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Environmental, Social and Governance (ESG) is a set of non-financial criteria for assessing the corporations’ impact and initiatives towards being socially responsible, such as "eco-friendly”, “social value” and “ethical behaviour”. The term ESG was first used in early 20s and has since become a corporate social responsibility movement in private/public and financial/non-financial sectors worldwide.There is however no global definition, framework and metrics for ESG. Environmental factors include climate change, pollution, water scarcity, use of non-renewable resources, disposal of waste and loss of biodiversity. Social issues cover social relationships focusing on human rights, worker’s rights, workplace policies, employee wellness and training, wages, DE&I (diversity, equity, and inclusion) and corruption. Governance issues involves oversight of ESG issues, how stakeholder interests are balanced at the Board level and traditional corporate governance. |
| Mapping of ESG to UN's 17 Sustainable Development Goals (SDGs) While ESG is a rating system used by corporations to measure their environmental, social and governance credentials, 17 SDGs are global goals set out by the United Nations. |
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ESG is everything you do, by KPMG, 2min |
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Singapore Exchange (SGX) has introduced a phased approach to mandatory climate reporting. By 2024, climate reporting is mandatory for issuers in financial, agriculture, food & forest products, energy, materials & buildings, and transportation industries. For other issuers, climate reporting on a ‘comply or explain’ basis. The annual sustainability report should describe sustainability practices in the following primary components: ♦ Material ESG factors ♦ Climate-related disclosures |
Developed by SGX as part of the SGX Sustainability Indices product suite, the index tracks globally-listed companies domiciled or incorporated in Singapore. It upholds best-in-class selections based on Scope 1 and Scope 2 greenhouse gas emissions (GHG) per unit of revenue. |
| SGX core ESG metrics | ||
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World Bank Sovereign ESG Data Portal
71 ESG indicators over 61 years and across 217 economies |
Analyst-based ESG risk ratings for 16,000 companies worldwide |
The Singapore Governance and Transparency Index (SGTI)
Index for assessing corporate governance practices of Singapore-listed companies, by CPA Australia, NUS Business School’s Centre for Governance and Sustainability, and Singapore Institute of Directors (SID) |
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How ESG creates value
