ESG Reporting Requirements in Singapore — Complete Guide 2026

What Is ESG Reporting and Why It Matters in Singapore

Environmental, Social, and Governance (ESG) reporting has moved from a voluntary “nice-to-have” to a regulatory imperative across Asia-Pacific — and Singapore is leading the charge. ESG reporting is the structured disclosure of how a company manages its environmental impact, social responsibilities, and governance practices. For Singapore businesses, this is no longer about goodwill. It is about compliance, investor confidence, and long-term competitiveness.

According to a 2024 KPMG survey, 96% of the world’s largest 250 companies now publish sustainability reports. In Singapore, the shift has been even more decisive: the Singapore Exchange (SGX) mandated sustainability reporting for all listed companies starting in 2016 and has steadily expanded the scope ever since. By 2025, climate-related disclosures aligned with international standards became compulsory for large listed issuers, with smaller issuers following from 2027.

For non-listed companies — including SMEs — the trend is equally clear. Banks, insurers, and major supply chains are now requesting ESG data from their partners and suppliers. Companies that cannot demonstrate credible ESG practices risk losing tenders, financing, and market access.

Singapore’s ESG Regulatory Landscape

Singapore’s approach to sustainability reporting is among the most structured in Southeast Asia. Here is what every business needs to know about the current and upcoming rules.

SGX Mandatory Sustainability Reporting

The Singapore Exchange has been at the forefront of ESG disclosure in the region. Key milestones include:

• 2016: SGX introduced mandatory sustainability reporting on a “comply or explain” basis for all listed companies.
• 2022: SGX upgraded the requirements — all issuers must now provide climate reporting based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Mandatory climate-related disclosures are required for issuers in the financial, energy, agriculture, and transport sectors from financial year 2024.
• 2025-2027: Phased mandatory adoption of International Sustainability Standards Board (ISSB) standards (IFRS S1 and S2) for all SGX-listed companies. Large-cap issuers lead from FY2025, with broader coverage by FY2027.

SGX also requires listed companies to subject their sustainability reports to internal review and, progressively, external assurance — a signal that the exchange expects the same rigour applied to financial reporting.

Climate-Related Disclosures and TCFD Alignment

The TCFD framework — now considered the global baseline for climate reporting — forms the backbone of SGX’s climate disclosure rules. Companies must report across four pillars:

1. Governance: How the board and management oversee climate-related risks and opportunities.
2. Strategy: The actual and potential impacts of climate risks on the company’s business model and strategy.
3. Risk Management: Processes for identifying, assessing, and managing climate-related risks.
4. Metrics and Targets: The metrics used to assess climate risks and the targets set to manage them, including Scope 1 and Scope 2 greenhouse gas emissions.

ISSB Standards Adoption (IFRS S1 and S2)

Singapore has committed to adopting the ISSB standards issued by the International Financial Reporting Standards (IFRS) Foundation. These are:

• IFRS S1 — General Requirements for Disclosure of Sustainability-related Financial Information: Requires companies to disclose material information about all sustainability-related risks and opportunities that could reasonably affect their cash flows, access to finance, or cost of capital.
• IFRS S2 — Climate-related Disclosures: Builds on the TCFD framework and requires specific climate disclosures including Scope 1, 2, and (where material) Scope 3 greenhouse gas emissions, scenario analysis, and transition plans.

The Accounting and Corporate Regulatory Authority (ACRA) and SGX are working together to develop Singapore-specific guidance that adapts the ISSB standards to the local context, with phased timelines for different types of companies.

Monetary Authority of Singapore (MAS) — Environmental Risk Management Guidelines

For financial institutions — banks, insurers, and asset managers — the Monetary Authority of Singapore has issued Environmental Risk Management Guidelines that require these institutions to integrate environmental risk into their governance, strategy, and risk management processes. MAS has also launched the Green Finance Action Plan, which positions Singapore as a green finance hub and supports the development of sustainability-linked financial products.

Expansion to Non-Listed Companies

While current mandatory reporting obligations apply primarily to listed companies, Singapore is preparing for broader coverage. ACRA has signalled that large non-listed companies will be required to make climate-related disclosures in the coming years. This aligns with global trends — the EU’s Corporate Sustainability Reporting Directive (CSRD) already applies to large non-listed entities, and Singapore is expected to follow a similar trajectory.

For SMEs, the practical impact is already here: banks now factor ESG performance into lending decisions, and large corporations increasingly require ESG disclosures from their supply chain partners as part of Scope 3 reporting obligations.

Key ESG Reporting Frameworks Used in Singapore

Singapore companies can choose from several internationally recognised frameworks. Here is a comparison of the most commonly used ones.

GRI Standards (Global Reporting Initiative)

The GRI Standards remain the most widely used sustainability reporting framework in Singapore and globally. GRI provides a comprehensive set of standards covering economic, environmental, and social topics. Key features include:

• Double materiality approach — considers both the company’s impact on the world and external factors’ impact on the company.
• Sector-specific standards for industries like oil and gas, mining, agriculture, and financial services.
• Modular structure — companies can report on the topics most material to their business.

