Sunday, 25 September 2022

MAS and SGX Group launch ESGenome disclosure portal to streamline sustainability reporting

5 min read

 The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX Group) jointly launched ESGenome, a digital disclosure portal for companies to report environmental, social and governance (ESG) data in a structured and efficient manner, and for investors to access such data in a consistent and comparable format.

ESGenome is a joint initiative by the MAS and SGX Group under Project Greenprint to develop a common disclosure utility that will facilitate sustainability reporting for SGX-listed companies.

With corporate sustainability disclosures representing one of the largest sources of ESG data globally, there is great scope to harness technology to enhance such disclosures and comparability of data to support the financing decisions needed for a credible transition. Currently, the proliferation of multiple sustainability reporting frameworks and guidelines across jurisdictions, and the inconsistent manner in which data is being collected, verified and reported have created significant disclosure challenges and resulted in poor ESG data comparability.

ESGenome is a software-as-a-service (SaaS) solution operated by World Wide Generation (WWG). It helps SGX-listed companies simplify the disclosure process using a core set of metrics that is mapped across global standards and frameworks.

  • Companies can carry out their baseline sustainability reporting based on a set of 27 SGX core ESG metrics.
  • Companies can make additional disclosures in line with globally recognised ESG reporting standards and frameworks5 across more than 3,000 ESG metrics, depending on materiality and their business needs.
  • Companies need only provide a one-time input for each ESG metric – these inputs can be automatically mapped across their selected standards and frameworks to cater to different investor requirements.
  • A sustainability report can be automatically generated from the inputs.

For investors and financial institutions, ESGenome provides access to relevant and comparable ESG data that allows for meaningful peer benchmarking and tracking of sustainability commitments. This enables capital to be mobilised more efficiently toward sustainable companies and projects.

MAS will also draw on the learnings from ESGenome to address the reporting needs of the broader universe of corporates, notably small and medium-sized enterprises, and supply chain partners and suppliers, as part of its ongoing work on Project Greenprint.

Darian McBain, chief sustainability officer of MAS said, “High-quality sustainability data is critical for better decision-making by corporates and financial institutions as they look to deliver against the UN SDG 2030 goals and their net zero transition pathways. Technology is an important enabler for the efficient, timely and accurate reporting of this data against the backdrop of a rapidly evolving global disclosure landscape. We are excited to launch ESGenome together with SGX to help listed entities in Singapore reduce the effort required to report on sustainability, assess impact, and drive informed decision making in their sustainability journey”.

Michael Syn, senior managing director and head of equities of SGX Group said, “ESGenome is designed to capture corporate sustainability disclosures in a simple and effective manner useful to investors and the broader capital market ecosystem. We are optimistic that by being frontrunners in ESG data disclosure via ESGenome, our listed companies will be in a better position to raise capital and attract international investors who are actively looking for leading ESG firms”.

Ong-Ang Ai Boon, director, The Association of Banks in Singapore said, “ABS welcomes the initiative. This is a good common disclosure utility, giving ABS a timely use case for our banking members to collect data directly from the private sector and in particular, SME clients, an important data set that is currently missing. ABS looks forward to collaborating with our regulator, businesses, solution providers and stakeholders to continue accelerating the financing and transition to a much-needed greener future”.

Re-disseminated by The Asian Banker

Diary of Activities
Finance Thailand 2022
04 October 2022
Finance Indonesia 2022
10 November 2022