Guide to the Best ESG Grant in Singapore for Your Business

Sustainability has become a key focus for businesses around the world, and Singapore is no exception. Driven by its commitment to the United Nations Sustainable Development Goals (SDGs) and the Singapore Green Plan 2030, the nation has introduced a suite of incentives over the years to encourage businesses to integrate Environmental, Social, and Governance (ESG) principles into their operations.

Crucial among these incentives are ESG-related grants, designed to support organisations in Singapore in adopting sustainable practices and technologies, especially with the new mandatory climate-related disclosures.

Such grants are instrumental in helping businesses transform for a greener future while staying aligned with Singapore’s regulatory and societal goals. This blog will explore the range of ESG-related grants available in Singapore, their objectives, eligibility, and how to apply for them successfully.

Sustainability Reporting Grant (SRG)

The SRG was launched by the Enterprise Development Board (EDB) and EnterpriseSG in line with increased demand for firms to publish climate-related disclosures. The SRG offers funding support for Singapore-incorporated businesses to create their first International Sustainability Standards Board’s (ISSB)-aligned sustainability report in Singapore before the implementation of compliance for mandatory climate-related disclosures.

The grant defrays up to 30% of qualifying costs with a limit of S$150,000, whichever is lower. These costs incurred from preparing an ISSB-aligned sustainability report with an external assurance statement that verifies at least Scope 1 and 2 Greenhouse Gas (GHG) emissions include:

• External consultancy costs
• External assurance costs
• Software and equipment
• Manpower training for contract or permanent company employees

Sustainability Reporting Grant Eligibility

The SRG applies to:

1. All Singapore-incorporated listed companies on the Singapore Stock Exchange (SGX), no matter the size
2. Singapore-incorporated companies with a yearly revenue of at least S$100 million
3. Companies producing its first sustainability report consistent with ISSB standards

Note that each company can only make 1 application for the first ISSB-aligned sustainability report.

Companies will not be eligible for the grant if:

1. They have started on the project at the point of grant application, unless otherwise advised by EnterpriseSG. Projects are considered started if any of these activities took place before the date of application:
   • Commenced work
   • Made payment to a 3rd-party who is part of the application
   • Signed contractual agreement(s) with a 3rd-party who is part of the application
2. They have already published a sustainability report that is aligned with ISSB standards
3. They have already reached their compliance timeline for mandatory climate-related disclosures in Singapore
4. They are non-listed companies (NLCos) exempted from mandatory climate-related disclosures in Singapore. The exemption applies to these companies with parent firms already reporting climate-reporting disclosures using ISSB-aligned local reporting standards or their equivalent, such as the European Sustainability Reporting Standards (ESRS), and the NLCo’s activities are covered in the parent’s report which is available for public use.

Applying for the SRG

Applicants must apply for the SRG through the Business Grants Portal (BGP). EnterpriseSG processes applications from eligible businesses with at least 30% of local equity with holdings either by a Singaporean or Singapore Permanent Resident (PR), as determined by the ultimate individual ownership.

Eligible companies with local ownership of less than 30% must liaise with the EDB to submit a formal application.

ESG FinTech Grant

This grant was established as part of the Financial Sector Technology and Innovation (FSTI) scheme to boost the financial industry’s adoption of ESG technology solutions. These solutions should support financial institutions in tackling their main ESG data and infrastructure problems, assisting their use of capital for sustainable activities and tracking of their net zero transition plans and programmes.

Funding is set at up to 50% of qualifying expenses capped at S$500,000 with a duration of up to 18 months.

ESG FinTech Grant Eligibility

The grant is available to eligible applicants who are Singapore-based FIs and market or professional organisations or associations, industry consortiums and non-FI solution providers or companies.

Projects must show innovative usage of technology to tackle the business needs of FIs in ESG data, infrastructure, and/or pioneer use cases in the financial services sector across other ESG FinTech verticals. Projects should also aim to create a robust nexus to Singapore’s ESG FinTech ecosystem.

Environmental Services Productivity Solutions Grant (ES PSG)

This grant supports digital and equipment solutions that boost productivity and operational efficiency in the Environmental Services sector, which is made up of the cleaning, waste management and pest management sectors.

It provides support of up to 50% of qualifying costs for pre-approved digital solutions or equipment for SMEs, or up to 30% of qualifying costs for pre-approved digital solutions or equipment for SMEs. A company grant limit of up to S$200,000 per firm is applicable to applications made and approved after 1 December 2024.

ES PSG Eligibility

The applicant must be an ACRA-registered business entity in Singapore, and belong to any one of these following categories:

• NEA-licensed waste management, cleaning, or pest management companies
• Owners of premises
• Tenants or lessees
• Managing agents representing the Management Corporation Strata Title (MCST)

Qualifying costs include:

• The actual purchase cost of digital solutions or equipment
• The hire purchase cost of digital solutions or equipment
• The lease cost of digital solutions or equipment

Energy Efficiency Grant (EEG)

The EEG provides support for businesses by co-funding investment in energy efficient equipment. Grant support differs depending on two tiers:

1. EEG (Base)
   • Support capped at S$30,000 per company
   • Pre-approved EE equipment
   • Government support of up to 70% for SMEs and up to 30% for non-SMEs until 31 March 2026
2. EEG (Advanced)
   • Only applies to manufacturing, construction and maritime sector
   • Support capped at up to S$350,000 across EEG Base and Advanced
   • EE equipment does not need to be pre-approved, but must show energy savings above 350 tonnes lifetime carbon abatement, which is the total reduction of carbon emissions attained over the lifespan of a product, process, or system
   • Government support of the lower of support levels under EEG Base or a grant quantum computed based on the EE equipment’s expected energy savings

You can get an estimate of the grant with this calculator.

