Singapore Releases Proposed ISSB-Aligned Sustainability Reporting Standards

Singapore’s business reporting and accounting regulator the Accounting and Corporate Regulatory Authority (ACRA) announced the release of the draft Singapore Sustainability Disclosure Standards, based on the sustainability and climate-related reporting standards developed by the IFRS Foundation’s International Sustainability Standards Board (ISSB).

The new proposed standards are designed to form the basis of new mandatory climate and voluntary broader sustainability reporting requirements for companies in Singapore, with reporting for large listed companies beginning this year.

In 2022, ACRA and the Singapore Exchange Regulation (SGX RegCo) established a Sustainability Reporting Advisory Committee to develop a roadmap for mandatory climate reporting and assurance, with requirements to be implemented in phases. The government of Singapore announced in early 2024 that it would implement mandatory climate-related reporting requirements for listed and large non-listed companies, aligned with the standards issued by the ISSB.

The new draft standards include Singapore Financial Reporting Standards (SFRS) S1 and SFRS S2, which correspond to the IFRS Foundation’s ISSB’s S1 (sustainability-related) and S2 (climate-related) standards. The IFRS released the inaugural general sustainability and climate reporting standards in June 2023.

While broadly aligning with the ISSB standards, ACRA noted several adjustments in its proposed standards, most notably leaving SFRS S1 reporting voluntary, and leaving Scope 3 reporting for most companies out of the mandatory requirements initially.

The release of the new standards follows an adjustment to the timeline for the rollout of sustainability reporting requirements announced last year. Under the initial proposed timeline, the reporting obligations were set to begin with all listed companies in 2025, followed by large, non-listed companies in 2027. Listed companies were required to report on Scope 1 and 2 emissions in the first year, and on Scope 3 in 2026, while large non-listed companies were set to follow a similar timeline, although Scope 3 reporting was begin for these companies no earlier than 2029.

In 2025, however, the regulators announced significant changes in the timelines, including delaying some disclosures for small and mid-sized companies by up to five years, to give companies more time to build capabilities for climate reporting.

Under the new timeline, listed companies were divided into three categories, including Straits Times Index (STI) constituents, consisting of the top 30 companies by market capitalization listed on SGX, non-STI constituents with market caps above $1 billion, and companies with market caps below $1 billion. Under the new plan, Scope 1 and 2 disclosure for all companies and all reporting requirements for STI constituents remain unchanged. Scope 3 reporting will initially remain voluntary for non-STI companies, while other ISSB-based climate reporting requirements will begin in FY2028 for companies in the $1 billion+ market cap group, and in FY2030 for companies with market cap below $1 billion. External assurance for all companies’ Scope 1 and 2 reporting was also pushed out to 2029.

For large non-listed companies, Scope 1 and 2 emissions reporting was pushed out to FY 2030 from FY 2027, Scope 3 reporting will remain voluntary, and external assurance on Scope 1 and 2 was delayed to FY2032 from FY2029.

According to ACRA, climate-related disclosures were made mandatory from the start of the sustainability reporting regime due to the urgency of combatting climate change.

Alongside the release of the draft standards, ACRA also announced several initiatives to help companies prepare for the upcoming sustainability reporting and assurance requirements, including the launch of the “Sustainability Assurance Body of Knowledge” to support the development of sustainability assurance capabilities, as well as courses aligned with the previously released  Sustainability Reporting Body of Knowledge, in addition to the government’s Sustainability Reporting Grant, designed to help cover the costs of preparing initial sustainability reports.

Chia-Tern Huey Min, Chief Executive of ACRA, said:

“Meeting the mandatory climate reporting and assurance requirements is a multi-year journey for preparers and assurance providers alike. The launch of the draft disclosure standards, which are aligned with the ISSB Standards but include adjustments to reflect Singapore’s climate-first approach, is an important milestone in this journey. This gives clarity and certainty on the reporting requirements so that the industry can move ahead with confidence.”

ACRA announced the launch of a public consultation to receive feedback on the new proposed standards, which will run through October 25. Click here to access the proposed standards and consultation.