Sustainability Reporting Mandate Singapore Listed Firms Lead Change by 2025

01 Mar, 2024

Sustainability Reporting Mandate Singapore Listed Firms Lead Change by 2025

Starting from the financial year 2025, all listed companies in Singapore are mandated to make climate-related disclosures, as revealed by Minister for Transport and Second Minister for Finance, Chee Hong Tat. These disclosures will adhere to local reporting standards synchronized with the International Sustainability Standards Board.

Large non-listed companies, defined with annual revenues exceeding S$1 billion and total assets over S$500 million, will have to comply starting from FY2027. This decision follows a phased approach initiated after a public consultation conducted by the Sustainability Reporting Advisory Committee, a collaboration between the Accounting and Corporate Regulatory Authority (ACRA) and the Singapore Exchange Regulation.

The new rules entail obtaining external limited assurance on scope 1 and scope 2 emissions for both listed and large non-listed companies, starting two years after the mandatory reporting takes effect. While listed firms will disclose their scope 3 emissions from FY2026, non-listed companies will have an extended period until FY2029 to prepare for this requirement.

However, smaller non-listed companies may see extensions based on a review by ACRA in 2027. Moreover, companies already engaged in sustainability reporting using internationally recognized standards will receive a three-year transitional period exempting them from these new regulations.