• ACRA has opened consultation on Singapore’s draft sustainability disclosure standards until 25 October 2026, aligning the framework closely with ISSB requirements.
• Climate reporting under SFRS S2 would be mandatory, while broader sustainability disclosures under SFRS S1 would remain voluntary.
• Singapore is pairing disclosure rules with assurance training, subsidies and grants as companies prepare for phased reporting requirements through 2032.

The Accounting and Corporate Regulatory Authority has opened public consultation on draft sustainability disclosure standards that will shape Singapore’s mandatory climate reporting regime.

The consultation runs from 27 July to 25 October 2026. It gives companies, investors, assurance providers and professional bodies an opportunity to influence the final requirements.

The standards form part of Singapore’s phased approach to climate disclosure and assurance. They are designed around the International Sustainability Standards Board framework, while incorporating adjustments for local implementation.

For companies and investors, the proposal provides greater clarity on the information that will eventually sit alongside financial reporting. It also sets out how Singapore intends to balance global comparability with reporting readiness.

Singapore adopts a climate-first model

The draft Singapore Sustainability Disclosure Standards contain two standards.

Singapore Financial Reporting Standards S1 covers general sustainability-related financial information. It is based on IFRS S1.

SFRS S2 covers climate-related disclosures and is based on IFRS S2.

However, the two standards would not carry the same regulatory weight. ACRA proposes making SFRS S2 mandatory while keeping SFRS S1 voluntary.

The approach reflects Singapore’s decision to prioritise climate information before expanding mandatory reporting across wider sustainability topics.

The draft framework also includes transition reliefs and a statement of compliance tailored to Singapore’s implementation roadmap.

ACRA and Singapore Exchange Regulation began developing that roadmap in 2022. Authorities subsequently adjusted the timetable in August 2025, giving companies additional time to build reporting capabilities.

The changes were significant for smaller listed companies and large private businesses.

Scope 3 reporting will initially remain voluntary for non-Straits Times Index companies. Other ISSB-based climate disclosures will begin in FY2028 for non-STI companies with market capitalisations above $1 billion.

For listed companies below that threshold, those requirements begin in FY2030.

Large non-listed companies will begin mandatory Scope 1 and Scope 2 emissions reporting in FY2030. Their Scope 3 reporting remains voluntary.

External assurance over Scope 1 and Scope 2 disclosures has also been delayed. Listed companies will face assurance requirements from 2029, while large non-listed companies will follow from FY2032.

Assurance capacity becomes a policy priority

Alongside the consultation, ACRA launched its Sustainability Assurance Body of Knowledge.

The framework identifies competencies needed by professionals providing sustainability assurance. It is intended to guide training providers as demand grows for credible verification of corporate climate information.

ACRA will work with the Skills and Workforce Development Agency and training providers on related programmes.

Existing support also includes courses aligned with the Sustainability Reporting Body of Knowledge. Course fees under the SkillsFuture Green Workplace Programme can be subsidised by up to 90%.

The government’s Sustainability Reporting Grant provides further support. It currently helps companies prepare their first sustainability reports incorporating ISSB Standards.

ACRA said the grant will be reviewed after Singapore’s final disclosure standards are completed.

Mrs Chia-Tern Huey Min, Chief Executive of ACRA, said, “Meeting the mandatory climate reporting and assurance requirements is a multi-year journey for preparers and assurance providers alike. The launch of the draft disclosure standards, which are aligned with the ISSB Standards but include adjustments to reflect Singapore’s climate-first approach, is an important milestone in this journey. This gives clarity and certainty on the reporting requirements so that the industry can move ahead with confidence. To support companies’ implementation, ACRA has launched the Sustainability Assurance Body of Knowledge, over and above the Sustainability Reporting Body of Knowledge published in May 2025, to guide preparers and assurance providers on the requirements, and will continue to take an educational approach as the industry builds up capabilities.”

Climate disclosure moves deeper into corporate strategy

The consultation also reflects a broader shift in how Singapore expects businesses to treat climate information.

“Climate reporting is no longer just a compliance exercise – it is a strategic imperative”, said Ms Esther An, Co-Chairperson, Interim SSC. “The disclosure standards will give companies a clear and consistent framework to measure, manage and communicate their climate-related risks and opportunities. The Interim SSC aims to develop disclosure standards that are both internationally credible and practical for Singapore’s context.”

For boards and investors, that means climate data will increasingly influence governance, risk management and capital allocation.

Mr Max Loh, Co-Chairperson, Interim SSC, said, “Developing the disclosure standards is a critical step in building a trusted and transparent reporting ecosystem in Singapore. The draft disclosure standards strike a balance between international alignment and practical relevance for businesses here in Singapore. I encourage all stakeholders – from companies to investors and professional bodies – to share their views so that the Interim SSC can develop disclosure standards that are fit for purpose.”

Singapore’s approach gives companies more implementation time while preserving alignment with global disclosure architecture. For international investors, that alignment could improve comparability across markets as ISSB-based reporting expands.

The consultation will determine how Singapore converts that global framework into domestic requirements, and how quickly climate information becomes embedded in mainstream corporate reporting across one of Asia’s leading financial centres.