SGX RegCo’s update splits the local listco universe into three groups: Straits Times Index (STI) constituents, non-STI constituents with a market capitalisation of $1 billion and above, and non-STI constituents with a market cap below $1 billion.
Listcos in the latter group now have until FY2030 to issue full climate disclosures, and Scope 3 emissions reporting will be voluntary until further notice. This refers to emissions arising from the company’s upstream and downstream value chain.
Meanwhile, there is no change to the climate reporting deadline for STI constituents — Singapore’s 30 largest listcos by market cap; they must report their Scope 1 and 2 emissions and “other” ISSB-aligned climate-related disclosures from FY2025, followed by their Scope 3 emissions from FY2026.
Scope 1 and 2 emissions reporting remains mandatory for all listed companies from FY2025. Scope 1 refers to direct emissions occurring from sources that are owned or controlled by the company, while Scope 2 refers to indirect emissions from the generation of purchased electricity consumed by the firm’s properties and offices.
The “other” ISSB-based climate-related disclosures refer to information on how companies manage climate-related risks and opportunities through their governance, strategy, and risk management, along with the key metrics and targets they use to measure progress.
The move to assign listcos into three tiers was partially mooted by SBF in their June 26 paper, which posited that a delay would allow small- and midcaps to “take guidance” from large-caps’ ISSB-aligned FY2025 reports.
See also: Fast-P’s Green Investments Partnership achieves first close with US$510 mil from MAS, Temasek, IFC
Within SGX RegCo’s revised timeline, the only extension granted to STI constituents is a two-year delay to seek external assurance for their Scope 1 and 2 emissions, now expected from FY2029.
An SGX Group spokesperson says the “refinements” represent a “proportionate phasing-in” or climate-related disclosure requirements for issuers. “The changes take into consideration their state of preparedness as well as the market conditions and economic uncertainty they are operating under.”
No more extensions
Marc Allen, co-founder of climate-tech data platform Unravel Carbon, thinks the extensions “are very, very generous”. “[They are] much more than even stakeholders were publicly asking for.”
Speaking to The Edge Singapore, Allen says SGX RegCo is unlikely to grant further extensions. “One could reasonably expect that the potential for further extensions is limited, particularly as other jurisdictions are still pushing forward with these disclosure mandates.”
Chiew Chun Wee, the Association of Chartered Certified Accountants’ (Acca) regional head of policy, says the delay is “pragmatic, but it reduces urgency”.
To stay ahead of Singapore and the region’s corporate and economic trends, click here for Latest Section
“The onus is now on companies to use this additional time proactively to invest in their data collection and reporting systems. [Companies must] also ensure that sustainability is not a marketing slogan or compliance exercise but is truly integrated into their strategies and operations,” says Chiew. “Those that take the delay as an invitation to pause may find that when it’s time to finally report, they are still not ready, and that they are already falling behind their competitors, facing costly disruption and losing the ability to sustain their business.”
SBF partnered with SGX RegCo for a two-month study, engaging “close to 40” Mainboard- and Catalist-listed companies before publishing the proposal to delay reporting deadlines.
Executives from smaller listcos said they were unfamiliar with the ISSB reporting requirements, which are “significantly more detailed and extensive” than the precursor Task Force on Climate-related Financial Disclosures (TCFD) framework, says Hu Ching, who heads SBF’s Net Zero Transition Programme Office.
“This reprieve will give smaller listcos more time to build internal capabilities, systems and processes to enhance the completeness, robustness and credibility of climate disclosures,” Hu adds.
In response to queries, SGX Group did not confirm whether there will be further extensions. A spokesperson says: “SGX RegCo will closely monitor how companies are reporting and will engage with issuers in a targeted manner. Our capacity-building efforts with industry partners will be focused on the specific challenging ISSB disclosure requirements.”
Alongside SGX RegCo’s announcement, Acra also granted large non-listed companies a three-year delay for climate reporting, postponing deadlines that had been announced in February 2024.
Non-listed companies with annual revenue of at least $1 billion and with total assets of at least $500 million now have until FY2030 to issue ISSB-based climate-related disclosures, including their Scope 1 and 2 emissions.
They will have to seek external assurance for their Scope 1 and 2 emissions from FY2032.
A global pattern
Sustainability professionals point out that the latest extension means Singapore’s deadlines are now later than those of Malaysia.
The Securities Commission (SC) of Malaysia published the National Sustainability Reporting Framework (NSRF) in September 2024, similarly grouping companies into three categories.
Main Market listed issuers with a market cap of RM2 billion ($609 million) and above will begin using the ISSB standards in FY2025 beginning on or after Jan 1. Other Main Market listed issuers will follow in FY2026, before ACE Market listed issuers and large non-listed companies do the same from FY2027.
