A review by the Singapore Exchange Regulation (SGX RegCo) and the National University Singapore Business School’s Centre for Governance and Sustainability has found that almost all listed issuers are including some sort of climate-related disclosures in their sustainability reports. According to the review, which examined 529 sustainability reports, as of 31 July 2024 97% of issuers included at least one disclosure aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, up from 73% in 2023. However, only 28% of issuers provided all 11 recommended disclosures under the TCFD framework. The research found that about 80% of issuers disclosed Scope 1 emissions, up from 50% in 2023 – while 87% disclosed Scope 2 emissions, up from 61% in 2023. Only 29% reported Scope 3 emissions, but this is almost double from the previous review. While 64% of companies with a market cap above SGD 1 billion (US$750 million) disclosed Scope 3 emissions, only 22% of small-cap firms did so. The review also found that disclosures on climate scenario analysis, risk management integration, and climate targets were the most lacking. While issuers have improved their reporting, gaps remain in achieving full compliance with the International Sustainability Standards Board standards, which SGX has committed to incorporating into its reporting framework. SGX RegCo has adopted a phased approach to mandatory climate reporting following its 2021 public consultation. Companies in the materials, buildings, and transportation sectors need to comply with full TCFD reporting from FY2024, while all other issuers must continue climate reporting on a “comply or explain” basis. Last September, SGX RegCo announced that Scope 1 and Scope 2 emissions reporting will be mandatory from FY2025. Scope 3 reporting remains voluntary for now, with larger issuers expected to begin reporting from FY2026.
