ACRA consults on Singapore’s Sustainability Disclosure Standards

In May 2025, the Accounting and Corporate Regulatory Authority (ACRA) established an Interim Sustainability Standards Committee (the Interim SSC) to develop the Singapore Sustainability Disclosure Standards (the Singapore SDS), as well as sustainability assurance, ethics and independence standards.

On 27 July 2026, the Interim SSC published a consultation paper on the exposure drafts of the Singapore SDS. 

At present, Singapore’s mandatory climate reporting regime applies to all issuers listed on the Singapore stock exchange (SGX) in phases from FY2025 and, from FY2030, to large non-listed companies in Singapore.

The Singapore SDS have been developed based on the International Sustainability Standards Board’s (ISSB) IFRS standards and are a further step in Singapore’s implementation of its sustainability reporting regime.  For further information, see our ESG Quick Guide: Singapore: Mandatory climate reporting regime. 

What has been published?

The Interim SSC published a consultation paper (the Consultation Paper) on the exposure drafts of the Singapore SDS, comprising:

• draft Singapore Financial Reporting Standard (SFRS) S1 General Requirements for Disclosure of Sustainability-related Financial Information (draft SFRS S1) (Annex B to the Consultation Paper); 

• draft SFRS S2 Climate-related Disclosures (draft SFRS S2) (Annex C to the Consultation Paper); and 

• Summary of Key Differences between the ISSB Standards and the Draft Singapore SDS (Annex D to the Consultation Paper).

Are the Singapore SDS mandatory or voluntary?

Under the proposed two-standards structure:

• the draft SFRS S2 will be a mandatory standard covering climate-related disclosures for entities subject to Singapore’s phased mandatory climate reporting requirements; and

• the draft SFRS S1 will be issued as a voluntary standard - entities may choose to report broader sustainability-related financial disclosures beyond climate but are not required to do so.

The climate-relevant provisions of draft SFRS S1 are incorporated into the draft SFRS S2 as Appendix D, so that the draft SFRS S2 can operate as a standalone standard. Companies subject to mandatory climate reporting will, therefore, only need to refer to SFRS S2.

Who does the Singapore SDS apply to?

The Singapore SDS will apply to Singapore-incorporated companies subject to mandatory climate reporting requirements. 

Mandatory climate reporting is being phased in, and companies will only be required to comply with the requirements that are mandatory at each stage of Singapore’s implementation roadmap, starting with listed companies (tiered by market capitalisation), followed by large non-listed companies. For further information on the application thresholds and the phased introduction of the mandatory climate-related disclosure requirements, see our ESG Quick Guide: Singapore: Mandatory climate reporting regime. 

When do the Singapore SDS apply?

The draft Singapore SDS have been published without specifying an effective date to allow flexibility as to when the standards will be formally issued and the passage of legislation. The Consultation Paper explains that ACRA is currently preparing the necessary legislation to implement Singapore’s climate reporting and assurance requirements. 

Although the draft SFRS S2 sets out the full suite of climate-related disclosure requirements, the Consultation Paper explains that companies will only be required to comply with the requirements that are mandatory at each stage of Singapore’s implementation roadmap. 

In the interim, prior to issuance of the Singapore SDS, listed companies will continue to report in accordance with their existing obligations under the SGX Listing Rules, including the requirement to make annual climate-related disclosures using requirements aligned with the ISSB Standards.

Subject to applicable legislation being passed and the standards being finalised, the Consultation Paper states that the Singapore SDS is expected to apply as follows:

• for listed companies: from financial years commencing on or after 1 January 2028; and

• for large non-listed companies: from financial years commencing on or after 1 January 2030.

What do the Singapore SDS require?

Draft SFRS S1 

• Sets out overarching requirements for a company to disclose information about sustainability-related risks and opportunities that is useful to users of general purpose financial reports.

• Is designed to underpin all other ISSB / SFRS standards in terms of setting scope, objective, core content, and presentation requirements.

