Policy Briefing — SGX Climate Reporting and Board Diversity Rules
Singapore Exchange Regulation mandated climate-related disclosures and board diversity policy reporting on November 11, 2021, setting phased timelines for mandatory TCFD reporting across key sectors.
Executive briefing: On 11 November 2021 Singapore Exchange Regulation (SGX RegCo) published listing rule amendments requiring issuers to provide climate-related disclosures consistent with the TCFD recommendations and to maintain board diversity policies. Mandatory climate reporting begins with the financial, energy, and agriculture/food/forest sectors for financial year (FY) 2023, expanding to materials, transportation, and buildings in FY 2024.
Key requirements
- TCFD alignment. Issuers must disclose governance, strategy, risk management, and metrics and targets, explaining board oversight of climate risks and opportunities.
- Board diversity policies. Annual reports must state diversity policies, board composition targets, and progress metrics.
- Training and assurance. Directors are encouraged to undergo sustainability training, and issuers must describe internal review and assurance processes for sustainability reports.
Implications for boards
- SGX-listed companies. Boards must embed climate oversight into charters, assign management responsibility, and prepare for mandatory disclosures within the phased timeline.
- Financial institutions. Banks and insurers listed in Singapore need to integrate climate reporting with MAS environmental risk guidelines to ensure consistent board narratives.
- Nonprofit issuers. Charities and trusts with listed debt should assess applicability and develop proportionate climate governance frameworks.
Action checklist
- Conduct board climate competency assessments and schedule targeted training ahead of FY 2023 reporting.
- Integrate TCFD-aligned scenario analysis and metrics into risk management dashboards and audit committee reporting.
- Update nomination committee processes to track diversity targets and disclose progress transparently.
Post-consultation outcome
On 9 July 2024 Parliament passed the Sustainability Reporting Bill, giving the Accounting and Corporate Regulatory Authority (ACRA) powers to mandate ISSB-aligned climate disclosures for large listed companies from FY 2025 and large non-listed companies from FY 2027.
The resulting Sustainability Reporting Act 2024 embeds SGX RegCo’s phased roadmap into statute, requiring assurance over greenhouse gas metrics and empowering regulators to issue compliance directions and penalties for deficient filings.
Sources
- Consultation conclusions on climate and diversity disclosures
- SGX raises governance standards with mandatory climate reporting and board diversity disclosures
- Parliament passes the Sustainability Reporting Bill
- Sustainability Reporting Act 2024
Zeph Tech enables SGX issuers to execute TCFD-aligned governance, scenario analysis, and diversity disclosure programmes that satisfy the 2023–2024 compliance deadlines.