December 28, 2021

The Singapore Exchange (SGX) has new diversity and climate reporting requirements for all issuers, beginning 1 Jan 2022. The measures follow August 2020 consultations that included proposals for 27 core environmental, social and governance (ESG) metrics, which the SGX adopted. An SGX portal will make ESG data more transparent, accessible, and comparable and simplify investors’ decision making.

Diversity

  • Starting on 1 Jan 2022, listed companies will have to publish a board diversity policy addressing gender, skills and experience, along with other relevant diversity issues.

  • Companies’ annual reports must include the diversity policy and set out diversity targets, plans, and the timetable for achieving the targets. Companies will have to report on progress achieved and describe how the company’s strategy aligns with directors’ skills, experience and diversity.

Sustainability

  • Starting in financial year (FY) 2022, all issuers must include a climate report on a comply-or-explain basis in their company sustainability reports. These reports generally must be issued at the same time as the annual report.

  • From FY 2023, climate reporting will be mandatory for issuers in the financial; the agriculture, food and forest products; and energy industries. From FY 2024, climate reporting will be mandatory for the materials and buildings and the transportation industries.

  • Issuers must internally audit their sustainability reporting processes and ensure that directors follow a one-time training on sustainability.

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Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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