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17 August 2017

Sustainability Reporting

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S/N Items

1. SGX Sustainability Reporting Requirements

2. Sustainability Reporting Approach

3.Framework & Disclosure Requirements• General Standards• Specific Standards

4. Examples of Sustainability Reports

5. Sustainability Reporting at a Glance

6. Implementation Tips

7. Q&A

Agenda

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SGX Sustainability Reporting Requirements• Effective for financial year ending on, or after, 31 December 2017.

• Companies have to publish a sustainability report at least once a year, no later than 5 months after the end of each FY. − In the first year of reporting, an issuer may report within 12 months from the

end of its FY

• The report should describe the sustainability practices with reference to five primary components: 1) material ESG factors; 2) policies, practices and performance;3) targets;4) sustainability reporting framework; and5) the Board statement.

• “Comply or explain”

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Reporting framework

• Select a reporting framework• Provide a general description of the extent of the Company’s application

Identify material factors

• Describe the reasons and the process of selecting Environmental, Social and Governance (“ESG”) factors.

• Consider the relevance of ESG factors to the business, strategy, and key stakeholders.

Establish and

develop policies and data

• Establish the sustainability policies, practices and key performance indicators in relation to the material ESG factors identified.

• Provide both descriptive and quantitative information on each of the identified material ESG factors

Board statement

• The Board has considered sustainability issues as part of its strategy formulation, and determined the material ESG factors.

• The Board has provided oversight of the management’s monitoring of the material ESG factors.

Sustainability Reporting Approach

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Over 84% of the world’s issued Sustainability Reports apply GRI.

GRI Framework

Strategy

Organizational Profile

Reporting Practice

Stakeholder Engagement

Governance

Ethics & IntegrityEnvironmental

EconomicSocial

Adapted from the G4 Sustainability Reporting Guidelines, General and Specific Standard Disclosures

“…reporting the EESG impacts and its contribution, positive or negative, towards the achievement of sustainable development”

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Integrated Reporting Framework

Source: The International Integrated Reporting Framework

Value creation over time – interactions, activities and relationships that are material to an organization’s ability to create value for itself are included in the integrated report

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Reporting OptionsCore Comprehensive

Source: GRI 2016 Standards

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GRI Standards: Standard Disclosures GRI Indicator Disclosure GRI 102: GENERALOrganizational ProfileGRI 102‐1 Name of the organizationGRI 102‐2 Activities, brands, products and servicesGRI 102‐3 Location of headquartersGRI 102‐4 Location of operationsGRI 102‐5 Ownership and legal formGRI 102‐6 Markets servedGRI 102‐7 Scale of the organizationGRI 102‐8 Information on employees and other workersGRI 102‐9 Supply chain

GRI 102‐10Significant changes to the organization and its supply chain

GRI 102‐11 Precautionary Principle or approachGRI 102‐12 External initiativesGRI 102‐13 Membership of associationsStrategyGRI 102‐14 Statement from senior decision‐makerGRI 102‐15 Key impacts, risks, and opportunitiesEthics and integrity

GRI 102‐16Values, principles, standards and norms of behavior

GRI 102‐17 Mechanisms for advice and concerns about ethics

GovernanceGRI 102‐18 Governance structureGRI 102‐19 Delegating authority

GRI 102‐20Executive‐level responsibility for economic, environmental, and social topics

GRI 102‐21Consulting stakeholders on economic, environmental, and social topics

GRI 102‐22Composition of the highest governance body and its committees

GRI 102‐23 Chair of the highest governance body

GRI 102‐24Nominating and selecting the highest governance body

GRI 102‐25 Conflicts of interest

GRI 102‐26Role of highest governance body in setting purpose, values, and strategy

GRI 102‐27 Collective knowledge of highest governance body

GRI 102‐28Evaluating the highest governance body’s performance

GRI 102‐29Identifying and managing economic, environmental, and social impacts

GRI 102‐30 Effectiveness of risk management processesGRI 102‐31 Review of economic, environmental, and social 

topicsGRI 102‐32 Highest governance body’s role in sustainability 

reportingGRI 102‐33 Communicating critical concernsGRI 102‐34 Nature and total number of critical concernsGRI 102‐35 Remuneration policiesGRI 102‐36 Process for determining remunerationGRI 102‐37 Stakeholders’ involvement in remunerationGRI 102‐38 Annual total compensation ratioLegend: Blue denotes “Comprehensive” requirements

