FTI Consulting Releases Asia Disclosure Index 2019
Report Focuses on Board Quality, Risk Disclosure Standards Across Eight Jurisdictions in Asia
FTI Consulting’s Asia Disclosure Index 2019 reveals that companies in
Asia Disclosure Index 2019 Highlights:
- 23 of the 180 ASEAN companies (7%) are classified as corporate disclosure champions, with Composite Disclosure scores of 10/10. Nine of these companies are from
Malaysia, five are from India, four are from Singapore, three are from Thailandand one each is from Hong Kongand Philippines. Ten out of the 23 companies are from the Banking/Financial Services sector, five are from the Industrials/ Manufacturing/Transport sector and three are from the Energy/Resources sector.
- Across the eight jurisdictions, Malaysian companies collectively score the highest, with an average Composite Disclosure score of 8/10, followed by
Indiaand Singapore, both at 7.3/10.
- Aggregated by industry, Telecom/Tech companies have the highest average Composite Disclosure score of 7.9/10, followed by Banks/Financial Services at 6.7/10.
Board Quality Scores:
- Approximately 80% of Asian companies have at least one female director on their Board of Directors. This percentage is consistent across ASEAN,
Hong Kongand India.
- Independent directors do not make up at least half of the boards for 49% of Asian companies surveyed. Indian companies lead with 88% of companies that have balanced boards (comprising at least 50% independent directors), as compared to 39% in ASEAN and 18% in
- Only 24% of Asian companies provide board evaluation with the involvement of a third-party expert.
- Only 57% of Asian companies provide specific information about their directors’ specialist expertise that they bring to the board. Performance on this parameter is better in
Hong Kong, where 90% of companies provide this information, compared to 60% in Indiaand 47% in the ASEAN region.
Risk Disclosure Scores:
- 36% of the top 330 listed Asian companies across the eight jurisdictions do not provide a convenient whistleblowing mechanism (phone number or email) on their websites or in their annual reports. Indian companies score highly, with 89% of Indian companies providing convenient whistleblowing mechanisms, while the corresponding figure is 58% in ASEAN and 34% in
- 54% of Asian companies do not provide analyst transcripts or details of analyst engagement, even if investor presentations are available on their websites.
- While 71% of the 330 Asian companies provide some information on risk metrics and mitigation, 45% of the 330 companies do not provide any information regarding cybersecurity or data-security risk mitigation in their annual reports.
- 32% provide sustainability reports without internationally recognised benchmarks such as Global Reporting Initiative (“GRI”) standards. In
Hong Kong, 82% of companies provide sustainability information with GRI or other internationally recognised benchmarks for sustainability reporting. This is followed by 71% in ASEAN and 57% in India.
“The Asia Disclosure Index report is an important piece of research that adds to the effort to raise corporate transparency and non-financial disclosure in the region,” said
1 Constituents of S&P BSE 100 Index, FTSE ASEAN Stars Index and Hang Seng Index
About the Asia Disclosure Index 2019
The Asia Disclosure Index 2019 is a report of corporate disclosure by 330 listed companies in the
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Source: FTI Consulting, Inc.