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Firms reap 139% returns from emissions cuts, CDP says

Projects typically recovered costs in 2.7 years across 82 reported initiatives.

Companies in Singapore generated a median return on investment (ROI) of 139% from emissions reduction projects, with a median payback period of 2.7 years, according to the CDP Disclosure Dividend 2026 report.

The report analysed 82 emissions reduction initiatives reported by companies in Singapore. It found the country's median ROI was higher than Japan at 76% and France at 84%, but lower than China at 300% and India at 419%.

Separately, CDP found companies in Singapore generated a median return of $6.47 (US$5) for every $1.29 (US$1) spent responding to environmental risks. The analysis covers investments related to climate, forests, and water.

Singapore's $6.47 (US$5) median return was below South Korea at $31.07 (US$24), China at $14.24 (US$11), the United Kingdom at $12.94 (US$10), and Japan and the United States at $11.65 (US$9) each, but above India at $5.18 (US$4).

Across the Asia-Pacific region, emissions reduction initiatives delivered a median ROI of 136% with a 2.8-year median payback period with Southeast Asia recording a 227% median ROI with the same payback period.

Globally, CDP said companies generated a median return of $12.94 (US$10) for every $1.29 (US$1) invested in responding to environmental risks under its expanded methodology, which includes climate, forests, and water.

The report also found that 69% of emissions reduction initiatives generated positive lifetime financial returns, whilst 41% achieved payback in less than three years.

Companies globally expect environmental risks to result in $1.61t (US$1.24t) in cumulative financial losses by 2030, rising to $2.22t (US$1.72t) by 2040, according to the report.

Nearly 4,000 companies also reported US$3b in financial losses from extreme weather events in 2025.

The report is based on disclosures from more than 11,260 large and mid-sized companies in 2025, representing about two-thirds of global market capitalisation.

($1 = US$0.77)

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