Climate expertise may be key skill for CEOs amid focus on sustainability: SGX RegCo chief

CLIMATE expertise may soon become a key skill that companies would need to consider as they manage the increasing complexities of climate change, Singapore Exchange Regulation (SGX RegCo) chief executive Tan Boon Gin has suggested.

“Apart from considering whether to add climate expertise to a board of directors’ skills matrix, such expertise could even be required for the next CEO search and there are starting to be calls for climate-related executive KPIs, or key performance indicators,” Tan told a closed-door SGX RegCo event on Thursday (Jul 28).

This comes amid rising expectations of stakeholders and regulators on companies’ sustainability goals. Another driver, said Tan, will come from lenders, investors and insurers, all of whom are key players in the green finance sector.

These players will require reliable climate data, which would create a need for data platforms, tools and services for reporting, processing and interpreting such data, he added.

Tan noted that a “green collar” class is emerging, with more young people wanting to work in a green economy, and, given how new the field is, it is “up for grabs” for anyone with the right amount of interest, skills and attitude.

“And unlike the boardroom where women are still trying to make their presence felt in certain companies and certain markets, the sustainability arena offers possibly less resistance to diversity including gender diversity, because it is a much more uncharted and level playing field,” he said.