Singapore, 22 November 2022 – Among 410 top listed firms in Asia-Pacific, only 28 per cent view nature and biodiversity as a priority issue amongst sustainability concerns, with industrial and consumer staples companies being the most nature-conscious, and healthcare firms being the least.
These are among the key findings from the report, Nature-related Reporting in Asia-Pacific Corporations: State of Corporate Practices, published by the Centre for Governance and Sustainability (CGS) at the National University of Singapore (NUS) Business School. The report is a first-of-its-kind to focus on the extent of nature reporting in Asia-Pacific companies, a sub-area within sustainability reporting in which a company provides transparency on their dependencies on nature and outlines preventative measures for mitigating nature risks.
With more than half of global output valued at US$44 trillion per year and inextricably dependent on nature, declining biodiversity and nature-related risks could affect businesses profoundly, and companies might be inadequately accounting for them.
Professor Lutfey Siddiqi, Advisory Board member of CGS and Visiting Professor-in-Practice at London School of Economics (IDEAS), said, “Beyond carbon emissions, businesses will have to increasingly demonstrate that they utilise natural assets responsibly and sustainably in their operations. Companies in Asia-Pacific should not be caught off-guard if the upcoming UN convention on biodiversity this December (COP15) creates an impetus for integrated accountability for climate and nature-related impact. This report by CGS provides a much-needed factual baseline for their state of readiness, pointing towards ways in which they could mitigate risks and seize opportunities in nature-driven transitions.”
Professor Lawrence Loh, Director, Centre for Governance and Sustainability, NUS Business School, said, “Effective nature reporting is a critical component in the global effort to halt biodiversity loss. Achieving consistency in nature reporting gives confidence to investors and helps businesses embrace sustainability in their operations. The global race towards the net-zero ambition is crippled unless a net positive ambition for biodiversity is taken in stride as a business norm.”
The researchers examined the top 50 listed companies by market capitalisation in each of 13 Asia-Pacific regions—Australia, China (mainland), Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam. Among this group, there were 600 companies which published their sustainability report in English in 2021 or 2022. Researchers delved into the sustainability reports of these 600 businesses, focusing on their approach to reporting, materiality (whether biodiversity could affect the firm’s ability to create value in the short, medium and long term), governance, strategy, risk management, and metrics and targets.
Out of these 600 firms, 68 per cent (410 companies) made disclosures related to nature or biodiversity.
The research team recommends listed firms to think about accountability on nature-related issues, integrate nature into core strategy, set time-bound targets, address capability gaps and communicate efforts of being a responsible business.
NOTES TO EDITORS
The study was based on the top 50 listed companies by market capitalisation across 13 jurisdictions in Asia-Pacific, namely: Australia, China (mainland), Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand, Vietnam. The corporations are identified as those listed in the respective stock exchanges, i.e., Australian Securities Exchange, Shanghai Stock Exchange, Hong Kong Stock Exchange, Bombay Stock Exchange, Indonesia Stock Exchange, Tokyo Stock Exchange, Bursa Malaysia, New Zealand’s Exchange, Philippine Stock Exchange, Singapore Exchange, Taiwan Stock Exchange, Stock Exchange of Thailand, and the Ho Chi Minh City Stock Exchange.
Out of 650 companies, only 600 companies released their latest sustainability reports in English in 2021 or 2022. The report only considered these 600 firms.
The research evaluated the completeness of the companies’ nature-related disclosures, drawing on the Global Reporting Initiative (GRI), the Task Force on Nature-Related Financial Disclosures (TNFD), the Science Based Target for Nature (SBTN), the Climate Disclosures Standards Board (CDSB), the International Union for Conservation of Nature (IUCN), The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), the Organisation for Economic Co-operation and Development (OECD), and the United Nations Sustainable Development Goals (SDG).
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ANG Hui Min Acting Head, Corporate Communications NUS Business School National University of Singapore Tel: +65 6601 5857 Email: huimin19@nus.edu.sg
About National University of Singapore (NUS)
The National University of Singapore (NUS) is Singapore’s flagship university, which offers a global approach to education, research and entrepreneurship, with a focus on Asian perspectives and expertise. We have 16 colleges, faculties and schools across three campuses in Singapore, with more than 40,000 students from 100 countries enriching our vibrant and diverse campus community. We have also established our NUS Overseas Colleges programme in more than 15 cities around the world.
Our multidisciplinary and real-world approach to education, research and entrepreneurship enables us to work closely with industry, governments and academia to address crucial and complex issues relevant to Asia and the world. Researchers in our faculties, research centres of excellence, corporate labs and more than 30 university-level research institutes focus on themes that include energy; environmental and urban sustainability; treatment and prevention of diseases; active ageing; advanced materials; risk management and resilience of financial systems; Asian studies; and Smart Nation capabilities such as artificial intelligence, data science, operations research and cybersecurity.
For more information on NUS, please visit www.nus.edu.sg.
About NUS Business School
The National University of Singapore (NUS) Business School is known for providing management thought leadership from an Asian perspective, enabling its students and corporate partners to leverage global knowledge and Asian insights.
The school has consistently received top rankings in the Asia-Pacific region by independent publications and agencies, such as The Financial Times, Economist Intelligence Unit, and QS Top MBA, in recognition of the quality of its programmes, faculty research and graduates.
The school is accredited by AACSB International (Association to Advance Collegiate Schools of Business) and EQUIS (European Quality Improvement System), endorsements that the school has met the highest standards for business education. The school is also a member of the Graduate Management Admission Council (GMAC), Executive MBA Council, Partnership in Management (PIM) and CEMS (Community of European Management Schools).
For more information, please visit bschool.nus.edu.sg, or go to the BIZBeat portal, which showcases the School’s research.
About Centre for Governance and Sustainability (CGS)
The Centre for Governance and Sustainability (CGS), formerly known as Centre for Governance, Institutions and Organisations (CGIO), was established by the National University of Singapore (NUS) Business School in 2010. It aims to spearhead relevant and high-impact research on corporate governance (CG) and corporate sustainability (CS) issues that are pertinent to institutions, government bodies and businesses both in Singapore and Asia. This includes corporate governance and corporate sustainability, governance of family firms, government-linked companies, business groups, and institutions. CGS also organises events such as public lectures, industry roundtables, and academic conferences on topics related to governance and sustainability.
CGS is the national assessor for the corporate sustainability and corporate governance performance of listed companies in Singapore.
More information about CGS can be accessed at https://bschool.nus.edu.sg/cgs/
