In today’s global business landscape, sustainability has evolved from a buzzword to a core strategic priority. Companies are expected to not only deliver financial returns but also demonstrate environmental and social responsibility.
As Singapore moves toward becoming a green economy, publishing sustainability reports has become essential for companies seeking to maintain transparency, credibility, and long-term resilience.
What is sustainability reporting?
Sustainability reporting is a type of non-financial reporting that allows companies to inform various stakeholders about the company’s sustainability measures. These measures span from environmental issues to social and governance metrics. The aim is to provide a clear picture of the progress, the risks associated, and the impact created or will create on the future.
Additionally, preparing a formal sustainability report allows the company to provide concrete evidence that they are taking the actions to which they have committed.
Why is sustainability reporting important?
- Enhancing Risk Management
Sustainability is being recognized as a core element of long-term business resilience. As risks tied to climate change, resource depletion, and evolving social expectations grow, sustainability reporting helps organizations identify and address these challenges early on.
For instance, the Carbon Disclosure Project (CDP) reports that 52% of companies have identified climate-related risks that could significantly impact their operations or strategy. At the same time, 63% of firms highlighted climate-related opportunities, demonstrating how structured reporting can uncover both potential threats and areas for value creation.
- Drive efficiency and cost
Monitoring sustainability metrics often reveals inefficiencies that can be corrected. By addressing these inefficiencies, businesses can lower operating costs, especially when sustainability reporting is aligned with energy efficiency programs or more sustainable procurement approaches.
- Helps in strategic decision making
In today’s environment, where businesses are under pressure from regulators, investors, and consumers alike, decisions must be made with greater clarity and foresight. A well-developed sustainability report offers valuable insights into a company’s ESG performance and emerging risks, supporting more informed decision-making across the organization.
It also enables companies to stay ahead of regulatory developments. For example, as mandatory climate-related disclosures become more common globally, companies that already have formal reporting systems in place are better equipped to adapt and comply.
- Build stakeholder trust and engagement
Transparency has become a baseline expectation.
Sustainability reports based on global standards provide a verified and consistent way to communicate a company’s commitments and actions on key issues like climate responsibility, equity, and ethical sourcing.
- Investor appeal
With ESG criteria playing a growing role in investment decisions, clear and credible sustainability reports allow investors to better assess a company’s risk exposure, governance quality, and growth potential.
Overall, sustainability reporting signals that the business is forward-thinking, well-managed, and aligned with global sustainability expectations, making it a more attractive and trustworthy investment option.
Is Sustainability Reporting Required in Singapore?
As per the guidelines by Singapore Exchange (SGX) mandatory sustainability reporting requirements are being implemented in a phased manner, which is as follows.
Standards |
Timeline for listed companies |
Timeline for large non-listed companies |
|---|---|---|
CRD including Scope 1 and 2 GHG emissions
|
FY2025
|
FY2027
|
CRD for Scope 3 GHG emissions
|
FY2026
|
No earlier than 2029
|
External limited assurance on Scope 1 and 2 GHG emissions
|
FY2027
|
FY2029
|
These reports need to be aligned with the TCFD (Task Force on Climate-related Financial Disclosures) framework. You can read more about this framework here.
Additionally, you can learn about how you can transition to the ISSB, the standards being used in Singapore for sustainability reports, here.
However, in general your report should include the following –
- Environmental data: This will include data about carbon emissions, energy use, water consumption, etc.
- Social indicators: This is about employee well-being, diversity, and community engagement.
- Governance practices: This section will include company actions and policies about corporate ethics, risk management, and board diversity.
Government programs to support ESG compliance
The government is offering support to help businesses adopt green practices and prepare sustainability reports in Singapore. Some of these are as follows –
- Enterprise Sustainability Program: This program offers courses to help SMEs develop sustainability capabilities and capture new opportunities through sustainable practices.
- Sustainability Reporting Grant: This grant is providing support for Singapore-incorporated companies to produce their first ISSB aligned sustainability report in Singapore before compliance for mandatory climate-related disclosures sets in.
Through this, companies can fund up to 30% of qualifying costs (capped at S$150,000, whichever is lower).
- Singapore Green Plan 2030: This plan outlines Singapore’s national roadmap for sustainability. This will allow companies to adopt green practices in line with the national goals.
Sustainability reports are more than a compliance exercise. It has become a strategic tool for building resilience, improving transparency, and unlocking long-term value. In Singapore, where regulatory expectations and ESG consciousness are growing rapidly, businesses that adopt sustainability reporting early will be better positioned to lead in the evolving economy.