The Singapore Exchange (SGX) announced on December 15 that all listed companies must provide climate reporting on a “comply or explain” basis in their sustainability reports starting 2022, as reported by Reuters on the same day. According to the bourse, issuers shall publish climate reporting based on recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). These disclosures will become mandatory for issuers in the financial, energy, agriculture, food and forest products industries starting in FY23 and be extended to the materials, buildings, and transportation industries in FY24. In addition to sustainability reporting, the exchange also requires detailed disclosures on board diversity policy in annual reports, covering issues of gender, skill, and experience.

SGX became the first Asian exchange to propose mandatory TCFD-aligned climate disclosures in August 2021. In addition, it introduced a platform for listed companies to reveal ESG data, as well as 27 ESG metrics currently under public consultation. SGX stated that while these metrics are not mandatory, they can provide a reference for companies to decide what to include in their sustainability reports. Other Asian stock exchanges promoting mandatory climate-related disclosures include the Hong Kong Exchanges and Clearing (HKEX) , which aims to mandate climate-related disclosures for all listed issuers by 2025. Japan’s financial regulator also proposed mandatory climate reporting for the Tokyo Stock Exchange (TSE) in September 2021.

Sources:

https://www.reuters.com/business/sustainable-business/singapore-exchange-mandates-climate-board-diversity-disclosures-2021-12-15/

https://www.businesstimes.com.sg/companies-markets/sgx-rolls-out-mandatory-climate-reporting-for-financial-energy-issuers-from-2023

https://www.hkex.com.hk/News/Regulatory-Announcements/2021/211105news?sc_lang=en

https://www.regulationasia.com/japan-proposes-mandatory-climate-risk-disclosures/