Singapore to Introduce Mandatory Climate Reporting Beginning 2025

Singapore will implement mandatory climate-related reporting requirements for listed and large non-listed companies, with obligations for some to begin disclosing in line with the IFRS’ International Sustainability Standards Board (ISSB) standards starting as early as 2025.

The new rules were announced today in the Parliament of Singapore by Second Minister for Finance Chee Hong Tat, with details of the new mandatory reporting requirements subsequently released by Singapore’s business reporting, accounting and corporate services and markets regulators the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo).

Following the recommendations of the Sustainability Reporting Advisory Committee (SRAC), a committee set up by ACRA and SGX RegCo to advise on the roadmap for advancing companies’ sustainability reporting in Singapore, the new climate reporting obligations will be implemented in a phased approach, beginning with listed companies in 2025, followed by large, non-listed companies, defined as those with at least $1 billion in revenue and $500 million in assets in 2027.

The specific obligations for each group will also be phased in over time, with listed companies required to report on Scope 1 and 2 emissions in the first year, and on Scope 3, or value chain emissions, in 2026, and to obtain external limited assurance on Scope 1 and 2 GHG emissions two years after beginning reporting. Large non-listed companies will follow a similar timeline, although Scope 3 reporting will begin for these companies no earlier than 2029.

According to the statement by Mr. Chee, the government has not yet decided if it will extend the climate reporting obligations to smaller companies, while ACRA will review the experiences of the listed and larger companies before a decision is made.

Mr. Chee also said that the government will step-up its efforts to help companies to develop sustainability reporting and assurance competencies, with specific measures to be announced by the Ministry of Trade and Industry (MTI).

In its statement announcing the new rules, the regulators said that the new climate reporting requirements form part of the government’s efforts to strengthen companies’ sustainability capabilities, with companies able to provide climate disclosures standing to benefit from improved access to new markets, customers, and financing.

Tan Boon Gin, Chief Executive Officer of SGX RegCo, said:

“SGX-listed issuers have had a head-start in climate reporting and many have seen its benefits. Companies are better equipped to meet demand from their lenders, customers and investors for sustainability-related information. They can also more readily access the growing pool of sustainable capital. These position Singapore well as a green economy.”