ISCA launches new sustainability illustrative guide to help companies navigate mandatory climate-related disclosures

7 October 2024 - To assist listed companies in navigating mandatory climate-related disclosures from 2025 onwards, the Institute of Singapore Chartered Accountants (ISCA) has launched a guide to support entities in sustainability reporting.

Earlier in the year, Second Minister for Finance, Mr Chee Hong Tat announced that Singapore will introduce mandatory climate-related disclosures (CRD) in a phased approach. From FY2025, all listed issuers will be required to report and file annual CRD, using requirements aligned with the International Sustainability Standards Board (ISSB) standards. In March 2024, the Singapore Exchange Regulation (SGX RegCo) consulted the market on details of how the ISSB standards are to be incorporated into its sustainability reporting rules for climate-related disclosures.

Recognising the need to assist companies in this endeavour, ISCA developed Illustrative Sustainability Report: Based on the GRI Standards and IFRS Sustainability Disclosure Standards to provide clarity to entities which are already reporting under the Global Reporting Initiative (GRI) Standards on how to also adopt climate-related requirements under the ISSB’s International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards. 

The report also highlights key transition reliefs and proportionality and application mechanisms offered by ISSB to address practical challenges businesses may face when applying these standards. The illustrative report was developed with the support of SGX RegCo, in support of the Singapore Green Plan.

With this guide, companies will be able to enhance the robustness and quality of their sustainability reporting, by providing direction and clarity to improve their climate-related disclosures, and will be especially beneficial to companies preparing for the upcoming regulatory requirements.

“Since the Sustainability Reporting Advisory Committee recommended a roadmap for climate-related disclosures based on the IFRS Sustainability Disclosure Standards, we have heard requests from many companies for guidance,” said SGX RegCo CEO, Mr Tan Boon Gin. “This guide does exactly that, by illustrating how companies can take a phased approach to the adoption of the IFRS S1 and S2, alongside GRI which is widely used, and avail themselves of the reliefs where needed.”

ISCA President Mr Teo Ser Luck said, “At ISCA, we recognise the critical role that transparent and comparable climate-related disclosures play in fostering sustainable business practices. With the upcoming enhancements to the mandatory climate-related reporting regulations, we are pleased to launch our report, which offers timely and practical guidance for companies navigating this new terrain. ISCA remains committed to supporting our members and the wider business community on their sustainability journey.”

In addition, large non-listed companies (NLCos) will be required to report and file climate-related disclosures from financial year (FY) 2027 onwards. This guide will also serve as a useful reference for large non-listed companies (defined as those with annual revenue of at least $1 billion and total assets of at least $500 million) in Singapore, to prepare for mandatory CRD from FY 2027.

ACRA Chief Executive Mrs Chia-Tern Huey Min said, “As Singapore strengthens its position as a global business hub, it is essential for corporate practices to align sustainability reporting with international standards. Capacity-building initiatives such as this guide will provide support for both listed and large non-listed companies as they prepare for the upcoming climate reporting requirements. ACRA will continue to collaborate with our partners to help businesses meet these requirements, contributing to both their success and Singapore's broader sustainable development goals.”

ISCA has previously produced other publications on corporate sustainability including:

• Counting to 3: Navigating Singapore’s Scope 3 Emissions Journey Together


• Sustainability - Jobs and Skills for the Accountancy Profession


• Addressing Climate-Related Risks in Financial Statements and Audits of such Financial Statements


• ISCA Climate Disclosure Guide – Taking First Steps Towards Climate-related Disclosures


• ISCA Climate Disclosure Guide Vol 2: First Steps in Conducting Climate-Related Scenario Analysis


• Green & Sustainable Finance: Guide for SMEs


• Sustainability Transformation: The Role of Accountancy and Finance Professionals in the Singapore Manufacturing Sector