Singapore has Introduced Mandatory Climate Reporting
Overview: Singapore is introducing mandatory climate-related reporting requirements for listed and large non-listed companies, aligning with IFRS ISSB standards by 2025. The phased approach, recommended by the Sustainability Reporting Advisory Committee, begins with listed companies in 2025 and extends to large non-listed firms by 2027. The reporting framework includes disclosing Scope 1 and 2 emissions initially, with the government aiming to enhance sustainability capabilities and provide companies with improved access to markets, customers, and financing opportunities.
Summary:
Great news in Southeast Asia is about Singapore’s implementation of mandatory climate-related reporting requirements. These requirements are for listed and large non-listed companies, aligning with the International Financial Reporting Standards (IFRS) International Sustainability Standards Board (ISSB) standards by 2025. Second Minister for Finance Chee Hong Tat announced the new rules in the Parliament of Singapore, detailing the obligations phased over time. The Sustainability Reporting Advisory Committee (SRAC), established by regulators ACRA and SGX RegCo, recommended the phased approach, starting with listed companies in 2025 and extending to large non-listed firms by 2027. The reporting obligations include disclosing Scope 1 and 2 emissions in the first year for listed companies, followed by Scope 3 emissions in 2026. The move is part of the government's broader efforts to enhance sustainability capabilities, with potential benefits for companies in terms of improved market access, customer relations, and financing opportunities.
The Singaporean government's announcement of mandatory climate-related reporting marks a significant step towards advancing sustainability practices in the business sector. With the phased implementation recommended by the SRAC, listed companies are expected to report Scope 1 and 2 emissions in the initial year, progressing to Scope 3 emissions in 2026. Large non-listed companies, defined by a revenue of at least $1 billion and assets of $500 million, will follow a similar timeline, with Scope 3 reporting potentially beginning no earlier than 2029. The government remains undecided about extending these reporting obligations to smaller companies, indicating a review based on the experiences of listed and larger firms. Efforts to support companies in developing sustainability reporting and assurance competencies will be intensified, with specific measures to be announced by the Ministry of Trade and Industry (MTI).
The regulators, ACRA and SGX RegCo, emphasize that the new climate reporting requirements are part of a broader strategy to strengthen companies' sustainability capabilities. They highlight potential benefits for companies, including improved access to new markets, customers, and financing opportunities. Tan Boon Gin, Chief Executive Officer of SGX RegCo, notes that SGX-listed issuers have already experienced the benefits of climate reporting, positioning Singapore as a green economy. The move reflects a global trend towards integrating environmental, social, and governance (ESG) considerations into corporate reporting, aligning with international standards and fostering responsible business practices in Singapore.
Source: https://www.esgtoday.com/singapore-to-introduce-mandatory-climate-reporting-beginning-2025/
