Singapore is taking significant steps to cement its position as a global business hub and a leader in sustainability.
The city-state’s regulators, the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo), propose mandatory climate-related reporting for public and large private companies. These disclosure standards will align with the International Financial Reporting Standards (IFRS) and the recently published International Sustainability Standards Board (ISSB) standards.
The Sustainability Reporting Advisory Committee (SRAC), jointly established by the regulators, recommended this move as part of Singapore’s Green Plan 2030. The reporting obligation is expected to bolster Singapore’s commitment to the United Nations’ 2030 Sustainable Development Agenda and expedite the country’s transition to a green economy.
Under the current regulations, only listed companies from certain sectors such as finance, agriculture, food, forest products and energy are required to provide climate reporting, aligned with the Task Force on Climate-related Financial Disclosures (TCFD). The new proposal, however, will extend this obligation to all listed issuers, overseas companies, business trusts and REITs starting from fiscal year 2025. Non-listed companies with revenues of at least $1bn will begin reporting from FY2027.
In addition, the regulators plan a review in 2027 with an aim to extend the climate disclosure requirements to non-listed companies with revenues of at least $100m, set to start around FY2030.
ACRA Assistant Chief Executive Kuldip Gill emphasised the importance of climate reporting: “Trusted and consistent climate reporting is essential to drive accountability and decisive actions by companies. It will also rally companies towards contributing to Singapore’s net zero emissions commitments, expediting our transition to a green economy.”
Michael Tang, Head of the Sustainable Development Office, SGX RegCo, lauded the effort of listed companies in sustainability reporting, and suggested the large non-listed companies’ climate reporting will complement this progress, thereby enabling Singapore to make a significant contribution towards global sustainability.
SRAC Chairperson Esther An underscored the benefits of climate reporting, saying: “With more countries pledging for net zero and the rising carbon cost globally, climate strategy and reporting can help companies, listed or non-listed, to mitigate and adapt to risks in the transition to a low carbon economy. What gets measured gets managed. There is a strong business case for climate reporting as it has helped many businesses to improve performance and create stronger competitive advantage by capturing growth opportunities.”
A consultation into the new mandatory climate-related reporting rules has been launched by the regulators and will remain open until September 30.
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