EXPANDING DUTY OF DIRECTORS IN COMPANIES ACT 1967 TO INCLUDE CONSIDERING ENVIRONMENTAL IMPACT OF COMPANY’S OPERATIONS

When our Government unveiled the Singapore Green Plan 2030 to make Singapore a climate-friendly nation, it was clear that everyone of us has an important part to play achieve this vision. Economic activities in Singapore are largely driven through companies. The directors of the companies run their companies in the interest of the shareholders. I therefore asked the Deputy Prime Minister and Minister for Finance whether directors should also be required to consider the impact of their companies’ operations on the environment. I was heartened to note from DPM Lawrence Wong’s response that positive feedback was received from the public in relation to the proposed imposition of climate related disclosures by companies. My PQ and DPM Wong’s response are set out below.

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Mr Murali Pillai asked the Deputy Prime Minister and Minister for Finance in light of the Government’s objective of transitioning Singapore into a climate-friendly nation through the Singapore Green Plan 2030, whether the duty of company directors set out in the Companies Act 1967 may be expanded to require directors to consider the impact of their company’s operations on the environment, as is done in the United Kingdom.

Mr Lawrence Wong: A public consultation to advance sustainability reporting by companies in Singapore was recently concluded. One of the proposals is to expand directors’ duties to cover climate-related disclosures by companies.

The Ministry of Finance will study the feedback received from the public consultation and carefully consider the practices and experiences in other reputable jurisdictions, before introducing changes appropriate for Singapore’s context.