Sustainability Reporting Singapore – As ESG (Environmental, Social, and Governance) frameworks gain prominence globally, Singapore is enhancing its regulatory regime on sustainability disclosures. For company directors, this evolution introduces legally binding duties tied to accurate ESG reporting.
This article outlines the current state and upcoming changes in Singapore’s ESG disclosure regime, emphasizing the legal responsibilities of directors as sustainability reporting becomes mandatory.
Sustainability Reporting Singapore – The Evolving ESG Disclosure Landscape in Singapore
Singapore Exchange (SGX) initially introduced sustainability reporting on a “comply or explain” basis in 2016. However, from FY2025 onwards, SGX-listed companies will face mandatory climate-related disclosures aligned with the International Sustainability Standards Board (ISSB) standards.
Key developments include:
- Adoption of a common sustainability reporting framework aligned with global benchmarks such as the Task Force on Climate-related Financial Disclosures (TCFD).
- Directors are expected to approve sustainability reports and ensure their accuracy and completeness.
- Introduction of industry-specific guidance to enhance comparability and relevance.
The Climate Reporting and Assurance Roadmap released by the Accounting and Corporate Regulatory Authority (ACRA) and SGX Regulation (SGX RegCo) in February 2024 outlines a phased approach to mandatory climate reporting:
- FY2025: All listed issuers are required to report and file annual climate-related disclosures, including Scope 1 and 2 greenhouse gas (GHG) emissions.
- FY2026: Mandatory reporting of Scope 3 GHG emissions for listed issuers.
- FY2027: Large non-listed companies (with annual revenue ≥ S$1 billion and total assets ≥ S$500 million) to commence reporting of Scope 1 and 2 GHG emissions.
- FY2029: Large non-listed companies to begin reporting of Scope 3 GHG emissions and obtain external limited assurance on Scope 1 and 2 GHG emissions.
These measures aim to uphold Singapore’s attractiveness as a global business hub while contributing to the national agenda on sustainable development under the Singapore Green Plan 2030.
Sustainability Reporting Singapore – Legal Duties of Directors in ESG Reporting
The push for more robust ESG disclosures elevates the fiduciary and statutory duties of directors under Singapore law, including:
1. Duty of Care and Diligence
Under Section 157 of the Companies Act (Cap. 50), directors must exercise reasonable diligence in the discharge of their duties. This includes ensuring that sustainability reports are accurate, supported by verifiable data, and reflective of material risks. Failure to exercise proper oversight could lead to liability.
2. Duty to Act in Good Faith
Directors must act in the best interests of the company, which increasingly encompasses considering long-term environmental and social risks.
3. Disclosure Obligations under the SGX Listing Manual
Directors are responsible for ensuring that any sustainability-related disclosures are not misleading and do not omit material information.
4. Compliance with the Companies Act (Cap. 50)
Under Sections 157 and 199 of the Companies Act, directors have a duty to exercise reasonable diligence and ensure proper accounts and records are kept. As ESG data increasingly influences investment decisions, directors must ensure ESG disclosures are consistent with the company’s financial reporting and do not breach statutory duties.
5. Potential Personal Liability
False or misleading ESG disclosures can expose directors to regulatory action, shareholder litigation, and reputational damage.
Insights from the ACRA-NUS Study
A joint study by ACRA and the Sustainable and Green Finance Institute (SGFIN) at the National University of Singapore, titled “Unveiling Climate-related Disclosures in Singapore: Getting Ready for the ISSB Standards,” examined the climate-related disclosures of 51 larger listed issuers for FY2022. Key findings include:
- Governance: 94% of companies assigned roles or formed committees to manage climate risks and opportunities, with around 75% fully describing their process of reporting to and involving the Board in climate matters.
- Strategy: 88% disclosed physical and transitional climate risks, but only 61% disclosed related opportunities. Approximately 75% conducted scenario analyses, yet few explained their scenario choices, underlying assumptions, or strategic resilience.
- Risk Management: 71% fully disclosed their processes for identifying, assessing, and managing climate-related risks. However, only 24% explained the relative significance of these risks compared to others, and just 10% addressed their potential magnitude.
- Metrics and Targets: Strong disclosures for Scope 1 and 2 GHG emissions (96% and 100%, respectively), with 59% reporting on Scope 3 emissions. Most companies (80%) set emission reduction targets and timeframes, demonstrating a commitment to environmental sustainability. However, only 8% disclosed opportunity metrics, and 6% linked executive pay to climate performance.
These findings highlight areas where directors can enhance oversight and ensure comprehensive ESG disclosures.
