CARBON DISCLOSURE AND COMPETITIVENESS OF BUSINESSES - A PERSPECTIVE OF SINGAPORE COMPANIES

Abstract

The challenges that climate change pose to companies and their strategies to overcome them have become important areas that institutional investors look out for before deciding to invest in companies. Answers are sought from socially and environmentally responsible companies before investors decide whether to put their funds into them. There are significant opportunities for companies to be included in global funds if they can provide environmental and social information. The UK-based Carbon Disclosure Project (CDP) has 1500 signatories that represent the globe's largest investors. CDP provides a coordinating secretariat for these institutional investors with combined assests of over $57 trillion under management. CDP5 survey generated the hightest ever response rate. CDP intends to make known the date gathered through its surveys which in turn indirectly reflects the level of transparency of a potential company to be invested in. This puts a company with high climate information disclosure as a good candidate for funds of institutional investors. The purpose of this study report is to find out the quality of disclosure that Singapore respondents produced through the Carbon Disclousure Projects CDP5 survey, and to make comparison with those of CDP5 model respondents. The analysis is done through a response matrix after a discussion on the state of disclosure and the climate change policies in Singapore. This study is on the perspectives of Singaporean businesses and their strategies on climate change issues that confront their operations. CDP has good objectives and all Singapore companies should consider participating when invited. It could help companies in the process raise their level of transparency through disclosure, and naturally makes the company an attractive candidate to institutional investors.