Inclusion of Tripartite Standard for Contracting with Self-Employed Persons in Sustainability Reporting by SGX-listed Firms
Prime Minister's OfficeSpeakers
Summary
This question concerns whether the Government will work with the Singapore Exchange (SGX) to include Tripartite Standards, such as the standard for contracting with self-employed persons, as material components of sustainability reporting for listed firms. Minister of State Alvin Tan responded that SGX reporting requirements are not overly prescriptive, as companies must assess which factors have a material impact on their specific business performance and prospects. He explained that Tripartite Standards are adopted voluntarily, and companies decide whether to disclose them based on their individual business strategies and stakeholder interests. Minister of State Alvin Tan noted that the Ministry of Manpower and the Tripartite Alliance for Fair and Progressive Employment Practices continue to promote these standards, which offer reputational benefits to participating employers. He concluded that SGX disclosure aims to improve the quality of corporate information rather than prescribing how firms are run, though companies are encouraged to adopt these progressive practices.
Transcript
19 Ms See Jinli Jean asked the Prime Minister whether the Government will consider working with the Singapore Exchange (SGX) to define Tripartite Standards such as the Tripartite Standard for Contracting with Self-Employed Persons, as a component of the material environmental, social and governance factors under SGX-listed firms’ sustainability reporting.
The Minister of State for Trade and Industry (Mr Alvin Tan) (for the Prime Minister): Mr Speaker, Sir, under the Singapore Exchange (SGX)’s listing rules, SGX-listed companies are required to disclose any matters or developments that have a significant impact on their business performance and prospects. This also applies to reporting on environmental, social and governance (ESG) factors. Reporting requirements on such aspects are not overly prescriptive, as companies’ business models, strategies and stakeholders vary widely. Companies adopt the Tripartite Standards on a voluntary basis and have to assess which factors, including the Tripartite Standards, have a material impact on their business performance and prospects and thus should be disclosed. Companies also make employment-related disclosures on factors, such as occupational health and safety, diversity and inclusion.
The Ministry of Manpower (MOM) and the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) continue to promote and encourage companies to adopt the Tripartite Standards.
Mr Speaker: Ms See.
Ms See Jinli Jean (Nominated Member): I thank the Minister of State. TAFEP defines Tripartite Standards as a set of good employment practices and it actually recognises that employers that adopt the Tripartite Standards are progressive employers. Given that there is a lot of interest in ESG, I am just wondering whether there could perhaps be more affirmative plans on how this could be integrated from the local context in the ESG reporting for local companies that are listed with SGX. So, are there affirmative plans which the Ministry or the Government is looking at to make this a part of what SGX requires of listed companies?
Mr Alvin Tan: I thank Ms Jean See for her supplementary questions. As I mentioned earlier on, SGX disclosure requirements are, in fact, intended to promote availability and the quality of information on the companies' performance, but not to prescribe how a company should actually be run and that is why companies adopt these Tripartite Standards on a voluntary basis.
I think Ms Jean See also had a similar written question to MOM. That question also fleshed out how it is voluntary and how if a company has adopted the Tripartite Standards, there are certain benefits to it, including a Tripartite Standards logo and that will confer some form of additional reputational benefits to the company.
But in the same way for SGX-listed companies, companies may approach TAFEP to learn more about good employment standards and tripartite standards. And I think MOM and other agencies are in fact promoting and encouraging companies, either listed or non-listed, to adopt these standards.