Singapore to make Climate Change Reporting mandatory in 2025

The Singapore Parliament announced last Wednesday the implementation of 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.

Following the ministerial announcement, details of the reporting requirements were 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).

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, following recommendations by the Sustainability Reporting Advisory Committee.

The government has is taking a staggered time frame approach to implement the specific obligations. All listed companies will be 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. Smaller non-listed companies will possibly follow, once the ACRA has reviewed the experiences of listed and larger companies.

Acknowledging that some smaller companies may experience difficulties in developing sustainability reporting and assurance competencies, the Ministry of Trade and Industry will step up its efforts to assist companies during the transition period.

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.

As sustainability is becoming increasingly important for companies to access new investors, financing and markets, developing a sustainable infrastructure framework for companies to follow is essential on our drive to net-zero.