SGX comes with compulsory climate reporting for financial, energy issuers from 2023
A Brief Summary
The Singapore Exchange(SGX) has made climate reporting mandatory for issuers in the financial, energy, agriculture, food, and forest products industries from the financial year commencing 2023. It is prioritized for these sectors to report on climate-related activities even as all issuers must provide climate reporting on a "comply or explain"basis beginning 2022.
Read Full Article Below
The Singapore Exchange (SGX) will require corporations to disclose climate-related reporting as well as board diversity disclosures, the market announced on Wednesday. From the fiscal year beginning in 2022, all issuers must include climate reporting in their sustainability reports on a "comply or explain" basis. From the fiscal year 2023 onwards, issuers in the finance, agriculture, food and forest products, and energy industries will be required to report on climate change.
By 2024, those in the materials and construction, as well as the transportation industries, will be required to comply.
"When allocating assets, extending funding, and pricing risks, decision-makers seek climatic data. Because of these circumstances, reporting on climate change is especially important for companies that have the greatest impact "Tan Boon Gin, the CEO of SGX's regulatory arm, agreed.
Issuers will also be obliged to establish a board diversity policy that tackles factors such as gender, competence, and experience beginning next year. In their annual reports, they must define the board's diversity policy and provide information such as targets, plans, timetables, and progress. The Corporate Governance Advisory Committee commissioned a survey of 587 Singapore-listed businesses, which found that 87 percent of the 3,700 directors were male, with 45 percent having all-male boards.