Professional Sustainability Reporting for SGX Listed Companies
Since 2016, the Singapore Exchange (“SGX”) has required every listed issuer to prepare an annual sustainability report. Under Listing Rules 711A and 711B, the report must address six primary components: material environmental, social and governance (“ESG”) factors; climate-related disclosures; policies, practices and performance; targets; the sustainability reporting framework; and a Board statement and associated governance structure for sustainability practices.
Singapore has adopted a climate-first and phased approach to incorporating the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (“ISSB”) into SGX sustainability reporting requirements.
Current Climate Reporting Timeline
| Financial year commencing on or after |
Applicable requirements |
|---|---|
| 1 January 2025 | All listed issuers must disclose Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions. STI constituents must also provide the other climate-related disclosures required under IFRS S2, together with the applicable climate-relevant provisions of IFRS S1. |
| 1 January 2026 | STI constituents must disclose Scope 3 GHG emissions. The other primary components of the sustainability report also become mandatory for all listed issuers. |
| 1 January 2028 | Non-STI constituent issuers with a market capitalisation of S$1 billion or more must provide the other ISSB-based climate-related disclosures. |
| 1 January 2029 | Listed companies must obtain external limited assurance over their Scope 1 and Scope 2 GHG emissions. |
| 1 January 2030 | All other listed issuers must provide the other ISSB-based climate-related disclosures. |
For non-STI constituent issuers, Scope 3 GHG emissions reporting remains voluntary until further notice.
An issuer is treated as an STI constituent for these purposes if it was an STI constituent on 30 June 2025, even if it subsequently ceases to be one. The S$1 billion market-capitalisation threshold is generally assessed as at the close of market on 30 June 2025. Special timing provisions apply to issuers listed after that date.
Draft Singapore Sustainability Disclosure Standards
On 27 July 2026, the Accounting and Corporate Regulatory Authority (“ACRA”) launched a public consultation on the draft Singapore Sustainability Disclosure Standards.
The proposals would introduce SFRS S2 as a standalone mandatory climate-disclosure standard incorporating the climate-relevant requirements of SFRS S1. Broader sustainability disclosures under SFRS S1 would remain voluntary. The draft also proposes an explicit statement of compliance with SFRS S2.
The consultation closes on 25 October 2026. These proposals are not yet effective requirements, and companies should continue to follow the prevailing SGX Listing Rules and Practice Note 7.6 until the relevant standards and regulatory amendments are finalised.
Key Contents of SGX Sustainability Reporting
The sustainability report must address the following primary components:
Internal Reviews and External Assurance
An issuer’s sustainability reporting process must be subject to internal review. The internal review should build on the issuer’s existing governance structure, internal controls and risk management systems. It is generally conducted by the internal audit function and may involve risk management, sustainability and other specialist functions.
Before mandatory external assurance takes effect, issuers may voluntarily commission independent external assurance over all or selected parts of their sustainability reports. Under Singapore’s climate reporting and assurance roadmap, listed companies will be required to obtain external limited assurance over Scope 1 and Scope 2 GHG emissions from FY2029.
External assurance should be conducted in accordance with recognised assurance standards, which may include ISAE 3000, ISSA 5000, ISAE 3410, SSAE 3000, SSAE 3410, the AA1000 Assurance Standards or relevant ISO standards.
Where external assurance has been obtained, the sustainability report should disclose the scope covered, the identity of the external assurer, the assurance standard applied, the level of assurance obtained and the key findings.
For Large Non-Listed Companies
Unless exempted, large non-listed companies with annual revenue of at least S$1 billion and total assets of at least S$500 million will be required to prepare ISSB-based climate-related disclosures, including Scope 1 and Scope 2 GHG emissions, from FY2030.
Scope 3 GHG emissions reporting will remain voluntary until further notice. External limited assurance over Scope 1 and Scope 2 GHG emissions will be required from FY2032.
A company may qualify for an exemption where its activities are included in a publicly available climate or sustainability report prepared by its parent company using applicable ISSB-based or equivalent reporting standards.
Issuance
An issuer must publish its sustainability report annually. From 1 January 2026, the sustainability report must generally be issued at the same time as the annual report.
As a transitional measure, where external assurance has been conducted on the sustainability report, the issuer may publish the sustainability report no later than five months after the end of the financial year. Where the sustainability report is published after the annual report, a summary of the sustainability report must be included in the annual report.
The sustainability report may be included within the annual report or published as a standalone report. In either case, it should be made available through SGXNet and on the issuer’s corporate website.
What GreenCo can do for you
Why GreenCo?
Considering the level of complication and resources needed to comply with the enhanced sustainability reporting guide from SGX, it is crucial for the companies to fully understand and prepare the sustainability report, particularly those from the most affected industries. As a professional ESG advisory firm, GreenCo has rich experience in assisting different companies in preparing their ESG reports, and has the competent to provide aforementioned services.
We can also support companies in establishing a framework for continuous improvement of ESG practices and reporting, including developing monitoring mechanisms, tracking progress toward goals, and proposing strategies to enhance future ESG reporting.
