ACRA, SGX RegCo extend timelines for climate reporting requirements

Scope 1 & 2 emissions reporting mandatory for all listed companies from FY2025.

The Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo) have extended deadlines for climate reporting, including external assurance, to help companies build reporting capabilities.

All listed companies will continue to report Scope 1 and 2 greenhouse gas (GHG) emissions starting from the financial year (FY) commencing 1 January 2025.

Straits Times Index (STI) constituents will lead efforts in implementing other International Sustainability Standards Board (ISSB)-based climate-related disclosures (CRD) from FY2025 and will report Scope 3 GHG emissions from FY2026.

The extension considers the uncertain global economic climate and feedback from stakeholders regarding the varying readiness levels of companies.

The Singapore Business Federation highlighted that smaller listed companies require additional time to fully comply with ISSB-based CRD.

The extension will allow these companies to enhance data collection processes and learn from larger firms already producing ISSB-aligned disclosures.

The revised approach, effective immediately, introduces a three-tier reporting structure for listed companies based on market capitalization, including STI constituents, non-STI listed companies with a market capitalisation of $1b or more, and non-STI listed companies with a market capitalization below $1b.

Under this framework, Scope 1 and 2 greenhouse gas (GHG) emissions reporting will be mandatory for all listed companies from FY2025, whilst Scope 3 GHG emissions will be mandatory for STI constituents from FY2026 and remain voluntary for other non-STI listed companies until further notice.

Other ISSB-based climate-related disclosures (CRD) will be mandatory for STI constituents from FY2025, for non-STI companies with market capitalisation of $1b or more from FY2028, and for non-STI companies with market capitalisation below $1b from FY2030.

External limited assurance for Scope 1 and 2 GHG emissions is deferred to FY2029 for all listed companies.

For large non-listed companies (Large NLCos), the updated framework defers ISSB-based CRD, including Scope 1 and 2 emissions, to FY2030, whilst Scope 3 emissions reporting remains voluntary until further notice. External limited assurance for Scope 1 and 2 emissions for Large NLCos is deferred to FY2032.