Singapore’s financial and market regulators have announced a major revision to the timeline for mandatory climate disclosures, offering smaller businesses more time to comply with evolving sustainability standards.

On August 29, the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo) confirmed that most non-large firms will face delays of up to five years in meeting climate-related reporting obligations. This change responds to mounting concerns from small and mid-sized companies about their readiness to align with the International Sustainability Standards Board (ISSB) framework.

Key Deadlines Remain for Larger and Listed Companies

While the new guidelines offer relief for many, core reporting requirements for large listed companies remain intact. All SGX-listed firms will still be required to report Scope 1 and 2 greenhouse gas (GHG) emissions from the 2025 financial year. Top-tier firms, including the Straits Times Index (STI) constituents, will also need to begin Scope 3 reporting by FY2026.

However, for most other companies, particularly those with lower market capitalizations, ISSB-aligned reporting has been deferred. Scope 3 disclosures will remain voluntary until further notice, reflecting the regulators' efforts to strike a balance between progress and feasibility.

Regulators Cite Economic Pressures and Capacity Gaps

In announcing the delay, ACRA and SGX RegCo referenced both global economic uncertainty and direct feedback from companies, particularly smaller ones. Many cited insufficient time, knowledge, and infrastructure to meet the original deadlines.

ACRA Chief Executive Chia-Tern Huey Min emphasized that sustainability reporting is crucial for corporate accountability and long-term strategy. She noted that a differentiated timeline allows less-prepared companies to build necessary capabilities without overwhelming them.

Business Leaders Call for Timeline Flexibility

The decision follows a June appeal from the Singapore Business Federation (SBF), the country’s leading business group. The SBF survey found that just 4 percent of small and mid-cap firms felt “very confident” in meeting the original timeline. Survey participants highlighted key obstacles such as lack of internal expertise, data collection systems, and time to prepare.

Small and mid-cap companies account for 84 percent of all SGX listings, making their compliance a critical challenge for the overall success of Singapore’s climate reporting regime.

Revised Rollout for Listed and Non-Listed Companies

The updated roadmap categorizes listed firms into three groups: STI constituents, non-STI companies with market caps above $1 billion, and those below that threshold. Under the new structure:

STI constituents will maintain the original timelines for all disclosures.
Non-STI companies over $1 billion will begin broader ISSB-based climate reporting in FY2028.
Companies under $1 billion in market cap will begin in FY2030.
Mandatory Scope 1 and 2 assurance is postponed to FY2029 for all groups.

For large non-listed companies, the required reporting of Scope 1 and 2 emissions shifts from FY2027 to FY2030, while assurance is delayed from FY2029 to FY2032. Scope 3 reporting remains voluntary.

Focus on Capacity Building and Long-Term Progress

SGX RegCo CEO Tan Boon Gin acknowledged the challenges companies face in producing high-quality climate disclosures. He said larger, better-resourced firms should lead the way while others are given time to catch up.

“Retaining the 2025 start date for Scope 1 and 2 disclosures is important,” Tan explained. “It ensures companies begin the learning process and can gradually scale up their reporting capabilities.”

The regulators encouraged all firms to continue investing in climate reporting systems and preparing for broader sustainability compliance in the years ahead.

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