The joint initiative aims to make ESG data consistent and comparable for investors while facilitating reporting for listed companies.
The Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) have started ESGenome, a digital disclosure portal aimed at helping companies report ESG data, an announcement sent by the institutions on Monday indicated.
According to both, the portal is aimed at organizing the data in a structured and efficient manner, providing investors with consistent and comparable information.
The portal is a joint initiative that falls under the larger Project Greenprint initiative in the city-state and was prompted by weaknesses in current reporting regimes due to a wide variety of frameworks and guidelines in differing jurisdictions, with data being collected, verified, and reported inconsistently.
Simplified Process
Listed companies will be able to take advantage of a simplified disclosure process with a core set of metrics mapped against global standards and frameworks. These include a baseline of 27 core SGX ESG metrics although companies can also choose to make additional disclosures that are in line with globally recognized standards and frameworks based on an additional 3,000 metrics.
The companies only need to provide a one-time input for each ESG metric, which will then be automatically mapped to the selected frameworks and standards for a wide variety of differing investor needs. A sustainability report can be subsequently generated after the inputs are made.
Meaningful Benchmarking
According to the MAS and SGX, ESGenome will allow for «meaningful peer benchmarking» and tracking of sustainability commitments, enabling better and more efficient capital usage.
«MAS will also draw on the learnings from ESGenome to address the reporting needs of the broader universe of corporates, notably small and medium-sized enterprises, and supply chain partners and suppliers, as part of its ongoing work on Project Greenprint,» the announcement indicated.
