Findings from study on sustainability reporting launched at the Conference on Corporate Governance and Responsibility: Theory Meets Practice

Singapore, 20 July 2016 – A study by National University of Singapore (NUS) Business School’s Centre for Governance, Institutions and Organisations (CGIO) and ASEAN CSR Network (ACN) revealed that companies see the relevance in sustainability but majority struggle to identify its key impact, risks and opportunities.

According to the findings from “Sustainability Reporting in ASEAN”, mandatory sustainability reporting enforcement levels in Indonesia, Malaysia and Thailand have proven to be effective as 100 per cent of the companies there are communicating sustainability. Singapore currently stands out with only 71 per cent of companies there reporting sustainability, lagging behind its regional counterparts in terms of mandatory enforcement. However, more companies are expected to fall in line once SGX introduces sustainability reporting on a “comply or explain” basis in 2017. (See Annex 1).

In disclosure quality terms, Indonesia and Malaysia trail behind Singapore and Thailand. Factoring indicators such as governance, economic, environmental and social, Thailand outperformed with a score of 56.8, followed by Singapore (48.8), Indonesia (48.4) and Malaysia (47.7). The study also revealed that government-linked companies and state-owned enterprises fared better on their quality of disclosures. (See Annex 2).

The study examined the top 100 mainboard companies by market capitalisation as of 30 June 2015 in Indonesia, Malaysia, Singapore and Thailand, covering disclosed information from 1 January 2014 to 31 December 2015. The study’s methodology references the Global Reporting Initiative’s (GRI) G4 Sustainability Reporting Guidelines.

“The research clearly demonstrates that both government and industry stakeholders have a role to play in enhancing sustainability reporting as a key component of corporate governance,” said Associate Professor Lawrence Loh, Director of CGIO at NUS Business School. “Through this public-private partnership, ASEAN can truly be a world-class place to do business.”
ASEAN on the right track

Generally, sustainability reporting is healthy across Indonesia, Malaysia, Singapore and Thailand as companies appear to increasingly recognise its importance. While all four countries are at different regulatory stages, steps are being taken to make progress to improve on the quality of disclosure.

• Thailand is the clear outperformer with its high quality of disclosure attributed to its business culture that strongly emphasises on compliance
• Sustainability reporting is mandatory but the overall disclosure quality is relatively low
• In Malaysia, a more comprehensive sustainability reporting landscape is expected with the newly-implemented reporting guide by Bursa Malaysia
• Higher proportion of Singapore companies are expected to communicate sustainability when on the “comply or explain” basis

Stakeholders to lead by example

The findings were released today at the Conference on Corporate Governance and Responsibility: Theory Meets Practice, organised by CGIO, in partnership with ACN. The conference, which is held from 20 to 22 July 2016, is designed to provide a platform for key stakeholders engaged in teaching, researching and implementing corporate governance and responsibility to participate in high-level lectures, interactive dialogue and consultation, and sharing of practices and experiences, including site visits and executive meetings.

Mr. Masagos Zulkifli, Singapore’s Minister for the Environment and Water Resources, graced the Opening of the Conference as the Guest-of-Honour. The event brings together some 200 speakers and delegates from across the region and globally. This includes senior representatives from universities and think tanks, as well as corporate practitioners, civil society leaders, and policymakers.

“This is a unique platform where both academia and practitioners are getting together to exchange ideas and lead the way for stronger corporate governance and responsibility in the region. With a platform like the conference, we hope academics will find this a good opportunity to strengthen their research and teaching practices, helping to nurture a new generation of business and public leaders that will take CSR and sustainability to the next level,” said Ms Yanti Triwadiantini, Chair of ACN.

For media enquiries, please contact:

Ms Khyati Mehta
Manager, Corporate Communications
NUS Business School
National University of Singapore
DID: (65) 6516 1238
Email: khyati.mehta@nus.edu.sg

Ms Angela Tan
Senior Manager, Communications & Partnerships
ASEAN CSR Network
Email: angela@asean-csr-network.org
DID: (65) 6827 6895

About National University of Singapore (NUS)

A leading global university centred in Asia, the National University of Singapore (NUS) is Singapore’s flagship university, which offers a global approach to education and research, with a focus on Asian perspectives and expertise.

NUS has 17 faculties and schools across three campuses. Its transformative education includes a broad-based curriculum underscored by multi-disciplinary courses and cross-faculty enrichment. Over 38,000 students from 100 countries enrich the community with their diverse social and cultural perspectives.

NUS has three Research Centres of Excellence (RCE) and 26 university-level research institutes and centres. It is also a partner in Singapore’s fifth RCE. NUS shares a close affiliation with 17 national-level research institutes and centres. Research activities are strategic and robust, and NUS is well-known for its research strengths in engineering, life sciences and biomedicine, social sciences and natural sciences. It also strives to create a supportive and innovative environment to promote creative enterprise within its community.

For more information on NUS, please visit www.nus.edu.sg.

About the Centre for Governance, Institutions and Organisations

The Centre for Governance, Institutions and Organisations (CGIO) was established by the National University of Singapore (NUS) Business School in 2010. It aims to spearhead relevant and high-impact research on governance issues that are pertinent to Asia, including corporate governance, governance of family firms, state-linked companies, business groups, and institutions. CGIO also organises events such as public lectures, industry roundtables, and academic conferences on topics related to governance.

NUS Business School is known for providing management thought leadership from an Asian perspective, enabling its students and corporate partners to leverage global knowledge and Asian insights.

The School is one of the 17 faculties and schools at NUS. A leading global university centred in Asia, NUS is Singapore’s flagship university, which offers a global approach to education and research, with a focus on Asian perspectives and expertise. Its transformative education includes a broad-based curriculum underscored by multi-disciplinary courses and cross-faculty enrichment. Over 37,000 students from 100 countries enrich the community with their diverse social and cultural perspectives.

For more information, please visit bschool.nus.edu.sg, or go to the Think Business portal, which showcases the School’s research

About ASEAN CSR Network (ACN)

The ASEAN CSR Network (ACN) was established in December 2010 with support from the ASEAN Foundation in line with the achievement of an ASEAN Community in 2015. As a regional organisation, ACN provides a platform for networking and cooperation, supports capacity-building and training activities, helps to rally collective action on key issues, and provides a link with regional and international bodies interested in supporting the advancement of CSR in the region.