Question

Discuss the Six fundamental principles that guide SASB's determination of topics for disclosure

Answer 1

Principles of Sustainability Reporting •

1 Board responsibility

Under the Code of Corporate Governance, the Board leads and controls the company, and has ultimate responsibility for the company’s sustainability reporting process and sustainability report. •

2 “Comply or explain”

Each SGX-listed company must issue a sustainability report with the primary components set out on the next page, or explain what it does instead and the reasons for doing so. •

3 Report risks as well as opportunities.

In identifying ESG factors, the company should consider both risks and opportunities. •

4 Balanced reporting

Sustainability reports should give an accurate and balanced view, incorporating both favorable and unfavorable findings. •

5 Performance measurement system

A good system benchmarks performance against stated objectives and facilitates comparisons against time and entities. •

6 Global standards and comparability

Companies should preferably adopt globally-recognized frameworks, disclosures, and best practices to guide reporting. •

7 Stakeholder engagement

A company should engage current and potential shareholders, as well as other stakeholders, to help it identify material ESG factors and solutions to the issues.