Governance Briefing — January 1, 2025
Transportation issuers on SGX begin financial years where climate reporting is mandatory, pushing boards to formalise oversight of emissions metrics, scenario planning, and assurance pathways ahead of FY2025 disclosures.
Executive briefing: Singapore Exchange Regulation (SGX RegCo) phased in mandatory climate reporting by industry. Transportation issuers join the regime for financial years commencing on or after 1 January 2025 under Listing Rules 711A and 711B, with boards accountable for governance narratives aligned to the Task Force on Climate-related Financial Disclosures (TCFD) and ISSB guidance.
Key governance signals
- Board competency disclosures expected. Issuers must outline the board’s climate oversight structure, skillsets, and the frequency of reporting received.
- Metrics and targets must cover Scope 1 and Scope 2 emissions. SGX expects Scope 3 disclosure where material and requires explanation when data gaps persist.
- External assurance roadmap encouraged. SGX RegCo guidance notes that issuers should disclose plans for assurance over greenhouse gas metrics as investors press for reliability.
Action checklist
- Mandate an annual board review of climate governance charters, reporting lines, and escalation triggers for transition risk.
- Integrate Scope 3 data collection for material categories such as downstream logistics and business travel and document controls for the audit committee.
- Engage assurance providers early to scope limited assurance on FY2025 greenhouse gas data and align with sustainability committee calendars.
Sources
- SGX Sustainability Reporting Requirements and Implementation Timeline
- SGX Listing Rules 711A and 711B
Zeph Tech supports Singapore boards with climate governance training, data control diagnostics, and assurance readiness mapping for FY2025.