The Singapore Exchange Limited (the “SGX”) is targeting to introduce a “comply or explain” framework for sustainability reporting for listed entities from Financial Year 2017 onwards. Currently, sustainability reporting is not a mandatory requirement under the SGX Listing Rules. In 2011, the SGX issued the Guide to Sustainability Reporting for Listed Companies (the “Guide”), which encourages all listed entities to adopt sustainability reporting as an integral part of good corporate governance, but on a voluntary basis.
In a press release dated 6 May 2015, the SGX, in recognising increased global interests in sustainability issues, announced plans to increase the transparency of governance with sustainability reporting on a “comply or explain” basis. The development of the consultation exercise for this initiative will be as follows:
- Listed entities: First, the SGX will conduct a survey of listed companies and a series of focus group engagements to understand the current sustainability reporting practices and readiness of listed entities.
- Institutional investors and sustainability professionals: Subsequently, the SGX will reach out to institutional investors and sustainability professionals on proposals to review the Guide.
- Investing public: Finally, the SGX will conduct a public consultation to seek comments from all stakeholders on the new Listing Rule and revised Guide.