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ESG is important. Its guidelines guide companies toward sustainable growth, attract stakeholders, and make them appeal to global customers and partners.

For holding companies in Singapore, ESG compliance is becoming increasingly vital . But why is this the case, and how can businesses navigate the process effectively?

This article unpacks the significance of ESG registration for holding companies in Singapore, offering insights into the process and how professional services can help simplify it.

1. What is a holding company in Singapore?

A holding company primarily focuses on owning shares in other companies rather than engaging directly in operations.

Holding companies in Singapore often manage diverse portfolios, including subsidiaries, assets, or intellectual property, making them central to multinational operations.

As their influence is major among public companies in Singapore, they are expected to adhere to sustainable practices, including ESG compliance.

2. Why should holding companies in Singapore need to register for ESG certificates

2.1. Regulatory compliance

Singapore has been ramping up its sustainability efforts, introducing ESG-focused regulations across industries. 

The Monetary Authority of Singapore (MAS), The Singapore Exchange Regulation (SGX RegCo), and other governing bodies are encouraging listed companies to adopt ESG principles, and holding companies are no exception. 

Failure to comply could lead to penalties or reputational damage.

For example, 

Starting from the 2025 financial year, the Singapore Exchange Regulation (SGX RegCo) will require listed companies to report their Scope 1 and Scope 2 emissions. 

2.2. Access to capital and investors

ESG compliance significantly impacts how investors and financial institutions perceive a company.

Many funds and private equity firms prioritize ESG-aligned companies, as they are seen as low-risk investments.

As reported by Accenture, substantial environmental, social, and governance (ESG) risks often lead to reduced valuations in approximately 80% of instances and can even jeopardize deals entirely.

2.3. Easy to invest in companies in other countries

ESG compliance enhances credibility, improves relationships with stakeholders, and opens doors to markets where sustainable practices are prerequisites.

For example, many Singapore holding companies plan to expand to the Southeast Asia region (especially Vietnam) in key sectors such as energy, real estate, manufacturing, and semiconductors.

Recognition from an ESG certificate not only helps comply with the country's regulations but also makes it easy to transfer funds between countries.

3. How can Global Link Asia Consulting help you register an ESG certificate for your holding company in Singapore

Before starting, we can help your businesses understand ESG frameworks most relevant to their operations, such as the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), and the United Nations Sustainable Development Goals (SDGs).

Next, we guide you to complete a detailed assessment form provided by D&B. This form collects information about governance, environmental impact, and social responsibility, ensuring alignment with international ESG standards like SASB, ISSB, and ISO 26000.

After all the documents are fully prepared, we will work with D&B to do a complete ESG assessment

D&B analyzes the submitted form and compares the data to its extensive ESG database. This analysis highlights strengths and areas needing improvement, helping businesses evaluate their current ESG practices.

Simultaneously, we also perform a gap analysis to pinpoint weaknesses in environmental impact, social responsibility, and governance. 

Based on the gap analysis, we present an ESG strategy tailored for your holding company. This involves setting measurable targets, updating policies, and engaging stakeholders to improve compliance.

In addition, D&B prepares a detailed ESG profile on the ESG Registered platform. The profile outlines the company’s ESG activities, achievements, and future goals, enhancing its credibility with investors, partners, and clients.

D&B and Global Link Asia Consulting deliver the following:

  • A public profile on the ESG Registered platform;
  • An official ESG Registered seal for use on documents, websites, and email signatures;
  • A comprehensive ESG evaluation report with rankings to guide sustainable development.

ESG compliance doesn’t end with certification. Your business must continuously track progress, update reports, and ensure ongoing alignment with evolving standards.

4. FAQs about ESG for Singapore holding companies

Is ESG compliance mandatory for all holding companies in Singapore?

Not all holding companies are legally required to comply with ESG standards. 

Only listed holding companies on the SGX must follow the ESG standards.

However, as regulations evolve and stakeholders demand sustainable practices, ESG alignment is becoming essential.

We offer comprehensive DUNS registration packages for every countries including Singapore, the USA, Hong Kong, Seychelles, BVI, Belize, Vietnam, and more. Our package includes:

  • Consulting on Suitable DUNS service packages.
  • DUNS registration for Apple Developer Account.
  • DUNS registration for Google Ads account verification.
  • DUNS registration for Apple Business Manager.
  • DUNS registration for Logistics Business.
  • DUNS registration for TikTokShop, E-commerce.
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Global Link Asia Consulting Pte. Ltd. is pleased to announce the publication of the above insightful and informative article on our official website, Global Link Asia Consulting on 21st November 2024. The copyright for this article is exclusively held by Global Link Asia Consulting Pte. Ltd. Any unauthorized reproduction or distribution of this content without our express written permission is strictly prohibited. We value the protection of our intellectual property and appreciate your cooperation in adhering to these guidelines. Thank you for your continued support of Global Link Asia Consulting Pte. Ltd.

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