Report ASEAN Sustainability Disclosure

8/12/2019 Report ASEAN Sustainability Disclosure

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SUSTAINABILITY DISCLOSURE AMONGST COMPANIES IN SELECTEDASEAN MEMBER COUNTRIES AND RESPONSES FROM STAKEHOLDERS

The Rise of the Reportand the Regulator

SUSTAINABILITY REPORTING


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ACCA would like to express its gratitude to all organisations who took part in the Sustainability

Reporting: Sustainability Disclosure amongst companies in selected ASEAN member countries and

responses from Stakeholdersreport. ACCA would also like to express our special thanks to those

individuals who participated in the interview process to share the experiences and contributions to the

report.

We wish to acknowledge the extensive use made of the www.corporateregister.comglobal reporting

website. This free site provides a directory of CR reports and resources, and its structure and content

formed the initial foundation of this regional overview, augmented by further original research. Ourspecial thanks to CorporateRegister.com - for invaluable resources in the field of corporate

responsibility reporting.

ACCA commissioned CSR Asia to produce this report with the aim to understand how sustainability

reporting is being undertaken, used and understood in selected member countries of the Association of

Southeast Asian Nations (ASEAN).

Introduction 1

Executive Summary 2

Sustainability Disclosure 6

Indonesia 8

Malaysia 12

Philippines 18

Singapore 20

Thailand 24

Sustainability Regulation 29

Indonesia 30

Malaysia 31 Philippines 32

Singapore 33

Thailand 35

Interviews With Report Writers 36

Interviews With Report Readers 45

ACCA and Sustainability 52

About ACCA 53

Contents

Acknowledgement

CSR Asia is the leading provider of

information, training, research andconsultancy services on sustainable

business practices in Asia.

CorporateRegister.com Limited is an

independent, privately held & self-fundedorganisation based in the UK.


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THE RISE OF THE REPORT AND THE REGULATOR 1INTRODUCTION

Corporate sustainability reporting did not exist 20 years ago. A few corporate

environmental(or environment, health and safety) reports trickled onto the

market in 1990 and 1991. Social reports began to be issued in the mid-1990s

and the first true sustainability reports were issued at the end of the decade,

coinciding with the establishment of the Global Reporting Initiative (GRI) and the

issuance of the first set of GRI sustainability reporting guidelines in 1999.

In 2010 it is likely that over 3,000 companies world-wide will issue sustainability (or corporateresponsibility) reports, with a substantial proportion being based on the third generation of the GRIguidance. Considering it has taken nearly 200 years for financial reporting to reach its current stage ofmaturity, we have come a long way in a remarkably short time in terms of developing an entirely newcorporate reporting framework.

ACCA is proud to have been present throughout the birth and maturing of sustainability reporting as acommunication form. There are very few multi-stakeholder reporting initiatives that we have not beenassociated with the GRI, the Accounting for Sustainability Connected Reporting framework and theproposed carbon disclosures from the Climate Disclosure Standards Board are just three examples ofwhere ACCA has been deeply engaged in the development process. We have consistently encouragedand promoted best practice in environmental and sustainability reporting. What started as a purelylocal environmental reporting award scheme in the UK in 1991 has now become a world-widenetwork of sustainability reporting award schemes with several highly successful ones operating inthe ASEAN region.

In December 2009 ACCA partnered with the GRI to produce a pre-COP 15 survey on climate changedisclosures by high impact companies across a range of countries. We reported then that Developing

countries are expected to account for 75% of GHG emissions over the next 25 years, with Chinaalone already responsible for one third of the global total. If we accept the premise that reporting

drives behaviour, the extent to which corporates in these emerging economic powerhouses embrace

climate change reporting will be critical to the future of the planet. On the evidence of this report,

BRICSA corporate reporters in high impact sectors are laying good foundations. But, with the

increased focus on carbon reduction, will companies be able to develop reporting at the pace

required?

There is a danger, however, that with the current focus on climate change and carbon emissions,the need for a broader sustainability focus will become obscured. It is with great pleasure thereforethat we launch this new survey of the corporate sustainability reporting experience across a range ofASEAN countries. We would like to thank CSR Asia who conducted the survey and CorporateRegister.com and the GRI for their assistance in providing some of the underlying data.

This report provides a valuable overview of both the level of sustainability reporting activity in theASEAN region as well as the extent of regulatory interest in this fast developing activity. We hope thisreport will be useful to all those with an interest in sustainability reporting in this most significant ofemerging market economic regions.

Roger Adams

Executive Director PolicyACCAMarch 2010

Introduction


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2

1KPMG International Survey of Corporate Responsibility 2008

The global economy is rapidly evolving along with the understanding of the urgent requirement to

balance current demands with the need to ensure stability for future generations. The private sector isaccepting the key role it has to play in addressing global sustainable development challenges. At a local

level in ASEAN member countries the private sector is beginning to accept this responsibility, recognise

the challenges and opportunities it presents and many have, over the past decade, begun to publicly

explain how they are implementing sustainable business practices.

This report provides an analysis of companies producing reports, describing their sustainability strategies, performance dataand targets (Sustainability Reporting) in selected member countries of the Association of South East Asian Nations (ASEAN).This report also examines regulatory demands and voluntary guidelines for Sustainability Reporting in each selected countryand outlines the usage of globally accepted standards and linkages to stakeholder expectations. The selected ASEAN membercountries are: Indonesia, Malaysia, the Philippines, Singapore and Thailand.

In line with global trends the past decade has seen a rise in the number of companies producing Sustainability Reports

throughout the selected ASEAN countries. ASEAN governments and regulators have been keen to promote sustainability tocompanies operating in their markets and have begun to put law, regulation and guidelines in place to direct companies inthis regard. A variety of stakeholders around the ASEAN region are also taking a keen interest in the sustainability practices ofcompanies and are looking to engage with companies on pertinent sustainability issues.

Companies within the countries that comprise the ASEAN region in high impact industries, with large global clients and withincreasingly vocal local communities recognise the strategic importance of sustainability practices and reporting. With eightypercent of the Global Fortune 250 companies reporting it is inevitable in our globalised economy that companies operating inASEAN markets will need to report to meet rising stakeholder expectations and to demonstrate an ability to operate in accordancewith global norms.

Sustainability reporting in ASEAN countries has considerable scope for improvement but there is no doubt that the number ofcompanies producing reports will increase over the coming years. Sustainability reporting within the selected ASEAN countriescannot yet be described as mainstream but the increase in disclosure and heightened commitment to transparency over thelast decade shows a clear trend that cannot be dismissed. The upcoming publication of the ISO 26000 Social ResponsibilityGuideline is expected to have an impact within ASEAN countries, especially in Singapore and Malaysia which favour the use ofinternational certification. Whilst ISO 26000 is not a certification standard it is expected it will still be widely promoted and usedwith ASEAN countries to demonstrate compliance with international norms. ASEAN itself has established the ASEAN Foundation,which will help to promote corporate social responsibility within member countries. This means that the trends of the last decadeare expected to continue if not to escalate further with respect to both the number and quality of Sustainability Reports.

Executive Summary


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4

THE RISE OF THE REGULATOR

There is clearly a strong intention by government andregulators around much of the ASEAN region to ensurecompanies are addressing sustainability concerns.

Since 2007 Indonesia has had CSR legislation whichrequires companies in the natural resources sector to disclosetheir CSR activities. This is unique both in the selectedASEAN countries and in the world. The Philippines maysoon follow suit. At the time of writing Philippines Houseof Representatives member and son of the President, Rep.Diosdado Dato M. Arroyo, had filed House Bill 6414 orthe Corporate Social Responsibility Act of 2009 mandatingcorporations to observe its corporate social responsibility.

However, it is unclear at this stage whether there is anintention to include a requirement for sustainability disclosure.

Regulators around the region are also mandating thatcompanies produce Sustainability Reports. In 2006 BursaMalaysia, the Stock Exchange of Malaysia introduced anamendment to the listing rules to include a requirement forlisted companies to provide a description of the corporatesocial responsibility activities or practices undertaken.The Stock Exchange of Thailand (SET) is also intending tointroduce reporting guidelines in early 2010, although itis as yet unclear whether any amendments will be madeto the listing rules. Singapore has not set any legislation orregulations with respect to sustainability disclosure.

