Limited financial resources, technical capacity, and time – these are often cited reasons holding small and medium-sized enterprises (SMEs) back from kickstarting their sustainability journey. Last year, a survey of 560 SMEs by the Singapore Business Federation (SBF) and the Sustainability Alliance (SA) found that more than half of them could not justify making sustainability a priority, and another three-quarters reported a lack of knowledge to turn sustainability into concrete action plans. 70% even said that they felt a lack of governmental support.
In line with these findings, the latest data from the Infocomm Media Development Authority (IMDA) also shows that only 27% of SMEs have adopted at least one digital sustainability solution, a figure that pales in comparison to the 80% of medium and large enterprises that have done so. Amid escalating costs and tight operating margins, it is unsurprising that smaller enterprises leave sustainability as an afterthought. Recognising these pressures, governmental bodies are now trying to lower the barriers to entry by providing resources to make them more accessible to businesses in Singapore.
In late January, IMDA unveiled a suite of resources to guide Singaporean enterprises towards sustainability. From a playbook that introduces digital technologies helping businesses boost sustainability to a carbon calculator for cloud services, these tools furnish businesses with pragmatic, quantifiable mechanisms to integrate environmental stewardship into their digital architecture.
In parallel, some cloud providers have already surfaced their own emissions data to customers, going beyond national averages to reflect the actual efficiency of their infrastructure. OVHcloud, for example, has developed an Environmental Impact Tracker that estimates the footprint of its services across the full life cycle – from server manufacturing and operations to connectivity and internal activities. This kind of provider‑level visibility can complement IMDA’s tools, giving SMEs both a national benchmark and a view into the specific impact of the infrastructure they use.
Taken together, these developments underscore Singapore’s active push to achieve its Green Plan 2030 ambitions. These goals encompass best-in-class power generation technology that adheres to stringent emission benchmarks and reduces carbon emissions, alongside nurturing Singaporean firms to seize sustainability opportunities – an endeavour that many SMEs have yet to pursue.
But the truth is that waiting to invest in sustainability transformation until a “better” moment economically can be detrimental to business growth. Beyond advancing ESG imperatives, sustainability opens up new avenues for innovation while driving operational wins and lower capital expenditure in the long run. For SMEs, the question is less “can we afford this?” and more “can we afford to ignore rising energy costs, tightening regulations and customers who increasingly expect greener supply chains?”.
From digital infrastructure to business optimisation
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For SMEs embarking on sustainability transformation for the first time, digital infrastructure is one of the most practical places to start. Instead of major facility upgrades, businesses can begin with the systems they already rely on every day – cloud services, software, networks and the data that flows through them. Simple tools such as usage dashboards, smart metres and emissions calculators typically come with limited upfront cost but can uncover significant inefficiencies, from idle servers to over‑provisioned storage.
This is where the business case becomes clear. When SMEs gain better visibility over how their digital infrastructure consumes electricity, water, and compute, they can: identify unnecessary workloads and right‑size them; automate resource‑intensive processes; and reduce waste in areas such as storage, networking and cooling.
Collecting and acting on this data can push sustainability goals forward while improving productivity and lowering bills – turning “green” projects into straightforward cost‑optimisation exercises.
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Investments into data-driven operational insights are particularly timely as the AI-adoption rate tripled amongst Singaporean SMEs last year. IMDA also reported last year that more SMEs are adopting at least one digital area, with greater increase in digital adoption intensity. With AI and the deepening of digitalisation within the operations of SMEs, emissions from these energy-intensive processes are becoming a critical slice of ICT‑related emissions. In Singapore, data centres already contribute 82% of ICT-related emissions and if left unchecked, this percentage will only continue growing.
By tapping into tracking tools and available resources such as IMDA’s carbon calculator or playbook to measure data and assess the best solutions for sustainability transformation, SMEs can begin to play an important role in the sustainability movement. Crucially, they can do so in a way that is aligned with day‑to‑day business decisions, rather than as a separate compliance exercise.
But we might return to the same question: what’s next? Even with the data, not many SMEs know how to use and apply this data to transform business operations for growth. The key lies in balancing the need to meet business performance targets, demonstrate fiscal responsibility and sustainable optimisation. Tracking is one key aspect, but turning the statistics into competitive edges is another.
From data visibility to strategic action
With guidelines and tracked data in hand, the next step is for SMEs to translate numbers into clear priorities and partnerships. It is a conversation that often creates anxiety, as many still believe that sustainable transformation is inaccessible for SMEs without deep pockets – but that is not always the case.
One way to bring the sustainability conversation into the boardroom is to use the data collected to highlight cost savings across the entire value chain. Placing sustainability at the centre of data-backed cost-savings conversations helps firms consider waste prevention and the lifespans of systems objectively. After all, all eyes will be on the bottom line, and greater cost savings in the long run are always a win.
SMEs can also leverage the rich data from carbon calculators and other tools to support the case for innovation. For instance, a business might learn that certain workloads – such as AI inference or analytics jobs – drive noticeable spikes in energy use at particular times. Rather than simply accepting higher bills, firms can explore options such as rescheduling jobs to off‑peak periods, consolidating workloads on more efficient infrastructure, or modernising applications to use leaner models and code. Over time, these decisions improve both scalability and environmental performance, showing that “doing more with less” can be a driver of innovation rather than a constraint.
Ultimately, sustainability and business performance are inherently symbiotic. For SMEs in Singapore, the road to sustainable business transformation begins with small steps: tracking key data and adherence to guidelines. But to truly unlock true growth and innovation, SMEs must consider the entire value chain. By turning data into powerful insights – and bringing those insights into the boardroom – SMEs can not only turn metrics into action, but also position themselves as resilient, competitive players in a more sustainable digital economy. As a cloud provider working with thousands of businesses across Asia‑Pacific, OVHcloud sees that the SMEs who start with these small, data‑driven steps on their digital infrastructure are often the ones that move fastest on both cost and carbon reductions.
Terry Maiolo is the vice president-general manager for Apac at OVHcloud
