Trawling through hundreds of pages filled with unfamiliar acronyms may not make for good bedtime reading. But don't ignore sustainability reports, experts say.SINGAPORE: On top of voluminous annual reports and financial statements, more companies are presenting their actions in the environmental, social and governance space in what's called a sustainability report.
For example, Singtel has a policy for employees to make confidential reports related to workplace harassment and discrimination. The number of reported cases across Singtel and its Australian unit Optus, and the nature of substantiated cases, are laid out in its sustainability report. Companies listed on the Singapore Exchange have actually had to publish sustainability reports since 2017, though they are free to select their own preferred reporting standards.From FY2027, this new requirement will also apply to large non-listed companies – defined as having annual revenues of at least S$1 billion and total assets of at least S$500 million.
The Securities Investors Association Singapore has noted how extreme climate events have disrupted ecosystems, supply chains and business operations - and such sustainability-related risks must be considered by investors. While most will immediately think of carbon dioxide , which is emitted from the burning of fossil fuels, other gases are also important.
A company can also commit to be carbon neutral, but NTU’s Assoc Prof Law stressed that a distinction must be made between these similar-sounding terms. “For limited assurance, the inspector looks at the materials and notes that procedures were followed. That may be enough.” “A good sustainability report should not only be talking about what the company has done well. If you see that, then that might not be a very balanced report,” Assoc Prof Law said.