We are currently observing Singapore’s corporate reporting requirements undergoing their most substantial transformation in decades, with mandatory climate disclosure rules now affecting thousands of companies across both public and private sectors. At the forefront of these changes are that listed companies now must provide International Sustainability Standards Board (ISSB)-aligned climate disclosures, while large non-listed companies face similar obligations from FY2029.
This regulatory shift directly impacts business operations, compliance costs, and competitive positioning. However, companies that excel in transparent climate disclosure will almost invariably unlock preferential access to green capital, attract environmentally conscious customers, and demonstrate strategic leadership in risk management.
The writing is on the wall – Singapore’s Singapore Green Plan 2030 positions sustainability reporting as a cornerstone of the nation’s strategy to become Asia’s premier sustainable finance hub, opening substantial market opportunities for well-prepared businesses.
Our experience shows that companies approaching these requirements proactively rather than reactively gain measurable advantages in investor relations, customer acquisition, and operational efficiency.
This comprehensive guide provides business leaders and compliance professionals with the precise information needed to meet Singapore’s new sustainability reporting obligations. You will discover the exact timelines for your company type, understand which standards apply to your operations, learn about exemption pathways that could reduce compliance burden, and identify strategic advantages available to early adopters.
Whether you are preparing for your first mandatory climate disclosure or seeking to optimise existing sustainability reporting processes, this guide delivers the clarity and actionable insights necessary to transform regulatory requirements into competitive advantage while avoiding costly non-compliance penalties.
Key Takeaways
- Singapore’s new regulations require listed companies to adopt ISSB-aligned climate disclosures, with large non-listed companies following suit by FY2029.
- Companies excelling in transparent climate reporting can unlock green capital, attract environmentally conscious customers, and demonstrate leadership in risk management.
- Early adopters of robust reporting systems and practices position themselves for long-term success as sustainability reporting expands to include broader metrics.
- Government initiatives, such as the Sustainability Reporting Grant, help reduce the financial burden of initial compliance.
The Regulatory Framework and Key Authorities
Two powerful regulators have joined forces to transform Singapore’s corporate disclosure environment, creating opportunities for companies to showcase their climate leadership across both public and private markets.
Singapore Exchange Regulation (SGX RegCo)
Every company trading on Singapore’s stock exchange answers to SGX RegCo for sustainability disclosure obligations. The regulator broke new ground in 2016 by introducing Asia’s first structured sustainability reporting requirements for listed companies, starting with a flexible “comply or explain” approach for financial years ending after 31 December 2017.
SGX RegCo’s evolution reflects sophisticated market development. The regulator guided companies through Task Force on Climate-related Financial Disclosures (TCFD) requirements before adopting the more rigorous International Sustainability Standards Board (ISSB) standards. This progression built market confidence and capability step by step.
Accounting and Corporate Regulatory Authority (ACRA)
Singapore’s business regulator has expanded beyond traditional financial oversight to capture large private companies within the sustainability reporting net. ACRA’s new mandate for non-listed companies means private enterprises can no longer operate in the shadows while their listed competitors face public scrutiny.
The newly formed Sustainability Reporting Office (SRO) drives implementation across the private sector. Through the collaborative Sustainability Reporting Advisory Committee (SRAC), ACRA and SGX RegCo have aligned their approaches. Large private companies now face similar transparency expectations as public corporations, levelling the competitive playing field while expanding opportunities for sustainability leaders to differentiate themselves across all market segments.
Standards Evolution: From TCFD to ISSB
Singapore’s approach to sustainability standards reflects deliberate market development typical of the city-state, building expertise progressively before adopting the world’s most advanced reporting framework.
TCFD Foundation Phase
The Task Force on Climate-related Financial Disclosures (TCFD) served as Singapore’s training ground for climate reporting excellence. Following extensive consultation in 2021, SGX RegCo rolled out TCFD requirements through a carefully staged process that respected market readiness.
The implementation began with FY2022’s flexible “comply or explain” approach across all listed companies. By FY2023, high-impact sectors (financial services, agriculture and food products, and energy) faced mandatory TCFD compliance. The mandate expanded in FY2024 to include materials, buildings, and transportation industries.
