Sustainability reporting ultimately good for the business

SINGAPORE Exchange's (SGX) elevation of sustainability reporting to a "comply or explain" basis is a commendable initiative by the regulator to step up disclosure, accountability and transparency across listed companies. Such efforts have certainly played a part in Singapore's top ranking in Corporate Governance Watch 2016 by CLSA and Asian Corporate Governance Association.

The sustainability reporting agenda promotes good business practices as it goes beyond merely rolling out another series of compliance standards. This aims to prompt Singapore companies to reflect on the meaning of their businesses. It also promotes taking a long-term view that is in sync with global trends towards multi-stakeholder accountability.

Good sustainability reporting equates to better stakeholder engagement