Summary
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Details
- Singapore
Deep dive
Background
Singapore's mandatory Climate-Related Disclosure (CRD) requirements were introduced in 2024. These regulations are grounded in the recommendations of the Sustainability Reporting Advisory Committee (SRAC) and are implemented by the Accounting and Corporate Regulatory Authority (ACRA) alongside the Singapore Exchange Regulation (SGX RegCo). This initiative builds upon earlier efforts, such as the 2016 mandate for listed companies to produce annual sustainability reports on a 'comply or explain' basis, and the 2020 environmental risk management guidelines for financial institutions issued by the Monetary Authority of Singapore (MAS). Singapore's CRD requirements align with the International Sustainability Standards Board (ISSB) standards to enhance corporate transparency and support the nation's ambitious climate goals. These rules strengthen Singapore's Green Plan 2030 framework and advance its commitment to achieving net-zero emissions by 2050, while simultaneously establishing the city-state as a regional leader in sustainable finance.
Reporting Requirements
The regulation mandates detailed emissions reporting, requiring listed companies to disclose Scope 1 (direct) and Scope 2 (indirect energy-related) greenhouse gas (GHG) emissions from FY2025, with Scope 3 (value chain) emissions phased in for larger issuers by FY2026. Reports must follow the ISSB’s IFRS S2 standard, incorporating climate-related risks, transition strategies, and governance structures, and be published alongside annual financial statements or as standalone sustainability reports. Large non-listed companies (NLCos), defined as those with annual revenue of at least SGD 1 billion and total assets of at least SGD 500 million, will begin reporting Scope 1 and 2 emissions from FY2027, with Scope 3 emissions reporting expected no earlier than FY2029. Additionally, external limited assurance on Scope 1 and 2 emissions disclosures will be mandatory for listed companies from FY2027 and for large NLCos from FY2029. Funding support is available for Singapore-incorporated companies to produce their first ISSB-aligned sustainability report.
Affected Entities
The CRD requirements impact a substantial number of entities, including (as of May 14, 2025) 696 SGX-listed companies and Large non-listed companies (NLCos) as defined above. For large NLCos, the criteria are assessed based on financials from the two fiscal years immediately preceding the current fiscal year. Companies whose parent organizations already provide sustainability disclosures aligned with ISSB standards may be exempted from separate reporting, subject to certain conditions. This phased approach allows companies adequate time to build capabilities and align with international best practices, facilitating a smoother transition towards comprehensive climate reporting.
Enforcement and Noncompliance
Noncompliance with Singapore’s mandatory climate-related disclosure (CRD) requirements risks significant regulatory consequences. SGX-listed companies that fail to meet reporting obligations may be subject to enforcement actions from SGX RegCo, including public reprimands, limitations on access to market facilities, and monetary penalties. For large non-listed companies (NLCos), the ACRA is introducing legislative amendments to legally enforce CRD obligations. These include requirements to maintain and file accurate climate disclosures, distribute relevant reports to shareholders, appoint qualified climate auditors, and promptly revise defective filings. Collectively, these measures ensure accountability, reinforce Singapore’s climate governance framework, and support the nation’s broader commitment to achieving net-zero emissions by 2050.