• Uses the same the four pillars as the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations in requiring entities to make disclosures about governance, strategy, risk management, metrics and targets.

• SFRS S1 has will be issued as a voluntary standard - entities may choose to report on broader sustainability-related financial disclosures beyond climate but are not required to do so.

Draft SFRS S2 

• Sets out additional requirements that relate to climate-related risks and opportunities.

• Incorporates, and builds on, the TCFD Recommendations.

• Requires disclosure of Scope 1, 2 and 3 greenhouse gas (GHG) emissions. However, reliefs apply for the disclosure of Scope 3 emissions (see below). 

• Requires disclosure of (among other things): physical risks resulting from climate change; transition risks associated with the transition to a lower-carbon economy (which could include regulatory, technological, market, legal or reputational risks); and climate-related opportunities available to the entity.

• It operates as a standalone standard, incorporating the climate-relevant portions of draft SFRS S1. Entities subject to mandatory climate reporting requirements therefore only need to refer to SFRS S2. 

Interaction with the SGX Listing Rules

The SGX Listing Rules currently require listed companies to prepare climate-related disclosures in accordance with the ISSB Standards, on a phased basis starting from FY2025. For further information, see our ESG Quick Guide: Singapore: Mandatory climate reporting regime. 

This requirement is intended as an interim step for listed issuers to start climate reporting early in accordance with the ISSB Standards, pending issuance of the final Singapore SDS.

Listed companies already reporting under the SGX Listing Rules are expected to find the transition to the Singapore SDS manageable, given the close alignment between the draft Singapore SDS and the ISSB Standards. 

Interoperability with ISSB Standards

The draft Singapore SDS are aligned with ISSB’s IFRS S1 and IFRS S2 “to the extent practicable”, with targeted amendments to reflect Singapore’s policy objectives and implementation context (in particular, Singapore’s “climate-first” approach).

The Interim SSC proposes the following key amendments to the ISSB Standards:

• Amendments to transition reliefs: The following amendments to the transition reliefs in the ISSB Standards have been reflected in the draft Singapore SDS: 

  • removal of the “timing of reporting relief” in IFRS S1 paragraph E4 so that existing reporting and filing timelines for financial statements in the Companies Act will apply to climate-related disclosures; 

  • removal of the “climate-first relief” in IFRS S1 paragraph E5 which has no practical application given SFRS S1’s voluntary nature; and 

  • extension of the one-year “Scope 3 relief” in IFRS S2 paragraph C4(b) to an ongoing relief to give ACRA and SGX RegCo the flexibility to mandate Scope 3 reporting as market readiness improves, through legislative and/or listing rule amendments, without requiring changes to the Singapore SDS.

• Statement of compliance limited to SFRS S2: entities will be required to make an explicit and unreserved statement of compliance with draft SFRS S2 in respect of their applicable mandatory reporting requirements, but on a voluntarily basis only for SFRS S1.

• SASB materials made voluntary: references to the SASB materials in the draft Singapore SDS are amended from “shall refer to and consider” (mandatory) to “may refer to and consider” (voluntary) giving greater flexibility to companies.

Next steps 

The consultation closes on 25 October 2026. 

After the consultation closes, the Interim SSC will consider feedback before finalising the Singapore SDS. 

Once legislation is passed, ACRA will formally constitute the Sustainability Standards Committee, which will have the power to issue the final Singapore SDS. ACRA and SGX RegCo will provide stakeholders with adequate notice ahead of issuance of the final Singapore SDS.

SGX RegCo is expected to consult separately on external assurance of Scope 1 and Scope 2 GHG emissions, and to review current transitional measures under the SGX Listing Rules with a view to aligning them with the final Singapore SDS. 

External limited assurance over Scope 1 and Scope 2 GHG emissions is scheduled to become mandatory from FY2029 for listed companies and FY2032 for large non-listed companies. Sustainability assurance, ethics and independence standards are being developed by the Interim SSC alongside the Singapore SDS. 

For further information on other key sustainability disclosure regimes around the globe, see our Quick Guides.