Singapore Bets on Climate First as It Opens Consultation on New Disclosure Rules

Key Takeaways

• Singapore Opens Consultation on Climate Disclosure Standards: ACRA has launched a public consultation on draft Singapore Sustainability Disclosure Standards, with feedback open until Oct. 25, 2026.
• Climate Reporting Takes Priority: The proposed framework would make climate-related disclosures under SFRS S2 mandatory while keeping broader sustainability disclosures under SFRS S1 voluntary.
• ISSB Framework Adapted for Singapore: The draft standards are based on IFRS S1 and IFRS S2 but include Singapore-specific transition reliefs and compliance requirements to support the country's phased implementation roadmap.
• Assurance Capability Receives Equal Attention: ACRA has introduced a Sustainability Assurance Body of Knowledge to help develop the skills needed for credible assurance of climate disclosures and strengthen confidence in reported information.

Deep Dive

The Accounting and Corporate Regulatory Authority (ACRA) has opened a public consultation on draft Singapore Sustainability Disclosure Standards that would require companies to explain how they identify, assess, and manage climate-related risks and opportunities. The consultation runs from July 27 through Oct. 25, giving businesses, investors, assurance providers, and professional bodies a chance to shape the rules before they are finalized.

There is something revealing about what the proposals include and what they deliberately leave out. The draft standards are built on the International Sustainability Standards Board's global framework, adopting Singapore versions of IFRS S1 and IFRS S2. But the government is resisting the temptation to make everything mandatory at once. Under the proposal, only SFRS S2, which covers climate-related disclosures, would become compulsory. SFRS S1, dealing with broader sustainability-related financial information, would remain voluntary.

That distinction reflects a decision Singapore has been signaling for years. When ACRA and Singapore Exchange Regulation first unveiled their roadmap for mandatory climate reporting and assurance in 2022, the objective was never to require every conceivable environmental, social, and governance disclosure from the outset. Climate would come first. Everything else could wait.

Even that timetable has required patience. In August 2025, Singapore pushed back implementation deadlines to give companies additional time to develop the systems, expertise, and internal processes needed for credible climate reporting. The consultation now offers the clearest view yet of what those eventual reporting obligations are expected to look like.

The proposed standards remain closely aligned with the ISSB framework, preserving international comparability while introducing several adjustments for Singapore's market. Those changes include transition reliefs for companies adopting the requirements and a requirement to include a statement of compliance consistent with Singapore's implementation roadmap.

The reporting standards are only part of the project. Disclosure rules are useful only if investors trust the information behind them, and that means building a profession capable of testing those claims.

Reporting Rules Are Only Half the Story

Alongside the consultation, ACRA introduced a Sustainability Assurance Body of Knowledge, a framework outlining the competencies expected of professionals performing sustainability assurance work. The regulator said it will work with the Skills and Workforce Development Agency and training providers to develop programs based on those competencies, extending the work that began with the Sustainability Reporting Body of Knowledge released in 2025.

Support for companies remains part of the strategy as well. Training courses aligned with the reporting framework are already available under Singapore's SkillsFuture Green Workplace Programme, with subsidies covering up to 90% of course fees. The government's Sustainability Reporting Grant, which currently helps companies prepare first-time sustainability reports using ISSB Standards, will also be reviewed after the national standards are finalized.

For ACRA, the consultation is intended to reduce uncertainty as much as it is to gather feedback. Chief Executive Chia-Tern Huey Min said the draft standards provide companies with greater clarity over future reporting requirements while remaining aligned with ISSB Standards and Singapore's climate-first implementation approach. She said the regulator would continue emphasizing education as companies and assurance providers develop the capabilities needed to meet future reporting and assurance obligations.

Interim Sustainability Standards Committee Co-Chair Esther An said climate reporting has become a strategic business issue rather than simply a compliance requirement, arguing that the proposed standards would give companies a consistent framework for measuring, managing, and communicating climate-related risks and opportunities.

Her fellow Co-Chair, Max Loh, described the consultation as an opportunity to ensure the standards remain both internationally credible and practical for businesses operating in Singapore, encouraging companies, investors, and professional bodies to provide feedback before the rules are finalized.

The consultation closes on Oct. 25. What follows will determine not only what companies disclose, but how much confidence markets are prepared to place in those disclosures once reporting becomes mandatory.

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