Within each country studied for this report, few voluntaryinitiatives exist that encourage disclosure. Singapore ishowever an exception to this overall trend with initiativesthat cover specific areas of sustainability disclosure ratherthan the entirety, for example in relation to employmentpractices. The same is true for sustainability reporting awardsand monitoring. Whilst there are a growing number of CSRAwards, very few address disclosure and most are in respectof specific areas such as a; community investment projector environmental impact reduction rather than a holisticapproach that encompasses all areas of sustainability anddisclosure of progress on that approach. Some training andsupport is provided in each country for companies wanting

to undertake sustainability reporting, and the number ofcompanies offering advice and support is increasing. As theawareness of sustainability increases the consultancy industrythat supports companies is developing within the selectedASEAN countries.

THE RISE OF THE REPORT WRITER AND THE READER

Companies unanimously state that they are reporting inorder to provide information to stakeholders. When askedwhich stakeholders, specifically shareholders were thegroup most frequently referred to followed by: governmentand local authorities; customers; business partners; thegeneral community and NGOs. It is clear that companies inthe ASEAN region produce a Sustainability Report to gaina competitive edge when attracting and retaining capital,dealing with global clients and managing relationships withgovernments.

Reporting is still a relatively new process for many companies.Unsurprising therefore the collection of data for a report is

the key challenge for companies. Nevertheless, companiesare able to clearly articulate the benefits of reporting: toimprove branding and image; and, to strengthen dialogue withstakeholders who are key to their business.

For report writers there is still a huge debate about thefuture of sustainability reporting. Just under half of therespondents interviewed think that real time reporting willbecome standard whilst the same number think that reportswill become both stand alone and integrated with the annualreport. For many companies reporting started as disclosureon environmental issues and has now developed intosomething much more encompassing. For others it began asa report on philanthropic activities and expanded to address

business operations pertinent to the attainment of sustainabledevelopment.

Sustainability report readers in the ASEAN region arebecoming increasingly sophisticated with respect to reports.Stakeholders interviewed for this report stated that the use ofinternationally accepted reporting guidelines was importantfor them as it allowed for comparison and benchmarking.Stakeholders expect that companies should use these globaltools and demonstrate that activities are consistent withglobal norms. Readers also felt that assurance was evenmore important than accepted guidelines in order to providecredibility for the information provided. The future seems alittle clearer for report readers who felt that more reporting

would become available online, that reporting would becomereal time, that it would be integrated with the Annual Report,that more international standards would be used and thatreports would be increasingly issue focused.

Report readers are also challenging report writers to ensureSustainability Reports address material issues - reporting thechallenges and stresses as well as the nice stories. Whilst thefocus is on companies to report, it is clear that the future ofquality reporting is also dependent on stakeholders respondingto Sustainability Reports and recognising and rewarding bestpractice.


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THE RISE OF THE REPORT AND THE REGULATOR 5

RECOMMENDATIONS

Companies who are reporting should be encouraged,rewarded by the market and steps should be taken toenforce existing legislation and regulation where it exists.

Further studies with reporting companies should beundertaken to determine the benefits of reporting in

order to encourage others.

Support for companies is required to enable themto comply with and improve existing disclosurerequirements.

Support for monitoring organisations is required in order

to ensure adequate checks and balances with respect tothe quality of reporting.

The benefits of using internationally accepted reportingguidelines needs to be communicated with the selectedASEAN countries.

METHODOLOGY

Data for this report was collected from a variety of sourceswhich included: Corporate Registerwww.corporateregister.com; the Global Reporting Initiative(GRI) www.globalreporting.org; the Carbon Disclosure Projectwww.cdproject.net; and the Global Compactwww.unglobalcompact.org

This report examines companies who are producing standalone Sustainability Reports or detailed sustainabilityinformation only and does not include companies who includeminimal sustainability information in their Annual Report.The report only includes publicly available sustainabilityinformation as at 1 October 2009. Historical data is only

included where still publicly available.

Interviews for this report were undertaken by phone, in personand by e-mail. Confidentiality was provided to each individualcompany who participated and each individual stakeholder.The survey was kept short to allow for maximum participation.Interviews were also conducted with representatives fromlocal CSR organisations, stock exchanges and individuals tocompile the information in this report. We would like to thankall those who participated for their contribution.

NOTE ON LANGUAGE

This report uses the term sustainability reporting. For the

purposes of this report sustainability reporting refers toCorporate Social Responsibility (CSR) reports, CorporateResponsibility (CR) reports, Corporate Citizenship Reportsand any other language that is understood to describe thesame type of reporting linked, at least in part to the conceptof sustainable development. Where appropriate in thereport other language is used in keeping with its use by thegovernment, company or organisation in question.

ABOUT ACCA


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6

Sustainability Disclosure

CURRENT REPORTING

Companies in the selected ASEAN countries first started reporting in 1999. Since then the number of companies producing

sustainability reports has increased overall. In each ASEAN country there are between eleven and forty nine companies

producing sustainability reports as well as others who are including information within their Annual Reports. This is a very

small percentage of the overall number of companies operating within ASEAN. Out of the total number of companies producing

a report, seventy one are listed companies and fifty seven are private companies.

The industry producing the highest number of reports is theelectronics sector, reflecting the high level of interest in thissector globally. The oil and gas industry produces the secondhighest number. For Indonesia and the Philippines mining

is the key sector for reporting and for Malaysia the largecompanies with a variety of diversified interests are publishingthe most reports. The country that currently has the highestnumber of companies producing Sustainability Reports isMalaysia. Thirty six companies are using the Global ReportingInitiative (GRI) and eighteen companies are having theirreports assured externally.

The vast majority of companies producing reports are makingthe information available in English only. Of the total numberof companies reporting (128), only thirty six were producinginformation in the national language as well as in English. Anumber of companies in the region are also receiving requestsfor information from the Carbon Disclosure Project (CDP).Out of seven companies who are producing a SustainabilityReport and received a request for information four respondedand provided data that is publicly available, one respondedpublicly and declined to complete the questionnaire andtwo responded but declined to make their response publiclyavailable.

49

25 22 21

11

Malaysia Indonesia Thailand Singapore Philippines

Private 57

Listed 71

Total 128

Number of companies that produced a report by country


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Most companies who are reporting have been doing soconsistently over the past three to four years. There are asmall number who produce a stand-alone one off report

that has not subsequently been repeated (15%). For manycompanies (20%), reporting began with an environmentalreport or health and safety report that has developed intoa more comprehensive Sustainability Report. For the lastreporting year thirty nine companies describe their report as aCSR Report, fifty three as a Sustainability Report, twenty nineas Social or Environmental report and nineteen have otherspecific names.

The tables below outline which companies in each marketare producing reports and which industry they are in, howregularly the companies report, whether they are using theGRI guidelines, having the reports assured and what languagethe reports are written in.

18

13

10

8

6

5

4

3

2

1

Electronic & Electrical Equipment

Oil & Gas

Mining

Diversified Industrials Construction & Building Materials

Real Estate; Telecommunication; Agri-business

Support Services

Banks; Beverages; Chemicals

Auto Forestry & Paper Leisure; Energy Water; Media Pharmaceuticals

Food Producers; Software; Transport

Education; FMCG Investment Companies Media;Multi-Utilities Packaging; Shipping Software; Tobacco...

Number of report by industry

Global Reporting Initiative External Assurance Language of Reporting

YES36

NO92

English &NationalLanguage

36

English92

YES18

NO110

SUSTAINABILITY DISCLOSURE


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8

COMPANY

BP Kangean Ltd -District Pagerungan

BP West Java Ltd

CV ManungalAswinabawaSejahtera

PT Adhi Karya(Persero) Tbk

PT Antam Tbk

PT AstraInternational Tbk

PT Bening Big TreeFarm

PT FreeportIndonesia

PT HolcimIndonesia Tbk

PT IntaranIndonesia

PT Jasa Marga(Persero) Tbk

PT JVC ElectronicsIndonesia

PT Kaltim PrimaCoal

REPORTING HISTORY

Environmental Statement for Year2001

2007 Environmental Statement

2006-2007 Sustainability Report

Re-Born CSR Report 2007

2008 Sustainability ReportSustainability Report Year 2007

2006 Sustainability ReportSustainability Report 2005

2008 Astra Sustainability ReportAstra Sustainability Report 2007

Sustainability Report 2007Sustainability Report 2006

Sustainability Report 2008Sustainability Report 2007Sustainability Report 2006

Sustainable Development 2008Report

Sustainable Development 2007Report

Sustainable Development Report

2006


Corporate Social ResponsibilityReport 2008


JVC Group Site Report 2008

Sustainable Development Report2007


Sustainable Development Report2005HSE Annual Report (2003)Social Report 2001Social Report 2000

LASTREPORTING

YEAR

2002

2007

2008

2008

2009

2009

2008

2009

2009

2008

2009

2008

2008

ASSURANCE

Y

Y

N

N

N

N

N

Y

N

N

N

N

Y

GRI

1

N

N

Y/ C

N

Y/ Undeclared

Y/ Undeclared

Y/ C

G2/ IA

Y / B (Self)

Y/ C

N

N

Y/ B+ (Self)

CDP

2

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

LANGUAGE

English

English

English

English/ BahasaIndonesia

English, BahasaIndonesia


English

English

English

English

EnglishBahasa

Indonesia

English

English, BahasaIndonesiaEnglish

INDUSTRY

Oil & Gas

Oil & Gas

Tourism/Leisure

Construction &Building Materials

Mining

DiversifiedIndustrials

Agriculture

Mining


Agriculture


Electronic &Electrical Equipment

Mining

LISTED/PRIVATE

Private

Private

Private

Listed

Listed

Listed

Private

Private

Listed

Private

Listed

Private

Private

INDONESIA

1 Y indicates that the company is using GRI but is not declaring an application level. In all other instances where companies are using GRI the application level isstated.

