SGX unveils “comply or explain” rules for listed companies

It will also train firms to build their reporting capability.

Singapore’s local bourse looks to improve its reporting and transparency efforts as it launches its new requirements for sustainability reporting.

According to a press release by Singapore Exchange (SGX), it will invite company CEOs to organise training for all listed companies to build their reporting knowledge.

The bourse is also working with Global Compact Network Singapore (GCNS) to organise training workshops by sustainability reporting consultants. SGX is also planning other initiatives including an online portal.

Loh Boon Chye, chief executive officer of SGX, says the enhanced annual reporting of non-financial information will enhance the visibility of SGX-listed companies among investors who seek sustainable investment and want to review a company’s environmental, social and governance (ESG) efforts.

Among the changes to the reporting rules include giving companies up to 12 months from the end of the financial year to publish their first report,and the materiality principle will be applied when determining whether an ESG factor should be reported on, among others.

“The sustainability report will be based on the principles set out in the Guide which include, among others, providing an accurate and balanced view of the risks and opportunities in a concise manner,” the press release said.