The Singapore Exchange (SGX) has announced the launch of the SGX Sustainability Indices. The aim of these indices is to provide a basis for the assessment of SGX-listed companies in sustainability practices, and also to identify environmental, social and governance (ESG) leaders in Singapore.
SGX said in a media release that the SGX Sustainability Indices comprises of SGX-listed stocks which was introduced by SGX Index Edge. To further enhance the effectiveness of the indices, the SGX has partnered Sustainalytics. Sustainalytics will be providing information on the ESG research and ratings of SGX-listed companies which will ultimately determine the indices of each company.
Apart from the necessary ESG requirements, there is a minimum liquidity requirement which companies must also meet in order to qualify for inclusion.
The introduction of the SGX Sustainability Index suite complements the bourse’s efforts to enhance disclosure and access to sustainability information, including the introduction of sustainability reporting for listed companies on a “comply or explain” basis.