SINGAPORE: According to EY’s 2023 global climate risk barometer, Singapore ranked high in Asia in climate-related disclosures.
The city-state scored 41%, beating Southeast Asia’s average of 35%, though Malaysia slightly outperformed with 43%, Singapore Business Review reports.
Globally, the top countries for disclosure quality were the UK, Germany, France, Spain, and the US. These countries boasted impressive scores of 66%, 62%, 59%, 59% and 52%, respectively.
EY’s report highlighted countries needing enhancement, pointing towards India, China, the Philippines, and Indonesia, where disclosure of climate strategies and actions fell short. These countries scored 36%, 30%, 30%, and 22%, respectively.
Nevertheless, positive strides were observed in Southeast Asia, with countries embarking on their disclosure journey at varying paces.
Praveen Tekchandani, Singapore’s climate change and sustainability services leader and partner in assurance at EY, said:
“In SEA, while each country is adopting the standards at their own pace, progressive regulators such as those in Singapore and Malaysia have started on the journey, resulting in better scores in the quality of disclosure.”
Despite the positive trend in quality improvement, the overall coverage of climate-related disclosures in Southeast Asia remained steady at 84% in 2023 compared to the previous year.
However, an alarming revelation surfaced on the absence of climate-related references in financial statements among 90% of surveyed companies in the region.
In addition, over half of the companies with climate commitments failed to furnish accompanying transition plans.
The study conducted by EY spanned over 1,500 firms across 51 countries globally, with a specific focus on 133 companies in Southeast Asia. /TISG
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