SG-listed companies fall short in climate-related disclosure: report

Only 36% of listed companies have set net-zero targets, and a third of those have not disclosed any transition plans.

Nearly all listed companies in Singapore have begun reporting climate-related data, but only a minority meet the full standards required under upcoming international rules, according to a new study by Ernst & Young LLP.

The report revealed that whilst 98% of companies listed on the Singapore Exchange included at least one disclosure aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework, only 32% disclosed against all 11 TCFD recommendations — the baseline for the new ISSB (International Sustainability Standards Board) reporting regime taking effect for FY 2025.

Larger firms are further ahead: 60% of large-cap companies made full disclosures, compared to 35% of mid-cap and just 25% of small-cap firms.

The study also highlighted gaps in climate strategy execution. Only 36% of listed companies have set net-zero targets, and a third of those have not disclosed any transition plans.

Furthermore, just 9% reported capital deployment toward addressing climate-related risks, raising questions about the alignment between stated goals and actual action.

Sustainability-linked executive pay remains limited, with only 17% of issuers tying compensation to ESG performance, mostly among larger firms.

Still, more companies are reviewing their sustainability processes. Internal reviews rose to 96%, whilst voluntary external assurance increased to 13%, up slightly from the year before.