The Singapore Business Federation (SBF), which represents over 32,000 companies, has issued a statement requesting a one- to two-year delay in mandatory climate-related disclosures for smaller businesses. The requirements, initially set to begin this year, aim to align with new government and regulatory mandates but may place a burden on less-resourced firms.

This call follows the government’s earlier announcement of mandatory climate reporting for listed and large non-listed companies. The Singapore Exchange Regulation (SGX RegCo) also introduced requirements for SGX-listed companies to begin reporting from FY2025 in line with the IFRS Foundation’s International Sustainability Standards Board (ISSB) framework.

To gauge readiness, SBF surveyed and held a roundtable with 40 small- and mid-cap companies. Although all participants were preparing for the new disclosures, only 4% expressed strong confidence in meeting the current deadlines. Companies cited several challenges, including limited understanding of disclosure requirements, insufficient time and resources, and the need to establish effective data collection systems.

Over 90% of respondents said that a timeline extension would help them generate higher-quality ISSB-aligned reports. Notably, small- and mid-cap firms make up 84% of SGX listings.

Alongside its request for more time, SBF proposed several recommendations: · Tailor disclosure requirements to be proportional to the capabilities of small- and mid-cap companies. · Increase awareness and practical application of the ISSB’s built-in proportionality mechanisms. · Provide both cross-sector and sector-specific guidance to ease compliance, especially for complex areas like climate scenario analysis. · Develop a centralized digital platform for climate-related disclosures, enabling standardized reporting and facilitating sectoral and national benchmarking—similar to SGX’s Stock Screener for financial data.