Wednesday, September 29, 2021, 10:10
The Singapore Exchange Regulation (SGX RegCo) has on 26 August 2021 released consultation papers on its plans for enhancing its current sustainability reporting regime. It is proposed that these enhancements be adopted for sustainability reports and annual reports for financial years beginning on or after 1 January 2022.
Amongst the proposed enhancement by SGX RegCo are:
- issuers to make climate-related disclosures based on the recommendation of the Task Force on Climate-related Financial Disclosures ("TCFD"). All issuers are to adopt climate reporting on a 'comply or explain' basis for their financial year ("FY") commencing in 2022 (reports published in 2023). From the FY commencing in 2023 onwards, climate-reporting will be mandatory for some sectors of issuers while remaining 'comply or explain' for the others.
- issuers to have a board diversity policy and provide disclosures on related targets, plans and timelines in annual reports.
- issuers to subject their Sustainability Reports to assurance by their internal auditors.
- all directors to attend a one-time training on sustainability.
The consultation on the proposal closes on 27 September 2021.