Singapore is entering a new phase of ESG regulation as it moves towards climate-reporting standards aligned with the ISSB/IFRS framework. The shift aims to enhance transparency, improve comparability, and strengthen market confidence—all essential to supporting sustainable finance.
Current Regime
Singapore is implementing mandatory climate-related disclosures (CRD) in phases, with transitional relief for Scope 3 reporting and external assurance. SGX-listed companies already conduct mandatory sustainability reporting, forming the base for the enhanced ISSB-aligned requirements
What’s Changing
For SGX-listed companies
From FY2025: Mandatory ISSB-aligned climate disclosures, including Scope 1 and Scope 2 emissions.
From FY2026: Broader ISSB requirements and mandatory Scope 3 reporting for STI companies.
By FY2029: External limited assurance required for Scope 1 and Scope 2 emissions.
For large non-listed companies
From FY2030: Mandatory ISSB-aligned climate disclosures (Scope 1 and Scope 2) for companies meeting specified size thresholds.
Why It Matters
Listed companies: Must upgrade data systems, emissions measurement processes, and governance to meet strengthened disclosure and assurance expectations.
Large private companies: Should begin capability-building early to prepare for future mandatory reporting.
Investors and lenders: Will benefit from more consistent, comparable, and verifiable climate-related information.
Singapore’s broader ecosystem: Gains stronger global alignment and enhanced access to sustainable finance opportunities.
Commercial Impact — Procurement
Environmental performance is increasingly embedded in procurement practices across both public and private sectors.
Examples include:
Government procurement allocating up to 5% of tender points to environmental criteria.
Changi Airport Group requiring minimum environmental scores for qualification.
SMRT applying a 5% sustainability weighting and requiring Scope 3 emissions disclosures from bidders.
Strong ESG performance is becoming directly linked to contract eligibility and competitive advantage.
Conclusion
Singapore’s ESG landscape is evolving quickly, with mandatory climate-related disclosures set to expand across industries. Organisations will need to enhance reporting capabilities, strengthen emissions measurement, and reinforce governance to remain compliant and competitive.
If your organisation requires support with ESG compliance, climate reporting, or tender-readiness, our team is ready to assist at every stage.