SGX RegCo integrates ISSB into its Sustainability Reporting requirements

SGX recently made significant updates for sustainability reporting in Singapore as SGX Regulation (SGX RegCo) integrates international standards into its reporting framework. Here’s a breakdown of the key changes following broad support from a recent public consultation:

From FY 2025: All issuers will be required to report Scope 1 and Scope 2 greenhouse gas (GHG) emissions. Their disclosures will align with the IFRS Sustainability Disclosure Standards set by the International Sustainability Standards Board (ISSB), building on the phased implementation of the Task Force on Climate-related Financial Disclosures (TCFD) since FY 2022.

Scope 3 GHG Emissions: While mandatory reporting of climate-related data has gained support, especially for all sectors, challenges remain for smaller issuers in reporting Scope 3 emissions. The current plan is to prioritise larger issuers by market capitalisation with the intention that they report Scope 3 GHG emissions from FY 2026. SGX RegCo will review readiness and plan for a phased approach, with large issuers expected to report Scope 3 GHG emissions by FY 2026.

Key Timeline:

FY 2025: Climate reporting becomes mandatory, covering Scope 1 and Scope 2 GHG emissions.

FY 2026: Large issuers expected to report Scope 3 GHG emissions; sustainability reports to be submitted with annual reports or within five months if externally assured.

These developments are an important step toward globally consistent and comparable sustainability disclosures, positioning SGX-listed companies to better address climate risks and opportunities as we move toward a low-carbon future.

If you're keen to explore how to assess how these new rules affect your business, don’t hesitate to reach out to Chetan Hans, Anne Liew, or me at Grant Thornton Singapore for help.

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