SGX CEO Magnus Bocker today invited companies to provide feedback on the exchange’s move to “comply-or-explain” for sustainability reporting.
“The exchange is looking to receive feedback on any aspects that cause particular problems in order that the implementation will be relevant and effective,” Mr Bocker said at the Singapore Compact CSR Summit today at the Marina Bay Sands Convention Centre.
“I would like all listed companies to look seriously into how they would individually comply with the reporting standards, or explain what they do as an alternative, unless it is not material,” he said.
Mr Bocker said SGX will allocate “a year for this exercise” to give industry and investor groups opportunities to get together and work towards harmonised reporting.
“We are committed in our role to bring along our fellow listed companies on this journey,” he said. Sustainability reporting not only facilitated risk awareness for shareholders but also presented a way for superior companies to stand out and show their quality, he said.
He also invited other market participants, particularly investors, analysts and their advisers, to “do their part too, right from preparation stage”.
The elaboration of social and environmental aspects of business in sustainability reporting “can be turned to advantage for companies whose business practices fall well within the standards,” Mr Bocker said. “When financial performance is competitive, this will be the differentiating factor,” he said.
Mr Bocker’s speech is available at: http://www.sgx.com/wps/wcm/connect/sgx_en/home/higlights/speeches/Sustainability-Reporting-SINGAPORE-COMPACT-CSR-SUMMIT-17-Oct-2014