Sustainable Finance Literacy: SGX Group’s Stewardship of the Financial Ecosystem

It is fitting that sustainability is a central theme for World Investor Week. Sustainability permeates everyday life, including in personal investment and wealth management. Building a well-informed ecosystem around sustainable finance is therefore paramount.

By focusing on capacity building, adopting global standards, encouraging diverse perspectives, and engaging the community, the Singapore Exchange (SGX Group) aims to foster a sustainability culture that drives the global climate transition.

Starting From Within: Internal Capacity Building

SGX Group is committed to prioritising sustainability-related education and training. Our goal is to empower our employees with comprehensive knowledge in sustainability and climate topics, from foundational ESG concepts to sustainable investment and carbon markets.

Our curriculum integrates e-learning modules, structured in-person courses, professional development qualifications, and informal sustainability-related discussions through huddles and town halls.

We have also launched a specially curated in-person Sustainable Finance Programme, developed with an Institute of Banking and Finance (IBF) accredited training provider, in line with the Monetary Authority of Singapore’s (MAS) Sustainable Finance Job Transformation Map (JTM) initiative.

In FY2024, we have tallied 830 hours of sustainability-related training, with over 120 cumulative attendances in in-person sessions and e-learning modules.

Forging Ahead: Building External Capacity for Sustainable Progress 

To inspire market participants in their sustainability journey and net zero goals, SGX Group offers regular capacity-building programmes for external stakeholders and the public. These initiatives aim to equip issuers, corporates and investors with the knowledge and tools to meet new sustainability standards and encourage adoption.

Leading the Way in Sustainability Disclosure Training

Singapore Exchange Regulation (SGX RegCo) launched a training initiative on the IFRS Sustainability Disclosure Standards (ISSB Standards) targeting listed companies and market professionals. This programme, in collaboration with the UN Sustainable Stock Exchanges (SSE), IFRS and the International Finance Corporation (IFC), positions SGX Group as the first exchange globally to offer this training, setting a benchmark for others.

Continuing its commitment to enhancing sustainability reporting, SGX RegCo also partnered with the Global Reporting Initiative (GRI) for a learning series aimed at Singapore-listed companies. At the inaugural session in March 2023, GRI Chief Executive Officer Eelco van der Enden shared his views on the developments in the sustainability reporting landscape. Since then, SGX RegCo has organised six sessions including one on GHG emissions reporting.

Photo Credit: SGX Group-GRI Sustainability Reporting Learning Series 

Educating for Impact 

Each year, we host a variety of sustainability-focused educational events tailored for institutional investors, retail investors, family offices, private banks, corporate issuers, small and medium-sized enterprises, and other stakeholders.

Our research team also contributes valuable insights through publications like the 5-in-5 Research Report Series and ESG Brew Interview Series, which explore the sustainability efforts of SGX-listed companies.

Nurturing the Next Generation of Sustainable Leaders 

Our efforts reach beyond corporations and investors, fostering a culture of sustainability awareness within the wider community and the next generation of investors.

Partnering with educational institutions, we seek to integrate sustainability into the curriculum, ensuring students are well-versed in sustainable finance principles. SGX RegCo also hosts sustainability-themed case competitions with the National University of Singapore (NUS) Business School students’ club, heightening awareness of the sustainability agenda among university students.

Furthermore, we collaborate with the NUS Sustainable and Green Finance Institute’s Capstone Projects to provide students with hands-on experience and real-world challenges in sustainable finance.

These initiatives prepare students to lead in the evolving sustainable finance landscape.

Photo Credit: SGX-NUS Sustainability Challenge by National University of Singapore (NUS) BizCare Club 

Adopting Global Standards: Creating a Consistent Framework

One of the cornerstones of SGX Group’s sustainability strategy is championing globally recognised sustainability and climate-related guidelines.

As our listed companies embark on their sustainability reporting journeys, we are committed to equipping them with the essential tools. In 2022, we launched ESGenome, a digital disclosure portal to assist companies in climate-related disclosures and sustainability reporting. The portal supports the publication of 27 core ESG metrics, offering a standardised approach for companies and investors.

Furthering our efforts, SGX Group partnered with Bursa Malaysia, the Indonesia Stock Exchange and the Stock Exchange of Thailand to form the ASEAN Interconnected Sustainability Ecosystem in July 2024. The partnership aims to integrate ESG efforts across borders, develop common data standards to enhance the interoperability of ESG datasets, and mobilise capital for sustainability efforts in the region.

Photo Credit: ASEAN Interconnected Sustainability Ecosystem Workshop hosted by IDX

Amplifying Asian Voices Globally

At SGX Group, we recognise the vital role of inclusivity in advancing sustainable finance, especially where Asian perspectives may be underrepresented. As thought and action leaders in sustainability, we spearhead discussions and build capacity to guide the global transition journey. Our approach enriches the dialogue on sustainability and cultivates a more comprehensive understanding of Asia’s unique challenges and opportunities. Through partnerships with regional organisations and participation in international forums, SGX Group amplifies the voices of Asian stakeholders in the global sustainability discourse.

By fostering financial literacy, we empower our stakeholders to make informed decisions, thus building a future-ready ecosystem. With the right tools, training and community engagement, SGX Group is equipping investors for the challenges ahead.