Press release

12 Jul 2023

Singapore-listed companies make good progress in climate disclosures in their sustainability reports

• Two-thirds (65%) of SGX-listed companies covered in study have commenced making climate-related disclosures in their sustainability reports for FY2022 • Just 10% of companies sought external assurance for their sustainability reports • Predominant focus on climate-related risks, gap in addressing climate-related opportunities, quantifiable targets and future impact

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  • Two-thirds (65%) of SGX-listed companies covered in study have commenced making climate-related disclosures in their sustainability reports for FY2022
  • Just 10% of companies sought external assurance for their sustainability reports
  • Predominant focus on climate-related risks, gap in addressing climate-related opportunities, quantifiable targets and future impact

Singapore-listed companies have made notable progress in disclosing climate-related information on their business activities since the Singapore Exchange mandated such disclosures on a “comply or explain” basis.

Two-thirds (65%) of SGX-listed companies have started their climate reporting efforts but only a tenth have had such reports independently audited. These are among the key findings of a study by professional services organization, Ernst & Young LLP (EY) and supported by global accountancy body, CPA Australia.

The study aimed to provide insights into the current state of climate reporting in Singapore, after the SGX required Singapore-listed companies to include such information in their sustainability reports from financial year 2022 based on recommendations by the Task Force on Climate-related Financial Disclosures (TCFD). The study analyzed data from 370 Singapore-listed companies with financial year-end on 31 December 2022, and whose sustainability reports were published by 31 May 2023.

The study revealed that of the 370 companies that issued their sustainability reports, 240 have commenced on climate-related disclosures. Specifically, many in sectors mandated for reporting in FY2023, e.g., the agriculture, food and forest products (77%); energy (88%); and financial (75%) industries began climate-related disclosures reporting in FY2022.

However, one-third (130) of the 370 companies that issued their sustainability reports have yet to make climate-related disclosures, with over half (54%) looking to comply in the future and the remaining (46%) not mentioning any plans to comply.

Ken Ong, Partner, Assurance at Ernst & Young LLP says:

“The disclosure of climate-related information is a crucial step toward enhancing transparency in Singapore’s business landscape. It is encouraging to see a significant level of adoption by companies that have started their climate reporting journey. As seen in a recent public consultation for mandatory climate reporting from financial year 2025 for all listed companies and from financial year 2027 for qualifying large non-listed companies, Singapore regulators are keen to encourage companies to report on climate-related disclosures, which can enhance transparency and help businesses align sustainability practices with financial outcomes.”

For companies whose sustainability reports included climate-related disclosures, the study found that only 10% sought external assurance, with just three companies incorporating climate-related disclosures as part of their external assurance review process.

Ong adds:

“Beyond regulatory requirements, assurance provides confidence to stakeholders, such as regulators, investors and customers, that there are processes in place to manage critical sustainability matters and address any concerns about greenwashing.”

Predominant focus on climate-related risks, gap in addressing climate-related opportunities, quantifiable targets and future impact

Of the listed companies with sustainability reports that included climate-related disclosures, a significant majority (79%) were focused on climate-related risks to their business, and less than half (47%) have outlined climate-related opportunities. This imbalance raises concerns given the multifaceted nature of climate change, which embodies both risks and opportunities. Companies should seek to identify key material climate-related risks as well as opportunities specific to their operations and their potential impact over the medium and long term.

The study also revealed that the majority (66%) provided high-level observations on the potential impact of climate risks and opportunities, and few quantified and disclosed the range of financial impact. Clarity on the quantum of risks and opportunities is necessary for companies to consider appropriate strategic responses. As a result, climate change risks and opportunities are not yet fully integrated into the corporate budgeting and strategic planning processes. There is also a lack of specific metrics used to identify risks and opportunities – especially physical risks. The study found that while 92% of companies have set some metrics on water, energy, emission, land use and waste management, they have not set quantifiable targets.

Additionally, the study found that two-thirds (68%) of those companies with climate-related disclosures have not started scenario analysis on the impact of climate change on their operations. Performing scenario analysis can help companies identify potential opportunities. This allows companies to evaluate and make strategic decisions about how to expand or transform their business in ways that contribute positively to climate action.

Praveen Tekchandani, Partner, Climate Change and Sustainability Services at Ernst & Young LLP says:

“Scenario analysis is important as it helps companies evaluate and quantify potential climate-related risks and opportunities under various scenarios. By developing different future scenarios, companies can consider various pathways and their implications for the business. This can help companies gain a comprehensive understanding of the risks and opportunities associated with climate change, which can then be used to develop targeted risk management measures for material climate-related risks and formulate strategies to leverage potential climate-related opportunities.”

Chng Lay Chew, a councillor of CPA Australia’s Singapore Division and a member of its ESG Committee, concludes:

“Climate reporting is crucial for companies. Beyond just compliance, it signifies their commitment to sustainability, enhances their brand, and promotes innovation. Through the work performed on climate disclosures, companies will understand how to better manage their risks and leverage new opportunities. Accounting and finance professionals have the skill sets to play key roles in climate reporting. They can ensure accurate measurement and reliable reporting, which, in turn, provides companies with a competitive edge that contributes to their long-term sustainable success.”

The report suggests five areas for companies to improve their climate disclosures for future reporting:

  • Engage proactively with stakeholders in preparation for new climate reporting requirements
  • Strengthen the understanding and assessment of climate risks, and explore climate-related opportunities for long-term resilience
  • Leverage scenario analysis to better assess climate-related risks and opportunities
  • Incorporate climate change considerations into budgeting and strategic planning
  • Set meaningful quantitative targets and track performance

For the full report, please see here.


About EY

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This news release has been issued by Ernst & Young LLP, a member of the global EY organization.

About CPA Australia

CPA Australia is one of the largest professional accounting bodies in the world, with more than 172,000 members in over 100 countries and regions, including more than 8,600 members in Singapore. CPA Australia has been operating in Singapore since 1954 and opened our Singapore office in 1989. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at