EEG Eligibility

At the point of application, applicants must meet these eligibility criteria:

• Business entity registered and operating in Singapore in the manufacturing sector classified under SSIC 10 or 32, including Food Manufacturing
• Minimum of 30% local shareholding and at least 1 local employee at the firm level
• Group Annual Sales Turnover of no more than S$500 million
• Equipment bought must be used in Singapore
• Project must not have started at the point of application

Sustainable Bond Grant Scheme (SBGS)

This scheme, administered by the Monetary Authority of Singapore (MAS), offsets up to S$125,000 for eligible social, sustainability, green, transition, and sustainability-linked bonds. It is valid till 31 December 2028.

Eligible expenses are funded at 100% per qualifying issuance with a limit of S$125,000 if the issuer complies with any internationally recognised disclosure standards, or a limit of S$100,000 if they do not.

SBGS Eligibility

First-time and repeat green, social, sustainability and sustainability-linked bonds are eligible. Issuers can apply for the grant several times.

Issuance eligibility includes:

• Bonds of any currency with a pre-issuance external review or rating performed to show alignment with any globally recognised green, social, sustainability and sustainability-linked principles or standards
• Must be green, social, sustainability or sustainability-linked bond issued and listed in Singapore. For sustainability-linked bonds, there must be post-issuance external review or reporting performed yearly for the first 3 years or up till the tenure of the bond, whichever is earlier
• There must be a minimum size of S$200 million or a bond programme size of at least S$200 million with an initial issuance of at least S$20 million A minimum tenure of 1 year
• Pre-issuance external review or rating and post-issuance external review or reporting work must be performed by external reviewers in Singapore
• Part of the sustainability advisory and assessment work must be performed by financial institutions in Singapore

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Comparing the Different ESG Grants

Type of Grant	Who is it For?	Grant Amount	Validity
Sustainability Reporting Grant	Singapore-incorporated companies producing their first ISSB-aligned sustainability report in Singapore	Defrays up to 30% of qualifying costs capped at S$150,000, whichever is lower	N/A
ESG FinTech Grant	FIs in Singapore,market or professional organisations or associations, industry consortiums and non-FI solution providers/companies	Up to 50% of qualifying expenses capped at S$500,000	March 2026
Environmental Services Productivity Solutions Grant (ES PSG)	Environmental services industry in Singapore	Up to 50% with a S$200,000 cap per company	N/A
Energy Efficiency Grant	Eligible companies in the Construction, Data Centre, Food Services, Manufacturing sectors	Two tiers of support – a base tier to provide support for pre-approved EE equipment up to S$30,000 and an advanced tier to support companies for larger investments that drive greater energy efficiency	N/A
Sustainable Bond Grant Scheme	Eligible green, social, sustainability, sustainability-linked, and transition bonds	Eligible expenses are funded at 100% per qualifying issuance, subject to a cap of S$125,000 if the issuer complies with any internationally-recognised disclosure standards or S$100,000 if otherwise	31 December 2028

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Supporting Singapore’s Green Goals Through ESG

ESG grants in Singapore enable businesses to align with the nation’s sustainability blueprint by addressing various challenges, such as energy efficiency, waste management, and green innovation. By securing these grants, companies not only enhance their resilience against environmental risks but also position themselves as leaders in corporate sustainability.

While these grants play a vital role in offsetting initial costs, they contribute to long-term operational benefits like energy savings, enhanced reputation, and increased investor confidence. For businesses keen on tapping into Singapore’s green incentives, now is the time to take action and participate in building a sustainable future.

Remember, integrating ESG into your business is not just a compliance effort – it is a strategy for long-term growth and success.

For organisations seeking expert advice, consult with a corporate sustainability advisor to maximise the benefits of these ESG grants and ensure your success on the green transformation path.

At InCorp, our experts are experienced at supporting you throughout various aspects of the ESG process, such as sustainability reporting and advisory. Talk to us to find out more about how we can help!

FAQs about ESG Grant in Singapore

• What is the ESG grant you can find in Singapore?

• There are several ESG grants in Singapore, such as the ESG FinTech grant, SRG, and more.

• Where can I make my ESG grant application?

• To apply for ESG-related grants in Singapore, you can typically submit your application through the respective government agencies or organisations managing the grants.

• What is the ESG grant amount I can expect to get?

• The amount differs according to the grant and conditions met.

Find Out More

Get more information about ESG in Singapore

About the Author

Ruby Rouben

Ruby brings over 16 years of extensive experience in the audit field to the role, the majority of which was spent leading the internal audit and risk advisory engagements across publicly listed companies, institutions of higher learning, MNCs, statutory boards, ministries, and more. In recent years, Ruby has focused on advancing sustainability consultancy services, leading internal evaluations of the sustainability reporting processes for publicly listed companies. This shift underscores Ruby's commitment to enhancing corporate responsibility and environmental stewardship in the business landscape.

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