SGX Singapore News Update : Epic Research Singapore

Singapore Exchange (SGX) announced plans to increase the transparency of governance with sustainability reporting on a “comply or explain” basis”. This move also recognises increased global interests on sustainability issues. SGX is starting with a consultation exercise for “comply or explain” sustainability reporting with its listed companies. Information received through this exercise will be used to develop a new listing rule and to review the existing Guide to Sustainability Reporting for Listed Companies (the “Guide”).

As an international financial centre, Singapore is widely recognised for high corporate governance standards and practice. Expanding the coverage of reporting to include environmental and social aspects of businesses will further enhance disclosure and transparency to investors. Sustainability reports complement financial reports to give investors an appreciation of the long-term value of the company. For example, companies that pollute the environment, or create products with potentially negative effects on society, run the risk of incurring high remedial costs.

SGX is inviting inputs from all stakeholders to gain a better understanding of the company practices and readiness for improvement, as well as investor needs and expectations. Mr Magnus Böcker, Chief Executive Officer, SGX added, “There has been a growing momentum of sustainability reporting by investors and shareholders globally. To do this right, we are open to feedback throughout the exercise as we seek to write new Listing Rules and a Guide that is well understood and beneficial to all users. We believe that greater transparency from listed companies will attract investors and empower them to make more informed decisions.”

Development of the Consultation Exercise

Listed Companies - The consultation exercise begins in May 2015 with a survey of listed companies and a series of focus group engagements to understand the current sustainability reporting practices and readiness of listed companies.

Institutional Investors and Professionals - Subsequently, SGX will reach out to institutional investors and sustainability professionals in consideration of reviewing the Guide which was first introduced in 2011.

Investing Public – As a final point to the consultation exercise, SGX will seek the views of all stakeholders, including the investing public, via a “public consultation” on the Listing Rule and reviewed Guide.

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