A recent analysis reveals that a significant number of companies listed in Singapore are not yet prepared to meet the International Sustainability Standards Board (ISSB) requirements, which will become mandatory in the financial year 2025. The ISSB standards aim to enhance transparency and accountability in sustainability reporting, a crucial step as global focus on environmental, social, and governance (ESG) issues intensifies.
The report highlights that many firms are struggling to align their current reporting practices with the forthcoming standards. This lack of readiness could pose challenges for companies seeking to maintain investor confidence and comply with international expectations. The ISSB standards are designed to provide a comprehensive framework for sustainability reporting, ensuring that companies disclose relevant ESG information in a consistent and comparable manner.
The impending changes underscore the need for Singapore-listed companies to accelerate their efforts in adopting robust sustainability practices. As the deadline approaches, companies will need to invest in necessary resources and expertise to meet the new requirements. This transition is not only vital for regulatory compliance but also for enhancing corporate reputation and competitiveness in the global market.
In conclusion, with the ISSB standards set to take effect in FY 2025, Singapore-listed companies face a pressing need to bridge the gap in their sustainability reporting capabilities. The move towards more stringent reporting standards reflects a broader trend towards greater corporate accountability and transparency in addressing ESG concerns.
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