TCFD’s four-pillar structure (Governance, Strategy, Risk Management, and Metrics & Targets) provided companies with a logical framework for articulating climate risk management. This foundation proved invaluable. An ACRA-NUS study confirmed that companies demonstrating strong TCFD alignment positioned themselves well for the more demanding ISSB requirements.
International Sustainability Standards Board (ISSB) Standards Adoption
Singapore’s March 2024 announcement adopting ISSB standards placed the nation at the forefront of global sustainability reporting. The ISSB created these standards to deliver consistency and comparability for international investors.
IFRS S1 establishes the overall foundation for sustainability reporting, requiring companies to disclose sustainability-related risks and opportunities affecting cash flows, financing access, or capital costs. IFRS S2 focuses specifically on climate-related disclosures, building upon TCFD’s framework while introducing more prescriptive requirements.
The transition from principles-based TCFD guidance to detailed ISSB standards reflects investor demand for standardised, comparable data that integrates directly into financial models and investment decisions. As is typical of its foresight, Singapore’s quick adoption keeps its corporate ecosystem in line with global capital market expectations.
Implementation Timeline for Listed Companies
Singapore’s phased rollout gives listed companies clear milestones and strategic advantages for early adopters who exceed minimum requirements.
Scope and Coverage
Since FY2025, all listed issuers have been expected to provide climate-related disclosures and cannot exclude this primary component from their sustainability reports, according to the updated SGX Listing Rules effective 1 January 2025. This applies to domestic companies, overseas incorporations, business trusts and real estate investment trusts. This represents a major shift from the previous system where only five specific industries faced mandatory requirements while others operated on a “comply or explain” basis.
Phased Rollout Schedule
FY2025 marks the watershed moment for climate disclosure. As mentioned above, listed companies must provide mandatory ISSB-aligned climate reporting, including absolute gross Scope 1 and Scope 2 greenhouse gas emissions.
However, as per a recent update, listed companies that are not members of the Straits Times Index (STI) and with a market capitalisation below S$1 billion need to do so only from FY2030, marking a delay of 5 years. This comes after the Singapore Business Federation put in a recommendation, referencing feedback that most of these companies lacked confidence in meeting the original timeline.
In a joint media release by SGX and ACRA on 25 August 2025, it shared that non-STI constituents with a market capitalisation of $1 billion and above must comply from FY2028.
These changes do not affect the fact that all listed companies, regardless of size or whether they are an STI constituent, must continue to report their operation emissions (Scope 1) and those arising from their use of electricity (Scope 2) from this financial year.
We recommend positioning smartly: while climate disclosures become non-negotiable, other sustainability components retain “comply or explain” flexibility for this transitional year.
FY2026 eliminates all compliance shortcuts. Every component of sustainability reporting becomes mandatory. Scope 3 emissions reporting joins the requirements, though SGX RegCo will prioritise larger companies by market capitalisation first. This staged approach recognises the complexity of value chain data collection while maintaining momentum.
FY2029 introduces verification standards. External limited assurance becomes mandatory for Scope 1 and Scope 2 emissions data. Companies investing early in strong data systems and controls will find this transition smoother.
Publication deadlines reward quality preparation. Standard sustainability reports must appear within 4 months of financial year-end. However, companies obtaining external assurance gain an extra month – a 5-month deadline that acknowledges verification’s value while providing practical relief.
This timeline creates competitive differentiation opportunities. Companies moving beyond minimum compliance can demonstrate leadership to increasingly discerning investors who reward transparency and rigour in climate risk management.
Related Read: Tackling Singapore’s Enhanced Sustainability Reporting Regime: How Will it Affect You?
Requirements for Large Non-Listed Companies
Singapore’s sustainability framework extends beyond public markets to capture significant private enterprises, creating transparency across the economy’s major players. In short, non-listed companies will not escape climate reporting responsibilities.
Definition and Threshold Criteria
From FY2030, a delay of 3 years from the original timeline of FY 2027, large Non-Listed Companies (NLCos) face precise financial thresholds that determine reporting obligations. Companies will qualify when they meet both criteria:
- Annual revenue of at least S$1 billion
- Total assets of at least S$500 million
This dual-threshold approach prevents short-term fluctuations from triggering compliance burdens while capturing genuinely large enterprises that affect Singapore’s economic and environmental footprint.