2 NR indicates no request. R indicates a response but that the content of the response is not publicly available, PR (with data) indicates a response with relevant datathat is available publicly, PR (declined) indicates a response that is publicly available but that participation in the questionnaire was declined.


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COMPANY

PT Kelian EquatorialMining

PT Medco Energi

Internasional Tbk

PT Newmont NusaTenggara

PT PLN (Persero)

PT TambangBatubara BukitAsam (Persero), Tbk

PT TelekomunikasiIndonesia Tbk

PT Timah (Persero)Tbk

PT UnileverIndonesia Tbk

PT InternationalNickel Indonesia,Tbk

PT ApexindoPratama Duta, Tbk

PT.Indosat, Tbk

PT.Saptaindra Sejati

REPORTING HISTORY

Social and Environmental Report2003

Social & Environmental Report2002 / Laporan Sosial &Lingkungan 2002

Social & Environmental Report2001

Social and Environment Report2000. Working Together forSustainable Solutions

Social and Environmental Report(1999)

Maintaining a Balanced Life for

Future Growth

NOW & BEYOND 2005Sustainability Report.

BATU HIJAU, IndonesiaNow & Beyond 2004 - Batu HijauNow & Beyond 2003 - Batu HijauNow & Beyond 2002 - Batu Hijau

Sustainability Report 2008


Laporan Keberlanjutan 2007Sustainability Report

Sustainability Report 2006 /Laporan Keberlanjutan 2006

Laporan Keberlanjutan 2008Laporan Keberlanjutan 2007

Sustainability Report 2006Corporate Social Responsibility(2004)

CSR Report 2006CSR Report 2005

Annual Report 2008Annual Report 2007

Making the world a better place


LASTREPORTING

YEAR

2004

2007

2006

2009

2008

2008

2009

2007

2007

2009

2009

2008

ASSURANCE

N

N

N

N

N

N

N

Y

N

N

N

N

GRI

1

N

Y/ B

Self Declared

N

N

N

Y/ Undeclared

Y/ BSelf Declared

N

N

N

Y/ Undeclared

N

CDP

2

NR

NR

NR

NR

NR

PR - 2006

NR

NR

NR

NR

NR

NR

LANGUAGE


English




BahasaIndonesia

English


English

BahasaIndonesia



INDUSTRY

Mining

Oil & Gas

Mining

Electricity

Mining

TelecommunicationServices

Mining

FMCG

Mining

Oil & Gas


Mining

LISTED/PRIVATE

Private

Listed

Private

Private

Listed

Listed

Listed

Listed

Listed

Listed

Listed

Private



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10

GRI

Yes58%

No52%

Underclared16%

B12%

B12%

B+4%

G2/AI5%

No68%

Assurance

Yes32%

CDP

NR96%

PR(data)4%

NR: 96%

R: 0%

PR (data): 4%

PR (declined): 0%

Language of report

English44%

Englishand

BahasaIndonesia

52%

BahasaIndonesia

4%


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Last reporting year Number of companies

2002 1 2004 1

2006 1

2007 4

2008 8

2009 10

Total 25

Listed companies 13

Private companies 12

Total 25

Listed/ Private

Industry

4.5%4.5%

4.5%

4.5%

4.5%

8%

8%

12% 16%

36%

Mining: 36% (9)

Oil & Gas: 16% (4)

Construction & Building Materials: 12% (3)

Telecommunication Services: 8% (2)

Agriculture: 8% (2)

FMCG: 4.5% (1)

Diversified Industrials: 4.5% (1)

Electronic & Electrical Equipment: 4.5% (1)

Tourism/Leisure: 4.5% (1)

Electricity: 4.5% (1)



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12

COMPANY

1st Silicon(Malaysia) Sdn Bhd(now X-FAB)

Amoco Chemical(Malaysia) Sdn Bhd

Astro All AsiaNetworks plc

Boustead HoldingsBerhad-PlantationDiv.

British AmericanTobacco (Malaysia)Berhad

Bumiputra

Commerce HoldingsBerhad

Chemical Companyof Malaysia Berhad

DiGiTelecommunicationsSdn Bhd

Faber Group Berhad

Ford Malaysia SdnBhd

Guinness AnchorBerhad

HSBC BankMalaysia Berhad

IJM CorporationBerhad

REPORTING HISTORY

1Si Environmental and Social Report 20051Si Environmental Report 2004

Environmental Statement for Year2000

Inspiring Sustainability

Towards Sustainability Agriculture

Social Report 2006-2008Laporan Sosial

2005-2006 Social Report2004-2005 Social ReportOverview/ Imbasan LaporanSosial (Summary)

Social Report 2004-20052004-2005 Social ReportOverview/ Imbasan LaporanSosial

Laporan Sosial 2003-2004 Social ReportSocial Report 2002-2003. A Summary (Summary)Social Report 2002-2003Social Report 2001-2002

Annual Report 2008: Creating

Value ThroughCorporate Social Responsibility

Corporate Responsibility Report2008

Annual Report 2008 Online Reporting

Annual Report 2008: IntegratingStrengths

Environment Report 2002Shah Alam Assembly Plant


Corporate Sustainability Report2008

Corporate Sustainability Report2007

Annual Report 2008: Health, Safety & EnvironmentReport and Corporate SocialResponsibility Report

LAST

REPORTING

YEAR

2005

2002

2009

2009

2009

2009

2009

2009

2009

2003

2008

2009

2008

ASSURANCE

N

N

N

N

Y

N

N

N

N

N

N

N

N

GRI3

N

N

N

N

Y/ A+ (Self)

N

N

N

N

N

N

N

N

CDP4

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

LANGUAGE

English

English

English

English

English, Malay

English

English

English

English

English

English

English

English

INDUSTRY


Oil & Gas

Media

Agri-Business

Tobacco

Investment

Companies

Chemicals

TelecommunicationReal Estate

Automobiles & Parts

Beverages

Bank

Diversified

Industrials

LISTED/

PRIVATE

Private

Private

Listed

Listed

Listed

Listed

Listed

Listed

Listed

Listed

Listed

Listed

Listed

MALAYSIA




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COMPANY

IJM PlantationsBerhad

Industrial ConcreteProducts Berhad

IOI CorporationBerhad

JVC ManufacturingMalaysia Sdn Bhd

Kulim (Malaysia)Berhad

Lafarge MalayanCement Berhad

Malaysian AirlineSystem Berhad

MalaysianResourcesCorporation Berhad

Media Prima Berhad

Mesiniaga

Microsoft MalaysiaSdn Bhd

MISC Bhd

Nestle (Malaysia)Berhad

Opus Group Berhad

Petra PerdanaBerhad

PETRONAS

REPORTING HISTORY

Annual Report 2008: Nurturing Sustainability

Annual Report 2008Annual Report 2009: Corporate Social Responsibility

Annual Report 2008: Corporate Social ResponsibilityAnnual Report 2007: Corporate Social ResponsibilityAnnual Report 2006:Environmental & SocialResponsibility


Sustainability Report 2007/2008.Embracing the challenges ahead

Sustainable Development


Environmental & Social Report2007

2008 Annual Report: Corporate

Responsibility Section (Malay) Corporate Responsibility Sectionof Website (English)


Social Report 2006Citizenship Report 2005

Annual Report 2009: Corporate Social ResponsibilityAnnual Report 2008: Corporate Social ResponsibilityAnnual Report 2007: Corporate Social ResponsibilityAnnual Report 2006: Corporate Social Responsibility

Creating Shared Value 2008Creating Shared Value 2007Corporate Responsibility Review2006

