Singapore's climate reporting rises, but net-zero commitments lag

Climate reporting efforts began for 96% of issuers in FY 2023.

Nearly all Singapore-listed companies have begun reporting climate-related disclosures, EY reported.

According to EY, 96% or 346 of 362 issuers have commenced climate-related reporting efforts for the financial year ending 31 December 2023 (FY 2023).

In FY 2022, only 65% or 370 issuers began reporting climate-related disclosures.

Between FY2022 and FY2023, there was a 44% rise in companies adhering to the SGX climate-related disclosure mandate.

More companies in both mandated industries like agriculture and energy, as well as non-mandated sectors, are reporting climate-related disclosures.

Within the mandated industries, nearly 100% have provided some form of climate-related disclosures.

By sector, energy and financials lead, with 100% of companies already reporting climate-related disclosures, followed by agriculture (97%), materials and buildings (96%), and transportation (94%).

The percentage of non-mandated industries reporting rose significantly to 93% in FY 2023 from 56% in FY 2022.

Meanwhile, the EY report found that 83% of issuers disclosed climate-related risks and opportunities in their FY 2023 report, up from 80% in FY 2022.

More than 95% of companies in mandated industries reported climate-related risks in FY 2023, compared to 77% in FY 2022.

The percentage of companies also reporting climate-related opportunities rose to 65% in FY 2023 from 47% in FY 2022.

Although many adhere to the climate disclosure mandate, only 21% of issuers have committed to net-zero emissions, with 32% disclosing their transition plans.

"While it’s heartening to see that some issuers are making efforts to cite their transition plans, it needs to go beyond broad-based statements to include an implementation plan with timebound actions that are linked to interim targets and metrics to monitor progress, as well as any capital deployments required to realize that plan," Nhan Quang (仁广), partner, Climate Change and Sustainability Services at Ernst & Young LLP, said.

Quang also underscored that "more needs to be done – and done quickly – to stay ahead of proposed ISSB-aligned climate disclosures requirement in SGX RegCo’s public consultation paper."

In March 2024, SGX RegCo proposed that all SGX-listed issuers provide climate-related disclosures aligned with the ISSB standards from FY 2025.