On 8 Jul 2024, findings from the joint SGFIN-ACRA study on climate disclosures by 51 larger listed companies were released. Some key insights include:
- While there are still improvements to be made, large Singapore companies are making good progress in climate reporting. “Good progress” can be defined as companies disclosing key TCFD elements – Governance, Strategy, Risk Management, and Metrics and Targets. This is an important step towards higher standards, placing them in a good position to report using the ISSB standards eventually.
- A comprehensive understanding and complete disclosure of climate risks’ magnitude and relative significance are crucial. This allows for more informed investment decisions, enhances transparency, builds trust with stakeholders, and enables companies to prioritize their risk management efforts effectively.
- Disclosing interim milestones and pathways is vital for tracking progress towards net-zero goals. It helps break down the task of achieving net zero into smaller and more actionable steps, reduces the likelihood of greenwashing, and demonstrates genuine commitment.
- Three key factors are essential for effective climate reporting: People, Data, and Experience. We need people with the necessary knowledge and skills to manage and use climate data effectively; reliable data is crucial for accurately measuring carbon emissions; and experience is vital, making it imperative for companies, especially SMEs, to start their climate reporting efforts early.
ACRA report | Straits Times Online | Business Times Online | Zaobao Online | CNA News (TV) |