Update (21st June 2016) SGX launches Comply or Explain Sustainability Reporting
Update (5 Jan 2016): SGX releases Consultation Paper. Read more here.
On the 6th of May 2015, the Singapore Exchange (SGX) announced plans to implement sustainability reporting on a ‘comply or explain’ basis. Under this regime, companies that do not follow SGX’s guidelines will be expected to explain why.
A new listing rule will be developed using Information SGX receives via an initial consultation exercise with listed companies; the information will be used to review SGX’s existing guidelines to sustainability reporting.
SGX expects the proposed Listing Rule and reviewed Guide to be submitted for regulatory approval by the end of 2015; and targets implementation for financial year 2017.
SGX is inviting stakeholders to participate in what is one of the most broad-ranging consultation exercises conducted by the exchange. In May 2015, SGX will conduct a survey of listed companies and run a series of focus group engagements to understand current sustainability reporting practices and the level of readiness among listed companies. Following this, SGX plans to reach out to institutional investors and sustainability professionals for feedback on the ‘Guide to Sustainability Reporting for Listed Companies’ published in 2011. Finally, SGX will conduct a public consultation (including the investing public) on the Listing Rule and reviewed Guide.
In a statement by SGX chief executive, Magnus Bocker, “We believe that greater transparency from listed companies will attract investors and empower them to make more informed decisions.”
Details can be found on SGX’s announcement ‘Consultation Exercise on Sustainability Reporting’, 6 May 2015.
- Business Times, “SGX plans ‘ comply or explain’ regime for sustainability reporting; seeks public feedback’, 6 May 2015
- Business Times, “SGX’s first step towards ‘comply or explain’ for sustainability reporting’‘, 7 May 2015