16, 2026 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, announced today that it is releasing insights from a new, data-driven tool to help organizations build sustainable resilience and unlock growth: Aon's Resilience Quotient.

    Developed in collaboration with Gallup, Aon's Resilience Quotient responds to a critical insight: in a time of increasing populism and fragmented sources of information, quantitative data alone is not enough to make long-term decisions. Combining public sentiment on global issues with risk and people data and analytics enables greater clarity and confidence to invest and grow amidst uncertainty and volatility.

    By integrating Aon's proprietary Risk Capital and Human Capital analytics with the results of Gallup's World Poll covering 140 countries for more than 20 years, the firm's Resilience Quotient captures both objective conditions and subjective sentiment, revealing where sentiment signals hidden risks and potential opportunities to achieve greater resilience. This system-level view enables leaders to spot emerging risks sooner, prioritize resilience investments and move from reactive risk management to proactive decision-making.

    "When making decisions around investment, workforce or managing geopolitical risk, a portfolio view is far superior to a siloed perspective," said Greg Case, president and CEO of Aon. "Understanding sentiment can be an opportunity signal or an early warning. Leaders who are limited to only some of the relevant metrics risk missing the signals that matter most. Aon's Resilience Quotient delivers an integrated view to help organizations act decisively, strengthen resilience and unlock sustainable growth."

    Four interconnected megatrends – Trade, Technology, Weather and Workforce – are reshaping the global operating environment in ways that traditional models struggle to anticipate. Aon's Resilience Quotient provides a clearer view of the tradeoffs within these interactions: how trade volatility can amplify technology risk, how climate pressures influence workforce mobility and how sentiment can either reinforce resilience or heighten operational risk, even when the fundamentals appear strong.   

    To illustrate the insights from its Resilience Quotient, the firm published three case studies addressing some of the most relevant and urgent issues facing the 2026 global economy:

    • Realizing the Opportunity of AI: Securing Data Center Growth
      Data centers are the backbone of the digital economy and with nearly $1.3 trillion projected to be invested globally in data centers by 2030, their rapid expansion brings unprecedented risks. Aon's Resilience Quotient shows that resilience varies sharply at the sub-national level, often more than underlying risk. Within the U.S., Iowa emerges as the most resilient destination for data center development, combining very low overall risk with exceptionally strong trade and weather resilience.

      "Aon's Resilience Quotient shows that Iowa's resilience–risk balance is roughly twice the national median, demonstrating how governance quality, institutional confidence and preparedness materially shape long-term infrastructure outcomes," said Joe Peiser, CEO of Commercial Risk Solutions at Aon. "This underscores the opportunity for leaders who understand the combined effect of low risk, resilient trade and weather systems and a strong foundation of public trust — factors that ultimately determine where AI infrastructure can grow at scale."

    DUBLIN, Jan. 16, 2026 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, announced today that it is releasing insights from a new, data-driven tool to help organizations build sustainable resilience and unlock growth: Aon's Resilience Quotient.

    Developed in collaboration with Gallup, Aon's Resilience Quotient responds to a critical insight: in a time of increasing populism and fragmented sources of information, quantitative data alone is not enough to make long-term decisions. Combining public sentiment on global issues with risk and people data and analytics enables greater clarity and confidence to invest and grow amidst uncertainty and volatility.

    By integrating Aon's proprietary Risk Capital and Human Capital analytics with the results of Gallup's World Poll covering 140 countries for more than 20 years, the firm's Resilience Quotient captures both objective conditions and subjective sentiment, revealing where sentiment signals hidden risks and potential opportunities to achieve greater resilience. This system-level view enables leaders to spot emerging risks sooner, prioritize resilience investments and move from reactive risk management to proactive decision-making.

    "When making decisions around investment, workforce or managing geopolitical risk, a portfolio view is far superior to a siloed perspective," said Greg Case, president and CEO of Aon. "Understanding sentiment can be an opportunity signal or an early warning. Leaders who are limited to only some of the relevant metrics risk missing the signals that matter most. Aon's Resilience Quotient delivers an integrated view to help organizations act decisively, strengthen resilience and unlock sustainable growth."

    Four interconnected megatrends – Trade, Technology, Weather and Workforce – are reshaping the global operating environment in ways that traditional models struggle to anticipate. Aon's Resilience Quotient provides a clearer view of the tradeoffs within these interactions: how trade volatility can amplify technology risk, how climate pressures influence workforce mobility and how sentiment can either reinforce resilience or heighten operational risk, even when the fundamentals appear strong.   

