The Singapore Fashion Council (SFC) has introduced a new Sustainability Readiness Intelligence tool aimed at helping fashion brands and manufacturers across Singapore and Southeast Asia prepare for increasingly demanding environmental, social and governance (ESG) requirements in major export markets.
Launched on October 1, the Sustainability Readiness Intelligence tool is designed to help companies assess their preparedness for sustainability-related regulations affecting access to key markets, particularly the United States and European Union.
The two markets represent a significant opportunity for textile and apparel exporters. According to sourcing platform SourceReady, their combined market value is expected to reach US$780 billion in 2026. The US imported approximately US$77.6 billion of apparel in 2025, while EU apparel imports were valued at about €180.5 billion in 2024.
Regulatory requirements are also becoming more stringent. California is preparing to require Scope 3 emissions disclosures from companies with revenues exceeding US$1 billion from 2027, while businesses operating in the EU will face tighter supply-chain due diligence requirements from 2028.
For ASEAN suppliers, inadequate sustainability documentation, traceability systems and emissions data could increasingly affect relationships with international buyers and future sourcing opportunities.
“Businesses across fashion and retail are navigating massive changes, including rising costs, global uncertainty, tariffs and rapid technological changes, even as consumers and markets expect more sustainable practices,” says Gan Siow Huang, Minister of State for Energy, Trade and Industry.
Speaking at the SFC’s Be The Change Summit 2026, Gan said companies that prepare for these changes early could become more “competitive” and “resilient” while opening opportunities in new markets.
Tool assesses sustainability readiness
The SRI framework evaluates businesses across five areas: governance and strategy, environmental performance and operations, responsible supply chains, circularity and design, and market readiness.
The assessment contains more than 50 questions and generates an individual scorecard identifying areas of strength and potential gaps against relevant sustainability expectations. Businesses also receive tailored recommendations and a time-bound action plan, including relevant certifications and supporting resources.
The tool has been developed alongside a new SFC sectoral plan intended to bring together sustainability frameworks, practical resources and industry guidance for fashion companies in Singapore and ASEAN.
“As global regulations raise the bar for compliance, the SRI tool helps to empower ASEAN businesses to meet stricter global ESG standards to maintain global export market access,” says SFC CEO Zhang Ting-Ting.
Zhang described the sectoral plan as a “critical step” towards future-proofing the regional fashion industry, adding that the initiative could help Asian businesses participate more actively in the global shift towards responsible production.
Both initiatives draw on research commissioned by SFC from South Pole, which examined sustainability challenges and opportunities across Singapore’s and ASEAN’s fashion ecosystem.
“What Singapore lacks in fashion material production, we make up for in our role as a coordinator for design, logistics and sourcing,” says Zhang. “With many of the fashion brands’ Asian headquarters located here in Singapore, we are a vital nerve centre enabling us to amplify impact by facilitating stronger sustainable decisions and benchmarks across the whole value chain.”
