Listed companies show improvement in sustainability reporting, but lack climate-related disclosures

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Listed Companies,Sustainability Reporting,Climate-Related Disclosures

A biennial study conducted by the Singapore Exchange Regulation (SGX RegCo) and the Centre for Governance and Sustainability at the National University of Singapore Business School reveals that listed companies have improved in their sustainability reporting. However, the study also highlights the lack of climate-related disclosures, including climate transition plans. The average score for sustainability reporting in 2023 increased to 75 out of 100, but dropped when climate-related disclosures were included in the scorecard. Out of the 535 SGX-listed firms that published sustainability reports, 73% provided climate-related disclosures according to the Task Force on Climate-related Financial Disclosures (TCFD) framework.

Listed companies have improved in their sustainability reporting, but climate-related disclosures – including climate transition plans – were lacking, according to a biennial study.

Conducted by the Singapore Exchange Regulation (SGX RegCo) and the Centre for Governance and Sustainability at the National University of Singapore Business School, the study found that the average score in 2023 for sustainability reporting rose to 75 out of a possible 100, up from 72 in 2021 and 61 in 2019 since the first study was conducted. Companies are scored on categories such as sustainability reporting framework and targets. But when climate-related disclosures were included in the scorecard, with a heavier weightage than the other categories, companies’ scores dropped. Out of the 535 SGX-listed firms that published sustainability reports, 73 per cent provided climate-related disclosures according to the Task Force on Climate-related Financial Disclosures (TCFD) framework

 

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