A new era of responsibility for shipping companies
Singapore Stock Exchange (“SGX”) has introduced a Sustainability Reporting Guide (the “Guide”) for its listed shipping companies. This follows a public consultation, issued in August 2010 that received widespread attention and positive feedback in support of disclosure and accountability for operating and developing businesses in a sustainable manner. Sustainability reports may be part of the annual report of the issuer or standalone reports and will be issued on a voluntary basis.
It has long been recognised that the way businesses operate can have long terms effects on the environment and society. More recently concerns about climate change, biodiversity, social and environmental risks have been heightened by crises and natural disasters. End customers demand that suppliers behave responsibly. SGX, as a responsible Exchange with global reach, has responded with a Guide for listed companies. This guide is relevant for all issuers who operate in industries that are susceptible to environmental risks.
Within the Guide, the Policy Statement sets out the principles and the Questions and Answers guide listed companies in extending their reporting beyond financial governance to sustainability aspects. A more holistic reporting will be achieved, with companies reporting their financials as well as the environmental and social risks, and strengths as relevant.
“The Sustainability Reporting Guide is the first step for listed companies who are new to sustainability reporting. A few are already practising and reporting fully on sustainability matters. Among them are even award-winners because they see the need to adopt such reporting. With time, more SGX companies will join the ranks of these with international acclaim,” said Mr Magnus Böcker, Chief Executive Officer, Singapore Exchange.
The move by Singapore to launch a guide for sustainability reporting is seen as a necessary stepping stone, a first step into a complexity of environmental and social performance reporting. However, sustainability reporting advocates may not be satisfied with the call for only voluntary reporting, but the odds are high that eventually SGX will make sustainability disclosures a requirement.
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Source: Singapore Stock Exchange