SINGAPORE - Companies in Singapore may soon have a clearer picture of how to carry out sustainability reporting, with a committee set up to discuss the suitability of implementing international standards here.
The Accounting and Corporate Regulatory Authority (Acra) and Singapore Exchange Regulation (SGX RegCo) have formed a sustainability reporting advisory committee to provide guidance on a road map for companies incorporated here.
"As part of its work, the committee will provide inputs on the suitability of international sustainability reporting standards for implementation in Singapore," said Acra and SGX on Tuesday (June 21).
Acra and SGX RegCo are developing a road map for wider implementation of sustainability reporting for Singapore companies beyond those listed on the local bourse.
SGX RegCo has mandated sustainability reporting for listed companies since 2016 and climate reporting from financial year 2022 on a comply-or-explain basis.
Climate reporting will be mandatory for issuers in the financial, energy, and agriculture, food and forest products industries from FY2023. Listed companies from the materials and buildings, and transportation industries will also be subject to mandatory reporting from their FY2024.
"The growing interest in environment, social and governance (ESG) issues globally has led to a call to provide greater transparency and assurance on companies' ESG-related information which investors and other stakeholders can incorporate into their decision-making," said Acra and SGX on Tuesday.
The new committee is chaired by Ms Esther An, chief sustainability officer of property developer City Developments.
Its 13 members include other chief sustainability officers, representatives from financial institutions, institutional and retail investors, sustainability reporting professionals and academics.
Ms An said effective ESG integration and disclosure are critical to accelerating global efforts to build a greener and more resilient future.
She added that the committee's efforts will complement Acra and SGX RegCo's initiatives to rally corporates and stakeholders to contribute to the Singapore Green Plan 2030 and the global agenda on sustainable development.