SINGAPORE – It may soon be compulsory for Singapore-listed as well as large companies here to disclose the key indicators of how their business affects the climate – such as direct greenhouse gas emissions – in line with global standards.
While some of these requirements already apply to listed companies, large non-listed companies may also need to comply, under the newly drafted Singapore Sustainability Disclosure Standards.
Released for public feedback till Oct 25, the standards are being proposed by the Accounting and Corporate Regulatory Authority (ACRA) and the Singapore Exchange (SGX).
If approved, all large non-listed companies – defined as those with annual revenue of at least $1 billion and total assets of at least $500 million – will need to report their Scope 1 and 2 greenhouse gas emissions by financial year 2030.
Scope 1 emissions cover companies’ direct emissions from sources owned or controlled by the organisation, such as the combustion of fossil fuels in company-owned vehicles, heating systems and industrial processes.
Meanwhile, Scope 2 refers to indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the company.
These regulations have already been implemented for listed companies, which have been reporting their greenhouse gas emissions since financial year 2025.
Going a step further, Scope 3 emissions refer to indirect greenhouse gas emissions from a company’s wider value chain, including supply chains, purchased goods and product use.
The requirement to disclose Scope 3 emissions is limited only to listed companies on the Straits Times Index (STI) by financial year 2026. It remains voluntary for non-STI and non-listed companies.
Companies will also be progressively required to produce other ISSB-based climate-related disclosures. The International Sustainability Standards Board (ISSB) is a global body that lays out standards of high-quality sustainability disclosures that can impact investor decisions.
These generally include information on climate-related risks and opportunities that can affect the company, and the anticipated effects of those factors on the company’s business model and value chain.
These disclosures can also cover details on how these climate-related effects are factored into the company’s strategy and decision-making, and how they may impact its financial performance.
In the consultation paper, ACRA said the Singapore Sustainability Disclosure Standards are aligned with the ISSB Standards, but are also practical in the Singapore context.
Following global standards ensures that investors have access to internationally comparable information on how companies are managing their climate-related risks and opportunities, and improves connectivity with financial reporting, ACRA said.
Companies on the STI have already started such ISSB-based climate disclosures in financial year 2025.
This will start applying to listed companies outside the STI, but with more than $1 billion in market capitalisation, from financial year 2028. It will be rolled out to all other listed companies and large non-listed companies by financial year 2030.
ACRA also explained why Singapore is focusing on climate first, rather than sustainability disclosures, which are requirements for companies to inform investors about the sustainability-related risks and opportunities they face over the short, medium and long term.
ACRA said in the paper: “Singapore is adopting a ‘climate-first’ approach, given the urgency to combat climate change.”
It added that the implementation timelines were already adjusted in August 2025 to give companies more time to build capabilities for climate reporting.
ACRA chief executive Chia-Tern Huey Min said meeting the mandatory climate reporting requirements is a multi-year journey for preparers and assurance providers alike.
“The launch of the draft disclosure standards, which are aligned with the ISSB Standards but include adjustments to reflect Singapore’s climate-first approach, is an important milestone in this journey,” she said.
“This gives clarity and certainty on the reporting requirements so that the industry can move ahead with confidence.”
Esther An, co-chair of the interim sustainability standards committee which launched the consultation, said: “Climate reporting is no longer just a compliance exercise – it is a strategic imperative.”
She added that the aim is to develop disclosure standards that are both internationally credible and practical for Singapore’s context.
Max Loh, another co-chair of the committee, said that developing the disclosure standards is a critical step in building a trusted and transparent reporting ecosystem in Singapore.
The public can access the consultation paper on the ACRA website and submit their feedback through an online form.
ACRA is also preparing the necessary legislation to implement Singapore’s climate reporting and assurance requirements.
When the law is passed, ACRA will formally constitute the sustainability standards committee, which will have the power to issue the final Singapore Sustainability Disclosure Standards.
