Sustainability Reporting - PDF Free Download

Agenda 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 Foo Kon Tan LLP. All rights reserved. -2-

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; and 5) the Board statement. Comply or explain Foo Kon Tan LLP. All rights reserved. -3-

Sustainability Reporting Approach Reporting framework Select a reporting framework Provide a general description of the extent of the Company s application Identify material factors Establish and develop policies and data Board statement 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 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 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. Foo Kon Tan Advisory Services Pte Ltd. All rights reserved. -4-

GRI Framework Ethics & Integrity Strategy Environmental Organizational Profile reporting the EESG impacts and its contribution, positive or negative, towards the achievement of sustainable development Social Economic Governance Stakeholder Engagement Reporting Practice Over 84% of the world s issued Sustainability Reports apply GRI. Adapted from the G4 Sustainability Reporting Guidelines, General and Specific Standard Disclosures Foo Kon Tan LLP. All rights reserved. -5-

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 Source: The International Integrated Reporting Framework Foo Kon Tan LLP. All rights reserved. -6-

GRI Standards: Standard Disclosures GRI Indicator Disclosure GRI 102: GENERAL Organizational Profile GRI 102 1 Name of the organization GRI 102 2 Activities, brands, products and services GRI 102 3 Location of headquarters GRI 102 4 Location of operations GRI 102 5 Ownership and legal form GRI 102 6 Markets served GRI 102 7 Scale of the organization GRI 102 8 Information on employees and other workers GRI 102 9 Supply chain GRI 102 10 Significant changes to the organization and its supply chain GRI 102 11 Precautionary Principle or approach GRI 102 12 External initiatives GRI 102 13 Membership of associations Strategy GRI 102 14 Statement from senior decision maker GRI 102 15 Key impacts, risks, and opportunities Ethics and integrity GRI 102 16 Values, principles, standards and norms of behavior GRI 102 17 Mechanisms for advice and concerns about ethics Corruption is a factor required by SGX to be addressed Legend: Blue denotes Comprehensive requirements Foo Kon Tan LLP. All rights reserved. -8- Governance GRI 102 18 GRI 102 19 GRI 102 20 GRI 102 21 GRI 102 22 GRI 102 23 GRI 102 24 GRI 102 25 GRI 102 26 GRI 102 27 GRI 102 28 GRI 102 29 GRI 102 30 GRI 102 31 GRI 102 32 GRI 102 33 GRI 102 34 GRI 102 35 GRI 102 36 GRI 102 37 GRI 102 38 Governance structure Delegating authority Executive level responsibility for economic, environmental, and social topics Consulting stakeholders on economic, environmental, and social topics Composition of the highest governance body and its committees Chair of the highest governance body Nominating and selecting the highest governance body Conflicts of interest Role of highest governance body in setting purpose, values, and strategy Collective knowledge of highest governance body Evaluating the highest governance body s performance Identifying and managing economic, environmental, and social impacts Effectiveness of risk management processes Review of economic, environmental, and social topics Highest governance body s role in sustainability reporting Communicating critical concerns Nature and total number of critical concerns Remuneration policies Process for determining remuneration Stakeholders involvement in remuneration Annual total compensation ratio

GRI Standards: Standard Disclosures (Cont d) Stakeholder Engagement GRI 102 40 List of stakeholder groups GRI 102 41 Collective bargaining agreements GRI 102 42 Identifying and selecting stakeholders GRI 102 43 Approach to stakeholder engagement GRI 102 44 Key topics and concerns raised Reporting Practice GRI 102 45 Entities included in the consolidated financial statements GRI 102 46 Defining report content and topic Boundaries GRI 102 47 List of material topics GRI 102 48 Restatements of information GRI 102 49 Changes in reporting GRI 102 50 Reporting period GRI 102 51 Date of most recent report GRI 102 52 Reporting cycle GRI 102 53 Contact point for questions regarding the report GRI 102 54 Claims of reporting in accordance with the GRI Standards GRI 102 55 GRI content index GRI 102 56 External assurance GRI 103: MANAGEMENT APPROACH GRI 103 1 Explanation of the material topic and its Boundary GRI 103 2 The management approach and its components GRI 103 3 Evaluation of the management approach Foo Kon Tan LLP. All rights reserved. -9-

