SIN ACRA and SGX proposed mandatory climate reporting for listed, large non-listed companies, to align climate-related disclosures (CRDs) with international standards.
Proposal
Listed issuers will need to report CRDs starting from FY 2025, while large non-listed companies with annual revenue of at least SGD 1bn will follow suit in FY 2027.
Aligned with sustainable development agenda and the Singapore green plan 2030.
The recommendations include prescribed standards aligned with ISSB requirements.
External assurance on greenhouse gas emissions will be mandatory for listed issuers starting from FY2027, and for large non-listed companies, it will be FY2029.
Effectiveness
The public consultation is open from Jul. 6, 2023, to Sep. 30, 2023.
Published consultation response and summarized timeline for implementing CRD.
SIN ACRA will exempt large non-listed companies (NLCos) with parent companies that are reporting CRD, under specified circumstances, subject to conditions.
In Mar. 2023, SGX proposed comparable sustainability reporting, see #203708.
Jul. 2024 Study Findings
On Jul. 8, 2024, SIN ACRA issued findings from study titled Unveiling climate-related disclosures in Singapore: getting ready for the ISSB standards, regarding CRDs.
Found that larger listed companies are making good progress in climate reporting.
The study examined the climate-related disclosures of 51 larger listed issuers for FY 2022 based on Task force on climate-related financial disclosures (TCFD) framework.
Almost all companies studied have assigned roles or formed committees to deal with climate risks and opportunities, demonstrating a strong commitment to these matters.
Most companies studied have disclosed the physical and transitional risks related to climate, but only close to two-thirds have disclosed the related opportunities.
Over two-thirds fully disclosed how they identified, assessed, managed climate-related risks, but only 24% of companies made full disclosures on significance of climate-related risks compared to other risks, only 10% explained their potential magnitude.
Companies performed well re metrics and targets, providing commendable disclosures for scope 1, 2 greenhouse gas emissions and notable progress on scope 3 emissions.
Study recommended strategies on how companies can enhance their climate reporting.
Including prioritizing progress over perfection, making meaningful links to financial reporting, and working towards future-proofing the strategy and business model.
In Jan. 2024, SGX issued amendments regarding sustainability reporting, #227010.
