SGX RegCo proposes making climate-related disclosures mandatory

SGX building on Shenton Way in SingaporeSGX building on Shenton Way in Singapore

Singapore Exchange Regulation (SGX RegCo) is proposing making climate-related disclosures mandatory in company’s sustainability reports to meet demand from lenders, investors and other stakeholders, the exchange said in a filing Thursday.

In addition, SGX RegCo has proposed requiring issuers to have a board diversity policy and provide disclosures on related targets and timelines, the statement said.

For climate reporting, SGX RegCo said it wants disclosures based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which will guide companies in providing consistent, decision-useful information for market participants and will prepare issuers for reporting on expected global standards being developed.

Tan Boon Gin, CEO of SGX RegCo, said the proposals are aimed at helping SGX’s issuers meet demands from lenders, insurers and investors, and to build their resilience to climate risks.

“Some business sectors are more carbon intensive and hence climate risks affect them more significantly compared to others. These should therefore be among the first to make climate disclosures. We are also proposing to codify board diversity disclosures in response to
investor requirement,” Tan said in the statement.

Read more about the proposals and the public consultation.