The Singapore Business Federation (SBF) is urging regulators to grant a 12- to 24-month extension for smaller Singapore Exchange (SGX)-listed firms to comply with the International Sustainability Standards Board (ISSB) climate reporting rules. These disclosures, crucial for advancing ESG transparency and carbon neutral strategy alignment, are currently set to begin for financial years starting January 1, 2025. 

However, an SBF engagement with nearly 40 companies revealed that only 4% feel ready for the 2025 deadline. Smaller and mid-cap firms—representing 84% of SGX listings—cited significant challenges such as limited understanding of ISSB standards, lack of internal systems, and insufficient resources. 

SBF highlighted that the broader scope and complexity of ISSB standards—compared to previous TCFD guidelines—pose a heavy burden for smaller firms. To address this, SBF recommends a phased approach to help businesses build capabilities, improve data processes, and benefit from early learnings by larger companies. 

Key proposals include: 

• Proportional reporting standards tailored to company size and maturity 

• Sector-specific guidance and standardized climate disclosure templates 

• Access to the Sustainability Reporting Grant (SRG) before the rules take effect 

• A centralized digital reporting platform for efficient ESG data submission and benchmarking

SBF CEO Kok Ping Soon emphasized, “This is not a retreat from climate goals but a practical step to help smaller firms comply meaningfully.” 

The proposal aims to uphold Singapore’s ESG leadership while supporting realistic adoption of carbon neutral strategies. SBF is working with SGX RegCo, ACRA, and Enterprise Singapore to ensure a collaborative transition that enables compliance without compromising competitiveness or credibility. 

By addressing proportionality and digital enablement, Singapore seeks to ensure its entire market can advance together on the path toward sustainable, transparent business practices. 

Sources: 

https://esgnews.com/singapore-calls-for-deadline-extension-on-issb-climate-reporting-for-smaller-listed-firms/ 

https://www.esgtoday.com/singapore-companies-ask-to-delay-mandatory-climate-reporting-for-smaller-businesses/