Mandatory Climate Disclosures
The Accounting and Corporate Regulatory Authority (ACRA) and the Singapore Exchange Regulation (SGX RegCo) plan to introduce mandatory climate disclosures to help companies complete their green transition.
The mandatory climate disclosures come from the previous recommendations under the Singapore Sustainability Reporting Advisory Committee (SRAC). SRAC hopes to reduce compliance costs and promote sustainable financial markets through climate disclosures.
Related Post: Singapore Plans to Establish Corporate Climate Disclosure Rules
Requirements for Mandatory Climate Disclosures
ACRA and SGX RegCo improve the recommendations provided by SRAC and decide to implement phased mandatory climate disclosure requirements:
1. Starting from 2025FY, all listed companies must submit climate-related disclosures (CRD), and their reporting format must comply with the standards of the International Sustainability Standards Board (ISSB). The specific contents of the CRD needs to include Scope 1 and Scope 2 greenhouse gas emissions. Starting from 2027FY, all large unlisted companies with annual revenue of more than US$1 billion and total assets of more than US$500 million will also need to disclose in accordance with ISSB standards.
2. Starting from 2026FY, all listed companies will need to submit Scope 3 greenhouse gas emissions in CRD. The reporting time for large unlisted companies will be determined by ACRA after review, but not earlier than 2029FY.
3. Starting from 2027FY, all listed company issuers are required to provide external assurance for Scope 1 and Scope 2 greenhouse gas emission data, and eligible large unlisted companies are required to provide external assurance starting from 2029FY. External assurance needs to be provided by a registered climate auditor and meet ACRA requirements.
New mandatory climate disclosures will be published alongside companies’ financial reports, with exemptions available for some large unlisted companies, such as those whose parent companies already use ISSB standards or other global standards in disclosures.
Reference:
Climate Reporting to Help Companies Ride the Green Transition
