Singapore Exchange Regulation (SGX RegCo) has enhanced its sustainability reporting framework by incorporating the latest international standards, following strong support from a public consultation. Starting from the financial year (FY) 2025, all SGX-listed issuers will be required to report their Scope 1 and Scope 2 greenhouse gas (GHG) emissions. In addition, their climate-related disclosures must align with the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, developed by the International Sustainability Standards Board (ISSB).
This mandate builds on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which SGX RegCo has progressively implemented since FY 2022. The move to require all issuers to undertake mandatory climate-related reporting, which was previously restricted to certain sectors, received broad support during the consultation process. However, respondents also expressed concerns about the challenges, particularly for smaller issuers, in measuring and reporting Scope 3 GHG emissions. These challenges persist despite a one-year transition relief for Scope 3 emission disclosures under the new IFRS standards.
In response, SGX RegCo plans to review issuers’ experiences and readiness before setting a timeline for Scope 3 GHG emission reporting. The current strategy prioritises larger issuers by market capitalisation, who are expected to begin reporting Scope 3 emissions in FY 2026. Ample notice will be given before the rule takes effect.
“The changes to our rules mark the culmination of the efforts of the Sustainability Reporting Advisory Committee to prepare issuers for a low-carbon future. The disclosure of Scope 1 and Scope 2 GHG emissions is an important step to enable larger issuers to report their Scope 3 GHG emissions. SGX RegCo on our part will continue to facilitate capacity building to assist issuers on their climate reporting journeys,” said Tan Boon Gin, CEO of SGX RegCo.
“This is a positive step towards more globally consistent and comparable sustainability-related disclosures, which will enable SGX-listed companies to demonstrate resilience against climate risks as well as seize opportunities in our transition to a low-carbon economy,” said Lim Tuang Lee, Assistant Managing Director (Capital Markets), Monetary Authority of Singapore.
To allow issuers to focus on climate-related disclosures in FY 2025, other primary components of sustainability reports will not be mandatory until FY 2026. Additionally, issuers who do not conduct external assurance on their sustainability reports will need to issue their sustainability reports together with their annual reports starting in FY 2026. Meanwhile, those who opt for external assurance will retain a five-month period after the close of their financial year to submit their sustainability reports. This additional time is intended as a transitional measure to encourage issuers to seek external assurance.