Navigating Singapore's climate reporting mandate

Mandatory climate reporting is quickly becoming a key aspect of doing business responsibly and competitively in Singapore. The city-state has taken a proactive step forward, implementing International Sustainability Standards Board (ISSB) criteria to enhance corporate accountability and transparency.

If you're a listed company or a large non-listed entity in Singapore, now is the time to gear up for compliance. This blog will break down Singapore's climate reporting mandate — what it entails, who it affects, its requirements and what businesses need to do to align with the new standards.

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What is Singapore's climate reporting mandate?

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Singapore's climate reporting mandate requires companies to disclose more in-depth sustainability data, aligning with ISSB climate-related financial disclosure standards. By January 1, 2025, listed companies will need to incorporate ISSB-aligned climate reports into their annual disclosures. Non-listed entities with more than $1 billion in revenue or $500 million in assets will follow suit by 2027.

The ISSB framework builds on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). It focuses on four key pillars:

• Governance  
• Strategy
• Risk management  
• Metrics and targets  

These stricter reporting requirements bring Singapore in line with global reporting standards, emphasizing clarity, accountability and risk mitigation in climate-related disclosures.

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Who does this affect?

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Climate reporting rules apply to two major groups of businesses:

• Listed companies: Singapore-listed companies must start mandatory climate reporting from 2025. By 2026, Scope 3 - emissions generated within their value chains - will also need to be reported.
• Large non-listed companies: Entities with at least $1 billion in revenue or $500 million in assets will join the compliance mandate by 2027. Similar rules on Scope 1 and 2 emissions reporting will apply, with additional Scope 3 disclosures required beginning in 2029.  While SMEs and smaller entities are currently exempt, the government might extend these regulations in the future based on the experiences of larger firms.

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What does the reporting mandate cover?

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The ISSB-aligned climate reporting framework is comprehensive, requiring disclosures on the following key elements:

• Greenhouse Gas (GHG) emissions: Companies must report on Scope 1 (direct emissions) and Scope 2 (indirect emissions from energy use) emissions, as well as Scope 3 emissions when the timeline comes into effect.
• Scenario analysis: Firms will need to analyze plausible climate change scenarios affecting business operations. This includes setting time horizons for risks and opportunities.
• Integration with risk management: Climate-related risks should no longer be isolated but must be integrated into the company’s existing risk management frameworks.
• Targets and metrics: Firms need to establish measurable climate targets, such as emissions reduction goals and report progress regularly to stakeholders. By requiring this holistic view, the rules aim to help businesses align their operations with sustainability principles, improving their credentials among investors and customers.

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What do companies need to do?

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Preparing for compliance may seem overwhelming, but taking deliberate steps today will make the transition smoother. Here are actionable steps companies should follow:

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1. Assess current ESG reporting practices

Evaluate your existing ESG data collection and climate reporting frameworks. Identify gaps between current practices and ISSB-aligned requirements. Key areas to analyze include emissions data, risk management, governance and overall strategy alignment.

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2. Strengthen internal capabilities

Bring key departments — such as sustainability, finance, and risk management — on the same page. Train your teams on the latest ISSB standards and foster cross-functional collaboration for seamless data collection and reporting.

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3. Invest in advanced reporting platforms

Manually managing climate-related disclosures is both complex and effort-intensive. Consider adopting AI-powered tools like Ideagen Carbon Accounting.  

Out-of-the-box, Ideagen Carbon Accounting simplifies carbon reporting with features like:

• Automated data collection: Avoid manual errors with AI that extracts and processes data from any file format.  

• Intelligent checklists for data submission: Step-by-step workflows guide contributors and ensure data completeness.

• Audit-ready reporting: Achieve compliance quickly with transparent, ready-to-submit data formats.

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4. Engage external experts

Collaborate with climate consultants, auditors, or platforms like Ideagen to ensure your data is accurate, compliant and stakeholder-friendly.

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5. Start early

Phases for compliance might seem far off, but starting preparations now will minimize future logistical challenges. Early action enables smoother adaptation to evolving requirements.

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Why take this seriously?

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Businesses adhering to climate reporting regulations will benefit in several pivotal ways:

• Competitive edge: ESG-conscious investors, customers and regulators prioritize companies with transparent climate disclosures. Compliance could result in better market access, enhanced brand reputation and increased customer trust.  

• Access to capital: Banks and investors are favoring businesses with strong ESG track records, offering better financing opportunities for compliant companies.

• Future-proofing: Early adoption builds resiliency against regulatory shifts and secures long-term growth by embedding sustainability into core business functions.

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Take the next step toward compliance today

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Mandatory climate reporting is more than a compliance exercise — it's an opportunity to position your business as a forward-thinking leader in sustainability. By taking immediate steps to align with Singapore's climate reporting mandate, companies can improve transparency, mitigate risks and gain a competitive advantage.

Leverage advanced tools like Ideagen Carbon Accounting to simplify your carbon accounting process from start to finish. Whether you're just beginning or refining your reporting processes, Ideagen offers the precision, speed and compliance you need to meet industry expectations.  

Get in touch to explore how we can help your business prepare for Singapore’s climate reporting future.