Singapore has postponed the implementation of full climate-related disclosures for small and mid-sized listed companies, a decision that will impact the timeline for companies to adopt the new regulations. Originally planned for 2023, the full climate disclosure framework has now been pushed back, with the Singapore Exchange (SGX) stating that companies with a market capitalization of less than S$1 billion will have more time to comply, up to 2028.

This decision follows a broader trend of delays in the adoption of international sustainability standards in the region. The country’s regulators are taking a cautious approach to ensure that businesses are adequately prepared to meet the increasingly stringent environmental, social, and governance (ESG) standards. As per the latest announcement, small and mid-sized firms will be given a five-year extension on reporting under the International Sustainability Standards Board (ISSB) framework [1].

The delay is in response to feedback from companies that were concerned about the readiness of their internal systems to handle the new reporting requirements. These companies often lack the resources and expertise of larger counterparts to efficiently implement and track the data necessary for accurate climate disclosures [2]. As a result, the move reflects Singapore’s intention to balance climate-related regulatory ambition with the practical needs of its businesses, particularly in terms of their ability to integrate sustainability metrics into their operations.

Despite the delay, large listed companies in Singapore are still expected to meet the original deadlines for full climate disclosures. This decision highlights Singapore’s ongoing commitment to sustainable finance while ensuring that smaller firms are not unduly burdened by the rapid pace of regulatory change in the ESG landscape.

참조:

[1] “Singapore delays full climate disclosures for small and mid-sized listed companies.” The Straits Times.

[2] “Singapore delays ISSB reporting by up to five years.” Responsible Investor.