Malaysia’s regulator has defined large non-listed companies as firms with annual revenue of at least RM2 billion.
Bursa Malaysia says the targeted reporting timeline “recognises the varying levels of maturity and readiness among listcos” and will proceed as planned, following a phased implementation approach that “takes into consideration proportionality while maintaining momentum”.
While Singapore has pushed back certain timelines compared to regional peers, SBF’s Hu says the intent is “not about lowering standards” but about “ensuring quality and readiness”.
“Regulators here are prioritising robust, credible disclosures as opposed to rushing companies into compliance before they have the necessary processes in place.”
Singapore’s decision to extend climate reporting timelines is part of a “global pattern”, says Felipe Daguila, CEO of carbon measurement platform Terrascope.
“Fundamentally, what is happening now in the sustainability space globally is a ‘reset-and-restart’ scenario,” says Daguila. “Companies, governments and regulators are rethinking how to align sustainability with business value and with the reshaping of global supply chains and trade agreements. Combined with economic uncertainty, this is pushing several countries to delay or rethink sustainability regulation.”
Australia pushed back the start of mandatory sustainability reporting for its largest companies from July 2024 to January this year, with a phased approach by company size.
The UK has launched a consultation on its UK Sustainability Reporting Standards, which are based on the ISSB standards. But with the consultation open until Sept 17, Daguila warns that this signals “timeline fluidity”.
Even experienced jurisdictions like the European Union (EU) recently introduced their “stop the clock” rules under the European Sustainability Reporting Standards (ESRS).
“The ‘Omnibus’ law and quick-fix ESRS reduced disclosure burdens and postponed reporting phases for many companies,” says Daguila.
The amendments come as the EU is undergoing the process of revising the Corporate Sustainability Reporting Directive (CSRD) as part of the European Commission’s Omnibus I package, aiming to significantly reduce sustainability reporting requirements on companies.
Most companies in Europe were not in favour of the initiative to reduce the sustainability reporting requirements and the scope of companies covered under the CSRD, says Tabitha Hui, associate director, sustainability at CGS International Securities (CGSI).
Citing a survey of more than 1,000 companies conducted by professional network WeAreEurope and business school HEC Paris, Hui says the majority reported being satisfied with the CSRD in its original form — “although supportive of some improvements”.
Taking the lead
By giving companies more time to meet climate reporting standards, Singapore runs the risk of losing its edge, warns Terrascope’s Daguila. “These delays could weaken Singapore’s position as a global leader at a time when other markets are accelerating sustainable transformation and climate-tech adoption because of artificial intelligence and data centre construction. Singapore must pair strong data and infrastructure with timely and decisive implementation.”
Where regulators combined extensions with firm messaging, like in Hong Kong, the compliance momentum stayed high, Daguila adds. Where regulators gave open-ended grace periods, like in California, urgency slipped.
For Singapore, the key is to “make it unambiguous”, he says. “This is the final deadline, and non-compliance carries consequences. Without that, some firms will assume further leniency is possible.”
Like any new regulation, implementation takes time, says CGSI’s Hui. The consequences and impacts of non-compliance on affected businesses need to be conveyed “gradually”, she adds.
“Beyond compliance regulations however, what would be more sustainable in the long term would be for companies to understand why they are being made to report in the first place,” says Hui. “Many companies still treat sustainability reporting as a check-box exercise when it really should be taken as a stock-taking exercise.”
SBF urges businesses not to view the extension as leeway for inaction but as an opportunity to learn from the “first wave” of disclosures by STI constituents, says Hu. “The regulatory direction is clear: climate-related disclosures are no longer optional but an integral part of Singapore’s financial reporting landscape.”
Photos: SGX RegCo, Marc Allen/Unravel Carbon, ACCA, Securities Commission of Malaysia, Albert Chua/The Edge Singapore, CGSI
Read more about how Singapore is adopting the ISSB standards:
Nearly all listcos have begun climate reporting; SGX RegCo still mulling Scope 3 roadmap (March)
SGX RegCo will require ISSB-aligned climate-related disclosures from all listed issuers starting FY2025 (September 2024)
‘Huge momentum’ in Asia for ISSB adoption, says vice-chair of climate reporting standards body (September 2024)
SGX RegCo launches consultation on incorporating ISSB standards into sustainability reporting rules (March 2024)
Large private companies must report annual climate-related disclosures from FY2027: Acra, SGX RegCo (February 2024)
SGX RegCo to seek feedback by year-end on mandating ISSB-aligned climate reporting (September 2023)
ISSB standards 'best chance we have' at consistent sustainability reporting: SGX RegCo (July 2023)
ISSB issues inaugural standards, creating common language for climate-related impact on companies (June 2023)
