SGX, OneConnect address ESG reporting needs

The platform will simplify and facilitate ESG disclosure process of SGX-listed companies.

Singapore Exchange (SGX) has entered into a memorandum of understanding with technology-as-a-service platform provider OneConnect Financial Technology (OneConnect) to collaborate and build an environmental, social and governance (ESG) platform.

The platform will help companies listed on SGX to efficiently manage and make their sustainability disclosures for possible benchmarking more transparent which might improve standards of ESG performance in the long run.

“With ESG taking centre-stage in the global scene, companies are increasingly subject to a set of non-financial reporting of ESG factors to meet investors’ demands and regulatory requirements,” OneConnect CEO Tan Bin Ru said.

It can also help overcome common challenges faced by companies and investors when dealing with ESG information, such as lack of comparability, changing investors’ demand, as well as the evolving business landscape and regulations.

The collaboration between SGX and OneConnect is part of efforts in developing and promoting a sustainable ecosystem “by raising the quality of ESG disclosures and promoting the application and integration of ESG factors across capital market stakeholders in the long term.”

“Investors globally are placing increasing importance on sustainability considerations, leading to significant growth in capital allocated to ESG strategies. As a result, both investors and issuers desire ESG data to be more transparent, standardised and accessible,” SGX senior managing director Michael Syn said.