The Singapore Exchange Limited (“SGX“) will introduce the following changes to nudge more issuers listed on the SGX-ST Mainboard and Catalist (collectively, “issuers“) towards the direction of integrating environment, social and governance (“ESG“) factors into their corporate governance practices and business strategy:
- Mandatory climate-related disclosures in issuers’ sustainability reports consistent with recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) under a “phased approach”;
- Enhanced requirements on the reporting timeframe for and assurance on issuers’ sustainability reports;
- Mandatory training on sustainability for all directors; and
- Requirement to put in place a Board diversity policy and describe the policy in issuers’ annual reports.
In addition, SGX is rolling out the following ESG initiatives that would help issuers, as well as their stakeholders, review and assess the issuers’ ESG achievements objectively:
- Starting with a list of 27 Core ESG Metrics as guidance to assist issuers in providing, and investors in accessing, an aligned set of ESG data; and
- Developing an ESG data portal to enhance alignment between issuers and investors over the use of ESG data, provide cost savings and guidance for issuers, and improve ESG data transparency and measurability, among other benefits.
This Update highlights significant aspects of these new ESG initiatives.
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