SGX-Listed Companies Should Retain Flexibility in Sustainability Reporting
The adoption of tripartite standards should remain voluntary and not be included as a requirement in environmental, social, and governance (ESG) disclosures for Singapore Exchange (SGX)-listed firms, said Minister of State for Trade and Industry Alvin Tan in Parliament on Feb 7.
Current ESG Disclosure Framework
Responding to Nominated MP Jean See, who suggested incorporating tripartite standards into ESG sustainability reports, Tan emphasized that SGX-listed companies are already required to disclose developments significantly affecting their business performance and prospects, including ESG-related factors.
However, he noted that reporting requirements should not be overly prescriptive, as business models, strategies, and stakeholders differ widely across industries.
What Are Tripartite Standards?
Tripartite standards, developed by the Ministry of Manpower (MOM), National Trades Union Congress (NTUC), and Singapore National Employers Federation (SNEF), outline best practices for employment. These cover areas such as fair recruitment, flexible work arrangements, and grievance handling.
Currently, companies adopt these standards voluntarily. Tan stated that firms should assess which factors materially impact their business performance and should be disclosed accordingly.
No Plans for Mandatory Adoption
When asked whether the government intends to make tripartite standards mandatory for SGX-listed companies, Tan reiterated that SGX disclosure rules aim to improve transparency rather than dictate how businesses operate.
He encouraged companies to engage with the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) to learn more about best employment practices, while MOM and other agencies continue to promote adoption among both listed and non-listed companies.
