Legislative action drives up sustainability reporting. The positive impact by regulatory action becomes more obvious when there are higher levels of disclosure in indicators that require mandatory reporting, according to the Centre for Governance, Institutions and Organisations (CGIO).
This result was presented in a recent session where CGIO gave an update on its report on sustainability reporting to companies including ACCA, Capitaland, City Development Limited, Ernst and Young, Global Compact Network Singapore, Keppel Land, KPMG, Paia Consulting, Singtel and Suntory Beverage and Food Asia.
CGIO was commissioned by ASEAN CSR Network in August 2015 to undertake a study on sustainability reporting in ASEAN countries Indonesia, Malaysia, Singapore and Thailand.
The session was held for the companies to provide feedback on the report, which will be launched during the Conference on Corporate Governance and Responsibility in July this year.
At the meeting, the companies’ representatives gave their feedback including having more in-depth analysis of materiality and comparisons of sustainability reporting by state-owned enterprises versus non-state-owned enterprises. Materiality includes the societal and environmental issues that present risks or opportunities to companies.
For the report, the researchers examined companies’ performance based on Global Reporting Initiative’s framework of sustainability reporting in four categories: Governance, Economic, Environmental and Social.
The project came as the Singapore Exchange intends to have its listed companies to ‘comply or explain’ sustainability reporting by 2017.
The research project, led by Associate Professor Lawrence Loh, Director of CGIO, is carried out by some 20 students from the BBA Honours programme.