Singapore’s Accounting and Corporate Regulatory Authority (ACRA) has published draft Singapore Sustainability Disclosure Standards (SFRS S1 and SFRS S2), aligning closely with the sustainability and climate reporting standards developed by the International Sustainability Standards Board (ISSB). The proposed standards are intended to establish a consistent framework for corporate sustainability reporting in Singapore. 

The draft standards will support the country’s phased rollout of mandatory climate-related disclosures and voluntary broader sustainability reporting, with reporting requirements for large listed companies commencing this year. These developments follow the Singapore government’s 2024 announcement to adopt ISSB-aligned climate reporting requirements for listed and large non-listed companies. 

The proposed standards introduce: 

• SFRS S1 – General sustainability-related disclosures (voluntary) 

• SFRS S2 – Climate-related disclosures 

While largely aligned with the ISSB framework, ACRA has introduced several local modifications. Notably, sustainability disclosures under SFRS S1 will remain voluntary, and Scope 3 greenhouse gas emissions reporting will not be mandatory during the initial implementation phase for most companies. 

Revised Implementation Timeline 

Singapore has also revised its sustainability reporting roadmap to provide companies with additional time to build reporting capabilities. 

For listed companies: 

• Scope 1 and Scope 2 emissions reporting will continue as originally planned. 

• Companies listed on the Straits Times Index (STI) will continue following the existing ISSB-aligned reporting timeline. 

• For non-STI companies, Scope 3 reporting will initially remain voluntary. 

• Additional ISSB-based climate disclosure requirements will begin: 

• FY2028 for companies with market capitalizations above $1 billion 

• FY2030 for companies with market capitalizations below $1 billion 

• Mandatory external assurance for Scope 1 and Scope 2 disclosures has been postponed to FY2029. 

For large non-listed companies: 

• Mandatory Scope 1 and Scope 2 reporting has been deferred from FY2027 to FY2030. 

• Scope 3 reporting will remain voluntary. 

• External assurance requirements for Scope 1 and Scope 2 disclosures have been delayed from FY2029 to FY2032. 

Supporting Businesses for Compliance 

ACRA emphasized that climate-related disclosures are being prioritized because of the urgent need to address climate change. To help organizations prepare for the new reporting requirements, the regulator has introduced several supporting initiatives, including: 

• The launch of the Sustainability Assurance Body of Knowledge to strengthen sustainability assurance capabilities. 

• New training programs aligned with the existing Sustainability Reporting Body of Knowledge. 

• The continuation of the government’s Sustainability Reporting Grant, which helps companies offset the initial costs of preparing sustainability reports. 

These initiatives are designed to support businesses in building the skills, systems, and assurance capabilities needed for high-quality sustainability reporting while facilitating a smooth transition to Singapore’s evolving regulatory framework.