(31 August 2021 – Singapore) Singapore Exchange Regulation (SGX RegCo) is proposing a roadmap for climate-related disclosures to be made mandatory in issuers’ sustainability reports (SRs).
SGX RegCo wants issuers to make disclosures based on recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). A phased approach will be adopted, where all issuers will adopt climate reporting on a “comply or explain” basis for their financial year (FY) starting in 2022. From FY 2023, climate reporting will be mandatory for some sectors, while comply or explain will remain the approach for the others, with more sectors included from FY 2024.
SGX RegCo is also consulting the public on requiring issuers to subject their SRs to assurance by their internal auditors, and to require one-time sustainability training for all directors to ensure boards have common knowledge of their roles and responsibilities.
Additionally, SGX RegCo is seeking feedback on proposals to mandate issuers having in place a board diversity policy and to disclose in their annual reports.
“The proposals today are aimed at helping our issuers meet these demands and to build their resilience to climate risks. Some business sectors are more carbon intensive and hence climate risks affect them more significantly compared to others. These should therefore be among the first to make climate disclosures,” said SGX RegCo CEO Tan Boon Gin.