Who does this affect: (1) Singapore-listed companies and (2) non-listed companies with at least $1 billion in revenue.
Why has it been introduced: The Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo) released this proposal to uphold Singapore’s attractiveness as a global business hub while contributing to the national agenda on sustainable development under the Singapore Green Plan 2030. This proposal helps align Singapore with the new global disclosure standards created by the ISSB.
What does it require: The proposal requires covered companies to create ISSB-aligned climate disclosures, including reporting on Scopes 1, 2, and 3 emissions, with a one to two year phase-in to begin reporting on Scope 3 emissions. Companies will be required to attain limited assurance on Scopes 1 and 2 emissions, with a two year phase in. This proposal would require companies to follow the same reporting and filing timelines for their climate disclosures as for their financial statements, and would create additional legal responsibilities for the company, its directors, and/or its officers to ensure accountability for those disclosures.
When would it come into effect: The proposal would require Singapore listed issuers to begin creating ISSB-aligned climate disclosures FY2025. Non-listed companies with at least $1 billion in annual revenue would begin creating ISSB-aligned climate disclosures FY2027. The consultation is open for comment until September 30, 2023.
Where is reporting required: The proposal recommends that listed issuers include their disclosures as either part of the annual report or as a separate report.
Note: This proposal, if approved, would mark a meaningful increase in the reach and rigor of Singapore’s climate disclosure rules. The current rules are covered in the “Singapore Exchange TCFD-based Listing Rules” section of this page.
Who does this affect: All issuers listed on the Singapore Exchange, SGX
Why has it been introduced: The Singapore Exchange introduced this mandate following a public consultation on sustainability reporting that received broad support. The market in Singapore has voiced their recognition of the need to provide decision-makers increased climate information as they allocate assets, extend financing, and price risks.
What does it require: Climate-related financial risk disclosure, including GHG emissions, in line with the TCFD. “This is a first step to better prepare issuers for reporting against anticipated global baseline sustainability reporting standards to be developed by the International Sustainability Standards Board,” explains the SGX.
When would it come into effect: Starting in financial year (FY) 2022, the rule applies to all listed companies on a 'comply-or-explain' basis. TCFD-based climate reporting is progressively made mandatory for listed issuers in five prioritized industries between FY 2022 and FY 2024.
Where is reporting required: In annual reports, and to be made available on SGXNet and on the company website.