Asean Exchanges publishes table comparing sustainability reporting regimes

ASEAN Exchanges - a collaboration of 7 exchanges across 6 countries in the region - has published a table comparing the respective exchanges' sustainability reporting regimes.

It was put together with the aim of coming up with a recommended set of environmental, social and governance (ESG) metrics for disclosure by listed companies in the region, to address existing challenges around the availability of consistent and comparable ESG data.

Asean Exchanges' member exchanges are Bursa Malaysia, Hanoi Stock Exchange, Ho Chi Minh Stock Exchange, Indonesia Stock Exchange, Philippine Stock Exchange, the Stock Exchange of Thailand and the Singapore Exchange (SGX) Group.

With the table as a basis for comparison, the grouping's ESG work group, which was set up last year, has agreed on a few foundational environmental metrics, Asean Exchanges said in a statement on Tuesday (March 29).

The statement was released as the SGX Group hosted the 34th Asean Exchanges CEOs' meeting virtually.

Speaking on behalf of Asean Exchanges, SGX Group chief executive Loh Boon Chye said: "The voluntary common set of Asean ESG metrics are intended to serve as a reference point for, and to improve, ESG disclosure practices by listed companies across Asean.

"This initiative by the Asean exchanges underscores the importance of comparable, consistent and relevant ESG data, which is increasingly being demanded by investors regionally and internationally."

Asean Exchanges lists the following as foundational environmental metrics:

• Scope 1 and 2 carbon emissions or "absolute emissions" for greenhouse gas emissions;
• "Total energy consumption" for energy consumption;
• "Total water consumption" for water consumption, and
• "Total waste generated" for waste generation.

Scope 1 emissions cover direct emissions from a company's owned or controlled sources; Scope 2 emissions cover indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company.

The work group will next move on to align foundational "social" and "governance" metrics, in its push to come up with the first draft of Asean ESG metrics.

The table published on Tuesday also lists information on the regulatory authority overseeing sustainability reporting rules; sustainability reporting rules coverage and standards or frameworks required; and sustainability reporting resources from the member exchanges.

Apart from conducting the comparative study, the work group solicited the views of selected investors and financial institutions across the 6 countries on the proposal of establishing a voluntary common set of Asean ESG metrics, Asean Exchanges said.

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