SGX RegCo and CGS find modest improvements in climate disclosures

Amongst the key gaps is the disclosures on climate scenario analysis.

Most SGX-listed companies have started climate reporting, but only a small portion are providing the full range of disclosures recommended under international guidelines, according to a joint review by Singapore Exchange Regulation (SGX RegCo) and the Centre for Governance and Sustainability (CGS) at NUS Business School.

Of the 529 sustainability reports reviewed, 97% of issuers made at least one disclosure aligned with the Task Force on Climate-related Financial Disclosures (TCFD), up from 73% in the previous 2023 review. However, only 28% disclosed all 11 recommended TCFD elements, with the average issuer reporting on eight.

Key gaps included disclosures on climate scenario analysis, the integration of climate risk into overall risk management, and the setting of climate-related targets.

The review also highlighted that whilst disclosure of direct greenhouse gas emissions is relatively high—with 87% of issuers reporting Scope 2 emissions and 80% reporting Scope 1 emissions—only 29% reported on Scope 3 emissions, which cover indirect emissions across the value chain.

Meanwhile, larger companies were more transparent, with 64% of firms with market capitalisation above $1b reported Scope 3 emissions, compared to 22% of smaller companies valued below $300m. All issuers in sectors where TCFD reporting became mandatory in FY2023—financial services, agriculture, food and forest products, and energy—submitted disclosures, but only 36%  met the requirement to cover all 11 TCFD areas.

SGX RegCo CEO Tan Boon Gin said issuers have made progress but still need help adapting to the TCFD framework ahead of transitioning to new international standards. He said the regulator will study the findings and consider new support measures.

CGS director Professor Lawrence Loh also said gaps in reporting remain and called for stronger climate disclosures to support risk management and business resilience.