SBF calls for deadline extension on ISSB climate reporting for smaller listed firms

It outlined four key recommendations.

The Singapore Business Federation (SBF) has called for a one- to two-year extension of the mandatory climate-related disclosure deadline under the International Sustainability Standards Board (ISSB) framework for smaller SGX-listed companies.

Currently, all listed companies are required to adopt ISSB standards for financial years beginning on or after 1 January 2025. However, a recent engagement with nearly 40 companies revealed that only 4% are very confident in meeting the timeline.

The majority cited lack of understanding, limited resources, and the need to build internal systems from scratch.

SBF has made four recommendations to support small- and mid-cap firms, which make up 84% of SGX listings, although not all listings (including secondary-listed issuers) are subject to sustainability reporting requirements.

The federation recommended granting these companies more time to comply, given that the ISSB standards are significantly more comprehensive than the previously used Task Force on Climate-related Financial Disclosures (TCFD) framework.

An extension would allow them to build internal capacity, improve data collection, and learn from the FY2025 disclosures of larger firms. It would also enable them to qualify for the Sustainability Reporting Grant (SRG) offered by the Economic Development Board (EDB) and Enterprise Singapore, which is only available before mandatory compliance begins.

SBF also urged regulators to ensure that disclosure requirements are proportionate to company size and resource levels.

Smaller firms expressed concern over being held to the same standards as larger corporations despite having significantly fewer resources.

Although the ISSB includes built-in flexibility, it is not well understood. Regulators need to raise awareness and provide clear guidance on how to apply these proportionality measures.

Additionally, it proposed the development of Singapore-relevant cross-sector and sector-specific guidance to help streamline compliance.

Currently, companies must spend considerable time and effort researching and creating climate scenarios and other reporting elements that are often duplicative across firms.

A national-level reference, including pre-set scenarios and templates, would cut inefficiencies and ensure consistency.

Lastly, SBF recommended the creation of a centralised digital platform for climate-related reporting.

Unlike financial data, sustainability data is fragmented and hard to access. A unified digital platform would facilitate national- and sector-level benchmarking, improve data accessibility for analysts and investors, and support more informed decision-making.

SBF CEO Kok Ping Soon said the call for an extension is not a retreat from climate goals but a practical step to help smaller firms comply meaningfully.

He also emphasised the need to promote awareness of proportionality mechanisms, deliver more tailored guidance, and provide a centralised data platform to ensure smaller firms can fully capitalise on the additional time, if granted.

SBF said it will continue working with SGX RegCo, ACRA, Enterprise Singapore, and other partners to help businesses meet climate reporting obligations effectively.