Mandatory reporting takes spotlight in Singapore’s new climate disclosure rules

Regulator encourages businesses to create transition plans.

The planned shift to mandatory sustainability reporting for listed companies in Singapore aligns the city-state with the practice of its neighbouring economies including Malaysia and Japan, according to Linklaters.

In a note on Tuesday, partners at Linklaters laid out the highlights of the ongoing public consultation by Singapore Exchange Regulation (SGX RegCo) which details how the International Sustainability Standards Board (ISSB”) standards will be incorporated into sustainability reporting rules for climate-related disclosures.

“This is a step in meeting the global capital markets demand for more consistent, comparable and reliable information on sustainability-related disclosures,” they commented.

Among the key aspects of the proposal was the shift from a “comply or explain” approach to mandatory reporting of the primary components of climate-related disclosures. 

The integration of ISSB standards in sustainability-related disclosures is also another thing to watch out for according to Linklaters, noting that issuers, starting 2027, will be required to ensure that their climate disclosures are in compliant with the ISSB standards.

“While SGX RegCo currently does not propose to mandate transition plans under the Listing Rules, issuers are encouraged to consider formulating transition plans to harness green and transition opportunities,” the partners said.