The city-state declared that its listed and sizable non-listed enterprises would have to start filing reports on climate change, according to ESG Today.

The International Sustainability Standards Board (ISSB) guidelines will be followed in a gradual manner for climate disclosures beginning in 2025 for listed firms and 2027 for major non-listed entities, according to a bold step laid forth in Parliament by Second Minister for Finance Chee Hong Tat.

The program seeks to support a green economy and provide enterprises with the necessary tools for sustainability reporting. It is guided by the Sustainability Reporting Advisory Committee (SRAC). Reporting on Scope 1 and 2 emissions is expected to start in 2026 for listed companies and no sooner than 2029 for major non-listed corporations. By then, reporting on Scope 3 emissions is expected. Additionally, within two years of starting to report, corporations will need to get an external limited assurance on their Scope 1 and 2 GHG emissions in order to increase the credibility of the disclosures.

A study of the results of the first implementation will be necessary before deciding whether to expand these reporting requirements to smaller organizations. In the meantime, the government promises to strengthen businesses' capacities for sustainability reporting and assurance through upcoming initiatives from the Ministry of Trade and Industry (MTI).

The CEO of Singapore Exchange Regulation (SGX RegCo), Tan Boon Gin, emphasized the early adopters of climate reporting's strategic advantage within the SGX-listed community. These businesses have already started to enjoy the advantages of open and honest sustainability practices, such as easier access to sustainable funding and better connections with stakeholders that share their concern for environmental sustainability.

This program highlights the global trend toward more ethical and ecologically friendly company practices and establishes Singapore as a leader in corporate sustainability initiatives. Businesses are anticipated to seize new chances in markets where sustainability concerns are becoming more and more important as they comply with these new regulations.