“Corruption” is a factor required by SGX to be addressed

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GRI Standards: Standard Disclosures (Cont’d)Stakeholder EngagementGRI 102‐40 List of stakeholder groupsGRI 102‐41 Collective bargaining agreementsGRI 102‐42 Identifying and selecting stakeholdersGRI 102‐43 Approach to stakeholder engagementGRI 102‐44 Key topics and concerns raisedReporting Practice

GRI 102‐45Entities included in the consolidated financial statements

GRI 102‐46 Defining report content and topic BoundariesGRI 102‐47 List of material topicsGRI 102‐48 Restatements of informationGRI 102‐49 Changes in reportingGRI 102‐50 Reporting periodGRI 102‐51 Date of most recent reportGRI 102‐52 Reporting cycleGRI 102‐53 Contact point for questions regarding the report

GRI 102‐54Claims of reporting in accordance with the GRI Standards

GRI 102‐55 GRI content indexGRI 102‐56 External assuranceGRI 103: MANAGEMENT APPROACHGRI 103‐1 Explanation of the material topic and its BoundaryGRI 103‐2 The management approach and its componentsGRI 103‐3 Evaluation of the management approach

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GRI Standards: Specific DisclosuresSPECIFIC STANDARD DISCLOSURESEconomic PerformanceGRI 201‐1 Direct Economic Value Generated and Distributed

GRI 201‐2 Financial implications and other risks and opportunities due to climate change

GRI 201‐3 Defined benefit plan obligations and other retirement plansGRI 201‐4 Financial assistance received from governmentMarket Presence

GRI 202‐1Ratios of standard entry level wage by gender compared to local minimum wage

GRI 202‐2 Proportion of senior management hired from the local communityIndirect Economic ImpactsGRI 203‐1 Infrastructure investments and services supportedGRI 203‐2 Significant indirect economic impactsProcurement PracticesGRI 204‐1 Proportion of spending on local suppliersAnti‐corruptionGRI 205‐1 Operations assessed for risks related to corruptionGRI 205‐2 Communication and training about anti‐corruption policies and proceduresGRI 205‐3 Confirmed incidents of corruption and actions takenAnti‐competitive BehaviorGRI 206‐1 Legal actions for anti‐competitive behavior, anti‐trust, and monopoly practicesMaterialsGRI 301‐1 Materials used by weight or volumeGRI 301‐2 Recycled input materials usedGRI 301‐3 Reclaimed products and their packaging materialsEnergyGRI 302‐1 Energy consumption within the organizationGRI 302‐2 Energy consumption outside of the OrganizationGRI 302‐3 Energy intensityGRI 302‐4 Reduction of Energy ConsumptionGRI 302‐5 Reductions in energy requirements of products and servicesWater

GRI 303‐1 Water withdrawal by sourceGRI 303‐2 Water sources significantly affected by withdrawal of waterGRI 303‐3 Water recycled and reused

Biodiversity

GRI 304‐1Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

GRI 304‐2 Significant impacts of activities, products, and services on biodiversity

GRI 304‐3 Habitats protected or restoredGRI 304‐4 IUCN Red List species and national conservation list species with 

habitats in areas affected by operationsEmissionsGRI 305‐1 Direct (Scope 1) GHG emissionsGRI 305‐2 Energy indirect (Scope 2) GHG emissionsGRI 305‐3 Other indirect (Scope 3) GHG emissionsGRI 305‐4 GHG emissions intensityGRI 305‐5 Reduction of GHG emissionsGRI 305‐6 Emissions of ozone‐depleting substances (ODS)

GRI 305‐7Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

Effluents and WasteGRI 306‐1 Water discharge by quality and destinationGRI 306‐2 Waste by type and disposal methodGRI 306‐3 Significant spillsGRI 306‐4 Transport of hazardous wasteGRI 306‐5 Water bodies affected by water discharges and/or runoffEnvironmental ComplianceGRI 307‐1 Non‐compliance with environmental laws and regulationsSupplier Environmental AssessmentGRI 308‐1 New suppliers that were screened using environmental criteriaGRI 308‐2 Negative environmental impacts in the supply chain and actions 

takenEmploymentGRI 401‐1 New employee hires and employee turnover

GRI 401‐2Benefits provided to full‐time employees that are not provided to temporary or part‐time employees

