Key ESG Developments That Matter to You
October 27, 2022
According to KPMG’s Survey of Sustainability Reporting 2022, there is an exponential growth in the number of companies providing sustainability reports. In 2022, nearly 79% of worldwide top 100 companies (the “N100”) undertaking sustainability reporting despite the global economic recession. In order to help key stakeholders especially the investors to get the full picture of a company’s environmental, social, and governance (ESG) performance, it is imperative for companies to collect and present quality ESG data. However, one of the common issues companies are facing when presenting their ESG data is a lack of a standardised reporting framework which can increase the risk of “greenwashing” and affect their data credibility.
This is where Fintech comes into play to bridge the gaps.
In a keynote speech at Swift’s Sibos 2022 conference, the managing director of the Monetary Authority of Singapore (MAS), Mr Ravi Menon has shared some thoughts on how Fintech can potentially play a role in the changing landscape of financial services. Fintech solutions are recognised as the key to unlocking the future of ESG with various innovative products to help address the gaps between ESG data needs and the ESG data available. To harness Green Fintech to enable a more transparent, consistent and comparable disclosure, the MAS has announced plans to launch 4 digital platforms under Project Greenprint.
Project Greenprint which comprises 4 common utility platforms: (a) Greenprint Marketplace; (b) Data Orchestrator(s); (c) ESG Registry(s) and (d) ESG Disclosure Portal.
Current Progress
On 12 September 2022, MAS has developed an integrated disclosure portal, ESGenome in partnership with Singapore Exchange (SGX) to simplify sustainability reporting and facilitate access to ESG data. It allows the inputs of useful data to map across a range of ESG reporting frameworks. In addition, MAS has launched the ESGpedia registry platform with the help of an industry player, Hashstacs Pte Ltd (STACS) in May this year. The platform serves as a single point of access for financial institutions, corporates and regulatory authorities to verified sustainability data and ESG certifications. Meanwhile, the Data Orchestrator and Greenprint Marketplace which are also housed under Project Greenprint are expected to launch in 2023.
Key Global Trends
The latest findings by KPMG revealed that the Global Reporting Initiative (GRI) remains the most dominant standards used by companies around the world, with Singapore (100%) as the leader in the adoption of GRI. At the same time, the number of companies adopting Task Force on Climate-related Financial Disclosures (TCFD) recommendations are rising significantly over the past few years. The adoption of TCFD framework continues to grow as it helps companies to assess and disclose their climate-related risks and opportunities for better risk management and decision making. In summary, sustainability reports should not be deemed as a box-ticking exercise, but instead it should be a key concern for all companies as it helps them to develop sustainable strategies and get closer to net zero carbon emissions.
Global TCFD Adoption (2020 vs. 2022)
*G250 refers to the world’s 250 largest companies by revenue based on the 2021 Fortune 500 ranking. N100 refers to a worldwide sample of the top 100 companies by revenue in 58 countries, territories and jurisdictions
Source: KPMG Survey of Sustainability Reporting 2022
How we can help
While moving towards a more sustainable economy, Alder helps integrate the ESG framework into your business. Our services include:
- Assisting to set up ESG frameworks
- Providing support on ESG reporting
- Providing ongoing ESG advice and support
- Facilitating effective communication of the company’s ESG approach with internal and external stakeholders
- Reviewing and rating the existing governance framework
Reference Materials
KPMG International (2022). ‘KPMG Survey of Sustainability Reporting 2022’. Available at: https://assets.kpmg/content/dam/kpmg/xx/pdf/2022/10/ssr-small-steps-big-shifts.pdf
Monetary Authority of Singapore (2022). ‘”Two Problems for FinTech to Solve: Cross-Border Payments and ESG Data” – Keynote Speech by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, at Sibos 2022 on 10 October 2022’. Available at: https://www.mas.gov.sg/news/speeches/2022/two-problems-for-fintech-to-solve
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