TCFD Recommendations

The TCFD framework is focused specifically on climate-related financial risks and opportunities. It is the required framework for SGX climate reporting and is widely referenced by investors and regulators. While narrower than GRI, TCFD provides a clear, decision-useful structure for climate disclosure.

ISSB / IFRS S1 and S2

The ISSB standards are designed to become the global baseline for investor-focused sustainability reporting. They subsume the TCFD recommendations and are being adopted by Singapore as the primary standard for listed company reporting. ISSB standards focus on enterprise value — information that matters to investors and capital markets.

SGX Core ESG Metrics

In addition to the above frameworks, SGX has published a set of 27 core ESG metrics that all listed issuers are encouraged to report on. These include metrics on greenhouse gas emissions, energy consumption, water usage, waste generation, gender diversity, employee turnover, board independence, and anti-corruption training. These metrics serve as a minimum baseline and can be supplemented with framework-specific disclosures.

What Goes Into an ESG Report

A comprehensive ESG report covers three pillars, each with specific data points and narratives that stakeholders expect to see.

Environmental

• Carbon emissions: Scope 1 (direct), Scope 2 (energy-related indirect), and where feasible, Scope 3 (value chain) greenhouse gas emissions. Companies should report in tonnes of CO2 equivalent (tCO2e) and describe their methodology.
• Energy consumption: Total energy use broken down by source (renewable vs. non-renewable), energy intensity ratios, and targets for energy efficiency improvements.
• Waste management: Total waste generated, waste diversion rates (recycling, reuse), and hazardous waste handling procedures.
• Water usage: Total water withdrawal by source, water recycling rates, and water stress assessments where relevant.
• Biodiversity: Impact on ecosystems, land use change, and biodiversity management plans.

Social

• Workplace health and safety: Incident rates, lost-time injury frequency, fatality rates, and safety management systems. Companies with ISO 45001 certification have a structured framework for reporting on occupational health and safety performance — a significant advantage in ESG reporting.
• Diversity and inclusion: Gender balance across the organisation and board, pay equity data, and diversity targets.
• Labour practices: Employee training hours, fair wage policies, supply chain labour standards, and compliance with the Ministry of Manpower’s workplace regulations.
• Community engagement: Social investments, stakeholder engagement processes, and community impact assessments.

Governance

• Board structure: Board independence, diversity, ESG competence, and committee oversight of sustainability matters.
• Ethics and compliance: Anti-corruption policies, whistleblower mechanisms, data protection practices, and regulatory compliance track record.
• Risk management: Integration of ESG risks into the enterprise risk management framework, scenario analysis, and material risk disclosures.
• Executive compensation: Linkage between ESG performance metrics and executive remuneration.

Step-by-Step Guide to Preparing Your First ESG Report

If your company is preparing an ESG report for the first time, the process can seem overwhelming. Here is a practical, step-by-step approach used by Singapore companies across industries.

Step 1: Conduct a Materiality Assessment

Identify the ESG topics that are most relevant to your business and stakeholders. This involves engaging with key stakeholders — investors, employees, customers, regulators — to determine which environmental, social, and governance issues have the greatest impact on your business and the greatest importance to your stakeholders. Use a materiality matrix to prioritise topics.

Step 2: Select Your Reporting Framework

Choose the framework(s) that best align with your regulatory obligations and stakeholder expectations. For SGX-listed companies, ISSB standards and TCFD alignment are mandatory. For non-listed companies, GRI Standards are a widely accepted choice. Many companies use multiple frameworks to address different audience needs.

Step 3: Establish Your Data Collection Infrastructure

Set up systems to collect, verify, and manage ESG data across your organisation. This includes defining data ownership (who is responsible for which metrics), establishing measurement methodologies, setting baseline years, and implementing data quality controls. Many companies underestimate this step — poor data infrastructure is the single biggest barrier to credible ESG reporting.

Step 4: Set Targets and KPIs

Based on your materiality assessment, set measurable targets for your priority ESG topics. Targets should be specific, time-bound, and aligned with industry benchmarks or science-based pathways (e.g., Science Based Targets initiative for emissions reduction). Include both short-term (1-3 year) and long-term (5-10 year) targets.

Step 5: Draft the Report

Structure your report around your material topics. Include a board statement, a description of your ESG governance structure, performance data against your targets, and forward-looking statements on strategy and priorities. Use visuals — charts, infographics, and data tables — to make the report accessible. Keep the language clear and avoid greenwashing or vague claims.

Step 6: Obtain Assurance

Consider engaging an independent third party to provide limited or reasonable assurance on your ESG data and disclosures. SGX is progressively requiring external assurance for listed companies, and voluntarily obtaining assurance demonstrates credibility and commitment. Common assurance standards include ISAE 3000 and AA1000 Assurance Standard.

Step 7: Publish and Communicate

Publish the report on your website and (if listed) on SGXNet. Communicate key findings and progress to stakeholders through investor presentations, internal communications, and public channels. Use the report as a strategic tool — not just a compliance document.

