Climate change and sustainability disclosure is important

COMPANIES are currently facing disruption from technological innovation but there is another disruptive force which is all around you: climate change.

The increasing focus on climate change has resulted in calls for a transition to a lower-carbon economy. While this directly impacts companies in more obvious sectors - such as energy, transportation, construction and agriculture - it will also affect most economic sectors and industries.

It is therefore unsurprising then that four Singapore-listed companies - CDL, Olam, Singtel and SGX - have voiced their support for the final recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board straightaway. Significantly, DBS, Singapore's largest bank, on Dec 12, 2017, joined these companies and other global financial institutions in endorsing these recommendations, underscoring the impact of this new perspective on Singapore companies.