The Accounting and Corporate Regulatory Authority (ACRA) has proposed a set of sustainability disclosure standards tailored specifically to Singapore’s corporate landscape and is currently seeking public feedback on the draft.
Officially titled the Singapore Sustainability Disclosure Standards, the guidelines are built upon the framework issued by the International Sustainability Standards Board (ISSB).
Mirroring the ISSB structure, Singapore’s proposal comprises two distinct sets of standards. The first standard, S1, establishes disclosure requirements for general sustainability-related information, while the second standard, S2, concentrates explicitly on climate-related disclosures, ACRA announced on Monday, 27th July.
The draft was crafted by an interim sustainability standards committee established by ACRA in May last year. Reflecting Singapore’s targeted climate-first strategy, the proposed rules make the climate-focused S2 standard mandatory for applicable companies, whereas the broader S1 standard covering sustainability metrics beyond climate remains voluntary.
Several modifications have been introduced in the local draft compared with the global ISSB baseline. Whilst the ISSB offers transition relief for Scope 3 emissions reporting limited to the first reporting year, companies in Singapore that are not required to disclose indirect emissions arising across their value chain will receive an extended and ongoing relief beyond that initial period.
Furthermore, because Singapore mandates that companies publish sustainability disclosures simultaneously with their financial statements, the local standards exclude the ISSB relief that typically allows businesses to release sustainability disclosures at a later date. Companies will also be required to include an explicit and unreserved statement of compliance with S2 to maintain strict accountability.
The public consultation period for the draft standards runs from 27th July to 25th October 2026.
At present, all listed companies in Singapore are required to provide sustainability disclosures aligned with ISSB standards, though implementation timelines have been deferred for companies outside the Straits Times Index (STI). STI constituent companies must comply with ISSB-aligned reporting starting from financial year 2025. Non-STI listed companies with a market capitalisation exceeding $1billion will be required to comply from financial year 2028, while those below the S$ 1 billion threshold must begin reporting from financial year 2030.
Reporting of Scope 3 emissions remains voluntary across the board, with an exception for STI constituents. However, every listed company must continue reporting direct operational emissions, classified as Scope 1, as well as indirect emissions from purchased electricity, classified as Scope 2.
Chia-Tern Huey Min, Chief Executive of ACRA, stated that the release of the draft disclosure standards underscores Singapore’s climate-first approach, adding that the framework provides clarity and certainty on reporting expectations so that industry players can move forward with confidence.
To support the sector, ACRA is also launching a comprehensive guidebook on sustainability assurance. The guide outlines core competencies necessary for conducting sustainability assurance and assists training providers in building quality programmes aligned with international benchmarks. ACRA will collaborate directly with the Skills and Workforce Development Agency and external training partners to roll out courses aligned with the new guide.
