Three in five listed firms shun SGX’s sustainability requirement: NUS study

Only 186 of 502 firms submitted their sustainability reports.

Even if it is required for firms to submit sustainability reports as part of the Singapore Exchange listing, 60% of the them have not bothered to do so according to the latest study by National University of National University of Singapore (NUS) Business School's Centre for Governance, Institutions and Organisations (CGIO) and Asean CSR Network (ACN).

The latest findings revealed that only 186 of the 502 mainboard listed companies communicate their sustainability practices.

Although this is an improvement from 160 companies in 2013 and 79 in 2011, majority of the firms are still not complying with the said requirement.

CGIO Director Lawrence Loh said Singapore is still trailing behind its regional peers in terms of this aspect.

He said, “At our current rate of progress, less than half of companies will be reporting sustainability by 2018.”

“While the new SGX sustainability reporting requirement of ‘comply or explain’ is timely, it won’t be enough. Companies have to recognise the long-term benefits of consistently reporting sustainability and take action," Loh furthered.

The study also revealed that among the four indicators of quality of disclosures studied – governance, economic, environmental and social – governance was best disclosed and environmental was the least disclosed indicator.

The study has also put into limelight Singapore real estate investment trusts (REITs). It has found out that of 33 REITs, 28 communicated their sustainability practices.

"While the increase in the number of REITs communicating their sustainability is encouraging, they could be further motivated to publish standalone sustainability report that would show more of their commitments to sustainability practices," the report expounded.