Highlights

• Singapore puts on ice ISSB-aligned climate reporting for small and mid-sized listed companies to FY2028–FY2030.
• All listed firms must still report Scope 1 and 2 emissions from this year to track decarbonisation progress.
• STI companies face stricter timelines, with Scope 3 emissions reporting starting in FY2026.

Singapore’s regulators, the Accounting and Corporate Regulatory Authority (Acra) and Singapore Exchange Regulation (SGX RegCo), have decided to defer climate disclosure requirements for small and mid-sized listed companies.

Originally, all companies were supposed to align their reports with the International Sustainability Standards Board (ISSB) from January 2025. Now, only the largest companies will stick to that timeline, while smaller firms get up to five extra years.

Under the revised plan, Straits Times Index (STI) companies will continue reporting under ISSB rules from FY2025. Non-STI listed companies valued above $1 billion will begin in FY2028, and non-STI listed companies valued below $1 billion will only need to comply in FY2030.

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The change comes on the back of recommendations from the Singapore Business Federation, which highlighted that many smaller firms lacked confidence and resources to meet the 2025 deadline.

Despite the extensions, all listed companies must already report Scope 1 emissions (direct emissions from their operations) and Scope 2 emissions (emissions from purchased electricity) starting this financial year. Regulators noted that this information is important for tracking a company’s decarbonisation progress.

When it comes to Scope 3 emissions (indirect emissions from supply chains and product use), STI companies must begin reporting from FY2026. For all other listed companies, Scope 3 reporting is voluntary for now, given the difficulties in measuring these emissions accurately.

Another important change is the delay in external limited assurance. This process involves an independent third party verifying a company’s emission data. It was initially supposed to apply sooner, but has now been postponed to FY2029 for listed companies and FY2032 for large non-listed companies.

For large non-listed companies (those with revenue above $1 billion and assets above $500 million), the requirement to follow ISSB standards has also been delayed, shifting from FY2027 to FY2030.

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Regulators explained that the decision reflects the need to balance compliance costs with giving companies time to build up climate reporting capabilities. They also cited the uncertain global economic outlook and varying levels of readiness among companies. The phased approach uses a three-tier structure, where reporting obligations depend on a company’s market capitalisation.

However, this delay puts Singapore behind Malaysia. In Malaysia, large listed companies must start ISSB-aligned reporting in 2025, other listed companies in 2026, and the smallest listed companies in 2027.

Ends/

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Source: The Straits Times