Singapore’s top regulators are seeking public input on the proposal to make climate-related financial information disclosure mandatory for both listed and large non-listed companies.
The public consultation, based on recommendations from the Sustainability Reporting Advisory Committee (SRAC), will be open from July 6 to September 30, 2023.
The SRAC suggests that listed companies should lead the way in reporting climate-related disclosures (CRDs) aligned with internationally recognized standards set by the International Sustainability Standards Board (ISSB) starting from the 2025 financial year.
Mandatory CRDs for large non-listed companies with annual revenue of at least $1 billion are proposed to commence in the 2027 financial year. A review is recommended in 2027 to potentially mandate reporting by large non-listed companies with annual revenue of at least $100 million around the 2030 financial year.
The SRAC, established in June 2022, assessed the suitability of international sustainability reporting standards, including those by the ISSB, for implementation in Singapore. The ISSB, created at the COP26 climate change conference in Glasgow in 2021, aims to develop standards for high-quality global sustainability disclosures tailored to the needs of investors and financial markets.
In summary, Singapore intends to introduce mandatory climate-related reporting based on the newly published ISSB disclosure standards for public and large private companies. The initiative seeks to enhance accountability, facilitate decisive actions, and accelerate the transition to a green economy while contributing to Singapore’s commitment to the UN’s 2030 Sustainable Development Agenda.
The proposals outline the timeline for reporting requirements and recommend following the ISSB standards, with potential adjustments for complex disclosures. External assurance for greenhouse gas reporting is also suggested for listed issuers and large private companies in the future.
- PIB