Sustainability Report 2008Social Report 2007Online Reporting on CSR from2005 to 2009


Sustainable Review(Environment/ Social/ Economic)

LAST

REPORTING

YEAR

2009

2009

2009

2008

2008

2007

2009

2008

2009

2009

2007

2009

2009

2009

2009

2007

ASSURANCE

N

N

N

N

N

N

N

Y

N

N

N

N

N

N

N

N

GRI3

N

N

N

N

Y/ C (Self)

N

N

Y/ A+ (GRI)

N

N

N

N

N

N

N

N

CDP4

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

LANGUAGE

English

English

English, Malay

English

English, Malay

English

English

English, Malay

English, Malay

English

English

English

English, Malay

English

English

English

INDUSTRY

Agri-Business


Agri-Business


Food Producers &Processors


Transport


Media


IT


Food Producers &Processors

Support Services


Oil & Gas

LISTED/

PRIVATE

Listed

Listed

Listed

Private

Listed

Listed

Listed

Listed

Listed

Listed

Listed

Listed

Listed

Private

Listed

Listed



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14

COMPANY

Pfizer Malaysia

Pharmaniaga

PricewaterhouseCoopers Malaysia

Public Bank Berhad

Puncak Niaga (M)Sdn Bhd

Ranhill Utilities

Shell Malaysia Ltd

Shell RefiningCompany(Federation ofMalaya) Berhad

Silterra MalaysiaSdn Bhd

Sony EMCS(Malaysia) Sdn Bhd

REPORTING HISTORY

Working for a healthier world2006

Reaching out 2005

Annual Report 2008: CreatingSustainable Communities

Annual Report 2007: Culture of CaringAnnual Report 2006Annual Report 2005Annual Report 2004

Corporate Social ResponsibilityOverview 2006

2008 Annual Report: Enriching Communities

Annual Report 2008: BuildingSocially Responsible business

Annual report 2007: Environmentand communityAnnual report 2006: Environmentand communityEnsuring Our Future (2003)


The Shell Malaysia SustainabilityReport 2007

Shell Malaysia SustainableDevelopment Report 2006








Sustainable Development Reports2007



CSR and Environmental ReportingOnline Data from 2003 to 2009

Environmental Report 2006Environmental Site Report Year2004 (Penang Tec)

Environmental Report 2003(Kuala Lumpur Tec)

Environmental Report 2002(produced by Sony TechnologyMalaysia Sdn Bhd)

Environmental Report (2002)(produced by Sony Electronics

Malaysia Sdn Bhd)

LAST

REPORTING

YEAR

2006

2009

2006

2009

2009

2009

2008

2008

2009

2007

ASSURANCE

N

N

N

N

N

N

N

N

N

N

GRI3

N

N

N

N

N

GRI Based

N

N

N

N

CDP4

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

LANGUAGE

English

English

English

English

English

English

English

English

English

English

INDUSTRY

Pharmaceutical

Pharmaceutical

Support Services

Banks

Water

Water

Oil & Gas

Oil & Gas

Manufacturing


LISTED/

PRIVATE

Private

Listed

Private

Listed

Listed

Listed

Private

Listed

Private

Private


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THE RISE OF THE REPORT AND THE REGULATOR 15SUSTAINABILITY DISCLOSURE

COMPANY

Star Publications(Malaysia) Berhad

Sunway City

Sunway HoldingsBerhad

Telekom Malaysia

Berhad

Tenaga NasionalBerhad

Hustman Tioxide(Malaysia) Sdn Bhd(Inactive)

TradewindsPlantations Berhad

UEM EnvironmentSdn Bhd

UMW HoldingsBerhad

YTL CorporationBerhad

REPORTING HISTORY


Annual Report 2008: Corporate ResponsibilityAnnual Report 2007: Corporate Citizenship

Annual Report 2008: Corporate ResponsibilityAnnual Report 2007: Corporate Social Responsibility


Annual Report 2007: Corporate Responsibility ReportAnnual Report 2006: Corporate Responsibility ReportAnnual Report 2005: Corporate Responsibility Report

Annual Report 2008: Corporate Social Responsibility

Responsible Care Report 2003Teluk Kalung Site

Annual Report 2008: Delivering A Sustainable FutureAnnual Report 2007Annual Report 2006

Sustainability Report 2007Sustainability Report 2006Sustainability report 1996-2005

Corporate Social ResponsibilitySummary Report 2007

Sustainability Report 2008Sustainability Report 2007Annual Report 2006

LAST

REPORTING

YEAR

2009

2009

2009

2009

2009

2004

2009

2008

2008

2008

ASSURANCE

N

N

N

Y

N

N

N

Y

Y

N

GRI3

N

N

N

A+

N

N

N

Y/ C+(Third party)

Y/ A+(GRI)

N

CDP4

NR

NR

NR

PR

NR

NR

NR

NR

NR

NR

LANGUAGE

English

English, Malay

English, Malay

English, Malay

English, Malay

English

English

English

English

English

INDUSTRY

Media

Real Estate


Telecommunication

Services

Electricity

Chemicals

Agri-Business

Support Services



LISTED/

PRIVATE

Listed

Listed

Listed

Listed

Listed

Private

Listed

Private

Listed

Listed


18/56

16

Assurance

Yes10%

No90%

Language of report

English82%

Englishand Malay

18%

GRI

No86%

Yes15%

C+2%

A+8%

C2%

GRI based3%

CDP

NR98%

PR2%

NR: 98%

R: 0%

PR (data): 2%

PR (declined): 0%


19/56



2002 1 2003 1

2004 1

2005 1

2006 2

2007 4

2008 11

2009 28

Total 49

Listed companies 38


Total 49

Listed/ Private

Industry

14%2%2%2%

2%2%

2%2%

2%

4%

4%

4%

4%

4%

4%

4%

6% 6%

6%

6%

8%

8%

Diversified Industrials: 14% (7)

Oil & Gas: 8% (4)

Agri-Business: 8% (4)

Electronic & Electrical Equipment: 6% (3)

Telecommunication Services: 6% (3)

Media: 6% (3)

Support Services: 6% (3)

Banks: 4% (2)

Water: 4% (2)

Chemicals: 4% (2)

Real Estate: 4% (2)

Food Producers & Processors: 4% (2)


Pharmaceuticals: 4% (2)

Beverages: 2% (1)

Automobiles & Parts: 2% (1)

Investment Companies: 2% (1)

Tobacco: 2% (1)

Energy: 2% (1)

Transport: 2% (1)

Manufacturing: 2% (1)

Software: 2% (1)



20/56

18

COMPANY

Asian DevelopmentBank

Association ofDevelopmentFinancing Institutionsin Asia and the Pacific

Ayala Land Inc

Cebu HoldingsIncorporated

NEC TOKINElectronics(Philippines) Inc

Petron Corporation

Sagittarius Mines Inc

San MiguelCorporation

Shell Philippines

The Manila WaterCompany Inc

Toyota MotorPhilippinesCorporation

REPORTING HISTORY

Sustainability Report 2009Environment Program 2003-2007Sustainability Report. Spotlighton the Environment, SocialDevelopment, and Governance(2006)

2008 Integrated Annual andSustainability Report

2007 Annual Report

Ayala Land Sustainability Report2008


2008 Integrated Annual andSustainability Report

Integrated Annual & SustainabilityReport 2007

Annual Environmental Report2005

2008 Sustainability Report.Fueling Hope Fueling Life

Petron Health, Safety &Environment 2006 Annual Report

Petron Health, Safety &Environment 2005 Annual Report

Petron Health, Safety &

Environment 2004 Annual Report

Tampakan Project SustainabilityReport 2008

Tampakan Project SustainabilityReport 2007

A Commitment to SocialResponsibility (2003).