Common Compliance Gaps and Legal Risks
- Greenwashing: Overstating sustainability performance without adequate substantiation.
- Inadequate Board Oversight: Delegating ESG issues without proper accountability mechanisms.
- Lack of Verification: Failing to implement third-party assurance or internal audit protocols.
- Fragmented Reporting: Disclosures inconsistent with financial reporting or investor presentations.
Best Practices for Directors
- Board Training: Directors should undergo regular training on ESG metrics, climate risk frameworks, and evolving disclosure standards.
- Internal Controls: Implement internal governance processes to validate sustainability data.
- ESG Committees: Establish a dedicated ESG or sustainability committee at the board level.
- Legal Review: Engage legal counsel to vet ESG disclosures for compliance with SGX, MAS, and the Companies Act.
What’s Next for Directors in Singapore?
With the MAS and SGX pushing toward full alignment with ISSB standards by 2025, directors must treat ESG disclosure as a core governance issue. Legal and reputational exposure will grow, especially as investors and regulators begin to scrutinize sustainability statements with the same rigour as financial disclosures.
To stay compliant, directors must take an active role in integrating ESG principles into corporate strategy, reporting practices, and boardroom oversight.
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Are you navigating complex corporate legal matters or planning the next big step for your business in Singapore? Whether it’s an IPO on the SGX or any foreign exchange, mergers and acquisitions, compliance, or business structuring, we’re here to provide expert guidance tailored to your needs. Take advantage of a free consultation by filling out the Google Form on our website. Let us help you protect your business interests and achieve your corporate goals with confidence. Click here to get started!
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http://www.SingaporeLegalPractice.com is a corporate law and commercial law educational website headquartered in Singapore which aims to demystify business law and 新加坡商业法 for SME Company Owners, Startup Founders and 新加坡新移民老板。The information provided on this website does not constitute legal advice. Please obtain specific legal advice from a lawyer before taking any legal action. Although we try our best to ensure the accuracy of the information on this website, you rely on it at your own risk. Click here to signup for our newsletter today to be kept updated on the latest legal developments in Singapore.
http://www.SingaporeLegalPractice.com 是一家总部位于新加坡的公司法和商法教育网站，旨在为中小企业主、初创企业创始人和新加坡新移民老板揭开商法和新加坡商业法的神秘面纱。本网站提供的信息不构成法律建议。在采取任何法律行动之前，请先咨询律师的具体法律建议。尽管我们尽力确保本网站信息的准确性，但您依赖本网站信息的风险由您自行承担。单击此处订阅我们今天的时事通讯，以了解新加坡最新的法律发展。
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新加坡可持续报告：董事在新ESG信息披露法下的法律责任
随着全球对环境、社会和公司治理（ESG）框架的重视不断上升，新加坡也在加强其在可持续发展信息披露方面的监管制度。对公司董事而言，这不仅是对气候变化或社会责任的回应，更是引入了与准确ESG报告相关的法律义务。
本文概述了新加坡当前及即将实施的ESG披露制度变化，并强调在可持续报告强制化的背景下，董事所需承担的法律责任。
新加坡ESG信息披露环境的演变
新加坡交易所（SGX）自2016年起引入“遵循或解释”的可持续报告制度。然而，自2025财年起，SGX上市公司将被要求根据国际可持续准则理事会（ISSB）的标准，进行强制性的气候相关信息披露。
主要变化包括：
- 采用与全球基准一致的统一可持续报告框架，如气候相关财务信息披露工作组（TCFD）标准；
- 董事需批准可持续报告，并确保其准确性和完整性；
