Regulating Disclosure of Companies' Business Information Related to Carbon Emissions, Use of Renewable Energy and Other Climate Change Measures08 May 2023
Parliamentary Question by Mr Dennis Tan Lip Fong:
To ask the Deputy Prime Minister and Minister for Finance whether the Government will review how it can better regulate the provision or disclosure of companies’ business information on (i) the use of or investment in renewable energy alternatives and (ii) any impact arising from its business activities relating to emissions, biodiversity, carbon footprint and climate change, in order to encourage a clearer focus in these areas and allow better transparency for investors to assess companies for investment decisions based on sustainability.
Parliamentary Reply by Deputy Prime Minister, and Minister for Finance Mr Lawrence Wong:
As climate action gains momentum worldwide, the Government recognises that investors are increasingly calling for comparable and credible disclosures to assess companies’ climate performance.
Since 2016, SGX has required listed issuers to publish sustainability reports, or to explain if they did not do so. Starting this year, climate-related reporting in accordance with the recommendations by the Task Force on Climate-Related Financial Disclosures (TCFD) is progressively being made mandatory for listed issuers in industries most affected by climate change, such as energy and agriculture. These issuers will need to make disclosures such as the impact of climate-related risks and opportunities on their businesses, and performance against emission reduction targets, if any. These disclosures will help investors better understand the impact of climate change on the issuers.
In June 2022, ACRA and SGX Regulation set up the Sustainability Reporting Advisory Committee, comprising representatives from various industries and academia, to recommend an implementation roadmap on climate reporting for Singapore-incorporated companies, beyond those listed on the SGX. The committee’s work is underway, and its recommendations will undergo public consultation later this year.