Doing Well, Doing Good

Shell companies in the Philippines.Sustainability Report 2007

Health, Safety and EnvironmentReport 2006


Health, Safety and Environment2003 Summary Report(Summary)



2008 Sustainability ReportSustainability Report 2007Sustainability Report 2006Sustainability Report 2005Sustainability Report 2004

2007 Sustainability Report2006 Sustainability Report

LAST

REPORTING

YEAR

2009

2009

2009

2009

2005

2009

2009

2004

2008

2009

2008

ASSURANCE

N

N

N

N

N

N

N

N

N

N

N

GRI5

Y/ Undeclared

Y/ C(Self)

Y/ B(Self)

Y/ B(Self)

N

Y/ B(Self)

Y/ Undeclared

N

N

Y/ B(Self)

N

CDP6

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

LANGUAGE

English

English

English

English

English

English

English

English

English

English

English

INDUSTRY

Banks

Banks

Real Estate

Real Estate


Oil & Gas

Mining

Beverages

Oil & Gas

Water

Automobiles & Parts

LISTED/

PRIVATE

Private

Private

Listed

Listed

Private

Listed

Private

Listed

Private

Listed

Private

PHILIPPINES




21/56



2004 1 2005 1

2008 2

2009 7

Total 11

CDP Percentage of companies

NR 100%

R 0

PR (data) 0

PR (declined) 0

Assurance Percentage of companies assured

Yes 0

No 100%

Language Percentage of companies

English 100%

Listed companies 5 Private companies 6

Total 11

Listed/ Private

GRI

No37%

B36%

Yes64%

C9%

Undeclared18%

Industry

18%

18%

18%

9%

9%

9%

9%

9%

Real Estate: 18% (2)

Banks: 18% (2)

Oil & Gas: 18% (2)

Beverages: 9% (1)

Electronic & Electrical Equipment: 9% (1)

Mining: 9% (1)

Water: 9% (1)

Automobiles & Parts: 9% (1)



22/56


23/56


COMPANY

SembCorp IndustriesLtd

Singapore AirlinesLimited

Singapore EpsonIndustrial Pte Ltd

SingaporePolytechnic

SingTel Group

Sony Display Device(Singapore)

Sony Electronics(Singapore) Pte Ltd

Sony PrecisionEngineering Center

Swire PacificOffshore

Tetra Pak South EastAsia Pte Ltd

REPORTING HISTORY

SembCorp Industries AnnualReport 2008: Corporate SocialResponsibility section

Annual Report 2007: CorporateSocial Responsibility section




Environmental Report 2008/09Environmental Report 2007/2008

Environmental Report 2006/2007Environmental Report 2005/2006Environmental Report 2004/2005

Environmental Site Report 2008Environmental Site Report 2007Environmental Site Report 2006(April 2005 to March 2006)

Environment and SustainabilityReport 2007

The Singapore PolytechnicEnvironment and SustainabilityReport 2005

Annual Report 2008/2009:Corporate Social Responsibility

Annual Report 2007/2008:

Corporate Social Responsibilityand Our People

Annual Report 2006/2007:Corporate Social Responsibilityand Our People

Environment & Social Report2006




Environmental Report 2002

Our Earth, Our Home 2006Our Earth, Our Home 2004Our Earth, Our Home 2003


Environment, Health & SafetyReport 2002/03

LAST

REPORTING

YEAR

2009

2009

2008

2008

2009

2007

2003

2007

2009

2003

ASSURANCE

N

N

N

N

N

N

N

N

Y

N

GRI7

N

N

N

C

N

N

N

N

C+

N

CDP8

PR(with data)

R(not public)

NR

NR

PR(decline)

NR(parent corequestonly)




NR

LANGUAGE

English

English

English

English

English

English

English

English

English

English

INDUSTRY

Multi-Utilities

Transport


Education





Shipping

Packaging

LISTED/

PRIVATE

Listed

Listed

Private

Private

Listed

Private

Private

Private

Listed

Private



24/56

22

Assurance

Yes24%

No76%

GRI

Undeclared5%

C10%

C+5%

B+9%

Yes31%

No71%

Language of report

Englishand

Chinese5%

English95%

CDP

5%

5%

9%

81%

NR: 81%

R (not public): 5%

PR (data): 9%

PR (declined): 5%


25/56



2003 2 2006 1

2007 3

2008 3

2009 12

Total 21

Listed companies 10


Total 21

Listed/ Private

Industry

5%5%

5%

5%

5%

5%

5%

5%

5%

5% 5%9%

9%

28%

Electrical & Electronic Equipment: 28%

Forestry & Paper: 9%

Real Estate: 9%

Agri-Business: 5%

Beverages: 5%

Education: 5%

Electricity: 5%

Leisure, Entertainment & Hotels: 5%

Multi-Utilities: 5%

Packaging: 9%

Service: 5%

Shipping: 5%

Telecommunication Services: 5%

Transport: 5%



26/56

24

COMPANY

Bayer Thai Co Ltd

Diageo MoetHennessy (Thailand)Limited

Evason Phuket & SixSenses Spa

JVC Manufacturing

(Thailand) CO LTD

KPMG PhoomchaiHoldings Co Ltd

Merck Ltd Thailand

NEC Infrontia ThaiLimited

NEC TokinElectronics(Thailand) Co Ltd

Oki (Thailand) CoLtd

PTT Exploration andProduction PublicCompany Limited

REPORTING HISTORY



Corporate Citizenship Report2007



Corporate Citizenship Report.Making Thailand a Better Place2008

Corporate Social ResponsibilityAnnual Report 2006/07

Corporate Social ResponsibilityAnnual Report 2006



Environmental Report 2008Environmental Report 2007Environmental Report 2006

Environmental Report 2004Environmental Report 2003






Environmental & Safety Report2004


PTTEP Corporate SocialResponsibility Report 2007

Social Sustainability Report(2006)

2006 Report Safety, Security,Health, and Environment

2004 SSHE Report. Safety,Security, Health and Environment

SSHE 2003 Our Commitmentto Safety, Security, Health andEnvironment


LAST

REPORTING

YEAR

2008

2007

2008

2008

2009

2008

2008

2008

2004

2009

ASSURANCE

N

Y

N

N

N

N

N

N

N

N

GRI9

N

Y/ CI11

N

N

N

Y/ Undeclared

N

N

N

N

CDP10

NR

NR

NR

NR

NR

NR

NR

NR

NR

NR

LANGUAGE

English, Thai

English, Thai

English

English

English

English, Thai

English

English

English

English, Thai

INDUSTRY

Chemicals

Beverages

Leisure,Entertainment &

Hotels

Electronic &

Electrical Equipment

Support Services

Pharmaceuticals &Biotechnology



Software &Computer Services

Oil & Gas

LISTED/

PRIVATE

Private

Private

Private

Private

Private

Private

Private

Private

Private

Listed

THAILAND


10NR indicates no request. R indicates a response but that the content of the response is not publicly available, PR (with data) indicates a response with relevant datathat is available publicly, PR (declined) indicates a response that is publicly available but that participation in the questionnaire was declined.

11GRI 2002 CI - Meaning Content Index: report includes a GRI Content Index, mapping responses to some or all of the 2002 Guidelines indicators.


27/56


COMPANY

PTT Public CompanyLimited

Siam Cement Groupplc

SCG CEMENTCompany Limited

Siam Pulp and PaperPublic CompanyLimited

Siam City CementPublic CompanyLimited

Solvay Thailand

Sony DeviceTechnology(Thailand) Co Ltd(Bangkadi)

Sony MagneticProducts (Thailand)Co Ltd

Sony Technology(Thailand) Co Ltd

The BangchakPetroleum PublicCompany Limited

REPORTING HISTORY

PTTs Sustainability Report 2007PTTs Sustainability Report 2006PTTs Sustainability Report 2005PTTs Sustainability Report 2004PTTs Quality, Safety, Health andEnvironment Annual Report 2003

PTTs Environmental AnnualReport 2002

PTTs Environmental AnnualReport 2001


Sustainability Report 2005Sustainability Report 2004Sustainability Report 2003Sustainability Report 2002Environment Report 2001

Sustainable Development Report2006-2007


2004 Sustainable DevelopmentReport

SCG Paper Sustainability Report2008

SCG Paper Sustainability Report2006


Environment Initiatives (2001)

Toward Sustainable Development2002-2004

Environment-Responsible CareReport 1999-2001

Environmental Site Report 2003Environmental Report 2002


2005 Environmental Site ReportEnvironmental Site Report 2003.April 03 - March 04 (Chonburi)

2003 Environmental Site Report(Ayuthaya)

Environmental Report 2002(Chonburi)

Environmental Report 2002(Ayuthaya)


LAST

REPORTING

YEAR

2008

2009

2008

2009

2006

2005

2004

2001

2007

2009

ASSURANCE

N

Y

Y

N

N

N

N

N

N

N

GRI9

N

Y/ A (GRI)

N

Y/ B

N

N

N

N

N

N

CDP10

NR

R

NR

NR

NR

NR

NR

NR

NR

NR

LANGUAGE

English, Thai

English, Thai

English, Thai

English, Thai

English, Thai

English, Thai

English

English

English

English

INDUSTRY

Oil & Gas



Forest and PaperProducts


Chemicals




Oil & Gas

LISTED/

PRIVATE

Listed

Listed

Private

Private

Listed

Private

Private

Private

Private

Listed

12From 2008 onwards, the SCG Cement Sustainability report has been incorporated into SCG Sustainability report.



