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1、Unlocking ESG Reporting Requirements in SingaporeNavigating ESG Reporting in SingaporeWhat to Include in the Sustainability ReportUnderstanding Core ESG MetricsPg 04Pg 07Pg 09Issue 29 March 2024|From Dezan Shira&Associates AseAn Briefing Issue 29 March 20242IntroductionCreditsPublisher-Asia Briefing

2、 Media Ltd.Lead Editor-Melissa Cyrill Editor-Ayman Falak Medina Contributors-David Stepat,Amanda Lam Designer-Aparajita ZadooIn Singapore,Environmental,Social,and Governance(ESG)reporting is increasingly vital as businesses recognize the necessity of addressing sustainability concerns and meeting st

3、akeholder expectations.The Singapore Exchange(SGX)mandates all listed companies to disclose their sustainability practices and performance in their annual reports through a comply or explain approach.The SGX provides guidelines through its Sustainability Reporting Guide,often leveraging the Global R

4、eporting Initiative(GRI)Standards as a framework.Additionally,companies are urged to adopt Task Force on Climate-related Financial Disclosures(TCFD)recommendations to disclose climate-related risks.The core of Singapores ESG strategy is the Green Plan 2030.The roadmap aims to advance the city-states

5、 national sustainable development by 2030.As such,sustainable practices ensure that a business can continue to operate over the long term by conserving resources,reducing waste,and minimizing environmental impact.In this latest issue of ASEAN Briefing,we dive into the regulatory requirements of ESG

6、reporting in Singapore before describing what needs to be included in an ESG report.Finally,we discuss the ESG core metrics within an ESG framework.With offices located across Southeast Asia and years of experience helping foreign enterprises set up operations in Asia,Dezan Shira&Associates is well

7、positioned to assist your company in entering ASEAN markets.For more information,please email us at .With kind regards,Alberto VettorettiALBERTO VETTORETTIPartnerDezan Shira&Awww.india-www.vietnam-www.china- AseAn Briefing Issue 29 March 20243Asia Briefing Ltd.Unit 507,5/F,Chinachem Golden Plaza,77

8、Mody Road,Tsim Sha Tsui East Kowloon,Hong Kong.Annual SubscriptionASEAN Briefing Magazine is published four times a year.To subscribe,please visit please explore the clickable resources below.Unlocking ESG Reporting Requirements in SingaporeContentsNavigating ESG Reporting in SingaporePg 04What to I

9、nclude in the Sustainability ReportPg 07Understanding Core ESG MetricsPg 09ReferenceASEAN Briefing and related titles are produced by Asia Briefing Ltd.,a wholly owned subsidiary of Dezan Shira Group.Content is provided by Dezan Shira&Associates.No liability may be accepted for any of the contents o

10、f this publication.Readers are strongly advised to seek professional advice when actively looking to implement suggestions made within this publication.For queries regarding the content of this magazine,please contact:All materials and contents 2024 Asia Briefing Ltd.Like ASEAN Briefing on FacebookF

11、ollow ASEAN Briefing on TwitterConnect with Dezan Shira&Associates on LinkedinView Dezan Shira&Associates on Youtube Follow usScan the QR code to follow us on WeChat and gain access to the latest investor news and resourcesConnect with us for the latest news,events and insights across Asia.Legal,Tax

12、,Accounting N and W S Advisory and C AseAn Briefing Issue 29 March 20244Navigating ESG Reporting in SingaporeSustainability reporting in Singapore has evolved since the turn of the millennium,with provisions for reporting by Singapore-based companies gradually increasing.Since 2016,the Singapore Exc

13、hange(SGX)has made it mandatory for all listed companies to disclose and publish an annual sustainability report.These reports are intended to complement the financial reports issued by listed companies and thus show how environmental,social,and governance(ESG)risks and opportunities are being manag

14、ed.The ESG reports were initially made mandatory for businesses engaging in the financial,agriculture,energy,food,and forest products industries.However,from 2024 onwards,this policy now extends to the building materials and transportation industries.Southeast Asia is one of the most vulnerable regi

15、ons to climate change and faces numerous challenges from rising sea levels to droughts and Sustainability reporting in Singapore has evolved since the early 2000s,with the SGX mandating all listed companies to publish annual sustainability reports since 2016.heatwaves.While the emphasis on ESG facto

16、rs for businesses in Southeast Asia is still in its early stages compared to global markets,there is growing awareness and adoption of ESG-related policies among regional governments.On its part,Singapore is trying to cement its status as a hub for enterprises that prioritize ESG targets,thereby enc

