Singapore Exchange Regulation ( SGX RegCo ) has enhanced its sustainability reporting regime and will start incorporating the latest international standards into its sustainability reporting regime following broad support from respondents to a public consultation.

Beginning with financial year ( FY ) 2025, SGX RegCo will require all issuers to start reporting Scope 1 and Scope 2 greenhouse gas ( GHG ) emissions. Their climate-related disclosures must also start incorporating the climate-related requirements in the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board.

Requiring the use of the IFRS Sustainability Disclosure Standards, the exchange’s regulatory arm points out, builds on the recommendations of the Task Force on Climate-related Financial Disclosures that SGX RegCo has mandated in a phased approach since FY 2022.

Most respondents to the consultation, SGX RegCo notes, supported the move for all issuers to carry out mandatory climate-related reporting versus the current requirement for only certain sectors to do so.

However, they also highlighted challenges, particularly for smaller issuers, in relation to the evolving measurement and reporting methodologies for Scope 3 GHG emissions. This is notwithstanding the one-year transition relief for the disclosure of Scope 3 GHG emissions in the IFRS Sustainability Disclosure Standards.

SGX RegCo will therefore review issuers’ experience and readiness before establishing the implementation roadmap for reporting Scope 3 GHG emissions. The current plan is to prioritize larger issuers by market capitalization with the intention that they report Scope 3 GHG emissions from FY 2026.

“The changes to our rules mark the culmination of the efforts of the sustainability reporting advisory committee to prepare issuers for a low-carbon future,” says Tan Boon Gin, SGX RegCo’s CEO. “The disclosure of Scope 1 and Scope 2 GHG emissions is an important step to enable larger issuers to report their Scope 3 GHG emissions. SGX RegCo on our part will continue to facilitate capacity building to assist issuers on their climate reporting journeys.”