1. Good evening and I would like to warmly welcome everyone to SGX.
2. Where we are standing in now is a model of a trading pit of a futures exchange. Before there was electronic trading, buyers and sellers would come together in trading pits like this one to find their respective best price. Floor traders would communicate their bids and offers through open outcry. This method involves traders shouting and using hand signals to convey their orders to each other. There is an established convention. Buy and sell orders are distinguished using different sides of the palm, and the numbers are gestured using the fingers. It is a raucous system, but it worked because there is a common language among the community.
3. In much the same way, we need a common language in the burgeoning area that is ESG. With a third of the world’s investable assets invested using ESG principles, at close to US$30 trillion, ESG investing is no longer an option but a growing imperative. Our Prime Minister underscored the importance of sustainability recently in his National Day Rally, describing climate change as one of the gravest challenges facing humankind.
4. With so much money tied to ESG factors, the framework companies choose to use for their ESG reporting is important. Different ESG reporting frameworks exist today. And it is promising to see global standard setters embarking on a Better Alignment Project, to identify linkages between different frameworks and to promote further integration between non-financial and financial reporting. Hopefully this will give us a common ESG reporting language.
5. We encourage companies to refer to a globally-recognised framework for their reporting, and we see a vast majority of companies use the GRI standards. In fact, SGX itself first adopted GRI since our first report in 2009, and this is the 10th year of our reporting.
6. Since 2016, SGX has mandated sustainability reporting for our listed companies. This was in recognition of the growing international interest in sustainable investing and the benefits sustainability reporting bring to both investors and listed issuers.
7. We are however keen that sustainability reporting isn’t reduced to just a box-ticking exercise. In the early days when we first mandated reporting, our focus was on adoption and helping companies to develop the necessary resources. We offered heavily subsidised workshops to companies and launched a free online training course, in English and Mandarin, which is available on our website.
8. The next step now is to see how companies have done and explore ways to improve and meet investors’ needs. Reports must be meaningful, and over the longer term, they should show clear linkages between the management of ESG factors and business strategy. To help companies get there, we are embarking on a review of companies’ reports. The results of the review, which will include feedback from investors, are expected in the next few months. All of these will be shared with individual companies so that each can put in place measures to enhance reporting and satisfy the demands and interest of stakeholders.
9. We are pleased that GRI has decided to extend its global reach in Asia by establishing a regional ASEAN hub in Singapore. GRI is a widely recognised global framework for sustainability reporting and among the most widely adopted by companies worldwide. As a gateway to the ASEAN region, Singapore can facilitate GRI’s efforts in providing thought leadership, capacity building and support for companies, investors and policymakers. By being a knowledge and support hub, GRI can also contribute to the growth of Singapore as a financial centre, and help increase the adoption of ESG in ASEAN and beyond.
10. It is heartening to see that GRI has brought together different representations from various sectors here with us today, and that there is a groundswell of support for GRI’s establishment in the ASEAN region.
11. I wish GRI many successful years ahead and my sincere wishes that it will grow from strength to strength. Congratulations and all the best! Thank you.
