At the Institute of Singapore Chartered Accountants (ISCA) Conference held on Nov 12, three publications pertaining to sustainability reporting were launched, highlighting evolving sustainability standards and regulations, and how ESG reporting is an ongoing process of enhancement and compliance for businesses.
The first report, titled "Trust in transition: Building confidence in sustainability disclosure", detailed that only 17% of Singapore-listed companies have already obtained external assurance for their sustainability reports, with 35% planning to do so soon. However, it noted that 47% of listcos have yet to make such plans.
Among those who have obtained external sustainability assurance, it came as no surprise that STI constituents lead the way, with 57% having done so. Smaller companies lag in this aspect and bridging this gap will “require focused effort, investment, and capacity building to meet evolving expectations and assurance requirements”, noted the report which was written by PwC, ISCA and SGX RegCo.
These findings come on the backdrop of the extended timeline for upcoming mandatory climate reporting where all listcos would need to commence external limited sustainability assurance from FY2029 instead of FY2027.
Lee Bing Yi, Financial Services Assurance, Sustainability and Climate Change Partner, PwC Singapore, says: “With the extension of mandatory sustainability assurance timeline in Singapore, it is crucial that companies make good use of this time to build capacity towards credible reporting and assurance readiness. Encouragingly, assurance readiness assessments are gaining traction among Singapore businesses.”
Support for non-STI constituents in sustainability reporting
See also: New ISCA, SGX RegCo roadmap to help local issuers meet ISSB climate reporting standards
To guide listcos not part of the Straits Times Index (STI) to fulfill reporting requirements within the next three years, ISCA and SGX RegCo developed the "Roadmap to navigate SGX's climate reporting timelines".
The publication outlines how a non-STI constituent that has already adopted the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, may implement “incremental” climate-related disclosures so as to meet the ISSB Standards by FY2028.
Tan Boon Gin, CEO of SGX RegCo, says: “Most journeys today start with a map on the mobile. Likewise, this roadmap is a good starting point for companies preparing high-quality climate reports. Issuers will find in it disclosure requirements distilled into manageable components and aligned with the climate strategy setting process of the organisation.”
See also: China, Brazil aim to be climate leaders and keep polluting too
A more comprehensive report on the roadmap is available here.
New reporting guidelines for social impact
The third publication, "Guidelines for social impact metrics in corporate sustainability reporting", provides practical guidance for businesses to apply social impact metrics under broader sustainability frameworks and standards, including the Global Reporting Index and SGX standards.
The new guidelines, drafted by National Council of Social Service (NCSS), ISCA and the Singapore Institute of Directors, augment the NCSS Sustainable Philanthropy Framework and social impact metrics that were launched in 2024.
Indranee Rajah, Minister in the Prime Minister’s Office and Second Minister for Finance and National Development launched the report. Speaking at the event, she says, “The new guidelines will demonstrate how the Sustainable Philanthropy Framework and Social Impact Metrics can be adopted into companies’ sustainability reports. This will provide clarity on how you [preparers] can help your companies to not just measure, but also report their philanthropic efforts in a robust and consistent way, in line with global reporting standards.”
Indranee also participated in fireside chat where she shared her views on diverse topics including AI adoption, global resilience and purpose in the accountancy profession.
