We’ve followed the journey of many global economies as they transition to ISSB-based sustainability reporting. After the ISSB published its IFRS 1 and 2 standards, Singapore announced that it would adopt mandatory reporting in line with them. However, last year, the country announced it was taking a step back and reassessing its approach, delaying reporting for some companies up to five years. Now, the country’s Accounting and Corporate Regulatory Authority (ACRA) announced it is beginning a public consultation on new draft Singapore Sustainability Disclosure Standards. ESG Today reports:
“The new draft standards include Singapore Financial Reporting Standards (SFRS) S1 and SFRS S2, which correspond to the IFRS Foundation’s ISSB’s S1 (sustainability-related) and S2 (climate-related) standards. The IFRS released the inaugural general sustainability and climate reporting standards in June 2023.
While broadly aligning with the ISSB standards, ACRA noted several adjustments in its proposed standards, most notably leaving SFRS S1 reporting voluntary, and leaving Scope 3 reporting for most companies out of the mandatory requirements initially.”
Despite being ISSB-based, the standards are significantly watered down compared to Singapore’s initial plan. The scoping scheme used in the Singapore Sustainability Disclosure Standards is complex and companies that may fall in scope should review it carefully. The drafts require some in-scope companies to issue reports later this year, while other requirements will not phase in until as late as 2032.
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