Singapore’s SGX RegCo to align with ISSB’s climate standards by year-end

September 8, 2023

The Singapore Exchange Regulation (SGX RegCo) is gearing up to review any necessary modifications to its present listing rules by the conclusion of this year.

These ISSB standards, known as IFRS S1 and S2, are geared towards acquiring information about a corporation’s strategy, specifically its climate transition plan. Notably, these standards align with the guidelines set out by the Task Force on Climate-related Financial Disclosures (TCFD), which produced a transition guide in October 2021. The combined efforts of the ISSB and TCFD have effectively formulated a unified approach to convey the impact of climate-related risks and possibilities on a business’s future prospects.

Ahead of confirming its final recommendations, slated for 2024, SGX RegCo is set to take into account the insights received by the Sustainability Reporting Advisory Committee (SRAC). This feedback comes from the committee’s public consultation, initiated in July, which aims to make climate-related disclosures compulsory for companies incorporated in Singapore.

SRAC, which is an initiative steered by the Accounting and Corporate Regulatory Authority (Acra) and SGX RegCo, was established in June 2022. Its chief purpose is to provide guidance on progressing sustainability reporting for Singapore-based firms. SRAC’s proposals, shared on July 6, advocate for ISSB-compliant climate-related disclosures for listed entities starting FY2025, with non-listed businesses that have an annual turnover surpassing $1bn adopting the same by FY2027. This consultation phase is set to wrap up on September 30.

SGX RegCo CEO Tan Boon Gin, and head of the sustainable development office Michael Tang, who also oversees listing policy and product admission, expressed that transparent transition plans will significantly benefit businesses. Tan Boon Gin and Michael Tang emphasised, “Companies will also find it easier to plug into global supply chains if they are able to meet international supplier due diligence requirements.”

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