17、ouraging capital inflows towards sustainable projects.Understanding the regulatory landscapeGreen Finance Action PlanThe Green Finance Action Plan(GFAP)was launched by the Monetary Authority of Singapore(MAS)in 2019 with the ultimate objective to develop Singapore as a hub for green finance.This wil

18、l be accomplished by enhancing the financial sectors resilience to environmental risks,developing financial solutions and markets,Chapter 1Ayman Falak Medina Deputy Editor,ASEAN BriefingAuthor AseAn Briefing Issue 29 March 20245leveraging technology to facilitate sustainable financial flows,and enha

19、ncing capabilities in sustainable finance.Singapore Sustainable Finance AssociationA new association launched in January 2024,the Singapore Sustainable Finance Association(SSFA)aims to develop the local talent pool and industry standards needed to enhance the city-states position as a leading center

20、 for sustainable finance.SSFA can lead the way in industry best practices such as transition finance or carbon credit trading.Further,the association can bring together financial institutions to address barriers that hinder the financing of sustainability projects.International Sustainability Standa

21、rds Board and developments for 2025The SGX has mandated that starting from financial year 2025,all listed companies in Singapore will have to produce climate related disclosures.Such disclosures must be done based on local reporting standards that are aligned with the standards issued by the Interna

22、tional Sustainability Standard Board(ISSB).The new regulation also applies to non-listed companies valued at more than S$1bn(US$744 million)and with total assets of at least S$500 million(US$371 million)from financial year 2027.Further,under the new rules,listed companies and large non-listed compan

23、ies will be required to obtain independent verification on their scope 1 and 2 emissions.This will take effect two years after the mandatory reporting requirements begin.Scope 1 emissions are the companys direct emissions such as from company vehicles or manufacturing facilities,while Scope 2 emissi

24、ons are those that are indirectly generated from the purchase of electricity.Environmental risk managementTo enhance the resilience of financial institutions to environmental risk,the Monetary Authority of Singapore(MAS)introduced its guidelines on environmental risk management in 2020.The guideline

25、s apply to fund management companies registered in Singapore in addition to holders of capital markets license for fund management and real estate investment trust management.Financial institutions are expected to incorporate environmental considerations into their business strategies and product of

26、ferings.This is in line with the recommendations set out by the Taskforce on Nature-related Financial Disclosures(TNFD)on environmental considerations issued in 2023.Some 320 organizations from over 40 countries have committed to making nature-related disclosures based on the TNFD recommendations.Th

27、e Centre for Nature-based Climate Solutions at the National University of Singapore became a TNFD knowledge partner mid-2022.MAS new platform for ESG data collectionThe Monetary Authority of Singapore launched a new digital platform called Gprnt(pronounced as Greenprint),which aims to simplify how t

28、he financial sector can collect,access,and act upon environmental,social,and governance data.Grnpt will also play a pivotal role in facilitating the seamless exchange of ESG data between the financial sector and the real economy,leveraging access to comprehensive global and sector-specific data plat

29、forms.AseAn Briefing Issue 29 March 20246What are the key functionalities of Gprnt?Gprnt facilitates businesses in automating their ESG reporting processes.It integrates seamlessly with the digital infrastructure utilized by businesses in their day-to-day operations,including bookkeeping systems,pay

30、ment gateways,and artificial intelligence networks.Through this integration,businesses can authorize the release of data via application programming interfaces(APIs),allowing Gprnt to compute their sustainability metrics efficiently.Gprnt processes source data into ESG-related GREENPRINT PLATFORMSou

31、tputs for business reports and corporate references.Leveraging intelligent document processing,the platform extracts data from files uploaded by users.Consequently,Gprnt streamlines the mapping of sustainability metrics across key global reporting standards,automatically generates fundamental sustai

32、nability reports for businesses,and helps mitigate corporate costs.Notably,Gprnt is fully equipped to support the ESG reporting needs of small and medium enterprises(SMEs).An open marketplace to connect Green Technology providers with investors,financial institutions,and corporates.A blockchain-base

33、d network of registries to record and maintain provenance of ESG certifications and verified data.Network of data platforms to aggregate and enable access to common trusted ESG data sources and sectoral/ground up data sources.ESG data providersRubberAquacultureExamples of sectorsSource:Monetary Auth

34、ority of SingaporePalm OilConstruction TransportMaritimeSectoral systemsSectoral certificationsCommon utilitiesOpen data(Satellite,nature)Common platform to manage and access ESG performance data and to meet disclosure requiremnets locally and internationally.Promotes data consistency and clarity in