GRI 401‐3 Parental leaveLabor/Management RelationsGRI 402‐1 Minimum notice periods regarding operational changes

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GRI Standards: Specific Disclosures (Cont’d)Occupational Health and Safety

GRI 403‐1Workers representation in formal joint management–worker health and safety committees

GRI 403‐2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work‐related fatalities

GRI 403‐3 Workers with high incidence or high risk of diseases related to their occupation

GRI 403‐4 Health and safety topics covered in formal agreements with trade unions

Training and EducationGRI 404‐1 Average hours of training per year per employeeGRI 404‐2 Programs for upgrading employee skills and transition 

assistance programsGRI 404‐3 Percentage of employees receiving regular performance and 

career development reviewsDiversity and Equal OpportunityGRI 405‐1 Diversity of governance bodies and employeesGRI 405‐2 Ratio of basic salary and remuneration of women to menNon‐discriminationGRI 406‐1 Incidents of discrimination and corrective actions takenFreedom of Association and Collective Bargaining

GRI 407‐1Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

Child Labor

GRI 408‐1Operations and suppliers at significant risk for incidents of child labor

Forced or Compulsory Labor

GRI 409‐1Operations and suppliers at significant risk for incidents of forced or compulsory labor

Security Practices

GRI 410‐1Security personnel trained in human rights policies or procedures

Rights of Indigenous PeoplesGRI 411‐1 Incidents of violations involving rights of indigenous peoplesHuman Rights Assessment

GRI 412‐1Operations that have been subject to human rights reviews or impact assessments

GRI 412‐2 Employee training on human rights policies or proceduresGRI 412‐3 Significant investment agreements and contracts that include human 

rights clauses or that underwent human rights screeningLocal CommunitiesGRI 413‐1 Operations with local community engagement, impact assessments, 

and development programsGRI 413‐2 Operations with significant actual and potential negative impacts on 

local communitiesSupplier Social AssessmentGRI 414‐1 New suppliers that were screened using social criteriaGRI 414‐2 Negative social impacts in the supply chain and actions takenPublic PolicyGRI 415‐1 Political contributionsCustomer Health and Safety

GRI 416‐1Assessment of the health and safety impacts of product and service categories

GRI 416‐2Incidents of non‐compliance concerning the health and safety impacts of products and services

Marketing and LabelingGRI 417‐1 Requirements for product and service information and labeling

GRI 417‐2Incidents of non‐compliance concerning product and service information and labeling

GRI 417‐3 Incidents of non‐compliance concerning marketing communicationsCustomer Privacy

GRI 418‐1Substantiated complaints concerning breaches of customer privacy and losses of customer data

Socioeconomic Compliance

GRI 419‐1Non‐compliance with laws and regulations in the social and economic area

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Sustainability Strategies

Company’s Vision & Objectives

Align strategy of Company with interests of Stakeholders

ShareholdersSuppliersCustomers EmployeesGovernment Agencies

Stakeholders

StrategiesCustomers

People-centric Integrity Environment

Health & Safety

Quality Innovation

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Stakeholders’ Interests

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Sustainability Strategy - Examples

Extracted from SIA’s 2016 Sustainability Report

Source: Sembcorp Marine’s 2016 Sustainability Report

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Determining Relevant AspectsECONOMIC

