Singapore is set to roll out mandatory climate disclosures in a phased approach, signaling a strategic effort to align corporate reporting with global standards while accommodating resource constraints among smaller firms.

From fiscal year 2025, all listed companies will report scope 1 and 2 greenhouse gas emissions. Scope 3 value chain emissions, which encompass indirect emissions from suppliers and customers, will be required for the largest listed firms starting FY2026. For most other companies, full ISSB-aligned disclosures have been delayed by up to five years, with scope 3 reporting remaining voluntary for now.

Balancing Ambition with Practicality

The phased rollout reflects Singapore's pragmatic approach. By giving SMEs and mid-sized firms additional preparation time, regulators aim to ensure that disclosures are both credible and material, rather than a box-ticking exercise. For investors, the value of reporting lies in its ability to signal a company's readiness to manage climate-related risks and to channel capital efficiently into sustainable opportunities.

“Transparency is the foundation of trust in capital markets,” says a senior market analyst. “Singapore's approach strengthens confidence by prioritizing quality over speed, ensuring disclosures are comparable, verifiable, and aligned with ISSB benchmarks.”

Digital Infrastructure as a Market Lever

Singapore’s investment in digital infrastructure sets it apart in the region. Initiatives such as Gprnt (formerly Project Greenprint) integrate sustainability data, reporting platforms, and financial institutions into a unified ecosystem. Automation and verification not only enhance data reliability but also accelerate investor access to actionable insights.

Global efforts, such as the World Bank's Carbon Market Infrastructure Working Group, provide complementary standards for governance, security, and transaction integrity. For institutional investors, these frameworks ensure that climate disclosures meet the same rigor as financial reporting, with clear data provenance and robust security controls.

A Regional Benchmark

While other Asia-Pacific markets are advancing — Australia mandates reporting from 2025, Japan leverages technology for climate action, and South Korea integrates emissions trading with disclosure — Singapore distinguishes itself by linking policy, infrastructure, and flexibility. Sequencing scope 3 reporting among the largest firms allows supply-chain transparency to gradually extend across smaller companies, enhancing compliance and credibility simultaneously.

For global investors and capital allocators, Singapore’s experience offers a model for building a resilient climate finance ecosystem. By combining phased reporting, digital integration, and alignment with international standards, the city-state is creating a framework capable of attracting institutional capital, supporting risk management, and fostering innovation.

Strategic Implications for Investors

Singapore’s approach underscores that climate disclosure is not an end in itself. Instead, it is a tool to enhance market efficiency, strengthen trust, and guide capital toward sustainable opportunities. For institutional investors, the phased, tech-enabled model provides both the quality of data needed for risk assessment and the flexibility to scale engagement across diverse corporate sizes and sectors.

If executed successfully, Singapore’s model could influence global practices, demonstrating how credible, phased disclosure can support the transition to net-zero while maintaining robust, functioning capital markets.