Singapore has a flawless sustainability reporting rate, but there are still areas it needs to improve, says KPMG's Cherine Fok in an interview with finews.asia.
Sustainability reporting is a journey that companies must undergo for resilience and meaningful ESG disclosure. According to KPMG Singapore Partner Cherine Fok, the why, what and how of the reporting efforts matter and this is an area that Singapore needs to improve on despite it having a perfect, 100 percent sustainability reporting rate.
In an interview with finews.asia, she indicated that as sustainability reporting is increasingly being seen as a complement to traditional financial reporting, it must comprehensively address emerging risks and opportunities to be relevant. Besides accuracy and reliability, companies must assess and quantify exposures to the risks such as climate change, biodiversity, and social equity while disclosing mitigation and adaptation measures. After that, it should price the residual risks.
«Mitigation and adaptation measures would often include a refresh of business strategy to also capture opportunities,» Fok indicated.
New Regulation
Starting on 1 January 2023, the Singapore government will require the managers of retail ESG funds to make detailed sustainability disclosures alongside their annual reports. This move is important for the market, but retail investors must also be equipped with the ability to understand the disclosures and what they mean for their investment decisions.
«It is crucial for the regulators to play a role in ensuring and enhancing the quality of reports through a combination of capability building, regulated assurance, and more,» she said.
