Mr Darryl Wee, Country Head for ACCA Singapore
Mr Kaka Singh, President ACCA Singapore Local Executive Committee
Distinguished guests, ladies and gentlemen

 

1       I am pleased to join you this afternoon at the 2011 ACCA Singapore Awards for Sustainability Reporting, and I would like to thank Mr Darryl Wee, Mr Singh and the organising team for their kind invitation.

 

2       All across the world, there has been increasing importance attached to sustainable development. For Singapore, sustainable development means the efficient use of resources in light of growing resource constraints, and managing our city’s growth while reducing pollution and preserving our natural heritage. Under the Sustainable Singapore Blueprint, our 2030 targets include a 35% improvement in energy efficiency, a recycling rate of 70% and reducing sulphur dioxide levels and particulate matter in the air from 2005 levels.

 

3       Sustainability reporting or ‘disclosure’ is increasingly acknowledged as an important business function. Investors expect listed companies to be accountable and transparent in how their business impacts the environment and communities within which they operate.

 

4       Between 1999 and 2010, there was a global increase of 22% in sustainability reports with the UK alone contributing 16%. Last year, Asia secured a regional share of 20% of the reports but still lagged behind Europe which accounts for 45%. For a more regional context, the Asian Sustainability Rating (ASR) ranked Singapore 5^th  [1], with South Korea, India and Malaysia coming in the first three places respectively. While we are commended for comprehensive governance reporting, there is room for improvement in the areas of social and environmental impacts.

 

5       I would like to commend ACCA for your continued involvement in the sustainability debate on issues such corporate social responsibility, sustainability reporting and climate change. Since the inception of one of its key projects ten years ago, the ACCA Awards for Sustainability Reporting continues its commitment to identify and reward innovative attempts to communicate corporate performance and comment on transparency and reporting standards.

 

6       It is clear from the participants of the ACCA’s awards that the quality of sustainability reporting has improved year on year. It is encouraging that companies are responsive to feedback and are committed to continually improve their reporting standards. For that, I thank all participating companies for your effort and excellence.

 

7       I would also like to commend Singapore Exchange (SGX) for issuing a policy statement to encourage listed companies to engage in sustainability reporting. SGX also more recently introduced a Sustainability Reporting Guide in June this year. Whilst no standards are currently prescribed, these are significant steps in setting the right tone for Singapore businesses. Sustainability reporting is still voluntary, but when more businesses step forward to do their part as responsible partners in sustainability, I understand that SGX will consider taking the next step of formulating formal rules to regulate disclosure.

8       With that said, I sincerely hope that more businesses will be inspired to take the lead in sustainability disclosure. To clear a common misconception, Corporate Social Responsibility (CSR) is not the province of MNCs and large companies alone. Small and medium enterprises can benefit from CSR and should embrace it.

 

9       One good example is Origin Exterminators. It is an SME that has CSR well embedded in its operations. Through constant innovation, Origin developed green technologies such as fumigation that does not release any toxins into the atmosphere and the Origin Termite Baiting System, for which it is a market leader. In addition, Origin has played its part by publishing an annual Environment and Sustainability report since 2008. So I encourage more local SMEs to emulate Origin’s example and pave the way for environmental best practices in operations and enterprise.  

 

10     Ultimately, transparency and disclosure are part and parcel of sound business practice. It is these principles that enable companies to improve, innovate and thrive. Through in-depth reporting, organisations secure the trust of their stakeholders and are able to achieve more sustainable operational efficiencies identified through data collection. Sustainability reporting also enhances a company’s attractiveness to investors.  It is reflective of good corporate governance, and responsible investors will seek out those companies committed to achieving social good together with financial returns.  

 

11     The global corporate environment is evolving to one that is more conscious of its actions and more conscientious in disclosing them. I too encourage our companies to take stock of what they do and how they can do it more sustainably to serve all its stakeholders. The question should not be why should companies report, but why should they not? With the support and participation of all stakeholders, Singapore can grow and develop sustainably. 

---