35、 disclosures,enables comparability of data.Greenprint marketplaceCommon ESG disclosure platformESG registriesDataorchestrator(s)AseAn Briefing Issue 29 March 20247What to Include in the Sustainability ReportThe mandatory sustainability report for listed companies in Singapore encompasses key compone

36、nts,such as material ESG factors,climate-related disclosures,policies,as well as adherence to a sustainability reporting framework.Chapter 2Ayman Falak Medina Deputy Editor ASEAN BriefingAuthorThe sustainability report must include the following components:1.Material ESG factors;2.Climate-related di

37、sclosures;3.Policies,practices,performances,and targets;4.Sustainability reporting framework;and5.Board statement and governance structure for sustainability practices.Material ESG factorsThe company should review the ESG factors concerning the business value chain and its interaction with the physi

38、cal environment and social community.The company must review what ESG factors significantly impact business continuity,i.e.the steps involved in creating a product or service.Climate-related disclosuresThe business should provide climate-related disclosures that are in line with the recommendations

39、from the Task Force on Climate-Related Financial Disclosures(TCFD).These disclosures are the climate-related risks and opportunities that can impact the companys financial performance.The TCFD has issued both sector-specific and general guidelines on implementing their recommendations.Policies,perfo

40、rmance,practices and targetsThe company should outline its targets,performance,and practices related to ESG factors in the sustainability report.Targets should be set for short-,medium-,and long-term timeframes.Company policies related to ESG factors should provide descriptive and quantitative infor

41、mation about the companys performance in these areas during the reporting period.David StepatCountry DirectorSingapore OfficeContributor AseAn Briefing Issue 29 March 20248Sustainability and reporting frameworkThe business should select a suitable sustainability reporting framework tailored to its i

42、ndustry and business model.The business should choose a reporting standard that is internationally recognized as it enables easier comparisons with peer companies either in Singapore or worldwide.When choosing a framework,businesses should consider the following key aspects:1.Stakeholder expectation

43、s;2.Location®ulatory requirements;3.Preference of sector;4.Impact potential;and5.Framework coverage.Once a framework is chosen,the business should maintain consistency in adhering to that framework from year to year,as it helps the business to improve its reporting practices.Board statementThe Bo

44、ard of Directors will play a critical role in overseeing the sustainability issues within the company.The board is tasked with identifying the ESG factors that are significant to the companys business and is responsible for managing and monitoring these ESG factors.Overall,this guidance emphasizes t

45、he Boards vital role in considering sustainability as an integral part of the companys strategy and success.MANAGE YOUR SUSTAINABILITY REPORTING IN SINGAPOREDezan Shira&Associates can help your company become ESG compliant in Singapore.To arrange a consultation,please contact us at or visit our webs

46、ite at .EXPLORE MOREAn Introduction to Doing Business in ASEAN 2024 An Introduction to Doing Business in ASEAN 2024 serves as a valuable resource for C-suite executives and senior management seeking to understand the opportunities and challenges of investing in the dynamic ASEAN region and devising

47、informed business strategies to drive growth and success.This Doing Business Guide covers the following areas:Corporate establishment Tax and accounting Human resources and payroll Audit and complianceREAD MORERELATED READING AseAn Briefing Issue 29 March 20249Understanding the Core ESG MetricsBusin

48、esses should note that the SGX recommends a set of 27 core ESG metrics for sustainability reporting,which are subject to periodic review and revision to stay aligned with evolving international reporting standards.Chapter 3Ayman Falak Medina Deputy Editor ASEAN BriefingAuthorEnvironmental,social,and

49、 governance metrics quantify a companys commitments to ESG.They help measure the impact of ESG initiatives more scientifically and provide insight into how a company compares to others.While there are no universal ESG metrics,organizations such as the World Economic Forum are working towards develop

50、ing a universal standard.The Singapore Exchange(SGX)recommends a set of 27 core ESG metrics for issuers to begin their sustainability reporting,aiming for standardized ESG information.These metrics are subject to periodic review and revision to stay aligned with evolving international reporting stan

51、dards.ESG frameworksThere are multiple ESG frameworks that businesses can adhere to.Some of the major frameworks are:Future-Fit Business Benchmark;World Economic Forum;The Task Force on Climate-related Financial Disclosures;Global Reporting Initiative(GRI);Carbon Disclosure Project(CDP);Sustainabili

52、ty Accounting Standards Board(SASB);Climate Disclosure Standards Board(CDSB);International Integrated Reporting Council(IIRC);International Sustainability Standards Board(ISSB);and EU Corporate Sustainability Reporting Directive(EU CSRD).What framework a business chooses will determine the ESG metri

