Sustainability reporting has become a pivotal aspect of modern business operations, reflecting the growing awareness of environmental, social, and governance (ESG) concerns among stakeholders. In the context of Singapore, the significance of sustainability reporting has also gained momentum. This article, brought to you by Lucanet, a leading platform for Corporate Performance Management (CPM), explores the key aspects of sustainability reporting in Singapore, including its objectives, historical context, relevance to your company, expectations, challenges, and how Lucanet can help streamline ESG reporting processes.
What is Sustainability Reporting Meant to Achieve?
Sustainability reporting is a means for organizations to communicate their economic, environmental, and social performance to various stakeholders. Its primary objectives are as follows:
a. Transparency: Sustainability reporting enhances transparency by providing a clear picture of a company's ESG practices, enabling stakeholders to make informed decisions.
b. Accountability: It holds companies accountable for their impact on the environment, society, and governance, fostering responsible corporate behavior.
c. Risk Mitigation: Sustainability reporting helps identify and manage ESG risks, which can affect a company's reputation, operational efficiency, and financial stability.
d. Competitive Advantage: Companies that excel in sustainability reporting often gain a competitive edge by attracting socially responsible investors, customers, and partners.
Sustainability Reporting to Date – in Singapore
In Singapore, sustainability reporting has evolved significantly over the past decade. The Singapore Exchange (SGX) introduced the Sustainability Reporting Guide in 2016, making it mandatory for all listed companies to disclose their sustainability practices. Since then, the reporting landscape in Singapore has witnessed the following developments:
- Growth in Reporting: An increasing number of companies, not just listed ones, have voluntarily adopted sustainability reporting practices.
- Regulatory Frameworks: Singapore has been aligning its reporting requirements with global standards such as the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD).
- Stakeholder Expectations: Stakeholders, including investors, customers, and regulators, now expect more comprehensive and transparent sustainability reports.
Does ESG Reporting Concern My Company?
ESG reporting concerns a broad spectrum of businesses, regardless of size or industry. If your company operates in Singapore, engages with stakeholders, or aspires to access capital markets, ESG reporting is relevant. The focus is not limited to environmental aspects but extends to social and governance dimensions as well.
