The Singapore Business Federation (SBF) has proposed extending the compliance deadline for International Sustainability Standards Board (ISSB)-based climate-related disclosures for smaller listed companies in Singapore. This recommendation follows feedback from nearly 40 companies on the Mainboard and Catalist boards, who expressed concerns about meeting the mandatory climate reporting requirements set to begin for financial years starting on or after 1 January 2025.
SBF’s recommendations aim to address the challenges faced by small- and mid-cap companies, which make up 84% of listings on the Singapore Exchange (SGX). The federation suggests granting these companies an additional one to two years to comply, making disclosure requirements proportionate to their size, providing Singapore-specific guidance, and establishing a central platform for digital reporting.
The feedback revealed that only 4% of the engaged companies are confident in meeting the current timeline. Many cited a lack of understanding of the disclosure requirements and insufficient resources to build the necessary internal capabilities. The SBF believes that extending the deadline would allow these companies to enhance their data collection processes and learn from the larger companies’ reports due in FY2025.
Kok Ping Soon, CEO of SBF, stated, “Our key recommendation is to extend their compliance deadline. This does not represent a step back from Singapore’s climate reporting ambitions, but is a practical measure to provide smaller ListCos more time to strengthen internal readiness.”
The SBF remains committed to collaborating with stakeholders, including SGX RegCo and other government agencies, to support the business community in preparing for climate-related risks and opportunities.
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