SGX mandates climate and board diversity disclosures for listed entities

December 2021

SGX-listed entities to comply with mandatory climate and board diversity disclosures

Climate Reporting

SGX has set a path for listed entities to provide climate-related disclosures based on recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

SGX-listed entities would have to climate report on a ‘comply or explain’ basis in their sustainability reports from FY2022. From FY2023, climate reporting will become mandatory for listed entities in:

(a)    the financial industry

(b)    the business of agriculture, food and forest products

(c)     the energy industry

Climate reporting will be mandatory for listed entities from FY2023 for listed entities in the materials and buildings industry.

Listed entities in the transportation industry must climate report on a mandatory basis from FY2024.

Sustainability Requirements

With effect from 1 January 2022, SGX will require:

(a)    issuers to subject sustainability reporting processes to internal review

(b)    all directors to undergo a one-time training on sustainability

(c)     sustainability reports to be issued together with annual reports unless issuers have conducted external assurance

(d)    issuers to set a board diversity policy that addresses gender, skill and experience, and other

ESG Metrics

SGX also proposed 27 core ESG metrics and a portal for issuers to input ESG data. While not mandatory, the metrics act as a base for what listed entities may disclose in their sustainability reports. Listed entities should still nevertheless conduct a materiality assessment to determine the relevance and completeness of their reported metrics on ESG.

The 27 Core ESG metrics can be found below: