CGS Newsletter (April 2024)

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CGS has much to celebrate in 2024. We welcomed the first batch of undergraduates to the Tee Up Capital-NUS CGS Programme in Governance and Sustainability and published our first casebook on Cases in Sustainability, a resource for learners of applied sustainability. We will also be launching the CGS new website in a couple of months and celebrate CGS’s 10-year milestones in corporate sustainability, so watch this space.

Another noteworthy celebration is the appointment of CGS for the second year running to conduct the assessments for the Sustainability Impact Awards – the first award here to recognise leadership impact on environment and society. This newsletter has more details on our legacy of research and ‘firsts’. We hope you will enjoy reading. May we wish you a meaningful and rewarding 2024.

Warmest regards,
Lawrence Loh
Director, CGS
NUS Business School

Research Initiatives and Publications
	Cases in Sustainability January 2024Cases in Sustainability is a collection of case studies by students of the Master of Science in Strategic Analysis and Innovation Programme, NUS Business School. Targeted at the general reader, students delve into the sustainability strategy and journeys of well-known companies such as CapitaLand, Goldwind, Huawei, Nestle, Samsung, Sea Limited, Singapore Airlines (SIA), Sony and Tata. Themes include CapitaLand’s Urban Sustainability efforts, Huawei’s ESG focused digital transformation, SIA’s Sustainable Value creation and Sony’s Green Revolution.
	Sustainability Reporting Review 2023 November 2023 Mr Heng Swee Keat was Guest of Honour at the launch of the SGX Sustainability Reporting Review. CGS was very honoured to have the Deputy Prime Minister Heng Swee Keat launch the Sustainability Reporting Review 2023 at NUS Business School on 23 Nov 2023. The biennial review conducted since 2019 tracked the development of sustainability reporting of listed companies on the Singapore Exchange. For the first time, the review added assessments on climate-related disclosures and examines climate transition plans that are in keeping with the latest climate change developments. The study found that while companies are doing better in sustainability reporting, more needs to be done in terms of climate-related disclosures. Furthermore, companies need to improve on identifying climate-related risks and involve their boards more in managing these challenges.
	Promoting Best Practices in Online Marketing: An Examination of Greenwashing in Singapore November 2023This report examines the state of greenwashing among the most popular e-commerce websites visited by residents in Singapore. The report found that of the products reviewed across 100 websites, 51% of the products reviewed did not provide substantiated evidence for their green claims. The report proposes recommendations to businesses, consumers, advocates, NGOs, and regulators to counter greenwashing.
	Singapore Governance and Transparency Index 2023 August 2023CGS released its 13^th corporate governance assessment results through its Singapore Governance and Transparency Index. The most significant finding was that amid Covid economic uncertainty, the health of Singapore’s corporate governance continued to improve. The SGTI rose to 74.8 in 2023 from 70.6 in 2022. This represents the largest quantum of increase in mean score since 2020.
	Nature-related Reporting in Asia-Pacific Corporations: State of Readiness November 2022CGS surveyed the top 50 listed companies across 13 APAC jurisdictions to assess the state of nature-related reporting amongst these 650 companies. CGS research found only a third of the companies (31%) had nature-related disclosures and less than a tenth (6%) declared commitment to biodiversity. This is despite nature being the most effective carbon sink and pivotal to the fight against climate change. The report found Japan and Australia are the region’s most active conservationists and that several developing countries performed better at nature-related reporting than some higher-income economies.

Events & Happenings

Tee-Up Capital-NUS CGS Programme in Governance and Sustainability

CGS and Tee-Up Capital Pte Ltd launched a programme to train undergraduates in governance and sustainability. Known as the “Tee-Up Capital-NUS CGS Programme in Governance and Sustainability”, the programme aims to equip students with these skills to enhance their employability and meet ever increasing demands by the job market for those with sustainability and governance know-how. Some of the training involves participating in case studies, research projects, workshops and conferences and working with Tee-Up to propose recommendations which impact Tee-Up’s ESG strategy and purposes.

Mr Kelvin Low, CEO of Tee Up Capital said, “This win-win partnership not only prepares students for the future work force it enhances our business practices and governance. With insights and guidance from CGS designing the programme, we will strengthen our market position and branding as a socially responsible organisation. We will jump start our transition to become an ESG company.”

“The CGS-NUS programme is a start. We hope that more partners will join in such education collaborations and create a momentum for higher education to ensure all students are equipped in sustainability and governance. Every organisation has a need for these skills,” said Prof Patrick Loh, Chairman, Singapore Sciences.

“For the students, the programme complements their academic curriculum as it allows them to apply knowledge in a real-world setting. Engaging students in sustainability education encourages interdisciplinary thinking and collaboration- both essential to address sustainability challenges in the world,” said Prof Lawrence Loh, Director of the CGS

An MOU was signed between CGS and Tee-Up Capital on 25 Jan 2024. From left: Prof Lawrence Loh, Director, CGS, Prof Patrick Loh, Chairman and Co-Founder, Singapore Sciences and SINOAGRO Group, Mr John Lim, Chairman of CGS Advisory Board and Mr Kelvin Low, CEO, Tee Up Capital Pte Ltd.

CGS Is Knowledge Partner of the Sustainability Impact Awards 2024

CGS was appointed for a 2nd year running to conduct the assessments for the Sustainability Impact Awards (SI Awards) 2024. Launched in Aug 2023 by UOB and The Business Times, the SI Awards celebrate individuals and corporations in Singapore who demonstrate leadership and push for a positive impact on the environment and society. CGS is proud to be the knowledge partner of the awards. Besides being on the judging panel, CGS developed the assessment and judging rubrics for the awards, the first to focus on impact in Singapore.

Prof Lawerence Loh, Director, CGS said: “We look forward to celebrating individuals and organisations that have set new benchmarks in environmental stewardship, social well-being and ethical governance, thereby inspiring a new generation to continue this vital work.”

Singtel, The Social Kitchen and food sustainability advocate Preston Wong were winners in the inaugural SI Awards. Nominations have opened for this year’s award.

ACGA, CGS networking event draws investors, family offices, policy makers, accounting firms for evening of discussion on ESG and governance issues

The NUS Centre for Governance and Sustainability (CGS) advisory board member Mr Yuelin Yang organised a networking event on 7 Mar with Mr Amar Gill and Prof Lawrence Loh as speakers. Some 30 members comprising capital and impact investor, family offices, policy makers, thought leaders and accounting firm community gathered for the panel discussion and networking session. Representatives from the likes of ADB, Bain, Blackrock, EY, HCLI, IMD, Kuok Singapore, PwC, Stewardship Asia Center, Temasek Investment Stewardship and Tsao Family Offices attended the event.

Chavalit Frederick Tsao, Chairman of the IMC Pan Asia Alliance, kicked off the evening with a rousing speech urging corporate leaders to correct the harms the market economy brings to ESG and to be mindful each day of what we are adding to life, humanity, and society, and the earth. Mr Amar Gill, Secretary General of the Asian Corporate Governance Association (ACGA) took to the podium next. Mr Gill made the case for Governance being a most vital pillar in ESG as without governance, the “E” and “S” would just be a veneer for any company that doesn’t walk the talk on sustainability.

Prof Lawrence Loh, Director of CGS, rounded up the panel by highlighting three Cs- Communication, Climate and Capital. Prof Loh pointed out the scale of greenwashing communication present in online marketing platforms, where one in two companies studied by CGS did not provide substantiated evidence for their green claims. He also cautioned against the flip side- the dangers of green hushing. Under Climate, Prof Loh also called for corporations to prioritize nature and biodiversity conservation as climate change will not matter if there is no nature and biodiversity to sustain lives and economic activities. Finally, Prof Loh also called for capital not just to create ‘output’ and ‘outcomes’ but to generate impact as well.

Chavalit Frederick Tsao, Chairman of the IMC Pan Asia Alliance urged corporate leaders to correct the harms the market economy brings to ESG.

Panel of speakers from left: Amar Gill, Secretary General of the Asian Corporate Governance Association (ACGA), Mr Yuelin Yang, CGS Advisory Board Member and Deputy Group Managing Director of IMC Industrial Group, Chavalit Frederick Tsao, Chairman of IMC Pan Asia Alliance, Prof Lawrence Loh, Director, CGS.

Investors, policy makers, family offices and accounting firms’ representatives gathered for evening of discussion on ESG and governance issues.

Media Commentaries and Interviews
	The Business Times published “This year let’s pack sustainability into smaller servings”, a commentary by CGS Director Prof Lawrence Loh and Ang Hui Min: on 9 Jan 2024.
	TODAY Online published a commentary on: “How to counter the prevalence of greenwashing in Singapore”, by Prof Lawrence Loh and Joycelyn Lee: on 4 Dec 2023.
	“Harmonising financial and impact materiality for corporate excellence”, a commentary by Prof Lawrence Loh and Huang Minjun on 7 Sept 2023.
	The Business Times published “From initiatives to impact: Advancing a new priority for businesses in sustainability”, a commentary by Prof Lawrence Loh and Huang Minjun on 3 Aug 2023.
	The Business Times published “Upholding ESG with strong governance: Board leadership and regulation as catalysts”, a commentary by Prof Lawrence Loh, Thi Thuy Nguyen and Annette Singh on 3 Aug 2023.
	The World Economic Forum published “How digital economy companies can accelerate Southeast Asia’s sustainable development”, a commentary by Prof Lawrence Loh, Ming Tan and Sabrina Soon on 2 Aug 2023.