Implementation Timeline and Exemptions
As is typical, ACRA does not rush implementation and phases enforcement strategically, giving private companies additional preparation time.
FY2030 launches mandatory climate-related disclosures for qualifying NLCos, including Scope 1 and Scope 2 greenhouse gas emissions using ISSB-aligned standards.
FY2032 introduces external verification requirements for Scope 1 and 2 emissions data. Scope 3 emissions reporting remains voluntary.
We observe that smart exemption pathways reduce duplicative reporting. NLCos whose parent companies already report using ISSB-aligned or equivalent standards (like European Sustainability Reporting Standards) gain permanent exemptions, provided the subsidiary’s activities appear in consolidated reports made publicly available.
Assurance and Quality Framework
Singapore transforms sustainability data from optional marketing material into verified business intelligence through mandatory external verification.
Assurance Standards
Verification follows rigorous professional standards designed for sustainability data. The Singapore Standard on Sustainability Assurance 5000 (SSSA 5000) aligns with international best practices while adapting to local market conditions.
SS ISO 14064-3 provides an alternative standard specifically designed for greenhouse gas statement verification. This option suits companies seeking technical precision in emissions data validation.
Both standards deliver the credibility investors demand while giving companies flexibility in choosing verification approaches that match their operational complexity.
Future Developments and Support Ecosystem
Singapore’s climate reporting mandate launches a broader sustainability transformation that will expand coverage and capabilities across the economy.
Government Support Initiatives
Singapore backs its regulatory ambitions with practical assistance. The Sustainability Reporting Grant covers up to 30% of costs for companies producing their first sustainability reports, reducing initial compliance burdens.
ACRA’s Sustainability Reporting Body of Knowledge (SR BOK) guides training providers in developing professional education programmes. This initiative builds the skilled workforce companies need for successful implementation.
These support measures demonstrate Singapore’s commitment to sustainable market development rather than mere regulatory compliance.
Related Read: Guide to the Best ESG Grant in Singapore for Your Business
Practical Implications and Next Steps With InCorp
Singapore’s sustainability reporting revolution rewards the prepared and penalises the procrastinators. InCorp’s work with companies across the region reveals clear patterns of success and failure. Here are three immediate steps that can aid in the transition to the new regulatory reality:
First, boards cannot delegate accountability. Directors face legal responsibilities that mirror financial reporting standards. Successful companies treat sustainability oversight as core governance work.
Second, smart money chases transparency leaders. Clients exceeding minimum requirements attract investors who increasingly reward climate leadership. These companies invest in superior data systems, detailed scenario analysis, and voluntary external verification. Their competitors scramble with basic compliance while missing capital opportunities.
Third, infrastructure decisions made today determine tomorrow’s competitive position. The businesses we help thrive in this new environment built adaptable reporting systems early, trained teams properly, and developed supplier data relationships before regulators demanded them. Late movers face higher costs and operational chaos.
In our judgement, Singapore companies have a choice: lead the transition or follow reluctantly. InCorp helps forward-thinking organisations transform sustainability obligations into market advantages through practical expertise and proven implementation strategies.
Ready to outpace your competition? Contact InCorp today to discover how strategic sustainability reporting creates lasting business value.
FAQs about Sustainability Reporting Requirements
When do Singapore companies need to start mandatory climate reporting?
- Listed companies must provide ISSB-aligned climate disclosures from FY2025, including Scope 1 and 2 emissions. Large non-listed companies (revenue ≥S$1 billion, assets ≥S$500 million) begin reporting from FY2029. External assurance becomes mandatory from FY2029 for listed companies and FY2032 for large non-listed companies.
What are the ISSB standards Singapore companies must follow?
- Singapore adopts IFRS S1 (general sustainability requirements) and IFRS S2 (climate-specific disclosures) from the International Sustainability Standards Board. These standards require reporting on governance, strategy, risk management, and metrics across four pillars, with mandatory Scope 1 and 2 greenhouse gas emissions disclosure.
Which Singapore companies are exempt from sustainability reporting?
- Large non-listed companies gain exemptions when parent companies already report using ISSB-aligned or equivalent standards (like ESRS), provided subsidiary activities appear in publicly available consolidated reports.
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