Mandatory climate reporting for listed and large non-listed firms recommended
The sustainability reporting advisory committee (SRAC) consulted 90 participants.
The SRAC recommended requiring climate reporting for all listed issuers and large non-listed issuers instead of the current comply or explain basis.
In an SGX-issued statement, the industry-led committee recommended that listed Issuers, including those incorporated overseas, business trusts, and real estate investment trusts, should report CRDs from FY2025. It will build their momentum and progress in climate reporting.
For large non-listed firms, non-listed companies with yearly revenue of at least $1b should make CRDs from FY2027.
A review will follow in 2027 to mandate climate reporting on Large Non-Listed Companies with revenue of at least $100m, by around FY2030. The review will look into international developments, industry capacity, and the implementation experience of Large Non-Listed Companies.
The next recommendation is both Listed Issuers and Large Non-Listed Companies should report CRD using the locally prescribed standards that mirror the requirements in the ISSB standards. To give them more time to prepare, these firms could choose to make certain complex CRDs such as Greenhouse gas Scope 3 emissions1 one/two years after reporting requirements kick in.
The fourth recommendation is that firms subjected to mandatory climate reporting should obtain external assurance on Greenhouse gas Scope 1 and Scope 2 emissions[1] from FY2027 for all listed issuers, and FY2029 for Large Non-Listed Companies.
“The assurance can be provided by ACRA-registered audit firms and Testing, Inspection, and Certification firms accredited by the Singapore Accreditation Council[2],” it said.
Lastly, it is recommended that CRDs should have the same reporting and filing timelines as financial statements to create timely communication with shareholders and other stakeholders. Legal responsibilities should also be imposed on the company, its directors, and/or officers to ensure accountability for CRDs.
Following the recommendations, the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo) have launched a public consultation.
“The recommendations of SRAC aim to uphold Singapore’s attractiveness as a global business hub while contributing to our national agenda on sustainable development under the Singapore Green Plan 2030,” read the statement.
The public consultation documents can be seen on the REACH consultation portal, ACRA, and Singapore Exchange websites.
Those interested can submit their comments through FormSG. SGX RegCo expects to consult on any amendment to the Listing Rules on sustainability reporting by the end of the year.
