The Singapore Business Federation (SBF) has called for a one- to two-year extension for small- and mid-cap companies listed on the Singapore Exchange (SGX) to meet mandatory sustainability reporting standards aligned with the International Sustainability Standards Board (ISSB).
The recommendation, released on 26 June, is part of a four-point proposal aimed at easing the compliance burden on smaller listed firms ahead of the 1 January 2025 reporting deadline.
Currently, SGX-listed companies are required to adopt ISSB-aligned climate disclosures for financial years starting from 2025. However, a joint SBF-SGX RegCo poll of 40 listed companies conducted between April and May 2025 found only 4% felt “very confident” in meeting the timeline—despite most already preparing for compliance.
Over 90% of surveyed companies said an extension would allow them to deliver higher-quality sustainability reports without undermining their current efforts. The proposal would also make firms eligible for the Sustainability Reporting Grant, which only applies to reports submitted ahead of mandatory deadlines.
SBF’s additional recommendations include:
- Tailoring disclosure requirements for small- and mid-cap companies;
- Providing Singapore-specific cross-sector and sectoral guidance; and
- Establishing a central digital platform for climate-related reporting.
SBF CEO Kok Ping Soon stressed that the proposed delay is not a retreat from Singapore’s climate goals but a pragmatic move to help smaller firms build internal capacity and learn from early adopters. “These will help smaller listed companies in Singapore take full advantage of any compliance deadline extension to more effectively transition their business,” he said.
SGX RegCo responded by acknowledging the challenges smaller companies face in implementing the ISSB standards, welcoming the SBF’s input. “We want our companies to produce quality reports that are accurate and decision-useful,” said a spokesperson.
