Singapore to roll out mandatory climate reporting from 2025

The new climate-related reporting requirements will apply to SGX-listed companies from the start of the 2025 financial year. For large non-listed companies with annual revenues of at least S$1 billion (US$0.74 billion) and total assets of at least S$500 million, the new requirements will come into effect from the start of the 2027 financial year.

The announcement follows last year’s public consultation process run by Singapore’s   Sustainability Reporting Advisory Committee. As per its recommendations, the specific requirements for both listed and non-listed companies will be implemented in phases. Companies will be required to report on Scope 1 and 2 emissions - which are, respectively, direct emissions from sources owned or controlled the company, and indirect emissions from the use of energy purchased by the company - in the first year of their requirements coming into effect. Scope 3 emissions - which are all other indirect emissions outside of the company’s control - will need to be reported in the second year. Two years after companies commence reporting, they will be required to obtain external limited assurance on Scope 1 and 2 greenhouse gas emissions.

Singapore has also committed to providing funding support of up to 30% for large companies that will begin making mandatory climate-related disclosures aligned with the International Sustainability Standards Based framework from 2027. 

Although the new reporting requirements will not apply to small and medium enterprises (SME), financial support has also been announced for SMEs that wish to begin climate-related reporting.

The Singapore government has not ruled out making sustainability reporting requirements mandatory for smaller non-listed companies.

Bryan Chapman of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, said: “The new reporting requirements will make Singapore one of the first countries in Asia to mandate climate disclosures for non-listed companies. The requirements bring the country's sustainability reporting obligations in line with the reporting requirements of both listed and non-listed companies in EU countries and New Zealand.”

Mark Tan of Pinsent Masons MPillay said: “Critically, for large international companies caught by the reporting thresholds, firms with parent companies already subjected to ISSB-aligned standards or other equivalent standards, such as the European Sustainability Reporting Standards, will be exempt from reporting.”