Climate and Sustainability Leader, Advisor, and Expert; Founder- D. A. Carlin and Company
It’s official! Singapore is implementing mandatory climate disclosure aligned to the International Sustainability Standards Board (ISSB)! The Asian financial hub’s requirements will start with listed companies in 2025, followed by large, non-listed companies in 2027. Listed companies are required to report on Scope 1 and 2 emissions in the first year, and on Scope 3, or value chain emissions, in 2026, and to obtain external limited assurance on Scope 1 and 2 GHG emissions two years after beginning reporting. A similar timeline is foreseen for large, non-listed companies. Further guidance may be forthcoming on SMEs. Great to see Singapore’s continued support in this space! https://lnkd.in/ep8kfgUY. #climate #climaterisk #climatedisclosure #sustainabilitystandards #issb #reporting #esgreporting
The limited assurance point is an interesting one. International Sustainability Standards Board (ISSB) is still focused on producing the ISSA 5000. I hope this means that sustainability assurance will be open to a larger scope of players than traditional financial audit firms. Yuen Teen Mak you always have something insightful to add :)
What have I missed? I thought this was reported in February? https://www.ey.com/en_sg/news/2024/06/nearly-all-96-of-singapore-listed-companies-have-commenced-climate-related-reporting-efforts-up-from-65-that-did-so-last-year
It's an exciting step which will start to work out the positives and, equally, start to unravel some of the challenges. Of note (in the mix) is to observe how data rights are managed, how privacy and confidentiality are maintained, how liabilities manifest, how the data is utilised and for what purposes. Singapore has a very different perspective on such rights to, for example, the EU. There are consequences to market-wide data sharing.
So much to do here! But was great news to see this announcements. Personally, timeline is still a little longer than I wished for but hopefully a good push nonetheless.
It’s a good starting move to request the emission disclosure at mandatory level. The data will tell us a trend and guide policymakers to make concrete actions. The Singapore policy shall set good examples for other Asian countries and the rest of world.
If companies don't want to take eco-sustainability seriously on their own, then regulatory measures are welcome.
It would be interesting to see how organisations manage to track and account for their Scope 3 emissions in this short span of time. I see a huge market opportunity here!
Director, Sustainability Data - Matter
1moThe decision to include non-listed companies is critical. The private space is way to opaque across the world and we need more data from private issuers.