GRI Standards: Specific Disclosures SPECIFIC STANDARD DISCLOSURES Economic Performance GRI 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 plans GRI 201 4 Financial assistance received from government Market Presence GRI 202 1 Ratios of standard entry level wage by gender compared to local minimum wage GRI 202 2 Proportion of senior management hired from the local community Indirect Economic Impacts GRI 203 1 Infrastructure investments and services supported GRI 203 2 Significant indirect economic impacts Procurement Practices GRI 204 1 Proportion of spending on local suppliers Anti corruption GRI 205 1 Operations assessed for risks related to corruption GRI 205 2 Communication and training about anti corruption policies and procedures GRI 205 3 Confirmed incidents of corruption and actions taken Anti competitive Behavior GRI 206 1 Legal actions for anti competitive behavior, anti trust, and monopoly practices Materials GRI 301 1 Materials used by weight or volume GRI 301 2 Recycled input materials used GRI 301 3 Reclaimed products and their packaging materials Energy GRI 302 1 Energy consumption within the organization GRI 302 2 Energy consumption outside of the Organization GRI 302 3 Energy intensity GRI 302 4 Reduction of Energy Consumption GRI 302 5 Reductions in energy requirements of products and services Water GRI 303 1 Water withdrawal by source GRI 303 2 Water sources significantly affected by withdrawal of water GRI 303 3 Water recycled and reused Biodiversity GRI 304 1 GRI 304 2 GRI 304 3 GRI 304 4 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas Significant impacts of activities, products, and services on biodiversity Habitats protected or restored IUCN Red List species and national conservation list species with habitats in areas affected by operations Emissions GRI 305 1 Direct (Scope 1) GHG emissions GRI 305 2 Energy indirect (Scope 2) GHG emissions GRI 305 3 Other indirect (Scope 3) GHG emissions GRI 305 4 GHG emissions intensity GRI 305 5 Reduction of GHG emissions GRI 305 6 Emissions of ozone depleting substances (ODS) GRI 305 7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions Effluents and Waste GRI 306 1 Water discharge by quality and destination GRI 306 2 Waste by type and disposal method GRI 306 3 Significant spills GRI 306 4 Transport of hazardous waste GRI 306 5 Water bodies affected by water discharges and/or runoff Environmental Compliance GRI 307 1 Non compliance with environmental laws and regulations Supplier Environmental Assessment GRI 308 1 New suppliers that were screened using environmental criteria GRI 308 2 Negative environmental impacts in the supply chain and actions taken Employment GRI 401 1 New employee hires and employee turnover GRI 401 2 Benefits provided to full time employees that are not provided to temporary or part time employees GRI 401 3 Parental leave Labor/Management Relations GRI 402 1 Minimum notice periods regarding operational changes Foo Kon Tan LLP. All rights reserved. -10-

GRI Standards: Specific Disclosures (Cont d) Occupational Health and Safety Workers representation in formal joint management worker GRI 403 1 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 Education GRI 404 1 Average hours of training per year per employee GRI 404 2 Programs for upgrading employee skills and transition assistance programs GRI 404 3 Percentage of employees receiving regular performance and career development reviews Diversity and Equal Opportunity GRI 405 1 Diversity of governance bodies and employees GRI 405 2 Ratio of basic salary and remuneration of women to men Non discrimination GRI 406 1 Incidents of discrimination and corrective actions taken Freedom of Association and Collective Bargaining Operations and suppliers in which the right to freedom of GRI 407 1 association and collective bargaining may be at risk Child Labor Operations and suppliers at significant risk for incidents of GRI 408 1 child labor Forced or Compulsory Labor Operations and suppliers at significant risk for incidents of GRI 409 1 forced or compulsory labor Security Practices Security personnel trained in human rights policies or GRI 410 1 procedures Rights of Indigenous Peoples GRI 411 1 Incidents of violations involving rights of indigenous peoples Human Rights Assessment Operations that have been subject to human rights reviews or impact GRI 412 1 assessments GRI 412 2 Employee training on human rights policies or procedures GRI 412 3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening Local Communities GRI 413 1 Operations with local community engagement, impact assessments, and development programs GRI 413 2 Operations with significant actual and potential negative impacts on local communities Supplier Social Assessment GRI 414 1 New suppliers that were screened using social criteria GRI 414 2 Negative social impacts in the supply chain and actions taken Public Policy GRI 415 1 Political contributions Customer Health and Safety Assessment of the health and safety impacts of product and service GRI 416 1 categories GRI 416 2 Marketing and Labeling GRI 417 1 GRI 417 2 GRI 417 3 Customer Privacy Incidents of non compliance concerning the health and safety impacts of products and services Requirements for product and service information and labeling Incidents of non compliance concerning product and service information and labeling Incidents of non compliance concerning marketing communications Substantiated complaints concerning breaches of customer privacy and GRI 418 1 losses of customer data Socioeconomic Compliance Non compliance with laws and regulations in the social and economic GRI 419 1 area Foo Kon Tan LLP. All rights reserved. -11-

Sustainability Strategies Company s Vision & Objectives Strategies Quality Innovation Customers Foo Kon Tan LLP. All rights reserved. -12- Peoplecentric Integrity Environment Health & Safety Stakeholders Customers Suppliers Government Agencies Employees Shareholders Align strategy of Company with interests of Stakeholders

Determining Relevant Aspects ECONOMIC ENVIRONMENTAL Economic Performance Procurement Practices Materials Emissions Market Presence Anti-corruption Energy Water Effluents and Waste Environmental Compliance Indirect Economic Impacts Anti-competitive behavior Biodiversity Supplier Environmental Assessment 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 Employees Suppliers Local Customers Shareholders Communities Government Agencies Foo Kon Tan LLP. All rights reserved. -15-

Materiality Assessment Environment Quality Integrity Energy Effluents & Waste 302 1 302 2 302 4 306 2 Compliance 307 1 Anti Corruption Environment Energy Consumption within the Organization Energy consumption outside of the organization Reduction of Energy Consumption Total Weight of Waste by Type and Disposal Method Non compliance with environmental laws and regulations Governance 205 2 205 3 Communication and Training on Anti Corruption policies and procedures Confirmed Incidents of Corruption and Actions taken Customer Alignment & Innovation Quality Quality Foo Kon Tan LLP. All rights reserved. -17- Peoplecentric Health & Safety Economic Performance Customer Health and Safety Employment 401 1 Non Discrimination 406 1 Occupational Health & Safety 201 1 416 2 Compliance 419 1 403 2 Compliance 419 1 Economic Direct Economic Value Generated and Distributed Incidents of non compliance concerning the health and safety impacts of products and services Non compliance with laws and regulations in the social and economic area Social New employee hires and employee turnover Incidents of discrimination and corrective actions taken Type of Injury and Rates of Injury, Occupational diseases, Lost days, and Absenteeism, and number of Work Related Fatalities. Non compliance with laws and regulations in the social and economic area

Materiality Assessment Environment Economic Environment Energy 302 1 302 2 302 4 Energy Consumption within the Organization Energy consumption outside of the organization Reduction of Energy Consumption Customer Alignment & Innovation Economic Performance Customer Health and Safety 201 1 416 2 Direct Economic Value Generated and Distributed Incidents of noncompliance concerning the health and safety impacts of products and services Quality Integrity Effluents & Waste 306 2 Compliance 307 1 Anti Corruption Governance 205 2 205 3 Total Weight of Waste by Type and Disposal Method Non compliance with environmental laws and regulations Communication and Training on Anti Corruption policies and procedures Confirmed Incidents of Corruption and Actions taken Quality Quality Peoplecentric Health & Safety Compliance 419 1 Employment 401 1 Non Discrimination Occupational Health & Safety 406 1 403 2 Compliance 419 1 Non compliance with laws and regulations in the social and economic area Social New employee hires and employee turnover Incidents of discrimination and corrective actions taken Type of Injury and Rates of Injury, Occupational diseases, Lost days, and Absenteeism, and number of Work Related Fatalities. Non compliance with laws and regulations in the social and economic area Foo Kon Tan LLP. All rights reserved. -18-

Sustainability Reporting at a Glance Your businesses Outside of the organisation Regulations Shareholders Organisation Customers Suppliers Employees Government Agencies Major businesses Local Communities Geographical location of operations Foo Kon Tan LLP. All rights reserved. -22-

Implementation Tips Ethics & Integrity Strategy Environmental Organizational Profile General Standard Disclosures 1. Assess the sufficiency of available information required for disclosure. 2. Develop the necessary general disclosure information. Governance Social Stakeholder Engagement Economic Reporting Practice General and Specific Disclosure Requirements, G4 Guidelines Adapted from the G4 Sustainability Reporting Guidelines, General and Specific Standard Disclosures Specific Standard Disclosures 1. 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. Foo Kon Tan LLP. All rights reserved. -23-

Questions? Contact details: Sim Keng Chong 6304 2354 E: kengchong.sim@fookontan.com Foo Kon Tan (FKT) group: Foo Kon Tan LLP Foo Kon Tan Advisory Services Pte Ltd Foo Kon Tan Corporate Finance Pte Ltd Foo Kon Tan Technology Services Pte Ltd Foo Kon Tan Transaction Services Pte Ltd Foo, Kon & Tan Consultants Pte Ltd Capital Governance (S) Pte Ltd 24 Raffles Place #07 03 Clifford Centre Singapore 048621 T +65 6336 3355 F +65 6337 2197 E fkt@fookontan.com W www.fookontan.com 2015 Foo Kon Tan. All rights reserved. 'Foo Kon Tan (FKT) refers to the brand name under which Foo Kon Tan and its associated companies provide assurance, tax and advisory services to their clients, or refer to one or more service providers, as the context requires. Services are delivered by respective entities. Foo Kon Tan LLP is a member of HLB International, a world-wide network of independent accounting firms and business advisers, each of which is a separate independent legal entity and as such has no liability for the acts and omissions of any other member. Foo Kon Tan LLP. All rights reserved. -24-