‘Reporting for the sake of it’: Small-cap companies’ concern over upcoming mandatory climate disclosures

PUTTING the cart before the horse – that’s how some listed companies with a small market capitalisation are describing the recent climate disclosure requirements laid out by the Singapore Exchange Regulation (SGX RegCo).

While agreeing that such disclosures are important, they question whether the requirements may largely end up as a compliance exercise, rather than guide companies to genuinely transform their businesses to align with decarbonisation goals.

“There is so much pressure on listed companies to produce sustainability reports, and as a result, they do it when they are not sustainable. So they end up doing for the sake of doing it,” said Ernie Koh, executive director of Koda, a furniture manufacturer.