In Singapore’s socially conscious society, Environmental, Social and Governance (ESG) criteria are becoming increasingly significant in evaluating organisations, including charities. Donors are prioritising greater transparency and measurable impact from the causes they support, recognising that contributions should lead to sustainable, long-term benefits. Evaluating ESG impact not only empowers donors to make informed decisions but also encourages charities to adopt responsible practices.

Applying ESG principles to philanthropy strengthens accountability and ensures positive societal outcomes. Charities that adhere to ESG standards provide essential services while building trust through transparent operations and measurable outcomes. Singapore Children’s Society exemplifies this ethos, demonstrating how impactful and ethical philanthropy can make a meaningful difference in transforming lives. This article provides insights into evaluating ESG impact in charities across Singapore, enabling donors and volunteers to support organisations that create lasting change.

Understanding ESG in the Charitable Sector

Defining ESG Components in Charities

  • Environmental: While environmental impact may not always be a primary focus for charities, sustainable practices like resource efficiency, waste reduction and minimising carbon footprints are important to ensure a responsible operational model. For instance, charities can adopt eco-friendly office policies or partner with sustainable vendors.
  • Social: Social responsibility lies at the heart of charity work. Singapore Children’s Society exemplifies this commitment by providing essential services such as youth counselling, family assistance and safe spaces for children in need. Additionally, by conducting mental health literacy workshops under Our Mighty Minds (OMM) for families along with mental health check-ins for children and youth, the charity ensures holistic support for their well-being.
  • Governance: Good governance underpins trust in any charity. Transparency, ethical management and clear reporting standards are essential for maintaining credibility. For example, Singapore Children’s Society is known for its commitment to ethical governance practices, providing donors and stakeholders with clear, audited financial statements and annual reports that reflect responsible use of funds. This dedication was recently recognised with the Charity Transparency Dedication Award 2024, which honours charities that continually improve their transparency measures and maintain strong disclosure practices in line with the Charity Transparency Framework. Mr David Toh Seng Hong, Honorary Treasurer of Singapore Children’s Society, received the award from the Commissioner of Charities, Mr Desmond Chin, on 14 November 2024.

Unique ESG Challenges and Opportunities for Charities in Singapore

Charities face distinct challenges, such as balancing administrative costs with programme funding and managing limited resources effectively. However, these challenges can also present opportunities, such as building partnerships with socially responsible corporations or implementing innovative, cost-effective solutions for sustainability.

Step-by-Step Guide to Evaluating ESG Impact in Charities

1. Assessing Transparency and Reporting

Transparency is a key indicator of a charity’s integrity. Singapore Children’s Society exemplifies best practices by producing comprehensive annual reports and audited financial statements, demonstrating accountability and responsible resource allocation. Their commitment to transparency earned them recognition through the Charity Transparency Dedication Award 2024, highlighting their dedication to high disclosure standards.

2. Evaluating Social Impact

The social impact of a charity can be gauged through indicators such as the number of beneficiaries served, program effectiveness, and testimonials. Singapore Children’s Society operates service centres such as Yishun Family Service, which provides a range of support programmes to help families navigate challenges. Another example is VOX @ Children’s Society, which offers initiatives aimed at empowering youth and fostering their development. These services contribute to tangible outcomes in beneficiaries’ lives, such as improved mental well-being, academic progress, and stronger community connections.

3. Reviewing Governance Practices

Good governance ensures the longevity and credibility of charitable organisations. Charities should demonstrate board diversity, strong leadership, and robust anti-corruption policies. Singapore Children’s Society consistently upholds these standards, fostering an environment of trust and transparency for both donors and beneficiaries.

4. Examining Sustainable Practices in Operations

Charities can adopt sustainable practices as an integral part of their operations. For example, Singapore Children’s Society has transitioned to digital annual reports, significantly reducing paper usage. This approach underscores their commitment to operating responsibly and efficiently, aligning with Singapore’s broader sustainability goals. You can explore their latest digital annual report here.

Conclusion

Adopting ESG principles in philanthropy is essential for driving sustainable, meaningful change, particularly in the lives of children, families, and communities in Singapore. Charities like Singapore Children’s Society demonstrate how transparency, ethical leadership, and measurable outcomes enhance resilience and well-being. Their commitment to ESG principles builds trust and amplifies their ability to create life-changing impact.

If you are inspired to contribute, consider supporting Singapore Children’s Society in the following ways:

  • Donate: Help children and families in need. Visit our donation page.
  • Fundraise: Organise a fundraising initiative to rally support. Learn more at our Give2Children crowdfunding website.
  • Volunteer: Offer your time and skills to meaningful programmes. Explore volunteering opportunities here.

Your participation strengthens Singapore’s social framework and paves the way for a sustainable future for its most vulnerable communities.