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A closer look at Singapore s mandatory corporate ESG disclosures and associated legal risks

June 29 2021 Corporates in Singapore are increasingly under pressure from regulators, investors, customers, and other stakeholders to make environmental, social and governance (ESG)-related disclosures. This article offers an overview of the mandatory ESG disclosures in Singapore and highlights the potential legal pitfalls that corporates should look out for. Listed issuers Singapore Exchange (SGX) introduced sustainability reporting on a ‘comply-or-explain’ basis to its listing rules in June 2016. These reports are intended to complement its listed issuers’ financial reporting, by showing how their material ESG risks and opportunities are being managed, thereby enabling a more holistic assessment of the issuer’s financial prospects and quality of management.

IAASB releases audit quality management guides

The IAASB also plans to issue an implementation guide for International Standard on Auditing 220 (Revised), Quality Management for an Audit of Financial Statements, in Q3 this year. The new quality management standards are set to take effect on Dec. 15, 2022, but the IAASB is encouraging all practitioners to plan early for appropriate implementation, given the potential impact of the changes to their firms’ systems of quality management. The IAASB, which is affiliated with the International Federation of Accountants, cautioned that the new publications don’t amend or override the International Standards on Quality Management, the texts of which alone remain authoritative. Reading the publications isn’t a substitute for reading the ISQMs.

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