Singapore Airlines takes a prescriptive approach to its ESG reporting obligations. In 2013, after giving consideration to the potential for economic, environmental and social issues to threaten the business, the company established seven themes against which it reports. The seven are customer focus, employees, safety, environment, governance, stakeholders and suppliers.
It’s a sensible approach given the criticism sustainability reports have long received. They are prone to being described as ‘greenwash’ – nothing more than an attempt by businesses to divert focus away from their real environmental impact by publishing general, unverifiable information about the activities they engage in that contribute to environmental degradation. The business is currently preparing its latest sustainability report, and the aim is to comply with the new SGX rules.
‘Sustainability reporting is an important aspect of holistic disclosure by listed firms,’ says Singapore Airlines’ spokesperson Nicholas Ionides. He goes on to note that potential investors are looking beyond company financial statements and examining how a firm addresses ESG issues to assess its future prospects and long-term value.
‘With increased disclosure of company activities via our sustainability report, we are better able to identify important stakeholders, whose input directly influences our business decisions and operations,’ says Ionides. For instance, he works closely with internal stakeholders to understand their environmental issues.
At the moment, the airline is endeavouring to streamline sustainability reporting across all of its operations. ‘We now have a portfolio of airlines – including SilkAir, Scoot and Tigerair – serving both low-cost and full-service market segments, as well as subsidiaries like SIA Cargo,’ explains Ionides.
‘We will continue to include the sustainable practices of our subsidiaries progressively [in the ESG reports], to provide a more holistic picture of the SIA Group in terms of opportunities, risks and performance on a sustainable scale.’
This article appeared in the summer 2017 issue of IR Magazine
