An EY study has indicated that Singapore-listed companies have made significant progress in climate-related disclosures.
Following the Singapore Exchange’s mandate for climate disclosures, 65% of Singapore-listed companies have started climate reporting. The study analysed data from 370 companies, finding that 240 have initiated climate-related disclosures.
However, the study also shows that just 10% of companies sought external assurance for their sustainability reports that included climate-related information. The sectors with the highest levels of disclosure include agriculture, food and forest products (77%), energy (88%), and finance (75%).
Despite the progress, one-third of the companies have not yet made climate-related disclosures, with 54% aiming to comply in the future and the remaining 46% not indicating any plans to do so.
The study further revealed a predominant focus on climate-related risks, with 79% of companies focusing on climate risks to their business, while less than half (47%) have outlined climate-related opportunities. It was also found that a majority (66%) provided high-level observations on potential impacts, but few quantified the range of financial impact.
Two-thirds (68%) of companies with climate-related disclosures have not started scenario analysis on the impact of climate change on their operations. Only three companies have incorporated climate-related disclosures as part of their external assurance review process.
EY LLP Partner, Assurance, Ken Ong, said, “The disclosure of climate-related information is a crucial step toward enhancing transparency in Singapore’s business landscape.” Ong added: “Beyond regulatory requirements, assurance provides confidence to stakeholders… that there are processes in place to manage critical sustainability matters.”
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