At PKF, we recognise the importance of embracing sustainable development, its economic and environmental impact. Sustainability reporting and assurance will be increasingly more critical in the coming years given the current and future regulatory requirements within and outside of Singapore.
The 27 core ESG metrics and the TCFD recommendations for climate-related disclosures provided by the Singapore Exchange (SGX) serve as a guide to companies who embark on their sustainability reporting and assurance journey. Companies should also make reference to other globally-recognised ESG frameworks and disclosure practices. Adopting ESG principles into your business requires looking at the current strategies and internal policies being implemented.
KEY REGULATORY BODIES
- Accounting and Corporate Regulatory Authority (ACRA)
- Singapore Exchange Regulation (SGX RegCo)
- Sustainability Reporting Advisory Council (SRAC)
WHY SHOULD COMPANIES EMBRACE ESG?
In today's world, consumers and investors are increasingly looking beyond just the bottom line. They want to know if a company is operating responsibly, taking care of its employees and the environment, and contributing to a better future. That's where ESG comes in. ESG stands for Environmental, Social, and Governance, and it's a framework for measuring a company's commitment to these non-financial factors.
Here are just a few reasons why companies should embrace ESG:
1. Attract Investors: ESG-focused investors are a growing force, with trillions of dollars at their disposal. By demonstrating strong ESG practices, you can tap into this pool of capital and secure valuable funding for your business.
2. Boost Growth: Companies with strong ESG programs often outperform their peers in terms of financial performance, employee engagement, and customer loyalty. This is because ESG practices can lead to increased operational efficiency, reduced risk, and better brand reputation.
3. Manage Risk: Ignoring ESG issues can expose your company to significant risks, such as environmental fines, regulatory sanctions, and reputational damage. Implementing a strong ESG program can help you identify and mitigate these risks, making your business more resilient in the long run.
4. Attract and Retain Talent: Top talent is increasingly looking for employers who share their values. By demonstrating a commitment to ESG, you can attract and retain the best employees, giving you a competitive edge.
5. Enhance Brand Reputation: Consumers are increasingly choosing brands that align with their values. By embracing ESG, you can create a positive brand image and build trust with your customers.
6. Make a Difference: ESG isn't just about business; it's about making a positive impact on the world. By integrating ESG into your operations, you can contribute to a more sustainable and equitable future for all.