Almost 96%, i.e. 346 out of 362 listed companies in Singapore have started climate-related reporting for the financial year ending December 31, 2023. This marks a significant 44% increase over the previous year, where only 65%—or 240 out of 370—of issuers reported.
This development follows two years after the Singapore Exchange (SGX) made it mandatory for all local issuers to make climate-related disclosures on a “comply or explain” basis.
The insight was revealed in a report by Ernst & Young (EY), titled ‘Transparency in Focus: State of Climate Reporting in Singapore’, which said nearly 100% of issuers in industries slated for mandatory reporting in FY2023, such as agriculture, energy, financial, and food and forestry industries, provided some form of climate-related disclosures. Published in collaboration with accountancy firm Certified Practising Accountant (CPA) Australia, the report also noted a significant improvement in other industries—from 56% in FY2022 to 93% in FY2023.
The second edition of the study, aiming to provide insights into the current state of climate reporting in Singapore following the SGX’s 2022 mandate, focused on data from 362 Singapore-listed companies whose financial year ended on December 31, 2023, and whose sustainability reports were published by May 31.
The information in the sustainability reports must also be based on recommendations by the Task Force on Climate-related Financial Disclosures (TCFD).
More issuers disclosed climate-related risks and opportunities this year, with 87% describing these elements in their FY2023 reports, a slight increase from last year’s 80%. For companies in the FY2023-mandated industries, over 95% disclosed climate-related risks and opportunities, up from 77% in FY2022. Additionally, 65% of issuers reported on climate-related opportunities in this year’s reports, an increase from 47% in FY2022.
The study also revealed that 21% of issuers committed to net-zero greenhouse gas emissions, with 32% of those issuers having begun disclosing their transition plans.
The study also found that more issuers are seeking external assurance on their climate-related data — from 23 that did so in FY2022 to 38 in FY2023.
