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Singapore Exchange Regulation (SGX RegCo) and the Centre for Governance, Institutions and Organisations (CGIO) at the National University of Singapore (NUS) Business School, today said their joint review showed that almost all listed companies have produced their sustainability reports on a timely basis following the mandating of the requirement.
About 80% of companies reported for the first time, and the number of reporting companies was five times that of a year earlier. The review covered companies which had produced reports as at 31 December 2018.
The real estate, health care and communication services sectors produced the best-quality reports, based on the study. But sectors such as energy, information technology and utilities scored lower than the overall average score. Mainboard and Catalist issuers produced reports that were of similar quality.
The review was released at an event this morning on “Sustainability Reporting: Progress and Challenges”. Co-organised by SGX and CGIO, the event highlighted the progress of sustainability reporting practices among Singapore-listed companies and discussed opportunities for achieving higher reporting quality.
“Global demand for responsible investing is growing and more corporates are responding to this development by integrating sustainability considerations with business strategy. We are committed to helping our listed companies on their sustainability journey and will utilise this review to continue to work with them on improving their ESG disclosures,” said Tan Boon Gin, CEO of SGX RegCo.
“Organisations have become more conscientious about submitting their sustainability reports and this is a good springboard for companies to seize opportunities in renewable energy, circular economy and green buildings,” said Associate Professor Lawrence Loh, Director of CGIO at NUS Business School.
“The study’s findings are a positive step forward but more can definitely be done by companies to contribute to the fight against climate change,” he added.
In contrast to the global focus on climate action, only 6.5% of Singapore-listed companies which have published their sustainability reports, or 32 companies, acknowledged climate change as a material factor.
The 2016 listing rule was introduced before the Task Force on Climate-related Financial Disclosures (TCFD) published its recommendations in June 2017 and did not contain mandatory requirements around climate disclosures.
SGX allows companies up to 12 months from the end of their FY ending on or after 31 December 2017, to issue their sustainability reports under the new rules. Subsequent reports must be published no later than five months after the end of the issuer’s FY.
The report and findings can be found here.
