General Announcement::News Release: Climate reporting to help companies ride the green transition

Issuer & Securities

Issuer/ Manager
SINGAPORE EXCHANGE LIMITED
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
28-Feb-2024 18:17:59
Status
New
Announcement Sub Title
News Release: Climate reporting to help companies ride the green transition
Announcement Reference
SG240228OTHRPC9J
Submitted By (Co./ Ind. Name)
Jo-Ann
Designation
Senior Associate, Marketing & Communications
Description (Please provide a detailed description of the event in the box below)
All listed issuers to report from FY2025 and large non-listed companies from FY2027

Singapore, 28 February 2024 - The Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo) have provided details of mandatory climate reporting for listed issuers and large non-listed companies.

2. As announced by Second Minister for Finance, Mr Chee Hong Tat at the Ministry of Finance Committee of Supply, Singapore will introduce mandatory climate-related disclosures (CRD) in a phased approach, in line with the recommendations from the Sustainability Reporting Advisory Committee (SRAC) [1]. This is part of the Government's efforts to help companies strengthen capabilities in sustainability, and to ride the green transition. As the green momentum intensifies, companies who are able to provide CRD could benefit from access to new markets, customers, and financing.

3. 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.

4. From FY2027, large NLCos (defined as those with annual revenue of at least $1 billion and total assets of at least $500 million) will be required to do the same. ACRA will review the experience of listed issuers and large NLCos before introducing reporting requirements for other companies.

5. The timeline for the implementation of mandatory CRD is summarised in the table below, with an accompanying infographic in the Annex. More time will be given for companies to report CRD on Scope 3 greenhouse gas (GHG) emissions and conduct external limited assurance on Scope 1 and 2 GHG emissions.

6. Some companies have provided feedback that they are already reporting using other international standards and frameworks, to meet mandatory requirements of the jurisdictions that they operate in and/or to cater to their investors' information needs. To address this, ACRA will exempt large NLCos with parent companies that are reporting CRD, under the following circumstances:

a. A large NLCo whose parent company reports CRD using ISSB-aligned local reporting standards or equivalent standards (e.g. European Sustainability Reporting Standards) will be exempted from reporting and filing CRD with ACRA, subject to certain conditions [2]; and

b. A large NLCo whose parent company reports CRD using other international standards and frameworks (e.g. Global Reporting Initiative Standards, Task Force on Climate-related Financial Disclosures Recommendations), will be exempted from reporting and filing CRD with ACRA2 for a transitional period of 3 years, from FY2027 to FY2029. ACRA will review whether to extend the transitional period, depending on global developments relating to the adoption and recognition of other standards and frameworks.

7. The Ministry of Trade and Industry (MTI) will extend support to help companies kickstart their climate reporting journey and build climate reporting capabilities. More details will be shared by MTI during their Committee of Supply.

8. "ACRA is committed to sustainability and environmental responsibility, and to making Singapore the best place for business. That is why we are working actively with SGX RegCo and the business community to advance climate reporting in Singapore, a crucial step in addressing the pressing challenges of climate change," said ACRA Chief Executive Mr Ong Khiaw Hong.

9. "SGX-listed issuers have had a head-start in climate reporting and many have seen its benefits. Companies are better equipped to meet demand from their lenders, customers and investors for sustainability-related information. They can also more readily access the growing pool of sustainable capital. These position Singapore well as a green economy," said Tan Boon Gin, Chief Executive Officer of SGX RegCo.

10. SGX RegCo will separately conduct a public consultation on the detailed rule amendments to implement the recommendation relating to listed issuers, including requiring CRD based on the ISSB Standards from FY2025.

[1] SRAC is set up by ACRA and SGX RegCo to advise on the roadmap for advancing companies' sustainability reporting in Singapore. After careful consideration of the feedback on SRAC's recommendations, ACRA and SGX RegCo have accepted the recommended roadmap with some refinements. ACRA and SGX RegCo's response to the public feedback is available at https://regco.sgx.com/regco/public-consultations/20230706-consultation-paper-recommendations-sustainability-reporting

[2] This is provided that conditions such as the large NLCo's activities are included within the parent company's report, which is available for public use, are met.

Attachments

Joint Media Release ACRA-SGX RegCo on Mandatory Climate-related Disclosure_FINAL.pdf
Total size =514K