- 引入行业特定指引，提高报告的可比性与相关性。
新加坡会计与企业管制局（ACRA）与SGX监管机构（SGX RegCo）于2024年2月发布的**《气候报告与审计路线图》**提出了分阶段强制气候披露的时间表：
- 2025财年：所有上市公司必须披露并提交年度气候相关信息，包括温室气体（GHG）排放范围1与2；
- 2026财年：上市公司须强制披露温室气体排放范围3；
- 2027财年：大型非上市公司（年营收≥10亿新元，且资产总额≥5亿新元）开始披露范围1与2排放；
- 2029财年：大型非上市公司开始披露范围3排放，并就范围1与2排放数据进行外部有限保证。
该措施旨在维护新加坡作为全球商业中心的吸引力，同时推动“新加坡绿色发展蓝图2030”下的国家可持续发展目标。
董事在ESG报告中的法律责任
ESG披露的规范化提升了董事在新加坡法律下的受托责任及法定义务，包括：
1. 谨慎与勤勉责任
根据《公司法》第157条，董事须在履职中展现合理的勤勉。这意味着必须确保ESG报告准确、数据可验证、能反映重大风险。未尽职履行监督义务可能导致法律责任。
2. 诚信为本的职责
董事必须以公司的最大利益为先，而这越来越多地包括对长期环境和社会风险的考量。
3. 根据SGX上市手册的披露义务
董事需确保所有ESG相关披露不具有误导性，且无重大遗漏。
4. 遵守《公司法》（第50章）
根据《公司法》第157条和第199条，董事有义务保持适当的账目与记录管理。随着ESG数据对投资决策影响的加剧，董事必须确保其ESG报告与公司财务报告保持一致，避免违反法定义务。
5. 潜在个人责任
虚假或误导性的ESG披露将使董事面临监管处罚、股东诉讼与声誉损害的风险。
来自ACRA与NUS联合研究的洞察
ACRA与新加坡国立大学绿色与可持续金融研究院（SGFIN）联合发布的研究报告《Unveiling Climate-related Disclosures in Singapore: Getting Ready for the ISSB Standards》分析了2022财年51家大型上市公司在气候相关信息披露方面的实践。关键发现包括：
- 治理方面：94%的公司设立了管理气候风险与机会的角色或委员会，其中约75%详细说明了董事会在气候事务中的参与过程；
- 战略方面：88%的公司披露了物理与转型性气候风险，但仅61%披露了相关机会；约75%的公司进行情景分析，但少有解释所用情景、假设与战略韧性；
- 风险管理：71%的公司全面披露了识别与管理气候风险的流程，但仅24%说明这些风险相对其他风险的重要性，仅10%提及潜在影响程度；
- 指标与目标：96%和100%的公司分别披露了GHG排放范围1与2数据，59%披露了范围3排放；80%的公司设定了减排目标与时间表，显示出环境责任承诺。但仅8%披露了机会相关指标，仅6%将高管薪酬与气候绩效挂钩。
这些结果揭示董事在提升ESG监督与全面信息披露方面可进一步加强的空间。
常见合规漏洞与法律风险
- 漂绿（Greenwashing）：在缺乏证据支持的情况下夸大可持续发展表现；
- 董事会监督不足：将ESG事务外包或下放却未建立清晰的问责机制；
- 缺乏验证机制：未引入第三方验证或内部审计；
- 报告碎片化：与财务报告或投资者陈述不一致的披露内容。
董事应采纳的最佳实践
- 董事培训：董事应定期接受ESG指标、气候风险框架及披露标准的培训；
- 内部控制制度：设立内控流程以验证ESG数据的准确性；
- 成立ESG委员会：在董事会层面设立专责的可持续发展或ESG委员会；
- 法律审阅机制：聘请法律顾问审查ESG披露内容是否符合法规要求（如SGX、MAS及《公司法》）。
新加坡董事面临的未来挑战与机遇
随着金管局（MAS）与SGX推动全面采纳ISSB标准，ESG信息披露已成为公司治理的核心问题。投资者与监管机构将以与财务报告同等的严谨度审视可持续性声明，董事面临的法律与声誉风险也将同步提升。
为了保持合规，董事必须积极将ESG原则纳入企业战略、报告流程及治理架构中。
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Are you navigating complex corporate legal matters or planning the next big step for your business in Singapore? Whether it’s an IPO on the SGX or any foreign exchange, mergers and acquisitions, compliance, or business structuring, we’re here to provide expert guidance tailored to your needs. Take advantage of a free consultation by filling out the Google Form on our website. Let us help you protect your business interests and achieve your corporate goals with confidence. Click here to get started!
==================================================================================================
http://www.SingaporeLegalPractice.com is a corporate law and commercial law educational website headquartered in Singapore which aims to demystify business law and 新加坡商业法 for SME Company Owners, Startup Founders and 新加坡新移民老板。The information provided on this website does not constitute legal advice. Please obtain specific legal advice from a lawyer before taking any legal action. Although we try our best to ensure the accuracy of the information on this website, you rely on it at your own risk. Click here to signup for our newsletter today to be kept updated on the latest legal developments in Singapore.
http://www.SingaporeLegalPractice.com 是一家总部位于新加坡的公司法和商法教育网站，旨在为中小企业主、初创企业创始人和新加坡新移民老板揭开商法和新加坡商业法的神秘面纱。本网站提供的信息不构成法律建议。在采取任何法律行动之前，请先咨询律师的具体法律建议。尽管我们尽力确保本网站信息的准确性，但您依赖本网站信息的风险由您自行承担。单击此处订阅我们今天的时事通讯，以了解新加坡最新的法律发展。
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