Sustainability reporting and investors: what to look out for

INVESTORS will have seen many companies in Singapore publish sustainability reports of late. Driven by SGX rule changes that require sustainability reporting from year-end 2017 on a comply-or-explain basis, these reports are part of a wider movement towards fully understanding the sustainability of a business. Such reporting has come a long way.

In the early days of "CSR Reports", much attention was focused on philanthropic and community efforts, whereas the focus now is on the sustainability of the company's operations, and it's business model.

These reports are part of a broader conversation between investors and listed companies on sustainability around the globe. Whilst reporting is on a comply-or-explain basis, the trend is clear, and investors are asking increasingly detailed questions about companies' responses to the threats and opportunities around sustainability issues.