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A joint Singapore Exchange Regulation (SGX RegCo) and Council for Board Diversity (CBD) study found that 89% of SGX-listed issuers have disclosed a board diversity policy. Of those that have not done so, the deadline for such disclosures for most of them (7% of all issuers) was not yet due [1].
The Consumer Non-Cyclicals, Real Estate and Financials sectors performed well in their overall disclosures. Of the largest 100 companies by market capitalisation, all but two disclosed their board diversity policy within the cut-off time for the study with the last two companies disclosing in response to SGX queries.
SGX RegCo and CBD appointed PwC Singapore to conduct the review of 538 SGX-listed issuers' board diversity disclosures published as of 31 July 2023.
“The Council for Board Diversity is pleased to partner Singapore Exchange Regulation to conduct this study. This first year of diversity disclosures is commendable. We’re glad to see SGX-listed issuers expressing how cognitive diversity – from a combination of skills, talents, experience – is serving the strategic ambitions of their organisation. It is our hope that by benchmarking and establishing exemplary practices through this study, companies can learn from each other and refine and adapt practices that are effective in enhancing organisational resilience,” said Mildred Tan, Co-Chair of the Council for Board Diversity.
“Board diversity promotes good decision-making. A diverse board is likely to be more successful in crafting strategy and ensuring the company thrives for the long term. The high adoption rate found in this study suggests most listed issuers have incorporated diversity into the board governance framework. Nevertheless, the level of detail in disclosures varied significantly, consistent with it being the first year for such disclosures. We want more measurable progress in future especially in quantitative aspects such as targets, plans and timelines. SGX RegCo will be closely monitoring how companies perform on this front,” said Tan Boon Gin, CEO of SGX RegCo.
Of the issuers that disclosed a board diversity policy, 41% published targets, 21% provided plans and timelines and 11% reported on progress towards their targets.
[1] Listing Rule 710A came into effect for annual reports for financial years commencing on or after 1 January 2022. As of the cut-off date of this study, some issuers were not due to publish their annual reports for the relevant financial year.