53、cs that they need to consider.Further,the nature of the metrics will be different as some can be quantified in percentages and numbers while others are simple yes/no options.The World Economic Forum has published a set of 21 core and 34 expanded metrics and disclosures focused on four themes:People,

54、Planet,Prosperity,Amanda LamConsultant International Business AdvisoryContributor AseAn Briefing Issue 29 March 202410and Principles of Governance.These metrics and disclosures reflect a consultation process with more than 200 companies,investors,and other interested parties.Examples of SGX-specific

55、 ESG metricsEnvironmental metricsGreenhouse gas emissions:This metric measures the total emissions of carbon dioxide and other greenhouse gases(GHGs)produced by a companys operations,usually reported in carbon dioxide equivalent(CO2e)units.It helps assess the companys contribution to climate change.

56、It is often broken down into:1.Scope 1(direct emissions from owned or controlled sources);2.Scope 2(indirect emissions from the generation of purchased energy);and 3.Scope 3(all other indirect emissions that occur in a companys value chain).Energy consumption:This metric quantifies a companys total

57、energy in its operations,typically reported in kilowatt-hours(kWh)or joules.It encompasses energy sourced from both renewable and non-renewable resources.Lower energy consumption,particularly from renewable sources,indicates higher efficiency and a smaller environmental footprint.Water consumption:T

58、his involves measuring the total water consumption in megalitres or cubic meters within an organization.Waste generation:This refers to the total weight of waste generated in metric tons within an organization.This includes calculating hazardous vs non-hazardous and recycled vs non-recycled waste.So

59、cial metricsDiversity and inclusion percentages:Diversity metrics focus on the representation of different Opportunities in Singapores Manufacturing Sector in the Era of Industry 4.0 In this issue of ASEAN Briefing magazine,we provide an overview of the factors favoring Singapores ability to adopt I

60、ndustry 4.0 and key advantages as a result.We then explore the countrys sub-sectors with high growth potential under Industry 4.0.Finally,we highlight the incentives available to foreign businesses for innovation,research,and capacity upgrades.READ MORERELATED READING AseAn Briefing Issue 29 March 2

61、02411groups(e.g.,gender,race,ethnicity,age,sexual orientation,and disability)within the company.High levels of diversity and inclusion are associated with better innovation,decision-making,and employee satisfaction.Development and training:This metric evaluates the average training hours per employe

62、e over a reporting period by gender.Age-based diversity:This metric can measure the percentage of existing employees by age group,or the percentage of new employee hires and turnover during a specific reporting period.Occupational health and safety:This includes reporting the number of fatalities be

63、cause of work-related injury during a reporting period across an organization.The scope of the report should cover both employees and workers who may not be full-time or permanent staff but whose work is controlled by the organization.Further,the metrics can also measure the number of high-consequen

64、ce work-related injuries.These are injuries that result in a fatality and from which the worker cannot recover from their re-injury status within six months.Governance metricsBoard composition:The metric covers the number of independent board directors as a percentage of all directors or can also me

65、asure the number of female board directors as a percentage of all directors.Management diversity:This includes reporting on number of female senior management members as a percentage of senior management.Certifications:Every organization defines which certifications are relevant to be reported e.g.I

66、SO 45000,BCA Green Building,Energy Star.Assurance:This metric focuses on the companys ability to disclose whether a sustainability report has been undertaken:External independent assurance;Internal independent assurance;or No assurance.The organization needs to provide the scope of the assurance if

67、it has undertaken external or internal assurance.Alignment with frameworks:The business needs to ensure that its sustainability reports are aligned with globally recognized international frameworks.If the business is applying only a portion of the framework,then they need to provide a description of

68、 the extent of the application in the sustainability report.CORPORATE ESTABLISHMENT AND GOVERNANCEDezan Shira&Associates is well equipped to advise companies on the optimal way to structure their business entities to meet their goals and maximize operational efficiency.To arrange a consultation,plea

69、se contact us at or visit our website at .EXPLORE MORESGX ESG IndicesSGX provides sustainability-focused indices for investors aiming to integrate sustainability factors into their investment strategies,allowing institutional investors to benchmark performance.All index solutions are offered through

70、 SGX Indices franchise of the SGX Group.SGX Indices consists of two index providers:SGX Index Edge(iEdge)and Scientific Beta.Scan this QR codeVisit our mobile page andget the latest updates investors news and resources with usOur Offices in ASEANOur Alliance Members in ASEANAsiapedia is a collection

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