Sias makes sustainability a key criterion in its corporate governance award, Companies & Markets News & Top Stories


SINGAPORE (THE BUSINESS TIMES) – The Securities Investors Association (Singapore), or Sias, said on Thursday it has included sustainability as a key criterion for the first time in the Singapore Corporate Governance Award this year.

The Sustainability Award was previously a stand-alone award recognizing companies with substantial sustainability reports and practices.

Sias Founder, President and CEO David Gerald said: “A strong sustainability framework is no longer a ‘good to have’ or an accessory, but an inherent part of a successful business. “

A new sustainability scoring framework, which will assess the company’s sustainability practices as disclosed in their sustainability reports, has also been introduced in the rewards scorecard. Called the smart framework, it will assess a company’s scope and statement, actions and achievements, important ESG factors, reporting framework, and goals. ESG stands for environmental, social and corporate governance.

Developed jointly by Sias and the Center for Governance and Sustainability at the National University of Singapore (NUS) Business School, it will represent 40% of the total score for the first cycle of assessment.

The remaining 60 percent of the rating will be based on the existing framework for the assessment of corporate governance, which assesses the following: shareholder rights and fair treatment; transparency and disclosure; accountability and audit; the responsibilities of the board; and the roles of stakeholders.

The top 20 companies with the highest combined scores will be shortlisted for another review cycle, where a Refinitve score will be incorporated into the final scorecard.

The Singapore Corporate Governance Award Selection Committee, made up of industry and media partners, will then assess the quantitative scores and assess any qualitative information to decide the winner of the different categories.

The categories are: listed companies with a market capitalization of $ 1 billion or more, those with a market capitalization of $ 300 million to less than $ 1 billion, those with a market capitalization of less than $ 300 million dollars and real estate investment trusts and commercial trusts.

Professor Lawrence Loh, Director of the Center for Governance and Sustainability at NUS Business School, said: “The new Singapore Corporate Governance Award uses a unique evaluation framework that integrates both corporate governance and sustainability. .

“Furthermore, it is unique in that it also takes into account the market performance of the winning companies. The comprehensive and holistic approach differentiates the price from others in the region and locally,” he added.


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