Singapore Proposes Mandatory Climate Reporting for both Public and Private Companies

Public and large private companies in Singapore will be required to provide climate-related disclosures aligned with the IFRS’ newly published ISSB disclosure standards, according to a proposal by Singapore’s business reporting, accounting and corporate services and markets regulators Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo).

The plan for mandatory climate-related reporting was recommended by the Sustainability Reporting Advisory Committee (SRAC), jointly launched by the regulators last year to advise on a sustainability reporting roadmap for Singapore companies.

According to a statement by the regulators, the proposal for mandatory climate reporting aims to maintain Singapore’s position as a global business hub, while also contributing to the Singapore Green Plan 2030, the government’s sustainable transition strategy aimed at strengthening Singapore’s commitment to the UN’s 2030 Sustainable Development Agenda.

ACRA Assistant Chief Executive Kuldip Gill said:
“Trusted and consistent climate reporting is essential to drive accountability and decisive actions by companies. It will also rally companies towards contributing to Singapore’s net zero emissions commitments, expediting our transition to a green economy.”

Currently, Singapore only requires listed companies in select sectors including finance, agriculture, food, forest products and energy to provide TCFD-aligned climate reporting, with all other listed issuers required to apply TCFD on a ‘comply-or-explain’ basis.

Under the new proposals, all listed issuers, including those incorporated overseas, as well as business trusts and REITs, would be required to report climate-related disclosures beginning in fiscal year 2025, with non-listed companies with at least $1 billion in revenues beginning in FY2027.

The regulators added that they plan to conduct a review in 2027 on plans to extend the climate disclosure requirements to non-listed companies with revenues of at least $100 million, with reporting to begin around FY2030.

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