    To illustrate the insights from its Resilience Quotient, the firm published three case studies addressing some of the most relevant and urgent issues facing the 2026 global economy:

    "Aon's Resilience Quotient shows that Iowa's resilience–risk balance is roughly twice the national median, demonstrating how governance quality, institutional confidence and preparedness materially shape long-term infrastructure outcomes," said Joe Peiser, CEO of Commercial Risk Solutions at Aon. "This underscores the opportunity for leaders who understand the combined effect of low risk, resilient trade and weather systems and a strong foundation of public trust — factors that ultimately determine where AI infrastructure can grow at scale."

    • Workforce Transformation: AI Adoption and the Next Generation Workforce 
      The acceleration of AI adoption is transforming the workforce, but most organizations face a critical gap between the demand for AI skills and their readiness to adapt. The Resilience Quotient highlights how workforce engagement, trust and institutional preparedness are essential to harnessing AI's potential, making resilience the key differentiator between organizations that thrive through change and those that risk falling behind.

      "Aon's Resilience Quotient equips leaders to navigate rapid AI change with confidence," said Lisa Stevens, chief administrative officer at Aon. "These insights help create the conditions for early‑career employees to build the skills and confidence they need — so instead of losing a generation of talent, we cultivate one that is more capable and resilient than ever."

    "Aon's Resilience Quotient equips leaders to navigate rapid AI change with confidence," said Lisa Stevens, chief administrative officer at Aon. "These insights help create the conditions for early‑career employees to build the skills and confidence they need — so instead of losing a generation of talent, we cultivate one that is more capable and resilient than ever."

    • Rethinking Humanitarian Finance: A New Approach to Forced Migration
      Over 120 million people are currently displaced by conflict, climate and systemic crises, reshaping societies and economies worldwide. Aon's Resilience Quotient highlights Venezuela and Colombia to illustrate the tradeoffs between investing resources at the source of migration — supporting those facing institutional erosion, food insecurity and economic collapse — or directing investment to more stable countries like Colombia that are absorbing people fleeing unlivable conditions.

      "Forced displacement results from extreme weather and man-made disasters like conflict and economic failure," said Bridget Gainer, chief public affairs officer at Aon. "If we could leverage the forecasting and financial capability of insurance to better predict and more quickly mitigate the impact of this volatility, we could help create conditions that allow populations to remain and rebuild in their home countries."

    "Forced displacement results from extreme weather and man-made disasters like conflict and economic failure," said Bridget Gainer, chief public affairs officer at Aon. "If we could leverage the forecasting and financial capability of insurance to better predict and more quickly mitigate the impact of this volatility, we could help create conditions that allow populations to remain and rebuild in their home countries."

    "Resilience is not a single blueprint, it's the way systems mitigate, adapt and transform under pressure. Aon's Resilience Quotient functions as a pressure gauge, surfacing the trade‑offs and early signals that help leaders strengthen resilience where it matters most," said Joe Daly, managing partner at Gallup. "We're proud to collaborate with Aon to combine Gallup's global sentiment analytics with Aon's Risk Capital and Human Capital data, turning confidence into actionable insight."

    New insights from Aon's Resilience Quotient suggest that going forward, resilience priorities will shift from static risk management to dynamic, localized strategies. As disruptions become more complex and frequent, organizations will need to tailor resilience investments to specific geographies, sectors and even sub-regional contexts. Aon's Resilience Quotient is supported with a real-time analytics and AI-enabled insights platform, built by Quantum Rise, providing deeper visibility into evolving risk and resilience signals as conditions change.

    Aon and Gallup will join global decision-makers at the World Economic Forum Annual Meeting to advance these critical discussions on restoring confidence and unlocking sustainable growth.

    Learn more about Aon's Resilience Quotient and explore the case studies here.

    About Aon
    Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.

    Follow Aon on LinkedInXFacebook and Instagram. Stay up-to-date by visiting Aon's newsroom and sign up for news alerts here.

    Media Contact
    mediainquiries@aon.com
    Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114
    International: +1 312 381 3024

    ** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

    Aon's Resilience Quotient Cuts Through Uncertainty and Volatility to Help Businesses Move from Risk to Resilience and Growth

    Aon's Resilience Quotient Cuts Through Uncertainty and Volatility to Help Businesses Move from Risk to Resilience and Growth

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