Additionally, the company provides ancillary services, including securities processing and information technology, to the financial sector. SGX has limited direct environmental impact because it is a financial services company that does not operate factories or produce goods. Nonetheless, the company has implemented a sustainability strategy under the guidance of a Sustainability Committee. The company’s environmental, social, and governance initiatives are predominantly focused on governance practices, however, SGX is also working to reduce its energy use and waste. For example, SGX has achieved a 19% reduction in energy consumption in its data centers through improved cooling efficiency and decommissioning of obsolete infrastructure. Under its governance policy, SGX is seeking to achieve a diversity target of 40% women on its management committee, is continuing to host forums on corporate governance, and is also commissioning corporate governance research and thought leadership.
SGX’s Sustainability Committee has agreed to time-bound targets for improvements on the company’s key indicators, however they are currently not publicly available. Portfolio 21 has requested that these metrics be disclosed.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 7/31/13 and may not reflect current opinions or subsequent events.