SBF Reviews Small Companies’ Input on ISSB Climate Reporting
- Merely 4% of small businesses in Singapore are confident of meeting the 2025 climate-related disclosure requirements.
- SBF is considering extending the reporting deadline for smaller companies by 1 to 2 years.
- The goal is to provide them with the necessary guidance for sustainability reporting.
The Singapore Business Federation (SBF) has put on ice the International Sustainability Standards Board (ISSB) standards compliance for small companies after consulting with them on matters concerning their preparedness.
According to an earlier communiqué, starting 1 January 2025, all companies listed on the Singapore Exchange (SGX) have been required to adhere to the new rules regarding climate-related disclosure in Singapore.
The rules are based on standards developed by the International Sustainability Standards Board (ISSB) to increase transparency around how well companies in the country are addressing climate risks and opportunities.
READ MORE: IFRS: 36 Jurisdictions Align with ISSB Sustainability Standards
Mr Kok Ping Soon, Chief Executive Officer of SBF, said: “SBF recognises the value of companies making ISSB-based climate-related disclosure. Doing so compels companies to formulate, communicate and implement strategies and processes to enhance their resilience against climate risks and to seize opportunities in our transition towards a low-carbon future."
To understand the level of readiness, SGX and SGX RegCo (the independent regulatory arm of the Singapore Exchange) consulted over 40 small- and mid-cap companies from April to May 2025. They found that although companies are taking initial steps, only 4% are very confident about meeting the 2025 deadline.
On the other hand, many face hurdles, including a lack of clarity, time, and manpower, as well as challenges with data collection.
To this end, SBF made four recommendations to address the challenges faced by them as follows:
- Extension of deadline for small- and mid-cap companies by 1 to 2 years;
- Disclosure requirements based on company size;
- Provide Singapore-relevant cross-sector and sector-specific guidance; and
- Central platform for digital reporting of sustainability disclosures.
"This does not represent a step back from Singapore’s climate reporting ambitions, but is a practical measure to provide smaller SGX-listed companies (ListCos) more time to strengthen internal readiness and incorporate best practices after larger ListCos make their ISSB disclosures for FY2025," he added.
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SBF will offer its continued guidance, working in tandem with regulators, industry groups, and government agencies to support listed companies during the transition. The objective is to lay a stronger foundation so that all businesses, regardless of size, are aligned with climate-related goals.
To analyse the recommendations in detail, click here.
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Source: SBF
