FTI Consulting Releases ASEAN Disclosure Index 2023
Report Benchmarks Companies on Leadership, Governance and Risk Disclosure
ASEAN Companies Score Low on Cyber Risk Preparedness, High on Diversity and Climate Risk Disclosure
Singapore, Dec. 13, 2023 — FTI Consulting, Inc. (NYSE: FCN) today released the ASEAN Disclosure Index 2023 report, which tracks corporate disclosure practices across 18 parameters amongst 110 leading publicly listed corporations in the ASEAN region.
The report found that the 110 companies score an average Corporate Disclosure score of 6.95/10, based on public information from annual reports of the leading listed companies in Singapore, Thailand, Malaysia, Indonesia and the Philippines. Malaysian companies had the highest average corporate disclosure score amongst the five ASEAN jurisdictions, at 7.71. Cyber risk disclosure and preparedness is the weakest area for ASEAN companies, according to the report.
ASEAN Disclosure Index 2023 Highlights:
- Diversity information — Over 75% of companies have more than 20% women in their workforce.
Companies in Thailand are diversity champions, with 95% of companies having more than 20% women on the workforce.
- Climate risk disclosure — ASEAN companies fare well on climate change reporting, with 79% having net-zero goals in the annual reports.
90% of Malaysian companies (18 out of 20 companies) list net-zero goals and 70% mention Scope 3 metrics in their annual reports.
- Cyber risk disclosure — Only 41% of the 110 ASEAN companies provide adequate cyber risk disclosures.
50% of ASEAN companies undertake regular cyber audits or test their resilience to a cyber breach incident or ransomware attack.
Only 35% of all ASEAN companies report cyber breaches.
- Talent and culture information — 65% of ASEAN companies offering flexible, work-from-home policies, while 75% companies have health, safety and environment (“HSE”) metrics in place for the employees.
Singaporean companies have the highest score for talent and culture, with 77% of the 30 companies offering hybrid work policies and 97% having HSE metrics for employees.
- Supply chain resilience — 62% of ASEAN companies disclose that they have adequately prepared for risks related to supply chain disruptions and taken steps to manage them.
Commenting on the ASEAN Disclosure Index 2023 report, Amrit Singh Deo, a Senior Managing Director in the Strategic Communications segment at FTI Consulting and author of the report, said, “The ASEAN Disclosure Index 2023 scores reveal that ASEAN companies are performing well on most corporate disclosure parameters. Cyber risk disclosure and preparedness is an area of improvement across the ASEAN region, and this a similar trend in many jurisdictions across the world. A lot of risks that were earlier considered operational in nature, such as supply chain risk, talent risk, climate risk and cyber risk, are now strategic risks that could impact the financial health of companies in the long term if they are not managed properly. This has been the key pivot for management teams and board members in the post-lockdown period.”
About the
The ASEAN Disclosure Index 2023 is a report of corporate disclosure by 110 listed companies in ASEAN region as assessed on 18 publicly available information disclosure parameters. FTI Consulting has been publishing the annual ASEAN and India Disclosure Index reports since 2016 and took a hiatus during the lockdown years. The ASEAN and India Disclosure Index 2023 reports have a refreshed methodology, revised to reflect the changes in the external environment and voluntary disclosure standards expected from listed corporations. The full report and methodology can be found here: https://live.fticonsulting.com/asia-disclosure-index-2023.
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Source: FTI Consulting, Inc.