According to the review of SGX – NUS, Singapore companies are getting better in sustainability reports

  • Ace Global
  • December 30, 2021

Singapore companies are getting better at making sustainability reports in the COVID-19 era, according to a joint review by Singapore Exchange Regulation (SGX RegCo) and the Centre for Governance and Sustainability (CGS) at the National University of Singapore Business School.

1. What did Singapore Stock Exchange (SGX) do for the sustainable economics of Singapore?

About the Singapore Stock Exchange (SGX), last year, SGX had announced that it would spend $20 million on a multi-year plan to enhance its environmental, social and governance (ESG) capabilities and initiatives.

Half of this amount will go towards new ESG-focused products, services and platforms – spanning asset classes including fixed income, equities, commodities and indices.

The other half will be channelled into capacity building for the financial ecosystem to catalyse change for a sustainable future, strengthening SGX’s internal capabilities and increasing its corporate social responsibility commitments.

2. What is the purpose of the review of SGX – NUS?

This review was conducted to raise awareness about the impact of climate change and sustainable financial situation.

Associate Professor Lawrence Loh, director of CGS, had said: “Better sustainability reporting can help companies attract environmentally conscious customers, obtain lower-cost financing and gain better access to capital. In addition, this improves resilience in the face of future challenges.”

3. What are the highlights of the review of SGX – NUS?

The review found that the average overall SGX-CGS Sustainability Reporting Scorecard in 2021 increased up to 71.7 points, from 60.6 in 2019. For more details:

  • The small-capitalisation issuers got the most significant increase, with the average scores of 13 points,
  • The mid-cap issuers with 10 points
  • The big-cap issuers with 6 points

About the average overall score based on the SGX-CGS Sustainability Reporting Scorecard, this score represents:

  • a general increase in the depth and understanding of sustainability reporting
    the sustainability management among Singapore-listed issuers

Among 566 companies reviewed this year:

  • 64% of them disclosed their performance, representing a considerable increase compared to 22% of 2019.
  • 66% of them revealed the disadvantageous activities during their sustainability performance, which shows a significant growth compared to 55% of 2019
  • 50% of them experienced both positive and negative performance trends, versus just 26% in 2019.
  • 61% of them made disclosures related to the pandemic in their sustainability reports.
  • Almost 50% of them considered climate change as an economic, environmental, social and governance factor.

To support the local enterprises in developing new capabilities in sustainability and capture new opportunities in the green economy, Enterprise Singapore is setting the Enterprise Sustainability Programme.

Furthermore, Singapore companies are motivated to tap on existing grants, such as the Energy Efficiency Fund and the 3R Fund, to enhance their financial situation in the green economy.

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