Singaporean Public Companies to See Greater ESG Disclosure

Public companies in Singapore should be required to provide qualitative information to help investors better understand the company’s ESG reporting information and investors should be informed, leading global investment manager BlackRock has recommended.

Responding to the Singapore Stock Exchange’s (SGX) consultation paper on “Starting with a Common Set of Core ESG Metrics”, it believes investors should be pointed towards the wide range of ESG indicators available, not just a set of 27 indicator proposed by the SGX. 

It further suggested that companies be required to provide information on how executive incentive structures and remuneration policies align with performance, value creation and business-relevant long-term performance outcomes.

BlackRock’s comments are among those made in response to the SGX’s proposals that propose the introduction of a complete set of non-mandatory but encouraged disclosure requirements for public companies in Singapore. 

The new rules will significantly increasing the amount of information companies collect from their customers. As the SGX proposes to introduce a data portal where investors can access ESG data in a structured format as reported by issuers, companies that do not produce ESG information may be at a disadvantage. 

The SGX has also proposed company publish their board diversity policies including targets, accompanying plans and timelines for achieving board stipulated diversity; and a description of how the combination of skills, talents, experience and diversity of directors on the board serves the needs and plans of the company. 

The full proposals are at https://www.sgx.com/regulation/public-consultations/20210826-consultation-paper-climate-and-diversity