Singapore’s Accounting and Corporate Regulatory Authority ( ACRA ) and the Singapore Exchange Regulation ( SGX RegCo ) have extended the timelines for implementing climate reporting, including external assurance requirements, to support listed companies and large non-listed companies in developing reporting capabilities.

All listed companies will continue to report Scope 1 and 2 greenhouse gas ( GHG ) emissions from the financial year ( FY ) commencing on or after January 1 2025, while Straits Times Index ( STI ) constituents will continue to lead efforts to implement other International Sustainability Standards Board ( ISSB )-based, climate-related disclosures ( CRD ) from FY2025 and Scope 3 GHG emissions from FY2026.

The extension of timelines takes into account the uncertain global economic landscape, as well as feedback to take into greater consideration the varying levels of resources and readiness in climate reporting.

In particular, the Singapore Business Federation provided feedback that smaller listed companies need more time to be fully ready for ISSB-based CRD. The time extension would allow them to build up data collection processes and learn from larger companies that have started to produce ISSB-based CRD.

With the updated requirements, companies will be better able to balance compliance costs with developing climate reporting capabilities, which are required for the longer term to maintain their place in global supply chains. Companies should also continue to align their trajectory with Singapore’s net-zero target by 2050.

“Sustainability reporting is a crucial tool for companies to support their sustainability strategy and for accountability to their stakeholders,” says Chia-Tern Huey Min, ACRA’s CEO. “Our differentiated implementation approach provides companies who are less ready with some relief in the near term so that they can build up capabilities for the future, while requiring companies who are more ready to progress with their reporting.

“This reflects our commitment to supporting companies through current challenges while maintaining Singapore's momentum in climate action, paving the way for more meaningful and higher quality climate-related disclosures in the long run.”

“High-quality climate-related disclosures are necessary, but challenging to produce,” adds Tan Boon Gin, SGX RegCo’s CEO. “We are taking a more targeted and proportionate approach – large companies like STI constituent listed companies have more resources and should take the lead.

“Other companies may require more time, which is why we are extending some timelines and continuing with capability building efforts. We will however retain the start-date for mandatory Scope 1 and 2 GHG emissions disclosure as this information is more circumscribed.”