28/56

26

COMPANY

Toshiba HokutoElectronic Devices(Thailand) Co Ltd

Toyota MotorThailand Co Ltd

REPORTING HISTORY


Sustainability Report 2008Sustainability Report 2007Sustainability Report 2006Environmental Report 2005Environmental Report 2003

LAST

REPORTING

YEAR

2007

2009

ASSURANCE

N

N

GRI9

N

N

CDP10

NR

NR

LANGUAGE

English

English, Thai

INDUSTRY


Automobiles & Parts

LISTED/

PRIVATE

Private

Private

Yes16%

No82%

Undeclared5%

B+4%

Yes18%

A4%

GRI

No86%

Yes14%

Assurance

Language of report

Englishand Thai

50%

English50%

NR95%

R5%

CDP

NR: 95%

R: 5%

PR (data): 0%

PR (declined): 0%


29/56

THE RISE OF THE REPORT AND THE REGULATOR 27SUSTAINABILITY DISCLOSURE


2001 1 2004 2

2005 1

2006 1

2007 3

2008 9

2009 6

Total 22

Listed companies 5


Total 22

Listed/ Private

Electrical & Electronic Equipment: 32% (7)

Oil & Gas: 14% (3)


Chemicals: 9% (2)

Beverages: 4.5% (1)

Automobiles & Parts: 4.5% (1)

Software & Computer Services: 4.5% (1)

Leisure, Entertainment & Hotels: 4.5% (1)

Support Services: 4.5% (1)

Pharmaceuticals & Biotechnology: 4.5% (1)

Forest & Paper Products: 4.5% (1)

Industry

32%

4.5%4.5%

4.5%

4.5%

4.5%

4.5%

4.5%

9%

14%

14%


30/56

28

COMPANY

BRUNEI

CAMBODIA

ACLEDA Bank Plc

MYANMAR

LAOS

VIETNAM

JVC Vietnam Limited

Sony VietnamLimited

Holcim (Vietnam)Ltd

REPORTING HISTORY

No Companies Listed

Annual Report 2008Annual Report 2007Annual Report 2006Annual Report 2005

No Companies Listed

No Companies Listed


Sovinam Report 2003Environmental Report 2002

Annual Report 2004

LAST

REPORTING

YEAR

2009

2008

2005

2004

ASSURANCE

N

N

N

N

GRI13

Y/ 2002 CI

N

N

N

CDP14

NR

NR

NR

NR

LANGUAGE

English

English

English

English

INDUSTRY

Banks




LISTED/

PRIVATE

Private

Private

Private

Private

13Y indicates that the company is using GRI but is not declaring an application level. In all other instances where companies are using GRI the application level isstated.

14NR indicates no request. R indicates a response but that the content of the response is not publicly available, PR (with data) indicates a response with relevant datathat is available publicly, PR (declined) indicates a response that is publicly available but that participation in the questionnaire was declined.


31/56

THE RISE OF THE REPORT AND THE REGULATOR 29SUSTAINABILITY REGULATION

Sustainability Regulation

Sustainability reporting in the ASEAN countries surveyed is currently at a very nascent stage, but it is

expanding rapidly. In recent years there has been a move by regulators and governments to promotesustainability disclosure in some Asian markets: Indonesia, Malaysia and Taiwan being the most recent.

This section of the report looks at the promotion of sustainability disclosure within the selected ASEAN

countries.

The most widely accepted sustainability disclosure tool is the Global Reporting Initiative (GRI), which is seeing rapidly increasingusage in Asia. In 2009, forty one out of four hundred and seventy three reports listed on the GRI website1were from companiesbased in Asia, thirteen of which are companies from the selected ASEAN countries for the purpose of this study. These numbersare up from a total Asian GRI usage of one out of ten in 1999 and thirty eight out of three hundred and seventy six in 2005.Many more organisations are using the GRI without declaring the reports to the GRI database. Whilst the GRI is the most widelyaccepted tool it is not currently officially promoted in any of the ASEAN countries in this study other than by sustainabilityorganisations and consultants working in each country.

Whilst many organisations have launched sustainability awards, very few specifically have awards for sustainability disclosure.Captured below are those awards or activities that are specifically related to disclosure. Global voluntary sustainability organisationssuch as the Global Compact have not been included and reference has only been made to voluntary reporting codes promotedwithin each country.

ASEAN

COUNTRY

Indonesia

Malaysia

Philippines

Singapore

Thailand

MANDATORY REQUIREMENTS

Limited Liability Company Law Number40/2007

Capital Market Supervisor AgencyBapepam-LK X.K.6 Regulation:Reporting Requirements for Issuers andPublic Companies-Annual Reports

Bursa Malaysia (Stock Exchange)Listing Rules requirement to providea description of the corporate socialresponsibility activities or practicesundertaken by the listed issuer andits subsidiaries or if there are none, astatement to that effect

The Philippine Securities and ExchangeCommission (PSEC) encourages listedcompanies to make additional statementssuch as environmental reports and valueadded statements when managementbelieves they will assist users in makingeconomic decisions, particularly inindustries where environmental factorsare significant and when employees areconsidered to be an important user group

None

Corporate Governance Code requiresclear policies on environmental andsocial issues

VOLUNTARY CODES

Program for Pollution ControlEvaluation and Rating(PROPER)

Silver Book: Achieving valuethrough social contribution.Reporting Guidelines.

None

Voluntary packaging agreementincludes requirement for annualreporting against action plan

Tripartite Alliance for FairEmployment Practices (pledgerequired that is made public)

SIIA Anti-corruption andcompliance declaration

Thai Labour Standard (TLS8001 2003) includesrequirements for CorporateSocial Responsibility andreporting.

AWARDS AND MONITORING

Indonesia Sustainability ReportingAward (ISRA)

KEHATI-SRI Index

ACCA Malaysia SustainabilityReporting Awards (MaSRA)

Asian Sustainability RatingTM

PICPA recognition of best CSR reports

The Management Association of thePhilippines (MAP) issues annuallythe Best Corporate Annual ReportAwards. One of the criteria is theintegration of CSR-related disclosurewithin the reports


ACCA Singapore Awards forSustainability Reporting

Asian Sustainability RatingGovernance and Transparency Index(GTI)


SET CSR awards (Top CorporateGovernance Awards and Best CorporateSocial Responsibility Awards) mentionsdisclosure in each category


TRAINING AND SUPPORT

NCSR - Certified SustainabilityReporting Specialist (CSRS) andthe Certified Sustainability ReportAssurer (CSRA)

CAUX Round Table ReportingTraining

CSR Asia Reporting Training

OWW Consulting CSR ReportingTraining

The Philippine Institute ofCertified Public Accountants(PICPA) has established aspecial committee onSustainability Reporting andAssurance to play a key role inpromoting Sustainability Reportingand Assurance practices in thePhilippines with reference to GRI

ACCA and Singapore CompactReporting Training

CSR Asia Reporting Training

None

1 http://www.globalreporting.org/GRIReports/GRIReportsList/


32/56

30

INDONESIA

Mandatory

Indonesia is currently unique amongst the selected ASEANcountries, and indeed globally, in its mandatory approachto sustainability and sustainability disclosure. It has boththe government directly mandating sustainability andsustainability disclosure through the Limited LiabilityCompany Law Number 40/2007 and the Capital MarketSupervisor Agency requiring sustainability disclosure throughthe Bapepam-LK rule X.K.6 (Reporting Requirements forIssuers and Public Companies-Annual Reports).

Law No 40/2007 for Limited Liability Companies, which was

the first in the world to mandate that companies undertakeCSR passed on 16 August 2007. When a draft of the lawwas first released in early 2007 it stated that the law wouldbe applicable to all Limited Liability Companies, this provokedwidespread complaints from the business community inIndonesia, including a Jakarta based NGO promoting CSR,Indonesia Business Links2. The law was subsequentlyamended and made the front page of the Jakarta Post3whenit was reported that Article 74 of the bill requires naturalresources companies to enact CSR programs, stating thatthey will be liable to sanctions if they fail to do so. Nodetails were provided as to how CSR funds must be spentand in what amounts or where it should be spent. The lawonly specifies that CSR programs must be budgeted for and

calculated as an operating cost that can be offset againsttaxation liabilities.

