Singapore’s Sustainability Reporting Advisory Committee (SRAC) has recommended the introduction of mandatory climate reporting for both listed and large non-listed companies, including Scope 3 emissions.
In a July 6 announcement, the regulator revealed that its recommendations would require Singapore-listed issuers to report climate-related disclosures aligned with the International Sustainability Standards Board (ISSB) recommendations, starting from FY2025.
For non-listed companies with a minimum annual revenue of $1 billion, similar reporting would be required starting in FY2027.
The public have until September 30 to review the proposal, which also calls for Scope 3 emissions reporting. To allow more time for companies to prepare, the regulator suggested it would be open to issuers delaying reporting on certain disclosures, such as Scope 3 emissions until one or two years after reporting requirements come into effect and best practices have been established.
Companies would also be expected to obtain external assurance on Scope 1 and Scope 2 emissions. For listed and non-listed entities, this would be required from FY2027 and FY2029, respectively.
SRAC stated that climate-related disclosures should have “the same reporting and filing timelines as financial statements,” in an effort to facilitate “timely” communication to shareholders, and that legal responsibility for the disclosures should be with the company’s directors and officers.
Singapore’s Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGC RegCo) confirmed the rule would be finalized by 2024.