The Singapore Exchange Regulation (SGX RegCo) announced, on Aug 26, that it is proposing a roadmap for climate-related disclosures to be made mandatory in issuers’ sustainability reports.
The disclosures should be based on recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The TCFD’s internationally-recognised recommendations will enable companies to provide consistent and decision-useful information for market participants.
“This is a first step to better prepare issuers for reporting against anticipated global baseline sustainability reporting standards to be developed by the International Financial Reporting Standards Foundation, which build on existing work of leading sustainability reporting organisations including TCFD,” says SGX in an Aug 26 filing.
See also: SGX RegCo proposes new disclosures as climate change concerns arise
According to the regulator, issuers should adopt climate reporting on a “comply or explain” basis for their FY beginning in 2022.
Climate reporting will be made mandatory for certain sectors from FY2023 onwards, with more sectors included in FY2024.
SGX RegCo says it is also consulting the public on requiring assurance of sustainability reports and one-time sustainability training for all directors.
In addition, the regulator has proposed that issuers have a board diversity policy and provide disclosures on related targets, plans and timelines in annual reports.
Shares in SGX closed 5 cents lower or 0.49% down at $10.21 on Aug 26.
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