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Private companies with $1 bil annual revenue could face mandatory climate reporting from FY2027: Acra, SGX RegCo

Jovi Ho
·3-min read

Acra and SGX RegCo have launched a public consultation on recommendations to mandate climate-related disclosures from firms.

Listed companies here could face mandatory climate-related disclosures from FY2025, while their large non-listed peers with annual revenue from $1 billion could follow suit in FY2027.

The Accounting and Corporate Regulatory Authority (Acra) and Singapore Exchange S68 Regulation (SGX RegCo) have launched a public consultation on the recommendations set out by the Sustainability Reporting Advisory Committee (SRAC).

The recommendations require these two groups of companies to report their climate-related disclosures aligned with the standards issued by the International Sustainability Standards Board (ISSB) last week.

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The SRAC is an industry-led committee set up by Acra and SGX RegCo to advise on the roadmap for advancing sustainability reporting by companies in Singapore.

The recommendations aim to uphold Singapore’s attractiveness as a global business hub while contributing to the Singapore Green Plan 2030, say the two regulators in a statement on July 6. “Bolder climate action and transparency in reporting can become a key competitive advantage, and present new business growth and opportunities. These recommendations will prepare companies to meet stakeholder expectations including those of their customers and lenders.”

To allow more time to prepare, companies could opt to make certain complex climate-related disclosures, such as Scope 3 emissions, one or two years after reporting requirements kick in, according to the SRAC’s recommendations.

That said, companies subject to mandatory climate reporting should obtain external assurance on Scope 1 and 2 emissions from FY2027 for all listcos, and FY2029 for large non-listed companies.

Climate-related disclosures should have the same reporting and filing timelines as financial statements to facilitate timely communication to shareholders and other stakeholders, read the recomendations. “Legal responsibilities should also be imposed on the company, its directors, and/or officers to ensure accountability for climate-related disclosures.”

The SRAC’s recommendations also include a review, scheduled for 2027, to mandate climate reporting from large non-listed companies with annual revenue of at least $100 million by around FY2030. The review will consider factors such as international developments, industry capacity and the implementation experience of large non-listed companies.

Currently, listcos in five prioritised industries are required to provide climate-related disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations starting FY2023. All other listcos are required to apply TCFD to their climate-related disclosures on a “comply-or-explain” basis.

Michael Tang, head of the sustainable development office, SGX RegCo, says: "SGX-listed companies have been at the forefront of sustainability reporting. That large, non-listed companies should start climate reporting will complement the progress of listed companies. As a whole, these efforts create a virtuous cycle of lifting standards all round and enabling Singapore corporates to make an outsize contribution towards global sustainability.”

Esther An, chairperson, SRAC, says: “With more countries pledging for net zero and the rising carbon cost globally, climate strategy and reporting can help companies, listed or non-listed, to mitigate and adapt to risks in the transition to a low carbon economy.”

An, who is also chief sustainability officer at City Developments Limited C09, adds: “What gets measured gets managed. There is a strong business case for climate reporting as it has helped many businesses to improve performance and create stronger competitive advantage by capturing growth opportunities.”

The public consultation will run until Sept 30.

Infographics: Acra, SGX RegCo

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