Common Mistakes Singapore Companies Make in ESG Reporting

Having worked with companies across sectors, we see several recurring pitfalls that undermine reporting quality and credibility.

1. Treating ESG Reporting as a Compliance Checkbox

Companies that approach ESG reporting purely as a regulatory obligation produce reports that lack strategic depth. Investors and stakeholders can tell the difference between a compliance-driven report and one that reflects genuine integration of ESG into business strategy.

2. Inadequate Data Infrastructure

Many companies start writing the report before establishing reliable data collection processes. This leads to gaps, inconsistencies, and last-minute scrambles. Invest in data systems early — ideally 6-12 months before your first reporting deadline.

3. Ignoring Scope 3 Emissions

While Scope 1 and 2 emissions are relatively straightforward to measure, Scope 3 (value chain emissions) often represents the largest share of a company’s carbon footprint. Companies that ignore or significantly understate Scope 3 risk losing credibility with sophisticated investors and facing challenges when ISSB requirements fully take effect.

4. Vague Targets Without Timelines

Statements like “we aim to reduce our carbon footprint” without specific targets, timelines, and baselines are meaningless. Stakeholders expect quantified targets with clear deadlines and progress tracking.

5. Overlooking the “S” and “G” in ESG

Many companies focus heavily on environmental metrics while giving social and governance topics superficial treatment. Workplace safety, labour practices, board diversity, and ethical governance are equally critical — especially in Singapore’s regulatory context.

6. No Stakeholder Engagement

A materiality assessment without meaningful stakeholder engagement produces a report that reflects the company’s assumptions rather than actual stakeholder priorities. Engage broadly and document the process.

How Sage Shield Helps with ESG Reporting and Sustainability Compliance

At Sage Shield Safety Consultants, we help Singapore businesses navigate the complexities of ESG reporting with practical, results-oriented consulting services. Our approach bridges the gap between regulatory requirements and operational reality.

Our ESG Reporting Services cover the full reporting lifecycle — from materiality assessment and data infrastructure setup to report drafting and assurance readiness. We work with both listed and non-listed companies across sectors including construction, manufacturing, logistics, food and beverage, and professional services.

For companies seeking a comprehensive approach to sustainability, our Sustainability Consulting Services integrate ESG reporting with environmental management systems, carbon footprint assessments, and sustainability strategy development.

We also help companies strengthen the foundational management systems that underpin credible ESG reporting — including ISO 45001 (Occupational Health and Safety), ISO 14001 (Environmental Management), and ISO 9001 (Quality Management). Having certified management systems in place significantly streamlines ESG data collection, improves reporting quality, and demonstrates credible governance to investors and regulators.

Contact Sage Shield today to discuss how we can support your ESG reporting journey — whether you are preparing your first sustainability report or looking to elevate your existing disclosures to meet evolving regulatory standards.

Call us at +65 8332 8220 or WhatsApp us for a no-obligation consultation.

Frequently Asked Questions About ESG Reporting in Singapore

Who is required to do ESG reporting in Singapore?

Currently, all companies listed on the Singapore Exchange (SGX) are required to publish sustainability reports. From 2025, mandatory climate-related disclosures aligned with ISSB standards are being phased in for listed companies. Non-listed large companies are expected to face mandatory climate reporting requirements in the coming years as ACRA expands the scope.

What is the difference between ESG reporting and sustainability reporting?

The terms are often used interchangeably. Sustainability reporting is a broader concept that encompasses environmental, social, and economic performance. ESG reporting specifically focuses on the Environmental, Social, and Governance factors that investors and regulators use to assess a company’s non-financial risks and opportunities. In practice, a sustainability report typically covers ESG topics.

Which ESG framework should my company use?

For SGX-listed companies, ISSB standards (IFRS S1 and S2) and TCFD alignment are mandatory. For non-listed companies in Singapore, the GRI Standards are the most widely adopted and provide comprehensive coverage. Many companies use multiple frameworks — for example, GRI for broad stakeholder reporting and ISSB for investor-focused climate disclosures.

How long does it take to prepare an ESG report for the first time?

A first-time ESG report typically takes 4 to 8 months from start to publication, depending on the company’s size, data readiness, and chosen framework. The materiality assessment and data collection phases usually take the longest. Companies that engage a consultant early in the process can significantly reduce the timeline and avoid common pitfalls.

Do SMEs in Singapore need to do ESG reporting?

Currently, ESG reporting is not mandatory for SMEs in Singapore. However, many SMEs are finding it increasingly necessary due to supply chain requirements from larger clients, bank ESG assessments for financing, and government grant eligibility criteria. Starting with a simplified ESG report — focusing on the most material topics — is a practical approach for SMEs.

How much does ESG reporting cost?

The cost varies significantly based on company size, reporting scope, data readiness, and whether external assurance is sought. For a meaningful estimate tailored to your company’s situation, we recommend speaking with our consultants who can assess your current readiness and scope the work required. Contact us for a no-obligation discussion.