Rising investor expectations have spurred a global push for publicly listed companies to disclose comprehensive sustainability information. As a result, regulatory bodies worldwide are either mandating or strongly recommending the issuance of sustainability reports by PLCs, focusing on environmental, social, and governance factors. The integration of ESG disclosures with financial reporting enables investors to evaluate more accurately the financial outlook and management effectiveness of PLCs, a trend strongly supported by regulators.
Across jurisdictions, we see a rising trend towards more active ESG enforcement and litigation. In our The Year Ahead: Global Disputes Forecast 2024, nearly three-quarters (73%) of the respondents said that environmental, social and governance disputes presented as the top risks to their organizations in the coming year.
In this client alert, we provide a high-level overview of the key trends and developments in ESG enforcement and litigation in Singapore in three areas: greenwashing, employment law and anti-money laundering (AML).
With the coming into force of the Corporate Registers (Miscellaneous Amendments) Act 2022 on 4 October 2022, the Companies Act 1967 and the Limited Liability Partnerships Act 2005 have been amended to subject nominee shareholders and their nominators and individuals with “executive control” over the daily or regular corporate affairs to new disclosure obligations. This further aligns Singapore’s regime on transparency and beneficial ownership of Singapore-incorporated companies, foreign companies and limited liability partnerships with the international standards set by the Financial Action Task Force.
Setting up of a Central Non Public Register of Controllers Introduction of Register of Nominee Shareholders for companies At two recent Update Sessions organised by the Chartered Secretaries Institute of Singapore, the Accounting and Corporate Regulatory Authority (ACRA) announced several new initiatives, 2 of which being: implementation of a central,…