Energy investment set to rise at 94 per cent of Singapore businesses: Schneider report

Singapore businesses are stepping up their sustainability expenditure significantly, as corporates recalibrate their energy strategy, and put energy resilience front and centre of their business agendas.

Almost all (94 per cent) of the 513 respondents polled for Schneider Electric’s Powering the Future: Singapore Energy Resilience Report said they intend to increase their investments over the next 12 months.

Of these, 57 per cent expect to increase their investment by up to 20 per cent, while 38 per cent foresee an increase of more than 20 per cent.

By comparison, 51 per cent of the 1,000 respondents surveyed for the 2025 report indicated that they had increased their sustainability expenditure.

That 94 per cent of respondents in this round forecast increased investment despite greater uncertainty and price volatility highlights the important role that energy plays in business operations, said Kim Yoon Young, cluster president for Singapore and Brunei at Schneider Electric.

“The real test now is making sure those investments translate into greater efficiency and resilience – this will require the right technology, expertise, and collaboration across the energy ecosystem,” he added.

The findings from this year’s report are based on surveys of professionals working at Singapore Exchange-listed companies across 14 industries in May 2026.

Significantly, concern about future energy risks remains high. A whopping 97 per cent of organisations indicated they are concerned about their ability to remain resilient amid a potentially deepening energy crisis. Almost half (48 per cent) indicated they are “very concerned”.

This heightened anxiety is underscored by recent market pressures, including a 17.5 per cent surge in regulated electricity tariffs in the third quarter of this year (2026).

Resilience versus transition

As companies recalibrate their strategies, 49 per cent said the focus is on both resilience and transition; 42 per cent prioritise resilience over transition, more than five times the eight per cent who prioritise transition.

Sectoral divides were distinct: Financial services (72 per cent), the public sector (64 per cent), and technology and telecommunications (62 per cent) were found to be significantly more likely to say that a focus on both is necessary.

In contrast, real estate (54 per cent), healthcare and life sciences (52 per cent), and professional services (48 per cent) were more likely to prioritise resilience over transition, suggesting a stronger focus on operational continuity.

That being said, commitment to net-zero remains firm, with 89 per cent of respondents saying their organisations are targeting net-zero for their own operations by 2030 or earlier.

Among those who expect greater focus on resilience to accelerate decarbonisation, 74 per cent expect their net-zero targets to be brought forward by three years or more.

In terms of challenges, high upfront costs (35 per cent), competing business priorities (35 per cent), and limited access to technology solutions (34 per cent) were identified as leading barriers to resilience.

The report noted that cost and business-prioritisation pressures may explain why listed-company leaders are more likely to make tactical adjustments (37 per cent) than undertake a more comprehensive strategic reassessment (20 per cent).

This financial prudence is reflected in how green-technology investment decisions are made, with cost and return on investment being the leading factor, it noted.

Source: The Business Times © SPH Media Limited. Permission required for reproduction.