Large listed companies in Singapore are making strides in climate reporting, according to a new study released on July 8. The study, conducted by the Accounting and Corporate Regulatory Authority (Acra) and the Sustainable and Green Finance Institute at the National University of Singapore, evaluated climate-related disclosures of 51 major companies based on the Task Force on Climate-related Financial Disclosures (TCFD) framework for the 2022 financial year. 

Key findings indicate that companies with a market capitalization over $1 billion are excelling in areas such as establishing climate risk committees and disclosing both physical and transitional climate risks. However, the study noted a need for better integration of climate risks into financial strategies. 

Singapore is set to mandate climate reporting in phases starting from the financial year 2025 for listed companies, aligning with International Sustainability Standards Board (ISSB) requirements. This mandate will extend to non-listed companies with significant annual revenue and assets by 2027. 

A separate report by EY, also released on July 8, showed a significant increase in climate reporting efforts among Singapore-listed companies, rising from 65% to 96% year-on-year. 

Governance emerged as a strong point, with 75% of companies fully disclosing board involvement in climate matters. For instance, Singtel Group provided detailed governance disclosures, including climate-related roles and key performance indicators linked to compensation. Despite these advances, only 16% of firms fully disclosed how they incorporate climate change into financial strategies. 

Acra assistant chief executive Kuldip Gill emphasized the importance of board involvement and alignment with global standards like ISSB to drive long-term growth and resilience. The study also found that while most companies disclosed Scope 1 and 2 greenhouse gas emissions, progress in reporting Scope 3 emissions was slower, and less than 10% tied executive pay to climate performance. 

Sources: 

https://www.humanresourcesonline.net/larger-listed-companies-in-singapore-are-making-good-progress-in-climate-reporting-study 

https://www.straitstimes.com/business/companies-markets/s-pore-s-large-listed-companies-making-good-progress-in-climate-reporting-study