Mandatory ESG disclosures transform corporate governance practices

New regulations push organisations to reassess their approach to ESG.

Singapore’s transition to mandatory ESG disclosure is prompting a fundamental shift in how corporate governance is approached, with direct implications for leadership accountability, internal systems, and investor engagement.

“Sustainability and ESG disclosure is really not so much of a change, but reinforcing the subject of ESG by mandatory disclosure to organisations through various initiatives,” said Kee Yin Lai, Partner, Technology, Digital & Sustainability Consulting at Forvis Mazars in Singapore.

The push toward mandatory reporting, aligned with the International Sustainability Standards Board (ISSB), marks a stark departure from earlier voluntary frameworks. Singapore’s Sustainability Reporting Grant (SRG), introduced in 2024, further emphasises the urgency for listed firms to strengthen governance and ESG integration.

Yet the transition remains uneven. According to Forvis Mazars' C-suite Barometer: Outlook 2025, only 44% of APAC companies plan to publish sustainability reports in 2025—down significantly from 73% in 2024.

“We asked leaders if their organizations are ready to publish a sustainability report. And surprisingly, as we move into mandatory disclosure, there was a decrease in leaders saying yes,” said Lai.

The governance shift is centered on three key areas: people, policy, and systems. On people, Lai said, “It is almost structured and explicit that we get the right people into the right conversations to make sure that we discuss ESG at a strategic and operational level, instead of just ticking off the compliance checklist.”

Policy-wise, companies must now show how sustainability risks and opportunities are factored into decisions. “The mandatory changes now emphasize a lot on how governing bodies need to manage sustainability, risk and opportunities strategically,” Lai explained, adding that this includes viewing “major transactions or key decisions… through the ESG lens.”

Technology also plays a critical role. “What essentially we need to gel all together is really having a robust technology platform to make sure we are able to sustain the evolution,” Lai said.