Adoption of tripartite standards should not be an ESG disclosure requirement for SGX-listed firms: Alvin Tan

THE adoption of tripartite standards is voluntary and should not be part of sustainability disclosure requirements for companies on the Singapore Exchange (SGX), said Minister of State for Trade and Industry Alvin Tan in Parliament on Wednesday (Feb 7).

He was responding to Nominated Member of Parliament Jean See, who suggested that tripartite standards be included as part of the environmental, social and governance (ESG) factors in listed companies’ sustainability reporting.

Tan noted that SGX-listed companies must disclose any matters or developments with a significant impact on their business performance and prospects, including ESG factors.

But he added: “Reporting requirements on such aspects are not overly prescriptive, as companies’ business models, strategies and stakeholders vary widely.”

Tripartite standards – jointly developed by the Ministry of Manpower (MOM), National Trades Union Congress and Singapore National Employers Federation – set out good employment practices. There are currently 10 tripartite standards covering aspects such as fair recruitment, flexible work arrangements and grievance handling.

Companies adopt tripartite standards on a voluntary basis, said Tan. They must assess which factors “have a material impact on their business performance and prospects, and thus should be disclosed”.

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See further asked if the government had plans to make tripartite standards a requirement for SGX-listed companies, given the heightened interest surrounding ESG.

Tan replied that SGX’s disclosure requirements are not meant to prescribe how a company should be run, but instead “to promote availability and quality of information on the company’s performance”.

Companies can approach the Tripartite Alliance for Fair and Progressive Employment Practices to learn about good employment standards and tripartite standards, he added. MOM and other agencies are also promoting the adoption of tripartite standards among both listed and non-listed companies.