, Singapore

SGX announces “comply or explain” basis for sustainability reporting

This will increase transparency of governance.

Singapore’s high governance standards and practice are widely recognised in the international finance scene.

Recently, Singapore Exchange (SGX) announced plans to increase the transparency of governance with sustainability reporting on a “comply or explain” basis”.

According to SGX, this move also recognises increased global interests on sustainability issues. SGX is starting with a consultation exercise for “comply or explain” sustainability reporting with its listed companies. Information received through this exercise will be used to develop a new listing rule and to review the existing Guide to Sustainability Reporting for Listed Companies.

SGX adds that expanding the coverage of reporting to include environmental and social aspects of businesses will further enhance disclosure and transparency to investors.

Sustainability reports complement financial reports to give investors an appreciation of the long-term value of the company. For example, companies that pollute the environment, or create products with potentially negative effects on society, run the risk of incurring high remedial costs.  

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