In 2021, the SGX announced its plan for issuers to incorporate climate-related disclosures based on the recommendations of the TCFD.
The TCFD recommendations are structured around the four core thematic areas of governance, strategy, risk management, and metrics and targets. The four overarching recommendations are supported by key climate-related financial disclosures — referred to as recommended disclosures — that build out the framework with information that will help investors and others understand how reporting organizations assess climate-related issues.
From FY 2022, all issuers are required to include climate reporting in their sustainability report on a “comply or explain” basis. Thereafter, commencing from FY 2023, climate reporting will be mandatory for issuers in the financial; agriculture, food and forest products; and energy industries. Issuers in the transportation as well as materials and buildings industries will be required to do the same starting from FY 2024.
It is noteworthy that issuers mandated to do climate reporting in FY 2023 are required to fully comply with the TCFD recommendations in their FY 2023 sustainability report to be published in 2024. Likewise, issuers mandated to do climate reporting in FY 2024 are required to achieve full compliance with the TCFD recommendations by 2025 when their FY 2024 sustainability reports are to be published.