Economic Performance Procurement Practices

Market Presence Anti-corruption

Indirect Economic Impacts Anti-competitive behavior

SOCIAL

Employment Child Labor Supplier Social Assessment

Labor/ Management Relations Forced or Compulsory Labor Public Policy

Occupational Health & Safety Security Practices Customer Health & Safety

Training & Education Rights of Indigenous People Market & Labelling

Diversity & Equal Opportunity Human Rights Assessment Customer Privacy

Non-discrimination Local Communities Socioeconomic Compliance

Freedom of Association & Collective Bargaining

ENVIRONMENTAL

Materials Emissions

Energy Effluents and Waste

Water Environmental Compliance

Biodiversity Supplier Environmental Assessment

Suppliers Local Communities

EmployeesShareholders

Customers Government Agencies

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Materiality Assessment

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Environment

Energy

302‐1Energy Consumption within the Organization

302‐2Energy consumption outside of the organization

302‐4Reduction of Energy Consumption

Effluents & Waste

306‐2Total Weight of Waste by Type and Disposal Method

Compliance 307‐1Non‐compliance with environmental laws and regulations

Social

Employment 401‐1New employee hires and employee turnover

Non‐Discrimination 406‐1Incidents of discrimination and corrective actions taken

Occupational Health & Safety

403‐2

Type of Injury and Rates of Injury, Occupational diseases, Lost days, and Absenteeism, and  number of Work‐Related Fatalities.

Compliance 419‐1Non‐compliance with laws and regulations in the social and economic area

Economic

Economic Performance

201‐1Direct Economic Value Generated and Distributed

Customer Health and Safety

416‐2Incidents of non‐compliance concerning the health and safety impacts of products and services

Compliance 419‐1Non‐compliance with laws and regulations in the social and economic area

Governance

Anti‐Corruption

205‐2Communication and Training on Anti‐Corruption policies and procedures

205‐3Confirmed Incidents of Corruption and Actions taken

Inte

grity

Cus

tom

er

Alig

nmen

t &

Inno

vatio

nH

ealth

&

Safe

tyPe

ople

-ce

ntric

Envi

ronm

ent

Qua

lity

Qua

lity

Qua

lity

Materiality Assessment

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Environment

Energy

302‐1Energy Consumption within the Organization

302‐2Energy consumption outside of the organization

302‐4Reduction of Energy Consumption

Effluents & Waste

306‐2Total Weight of Waste by Type and Disposal Method

Compliance 307‐1Non‐compliance with environmental laws and regulations

Social

Employment 401‐1New employee hires and employee turnover

Non‐Discrimination

406‐1Incidents of discrimination and corrective actions taken

Occupational Health & Safety

403‐2

Type of Injury and Rates of Injury, Occupational diseases, Lost days, and Absenteeism, and  number of Work‐Related Fatalities.

Compliance 419‐1

Non‐compliance with laws and regulations in the social and economic area

Economic

Economic Performance

201‐1Direct Economic Value Generated and Distributed

Customer Health and Safety

416‐2

Incidents of non‐compliance concerning the health and safety impacts of products and services

Compliance 419‐1

Non‐compliance with laws and regulations in the social and economic area

Governance

Anti‐Corruption

205‐2

Communication and Training on Anti‐Corruption policies and procedures

205‐3Confirmed Incidents of Corruption and Actions taken

Inte

grity

Cus

tom

er A

lignm

ent

& In

nova

tion

Hea

lth &

Sa

fety

Peop

le-

cent

ric

Envi

ronm

ent

Qua

lity

Qua

lity

Qua

lity

Materiality Assessment

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GRI Content Index – Real Estate & Construction

Source: CapitalLand’s 2016 Sustainability Report

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GRI Content Index – Service

Source: SGXs 2016 Sustainability Report

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GRI Content Index – Offshore Marine

Source: Sembcorp Marine’s 2016 Sustainability Report

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Organisation

Outside of the organisation

EmployeesGovernment

Agencies

Local Communities

Suppliers

CustomersShareholders

Sustainability Reporting at a Glance

Geographical location of operations

Regulations

Major businesses

Your businesses

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Specific Standard Disclosures1. Identification of relevant aspects. 2. Assess and identify material

aspects.3. Assess the availability of

sustainability policies, practices and measurement metrics for the identified material aspects. develop the necessary policies

and data that are currently not available.

compile available information on the selected ESG indicators for each material aspect.

Implementation Tips

General Standard Disclosures1. Assess the sufficiency of available

information required for disclosure.2. Develop the necessary general

disclosure information.

General and Specific Disclosure Requirements, G4 Guidelines

Adapted from the G4 Sustainability Reporting Guidelines, General and Specific Standard Disclosures

Strategy

Organizational Profile

Reporting Practice

Stakeholder Engagement

Governance

Ethics & IntegrityEnvironmental

EconomicSocial

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