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- Extension Requested: SBF urges a 1–2 year delay for smaller SGX-listed firms to comply with ISSB climate disclosure standards.
- Low Readiness: Only 4% of firms surveyed feel prepared for the 2025 deadline, citing lack of resources and systems.
- Supportive Measures Proposed: SBF calls for proportional standards, tailored guidance, and a centralised data platform.
The Singapore Business Federation (SBF) is calling for a 12- to 24-month extension of mandatory climate-related disclosures under the ISSB framework for smaller firms listed on the Singapore Exchange (SGX). The current rule requires all listed companies to begin reporting in line with ISSB standards for financial years starting on or after January 1, 2025.
However, a recent SBF engagement with nearly 40 companies found that only 4% are confident they can meet this timeline. Many cited “lack of understanding, limited resources, and the need to build internal systems from scratch.”
Smaller and mid-cap companies—comprising 84% of SGX listings—face unique challenges. Unlike the previously used Task Force on Climate-related Financial Disclosures (TCFD), ISSB standards are broader in scope and complexity. SBF recommended granting these firms more time to:
- Build internal capabilities
- Strengthen data collection processes
- Learn from early disclosures by larger firms
- Qualify for the government’s Sustainability Reporting Grant (SRG), which is only available prior to the mandatory deadline
SBF also urged regulators to ensure that reporting requirements are proportionate to company size and capacity. Many smaller companies expressed concern over being held to the same standards as large corporations, despite having fewer resources.
While the ISSB includes proportionality mechanisms, “it is not well understood,” SBF noted. The federation stressed the need for regulators to raise awareness and provide clearer guidance on how to implement these flexibilities.
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SBF proposed the development of Singapore-specific, cross-sector, and sector-based guidance to ease the compliance burden. Currently, companies must independently develop climate scenarios and disclosures, which results in duplicative efforts. Standardised templates and scenarios at the national level would improve efficiency and consistency.
In addition, SBF recommended the creation of a centralised digital platform for climate reporting. Unlike financial data, sustainability information remains fragmented and difficult to access. A unified platform would enable better benchmarking and provide easier access for analysts, investors, and regulators.
“This is not a retreat from climate goals but a practical step to help smaller firms comply meaningfully,” said SBF CEO Kok Ping Soon.
“We must promote awareness of proportionality mechanisms, deliver more tailored guidance, and provide a centralised data platform to ensure smaller firms can fully capitalise on the additional time—if granted.”
SBF confirmed it will continue collaborating with SGX RegCo, ACRA, Enterprise Singapore, and other stakeholders to ensure businesses are equipped to meet climate reporting obligations effectively.
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