According to the Law, activities related to CSR implementationneed to be disclosed in a companies Annual Report.However, no implementing regulation for Article 74 currentlyexists, rendering the law unenforceable. In April 2009 the lawwas challenged in the Indonesian Constitutional Court but thelaw was upheld: Environmental damage in Indonesia hasreached a critical level Its time for the state, along withsociety and businesses, to be responsible for the negativeimpacts of the damage, said presiding judge M. Mahfud M.D.

The Bapepam-LK rule X.K.6, introduced in December 2006,

requires that all listed companies submit an Annual Report.The rule requires each company to include in their AnnualReport a description of the activities and expenditures relatedwith corporate social responsibility towards society andenvironment4but no further guidance or detail on disclosurerequirements is provided. Companies are increasing theamount of CSR information included in Annual Reports butfor most companies if it is included it is often only disclosureregarding philanthropic activities.

Voluntary

Indonesias Program for Pollution Control, Evaluation, andRating (PROPER) is a national-level public environmentalreporting initiative that started in 1995. This voluntaryscheme is built on the premise that public disclosure willempower communities to achieve sustained pollution controlpractices. Participating companies monitor their environmentalperformance against existing regulation, the results beingthen published in the media. The program collapsed in 1998after the Asian financial crisis, but was revived in 2004. Theresults show that there was a positive response to PROPER,the companies reducing their pollution levels in time5.

Awards and monitoring

The National Center for Sustainability Reporting (NCSR) hasas its main purpose to support and promote sustainabilityreporting in Indonesia. NCSR was founded in 2005 by fiveorganisations: the Indonesian Management AccountantsInstitute (IAMI / prev. IAI-KAM), the Indonesian-NetherlandsAssociation (INA), National Committee on Governance(KNKG), Forum for Corporate Governance in Indonesia (FCGI)and the Public Listed Companies Association (AEI). The centrehas cooperated with GRI to translate the GRI G3 ReportingFramework into the Bahasa Indonesia as well as to formulatea draft national annex of the GRI G3 Reporting Guidelines.The organisation is also the promoter of the annual IndonesianSustainability Report Award (ISRA) in partnership with the

Indonesian Institute of Management Accountants. In 2009the awards were running for the fifth year.

Several organisations offer specialisedreporting training. NCSR conductsregular training programs for two levelsof certification: Certified SustainabilityReporting Specialist (CSRS) and CertifiedSustainability Report Assurer (CSRA).

The Indonesian Biodiversity Foundation KEHATI in partnership

with the Indonesian Stock Exchange6

launched in July thisyear the first SRI Index for Indonesia. The SRI-KEHATIindex, which lists 25 companies, is the second single-nationsustainability index in Asia after Japan, according to theIndonesian Biodiversity Foundation. The ranking criteriaare environment, community involvement, good corporategovernance, respect for human rights, business behaviour andlabour practices.

2 http://www.ibl.or.id/execution/index.php3 http://www.thejakartapost.com/news/2007/07/21/csr-becomes-mandatory-most-companies.html4 http://www.bapepam.go.id/pasar_modal/regulasi_pm/peraturan_pm/X/X.K.6.pdf (2.g.8)5 http://www.aecen.org/article_file/RFF-PROPER%20Discussion%20Paper.pdf6 http://www.idx.co.id/NewsAnnouncements/EventsPressRelease/tabid/124/articleType/ArticleView/articleId/481/The-Launching-of-SRIKEHATI-Index.aspx


33/56


MALAYSIA

Mandatory

In 2004, the then Minister of Finance, Tan Sri Nor MohamedYakcop, shared the governments perspective on CSR ina special address at a Corporate Social Responsibilityconference titled CSR: Creating Greater CompetitiveAdvantage. He announced that the government stronglysupports the adoption of voluntary CSR reporting andstandards, stating that the government does not favourregulations interfering with the private sectors CSR initiativeswhich exist within a voluntary framework. In addition, heencouraged companies to disclose their CSR activities to helpinvestors identify those with sustainable practices7.

The governments budget speeches began focusing onCSR from 2006. The then Prime Minister and Minister ofFinance Dato Seri Abdullah Badawi announced that allpublic-listed companies (PLCs) must disclose their CSRactivities, in a move to inculcate the culture of corporatesocial responsibility. In the 2007 budget speech he alsospecified that from FY/08, all PLCs must disclose theirworkforce diversity statistic by race and gender, as well asprogrammes taken to develop Bumiputera vendors.

Whilst the government has made positive statements withrespect to encouraging CSR it has not introduced anymandatory requirements to date.

In September 2006 the Stock Exchange of Malaysia, BursaMalaysia, amended its Listing Requirements to include arequirement to provide a description of the corporate socialresponsibility activities or practices undertaken by the listedissuer and its subsidiaries or if there are none, a statementto that effect. At the same time Bursa Malaysia launcheda CSR Framework as a guide for PLCs in implementing andreporting on CSR. The Bursa Malaysia CSR Framework looksat four main focal areas for CSR practice the Environment,the Workplace, the Community and the Marketplace, in noorder of priority8. Although this has provided a useful guide tobusinesses, no requirements are outlined with respect to theamount of disclosure required.

Voluntary

In September 2006, the Putrajaya Committee on GovernmentLinked Company (GLC) Performance (PCG)(a body establishedby the government to drive development and grow theeconomy) released as part of an ongoing series within theTransformation Manual, the Silver Book: Achieving Valuethrough Social Contribution. The Silver Books key objective isto understand and make transparent GLCs social obligationsand the implications of meeting them (i.e. well beyond normalprivate sector practices of Corporate Social Responsibility) byclarifying the trade-offs made between social developmentand shareholder value creation in making social obligations.Within the Silver Book GLCs are advised that they shoulddevelop and implement communications and reporting

programme to communicate their contributions to societyon an annual basis. The Silver Book also provides reportingguidelines.


The ACCA Malaysia Sustainability Reporting Awards (ACCAMaSRA) previously known from 2004-2007 as the ACCAMalaysia Environmental and Social Reporting Awards (ACCAMESRA) and in 2002 to 2003 as the ACCA MalaysiaEnvironmental Reporting Awards (MERA), aims to recognisecompanies who disclose environmental and social information,to encourage others to disclose these information, and to raiseawareness on corporate transparency issues9.The MaSRA

Awards in Malaysia for 2009 solicited 56 entrants up fromjust 11 in 2002.

The Asian Sustainability Rating an online tool for companiesand their stakeholders with respect to sustainability disclosureincludes Malaysia10.

7

Ministry of Finance YB. Tan Sri Nor Mohamed Yakcop, CSR & SRI: The Way Forward for Malaysia, in Corporate Social Responsibility conference, (CSR: CreatingGreater Competitive Advantage: 2004). http://www.treasury.gov.my/index.php?option=com_content&view=article&id=898%3Acsr-a-sri-the-way-forward-for-malaysi a&catid=53%3Aucapan&Itemid=251&lang=my8 http://www.klse.com.my/website/bm/about_us/the_organisation/csr/approach.html9 ACCA, Sustainability Awards (Malaysia), http://www.accaglobal.com/malaysia/publicinterest/sustainability/.10www.asiansr.com


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PHILIPPINES

Mandatory

In August 2007 the Philippine Board of Investment (BoI)adopted a new policy that requires companies who haveregistered for Investment Assistance which included incometax holidays to implement CSR programs to ensure thatthe fiscal incentives granted to them trickle down to thecommunities hosting their projects11. The new policy ismandatory for companies that registered under the 2007Investment Priorities Plan (IPP). In September 2009 the BoIwere quoted saying: The grant of the last two years of incometax holidays shall be subject to the submission of proof thatthey have actually undertaken CSR. It has not been stated

what level of public disclosure is required for this proof.In August 2009 Philippines House of Representatives memberand son of the President, Rep. Diosdado Dato M. Arroyo,filed House Bill 6414 or the Corporate Social ResponsibilityAct of 2009 mandating corporations to observe itscorporate social responsibility or the obligation to considerthe interests of society by taking responsibility for the impactof their activities on customers, employees, shareholders,communities and the environment in all aspects of theiroperations. It is unclear whether any sustainability disclosureis envisaged under this Bill.12

The Philippine Securities and Exchange Commission (PSEC)encourages listed companies to make additional statements

such as environmental reports and value added statementswhen management believes they will assist users in makingeconomic decisions, particularly in industries whereenvironmental factors are significant and when employees areconsidered to be an important user group.13

Voluntary

No voluntary reporting requirements in any CSR areas havebeen identified in the Philippines.


No sustainability reporting awards have been identified inthe Philippines. The Asian Sustainability Rating an onlinetool for companies and their stakeholders with respect tosustainability disclosure14. includes the Philippines.

