Singapore firms 'lagging in sustainability reporting'

Jonathan Kwok Straits Times 24 Mar 11;

COMPANIES here are not up to the mark in terms of sustainability reporting - that is, disclosing social and environmental aspects of their businesses.

But a recent move by the Singapore Exchange (SGX) to encourage this type of disclosure is a step in the right direction, said Dr Richard Welford, chairman of CSR Asia, which studies and advises on sustainable business practices in Asia.

'Reporting here is very underdeveloped and there's a lot more to be done if Singapore is to move up to international standards of reporting,' said Dr Welford on the sidelines of a conference yesterday.

'Having said that, Singapore is not doing too badly in the Asian context because, to be honest, the whole of the Asia-Pacific is very poor when it comes to disclosure and reporting.'

Sustainability reporting was in the spotlight when the SGX last August issued guidelines on the topic. It is encouraging listed firms here to undertake such reporting but has not made it mandatory.

Dr Welford feels that not enough firms undertake sustainable reporting. Any disclosure made is 'very conservative' and does not stand up well to principles of accountability and transparency.

'There's a nervousness about reporting in the Asia-Pacific region,' he added.

Still, he said the SGX's guidelines could help to drive improvements. 'If someone like the stock exchange is putting... some encouragement out there, I hope that Singapore companies will respond to that rather quickly. Singapore companies do make decisions quite fast.'

Already, some firms listed here are doing well on sustainable reporting. Dr Welford cited Wilmar International and City Developments as examples.

Investors could also help to drive change. He said institutional investors like pension funds that take a long-term view on stocks are looking at firms to ensure they are identifying and managing risks.

He highlighted instances where social responsibility and sustainability issues have affected share prices. Oil giant BP's stock plunged after last year's Gulf of Mexico oil spill, and Hong Kong's Foxconn International also lost value after a spate of worker suicides at its Shenzhen factory.

He hopes the Government will also encourage firms on this issue, noting that politicians in China and Malaysia have spoken on the need for sustainability reporting.

The Association of Chartered Certified Accountants Singapore yesterday launched a website with resources to help Singapore firms do sustainable reporting. The site has a self-diagnostic tool for organisations to determine the type of report to produce.

Singapore lags ASEAN peers on sustainability reports
Rachel Kelly Channel NewsAsia 23 Mar 11;

SINGAPORE: Singapore companies are falling behind when it comes to sustainability reporting with only 59 such reports produced in the country's history - a relatively small number compared with its ASEAN peers.

Experts at CSR Asia say that this highlights the risk that local business are running of losing out to other Asian countries which are already marching ahead with significantly higher levels of reporting on environmental, social, and governmental issues.

Last year the Singapore Exchange issued a "Policy Statement on Sustainability Reporting" and a proposed guide for its listed companies to use when formulating such reports.

However, experts say that if companies don't respond, sustainability reporting could stop being a voluntary act and become a regulatory obligation. And it may happen in as early as in three years.

To further encourage Singapore companies to move in the right direction, experts say that boards of directors and the government need to take more action.

Mr Richard Welford, chairman of CSR Asia, said he would like to see the Singapore government be clearer about its stance on social responsibility and sustainability reporting.

"I think it is the role of the government - to take a lead and say to companies look this is becoming common practice throughout the world and I think Singapore has to position itself as a global player and businesses need to think about best practice in their sectors," said Mr Welford.

Mr Welford also added that another reason for the Singapore government to be more vocal about its stance is its special characteristic of being a significant shareholder.

- CNA/cc

Singapore lagging behind in sustainability reporting
Rachel Adrienne Kelly Today Online 28 Mar 11;

Singapore companies are falling behind when it comes to sustainability reporting, with only 59 such reports produced in the country's history - a relatively small number compared with its ASEAN peers.

Experts at CSR Asia say that this highlights that local businesses are running the risk of losing out to other Asian countries, which are already marching ahead with significantly higher levels of reporting on environmental, social and governmental issues.

Last year, the Singapore Exchange issued a "Policy Statement on Sustainability Reporting" and a proposed guide for its listed companies to use when formulating such reports.

However, experts say that if companies do not respond, sustainability reporting could stop being a voluntary act and become a regulatory obligation in as early as three years.

To encourage companies to move in the right direction, experts say boards of directors and the Government need to take more action.

Mr Richard Welford, chairman of CSR Asia, said: "I think it is the role of the government to take a lead and say to companies: Look, this is becoming common practice throughout the world ... Singapore has to position itself as a global player and businesses need to think about best practice in their sectors."

Meanwhile, accounting body ACCA has launched a website to help companies start on the path of sustainability reporting.