The Singapore Fashion Council (SFC) has launched a sustainability assessment tool to help fashion brands and manufacturers across Southeast Asia meet evolving environmental, social and governance (ESG) requirements and maintain access to the United States and European Union markets, which together are valued at US$780 billion in 2026.
The Sustainability Readiness Intelligence (SRI) tool, launched on October 1, assesses businesses’ sustainability performance and provides tailored recommendations to help them address regulatory requirements, improve supply chain transparency and strengthen their competitiveness in international markets.
According to the SFC, the initiative comes as sustainability reporting and supply chain due diligence requirements become increasingly important for fashion businesses seeking to retain international buyers and secure future sourcing opportunities.
The United States imported approximately US$77.6 billion worth of apparel in 2025, while EU apparel imports totalled around €180.5 billion in 2024, according to figures cited by the council’s announcement.
Regulatory changes are adding to the pressure on suppliers. California is introducing Scope 3 emissions disclosure requirements for certain large companies from 2027, while stricter supply chain due diligence obligations are expected to affect businesses operating in the EU from 2028.
Also Read: Australia Fashion Market Seen Reaching $55.2 Billion by 2034
Manufacturers that lack reliable emissions data, traceability systems and documented sustainability practices could face difficulties meeting buyer expectations and maintaining preferred supplier status.
“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,” Singapore Minister of State for Energy, Trade and Industry Gan Siow Huang said at the SFC’s Be The Change Summit 2026.
Companies that adapt early could become more competitive and resilient while accessing new markets and business opportunities, she added.
The SRI framework evaluates sustainability readiness across five areas: governance and strategy, environment and operations, responsible supply chains, circularity and design, and market readiness.
The assessment includes more than 50 questions and generates a personalised scorecard identifying strengths and gaps against relevant market standards. It also provides a time-bound action roadmap, including recommendations on applicable certifications, resources and improvement measures.
The tool is designed to help businesses identify priorities according to their existing sustainability maturity rather than apply a single approach across the sector.
The SFC launched the tool alongside a new sectoral sustainability plan intended to guide fashion businesses in Singapore and across the Association of Southeast Asian Nations (ASEAN) towards more sustainable practices. The plan consolidates relevant tools, frameworks and resources and is intended to support companies in identifying practical steps to improve their performance.
“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,” SFC Chief Executive Officer Zhang Ting-Ting said.
Zhang said the initiative would also help regional brands benefit from growing demand for more sustainable fashion and support the industry’s transition towards more responsible growth.
Both initiatives draw on an assessment report commissioned by the SFC and prepared with research agency South Pole. The report examines sustainability gaps and opportunities across Singapore’s fashion ecosystem and the wider ASEAN industry, highlighting potential areas for regional collaboration, innovation and scalable solutions.
Singapore’s role in the regional fashion supply chain extends beyond manufacturing, with strengths in design, logistics, sourcing and coordination, Zhang said. The presence of Asian headquarters for numerous fashion brands in Singapore could also help the city-state promote sustainability standards and influence decisions across regional supply chains.
For ASEAN’s export-oriented apparel manufacturers, the initiative highlights the growing importance of integrating sustainability data, responsible sourcing and emissions management into business operations as international market requirements evolve.