A recent report by Ernst & Young (EY) and CPA Australia highlights commendable advancements made by companies listed on the Singapore Stock Exchange (SGX) in their climate-related disclosures. The report also emphasises the need for further improvement to meet global standards.
The study aimed to offer insights into the status of climate reporting in Singapore, in response to SGX’s mandate for listed companies to incorporate climate-related disclosures into their sustainability reports on a “comply-or-explain” basis, effective from FY2022. Out of the 370 listed companies, 240 have already provided climate-related disclosures for FY2022.
Notably, sectors mandated to report in FY2023, such as agriculture, food and forest products (77%), energy (88%), and financial (75%) industries, have demonstrated early adoption of climate-related disclosures in FY2022.
However, approximately one-third (130) of the listed companies have yet to incorporate climate-related disclosures into their sustainability reports. Among them, 54% have expressed intentions to comply in the future, while 46% have not indicated any plans to comply.
The report also reveals that only 10% of the 240 companies sought external assurance for independent auditing of their reports. Ken Ong, Partner, Assurance at EY LLP, emphasises the importance of assurance in building stakeholder confidence and addressing concerns about greenwashing.
While two-thirds of companies have provided climate-related disclosures, the focus has primarily been on climate-related risks, with only 47% including their climate-related opportunities. This indicates the need for a more balanced assessment of both risks and opportunities for long-term resilience.
In line with growing ESG regulations, companies face increasing pressure to comply and present complete and accurate data. To help companies adapt to these demands, ESG solutions such as Convene ESG and Convene 2zero offer assistance in enhancing ESG data management, sustainability reporting, and internal assurance.
Convene ESG, an ESG reporting software, simplifies the reporting process, ensuring data accuracy and regulatory compliance. It digitises data collection and visualisation workflows, storing data securely. Convene ESG complies with global sustainability standards, including TCFD recommendations, GRI standards, SASB standards, ISSB standards, SGX guidelines, and MAS guidelines.
To address evolving ESG regulatory requirements, Convene ESG commits to future-proofing reports with support from ESG experts and analysts, making data assurance-ready. Additionally, Convene 2zero accurately measures and monitors GHG emissions, aligning them with international standards for integration into sustainability reports.
As Singapore continues to lead in sustainability efforts, climate-related disclosures provide crucial information for navigating the evolving sustainability landscape. Digital ESG solutions empower companies in conducting assessments, sustainability reporting, and overseeing their ESG goals.
Discover how digitalisation can enhance climate-related disclosures and ESG reports. Learn more about Convene ESG and Convene 2zero at conveneesg.com.