11 http://www.csr-asia.com/index.php?id=1053612 http://www.congress.gov.ph/press/details.php?pressid=367513 http://www.sec.gov.ph/Documents/fs-checklist.pdf14 www.asiansr.com


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SINGAPORE

Mandatory

The Singapore government has to date not engaged inany direct involvement in CSR. The reason for this is(as CSR expert and Professor at Singapore ManagementUniversity Eugene Tan notes) that the government prefersto use persuasion in accord with Singapores political andcultural values which emphasises ethical leadership and thepromotion of social responsibility.15This approach has alsobeen described by Melissa Ong, CSR researcher with theCentre on Asia and Globalisation at the Lee Kuan Yew Schoolof Listed policy: In an attempt to make Singapore as businessfriendly as possible, the government is reluctant to legislate

on issues that could otherwise be voluntarily addressed bycompanies either through the guise of CSR or otherwise. Oneof the reasons for this is that the government does not wantto hamper business activities by increasing business costs.Instead, it favours a mixture of consensus building and thecarrot approach, with awards for good corporate behaviourand voluntary guidelines to help companies get there.16

There has been government encouragement for theimprovement of performance in specific CSR areas, forexample, within employment practices and environmentalperformance, where the government has made informationand funding available to assist with improvement but this hasnot been labeled as CSR. Nor has reporting on improvements

been encouraged other than through the sharing of casestudies on specific issues. This comment from the Minister ofDefence and Chairman of SPRING Singapore, a governmentagency, illustrates this point:

There are various stakeholders advocating differentareas of CSR. For example, NTUC (National Trades UnionCongress) advocates CSR from a workers perspectivewhile the Consumers Association of Singapore (CASE)promotes CSR from a consumer protection perspective.The Singapore National Employers and Businessfederations (SNEF and SBF) and other chambers promotevarious CSR-related programmes to their members.The Ministry of Finance and the Monetary Authority of

Singapore advocate CSR from a corporate governanceperspective.17

No comments in relation to sustainability disclosure have beenrecorded from the Singapore Stock Exchange (SGX).

Voluntary

Voluntary agreements that address CSR concerns (but do notdeal with CSR holistically) include the Voluntary PackagingAgreement (VPA)18which includes a performance indicatorthat requires an annual reporting requirement. The VPA asdescribed by Ong: The government recognised that wastemanagement is a large problem for Singapore. It consultedwith one of the main civil society organisations, SingaporeEnvironmental Council (SEC), gave them the necessarysupport to draft a voluntary packaging agreement for foodmanufacturing industries that would commit these companiesto reducing the amount of packaging they used. When theagreement was ready, SEC gathered all food producingcompanies to present the draft and encouraged them to sign

it. This was underlined with the point that if the businessesdid not commit to this voluntarily then the government wouldbe forced to legislate. This whole process was conducted withstrong support from the government.19

Other voluntary arrangements with similar governmentsupport include the Tripartite Alliance for Fair EmploymentPractices20which promotes fair employment practices and theEmployer Alliance21promoting work-life balance strategies forcompanies and employees. Whilst these two promote CSRpractices they do not include a specific recommendation tocompanies to disclose performance in this area.

The Singapore Compact also encourages companies to

sign the UN Global Compact and to produce an annualCommunication on Progress (COP).

15

Moulding (sic) the Corporate Social Responsibility Agenda in Singapore, Singapore Management University, February 4th, 2008, available at: http://knowledge. smu.edu.sg/article.cfm?articleid=1119.16 Contextualising Corporate Social Responsibility in Singapore, September 2008, Working paper 004 available at www.lkyspp.nus.edu.sg/CAG17,19 Ibid.18 National Environment Agency sees food & beverage companies under voluntary pact cut waste by 17% for specific products, National Environment Agency,

October 30th, 2008, available at: http://app2.nea.gov.sg/news_detail_2008.aspx?news_sid=2008110315647412920520 http://www.fairemployment.sg/21 http://www.employeralliance.sg/


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The major element of sustainability reporting that has seenactive promotion and monitoring is corporate governanceand this area of disclosure is also monitored by the localmedia, The Business Times, in partnership with theCorporate Governance and Financial Reporting Centre(CGFRC) at the National University of Singapore (NUS),under the guidance of corporate governance advocate ProfMak Yuen Teen. The collaboration has resulted in the newlycreated Governance and Transparency Index (GTI) which issponsored by CPA Australia and supported by the InvestmentManagement Association of Singapore and replaces theCorporate Transparency Index (CTI), which assessed thefinancial transparency of companies based on their annual

announcements and which had been published by theBusiness Times since 2000.

The GTI is divided into two broad sections: governance andtransparency (including investor relations) with the maximumpoints for each section being 75 and 25 respectively. Thegovernance section covers the following items: Board Matters,Remuneration Matters, Accountability and Audit. Thetransparency section focuses on how companies communicatewith their shareholders. In addition, the Index includes abonus and penalty system where companies which gobeyond the requirements of the code (e.g. by including limitson directorships held by the their directors) will be awardedadditional points while negative events (e.g., directors or

management resigning and raising corporate governanceconcerns) will lead to a deduction in the companys GTIscore. The GTI does not focus on any other areas outside ofgovernance at this time.

The ACCA Sustainability Awards in Singapore was introducedin 2002 and solicited 15 entrants in 2009.

The Asian Sustainability Rating an online tool for companiesand their stakeholders with respect to sustainability disclosureincludes22Singapore.


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22 www.asiansr.com

SUSTAINABILITY REGULATION

23

http://www.csri.or.th/24 http://www.thaipr.net/nc/readnews.aspx?newsid=112209163E07054015336F1433E8555025 http://siamreport.blogspot.com/2009/01/kasit-piromya.html26 http://www.set.or.th/en/regulations/cg/files/CGPrincipleforListedCompany2006.zip27 http://www.set.or.th/dat/content/rule/en/BorJorPor2300_EN.pdf28 http://www.set.or.th/en/regulations/supervision/files/listed_companies_handbook2009eng.zip29http://thaipat.blogspot.com/

30

http://www.nationmultimedia.com/2009/01/26/business/business_30094195.php31 Interview with SET September 200932 Interview with SET September 200933 http://tls.labour.go.th/download?path=tls/load/file/&file=Requirement%20Thai%20La bour%20Standard%20(English).pdf&id=load4-2

THAILAND

Mandatory

The Thai government along with a range of stakeholdersfrom the finance sector has recently begun to encourageSustainability Reporting in Thailand. In September2007 the then Deputy Prime Minister and Minister forSocial Development and Human Security Mr. PaiboonWattanasiritham led Thai business leaders in launchingthe Corporate Social Responsibility Institute (CSRI23). Tenorganisations participated in the Institutes inauguration:the Association of Investment Management Companies,Association of Securities Companies, Federation of Thai CapitalMarket Organizations, Federation of Thai Industries, Listed

Companies Association, Securities Analysts Association, TheStock Exchange of Thailand (SET), Thai Bankers Association,Thai Chamber of Commerce and Thai Investors Association.24

However it has been noted by those in government that morecould be done. Kasit Piromya, current Minister for ForeignAffairs and chairperson of the Good Governance PromotionAssociation declared in 2008 that: We need to push CSR

practices at the political level as currently there is no political

party that offers [a] CSR policy. Without political leadership,

Thailands private sector is reluctant [to embrace CSR].25

The Sufficiency Economy Philosophy (SEP) promoted by hisMajesty the King of Thailand is often cited alongside CSR as

the way to achieve sustainable development for Thailand. Noclear guidelines have been issued on SEP implementationso companies do not have clear direction in this regard orguidance on disclosure principles. Companies often refer tothe SEP in their reports and when speaking publicly abouttheir CSR motivations.

One initiative that relates to sustainability reporting is theStock Exchange of Thailands (SET) corporate governancecode, where the setting and disclosure of clear policies onenvironmental and social issues is mentioned as required to alllisted companies.26However, the guidelines on disclosure forlisted companies have no specific CSR related prerequisites.27The listed companies handbook, which incorporates the

conditions for listing on the SET, only states that companiesneed to establish an effective internal control system, whichincludes appropriate environmental controls mentioningnothing about the need to also disclose these issues.28

It has been noted that the SET have a working committee onlisted companies corporate social responsibility to establishsustainability reporting guidelines and have announced thatthey are working in collaboration with the Thaipat Institute.29The stated aim is to standardise Thailands listed companiesCSR30and this is intended to conform with the GRI andadjusted to fit with Thai culture and is reported to be availablein early 2010.31

Voluntary

Disclosure efforts in Thailand to date h