Singapore will implement mandatory climate-related reporting requirements for listed and large unlisted companies, with obligations for some to start reporting in line with IFRS International Sustainability Standards Board (ISSB) standards from 2025.
The new rules were announced in Singapore Parliament today by Second Minister for Finance Chee Hong Tat, with details of the new mandatory reporting requirements later released by Singapore's business reporting, accounting and corporate services regulator and market regulators, the Authority Accounting and Corporate Regulatory Authority (ACRA) and Singapore Foreign Exchange Regulation (SGX RegCo).
Following recommendations from the Sustainability Reporting Advisory Committee (SRAC), a committee established by ACRA and SGX RegCo to advise on the roadmap for advancing corporate sustainability reporting in Singapore, the new climate reporting obligations will be implemented in a phased in, starting with listed companies in 2025, followed by large unlisted companies, defined as those with at least $1 billion in revenue and $500 million in assets in 2027.
Specific obligations for each group will also be implemented gradually 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 obtain limited external warranty. on Scope 1 and 2 GHG emissions two years after the start of the report. Large unlisted companies will follow a similar timeline, although Scope 3 reporting will not begin for these companies until 2029.
According to Mr Chee's statement, the government has not yet decided whether it will extend climate reporting obligations to smaller companies, while ACRA will review the experiences of listed and larger companies before a decision is made.
sir. Chee also said the government will step up its efforts to help companies develop reporting and sustainability assurance skills, with specific measures to be announced by the Ministry of Trade and Industry (MTI).
In their statement announcing the new rules, regulators said the new climate reporting requirements are part of the government's efforts to strengthen companies' sustainability capabilities, with companies able to provide climate disclosures able to benefit from better access to new markets. , customers and financing.
Tan Boon Gin, CEO of SGX RegCo, said:
“SGX-listed issuers have had a head start in climate reporting and many have seen the benefits. Companies are better equipped to meet the demand of their creditors, customers and investors for sustainability-related information. They can also more easily access the growing pool of sustainable capital. This positions Singapore well as a green economy.”
