SGX partners with OneConnect to build ESG platform

Rick Steves

The platform addresses common challenges faced by companies and investors such as lack of comparability, changing investors’ demand, as well as the evolving business landscape and regulations.

Singapore Exchange (SGX) has partnered with OneConnect Financial Technology to build an environmental, social, and governance (ESG) platform that simplifies the ESG disclosure processes of companies listed on the venue.

The increased focus on the ESG theme by the political sphere and the media has recently pushed the trading industry into adopting measures that facilitate the investment in companies more prone to preserve the environment and in line with societal values.

The platform will help companies listed on SGX to efficiently manage and make their sustainability disclosures for possible benchmarking more transparent. It also addresses common challenges faced by companies and investors such as lack of comparability, changing investors’ demand, as well as the evolving business landscape and regulations.

OneConnect’s platform features workflow management systems, report and visualization modules, and an ESG disclosure framework mapping. The firm has recently teamed up with Chinese firm Ping An to deliver ESG solutions for companies outside of China.

Tan Bin Ru, CEO (SEA), OneConnect Financial Technology, commented: “With ESG taking center-stage in the global scene, companies are increasingly subject to a set of non-financial reporting of ESG factors to meet investors’ demands and regulatory requirements. This is an opportune time and an esteemed privilege for OneConnect to join hands to develop the ESG platform with SGX. This is a remarkable moment for us to be able to tap on our expertise and work alongside SGX in creating and implementing a robust platform for SGX-listed companies to better their journey on ESG reporting and strengthen their sustainability risk management.”

Michael Syn, Senior Managing Director and Head of Equities, SGX, said, “Investors globally are placing increasing importance on sustainability considerations, leading to significant growth in capital allocated to ESG strategies. As a result, both investors and issuers desire ESG data to be more transparent, standardized, and accessible. The data and workflow platform will help SGX-listed companies report with more effective alignment to major disclosure standards. The focus is on a core set of indicators that are quantitative in nature and normalized for comparability. This complements issuers’ materiality-based reporting that are highly specific to each listed company’s business context. For investors, the benefit is more seamless integration of this core set of indicators into their investment strategies and capital allocation across portfolios, lowering the information friction they currently face.”

Trading venues across the world are updating their infrastructure in order to address the ESG theme demanded by investors. This week, SIX Group acquired Canada-based Orenda Software Solutions, an AI-powered platform specialized in ESG and alternative data sets.

 

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