Singapore’s climate disclosure regime set to boost Asia green finance

Singapore is preparing to flip the switch on mandatory climate disclosures, but not all at once.

In August, the Accounting and Corporate Regulatory Authority (Acra) and Singapore Exchange Regulation (SGX RegCo) announced changes to the rollout. All listed companies will still report scope 1 and 2 greenhouse gas emissions from FY2025, and the largest listed firms must disclose scope 3 value chain emissions from FY2026.

However, for most companies, disclosures based on International Sustainability Standards Board guidelines have been delayed by up to five years, and scope 3 reporting will remain voluntary until further notice.

This recalibration underscores the balancing act Singapore faces: moving decisively towards global standards, while recognising the resource burden disclosure places on smaller players. The time extension would give SMEs and mid-sized firms more time to prepare and build up the necessary capabilities in sustainability reporting and learn from larger companies.

Climate disclosure is not just a compliance exercise; it signals whether markets are ready for the transition. Singapore’s regulators have made clear that while timelines may shift, the commitment to transparency will not. By pacing reforms, the city-state ensures disclosures focus on materiality – meaningful, comparable and credible disclosures rather than a box-ticking exercise.

Robust frameworks also give investors’ confidence. Transparent reporting shows whether companies can manage emerging risks and whether capital can flow efficiently into sustainable opportunities. In markets, trust is currency, and Singapore is building it deliberately.

Digital infrastructure as a competitive advantage

What sets Singapore apart is its investment in the digital backbone of disclosure. Initiatives such as Gprnt (formerly Project Greenprint) connect sustainability data, reporting platforms and financial institutions into one ecosystem. By embedding technology into reporting, Singapore transforms disclosure from a regulatory requirement into a market-confidence driver.

Companies, investors and regulators alike benefit when disclosures are automated, verifiable and linked to financial systems. Inconsistent or fragmented reporting slows investment and undermines confidence; Singapore’s approach aims to address this upfront.

Progress is not assured by disclosure regimes alone. Without robust systems, data can be fragmented, unverifiable and ultimately of little use to the capital markets that rely on them.

That is why global initiatives such as the Carbon Market Infrastructure Working Group, convened by the World Bank (workstreams of which were co-chaired by Xpansiv and S&P Global Commodity Insights) set benchmarks for transaction integrity, governance and information security. These efforts provide guidance for developing a reliable, interoperable infrastructure for carbon markets

For institutional investors managing risk and allocating capital, the bar is high: climate disclosure must meet the same rigour as financial markets. Transparent workflows, clear data provenance, scalable architecture and strong security compliance frameworks are essential.

Singapore’s phased rollout does not compromise ambition; it arguably helps strengthen credibility, by ensuring that the quality of reporting aligns with ISSB benchmarks before broader rollout.

Singapore as a regional exemplar

Other Asia-Pacific markets are steadily making progress too. Australia has commenced mandatory reporting from 2025, Japan is leveraging technology and exports to help drive climate action, and South Korea aims to blend emissions trading with disclosure strategies. Yet Singapore is distinctive in linking policy, infrastructure and flexibility.

By pacing requirements for smaller companies, Singapore ensures broader compliance without overwhelming resources. Meanwhile, the largest listed firms pioneer scope 3 reporting, setting benchmarks for supply-chain transparency that will gradually draw in smaller companies across their supply-chain. This sequencing fosters participation while maintaining credibility, establishing a practical model for other markets.

Singapore’s experience illustrates a broader lesson: disclosure is not an end in itself, but it is an important component to well-functioning capital markets. By combining phased reporting, digital infrastructure and global alignment, the country is building a climate finance ecosystem capable of attracting institutional capital and spurring innovation.

The delays announced by Acra and SGX RegCo are positioned as a strategic recalibration intended to build stakeholder support. This approach ensures that climate and sustainability reporting is meaningful and that market participants have the systems, skills and processes to deliver credible disclosures.

If Singapore continues on this path, it will not only meet today’s disclosure requirements but also contribute to the development of global standards for reliable, trustworthy climate markets – an outsized contribution to the world’s net-zero transition.

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