SINGAPORE - Singapore companies will soon be able to showcase their climate transition commitments on the global level.

On Tuesday, the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) signed a memorandum of understanding with the Secretariat of the Climate Data Steering Committee (CDSC). The committee supports the climate objectives of the United Nations.

MAS and SGX will link ESGenome, their digital platform for listed companies to disclose their environmental, social and governance (ESG) information, with CDSC’s Net-Zero Data Public Utility (NZDPU), which is a global repository of climate transition-related data.

The move aims to strengthen global access to the climate transition-related data of SGX-listed companies, the entities said in a joint statement. Work on the collaboration will start in the first quarter of 2024, they added.

Companies that report their Scope 1, 2 and 3 greenhouse gas emissions data on ESGenome will be able to transmit the information to the NZDPU.

This enhances how they track their climate commitments, as access to the global database will help inform them of their own decarbonisation efforts.

Future plans include allowing users to transmit more varied information to the NZDPU, and benchmark their progress against global and regional data. 

ESGenome was launched in 2022 by MAS and SGX. It gives companies access to a list of SGX’s core ESG metrics, along with 3,000 other metrics mapped across global standards and frameworks.

The portal also lets companies track and benchmark their ESG performance, and download data to generate sustainability reports.

It is also one of the four digital platforms that fall under MAS’ Project Greenprint – a collection of green fintech initiatives to develop a more transparent ESG ecosystem.

MAS managing director Ravi Menon said the collaboration with CDSC will help “harmonise” climate-related corporate disclosures from the Asean region with NZDPU’s global template for key climate data.

“The ability of firms to access reliable data on carbon emissions and disclose relevant climate-related information is critical for transition financing and decarbonisation efforts,” he said. 

SGX chief executive Loh Boon Chye said the move is a significant step in facilitating the allocation of public and private capital towards financing climate transition.

“Consistent and comparable sustainability data that is easily accessible is what companies and investors need for benchmarking and investment decision-making,” he added.

CDSC was established by French President Emmanuel Macron and UN special envoy for climate ambition and solutions Michael Bloomberg in June 2022. THE BUSINESS TIMES