In recent years, sustainability has moved from being a trend to a fundamental expectation in business conduct. As part of this global shift, Singapore has been actively enhancing its corporate disclosure practices. The introduction and continuous evolution of Singapore Sustainability Reporting Standards (SFRS) are now shaping how companies operate, report, and compete — both locally and internationally.
Whether you’re a business owner, investor, or part of a supply chain, the impact of these standards is direct and far-reaching. Understanding how they affect you is the first step in aligning with future-ready, responsible business practices.
What Are Singapore’s Sustainability Reporting Standards?
Singapore Sustainability Reporting Standards (SFRS) refer to the formal framework established by the Accounting and Corporate Regulatory Authority (ACRA) and the Singapore Exchange (SGX) for companies to disclose environmental, social, and governance (ESG) data.
These standards are in line with global movements toward consistent and comparable sustainability reporting. They are aligned with international benchmarks such as the International Sustainability Standards Board (ISSB) framework and the Task Force on Climate-related Financial Disclosures (TCFD).
By the fourth line, it becomes evident that Singapore Sustainability Reporting Standards provide structure to what used to be voluntary or inconsistently applied ESG disclosures, setting clear expectations for transparency and responsibility.
Mandatory vs. Voluntary Reporting in Singapore
In Singapore, listed companies have been required to publish sustainability reports since 2016. But with the introduction of SFRS, the scope of who must report and how is becoming stricter. Starting from financial year 2025, climate-related disclosures — following ISSB-aligned standards — will become mandatory for certain industries such as finance, energy, and agriculture.
This affects businesses in the following ways:
- Listed Companies must meet minimum disclosure requirements and may face penalties or delisting for non-compliance.
- Large Private Enterprises are expected to begin sustainability reporting in stages as the framework expands.
- SMEs and Vendors who do not report directly may still be required to provide ESG data to larger clients or partners.
How Businesses Are Affected
The Singapore Sustainability Reporting Standards create ripple effects across the business landscape:
1. Strategic Alignment Becomes Crucial
Companies need to embed sustainability into their business models rather than treating it as a separate CSR activity. This includes measuring carbon emissions, tracking supply chain ethics, and assessing human capital metrics. Aligning strategies with SFRS expectations is key for compliance and competitive advantage.
2. Increased Transparency for Investors
Investors are increasingly using ESG data to guide decisions. With SFRS, reporting becomes more standardised, allowing stakeholders to compare and evaluate companies fairly. Businesses that report accurately and meaningfully are more likely to attract investment and stakeholder trust.
3. Operational Adjustments and Data Management
Reporting under SFRS isn’t just about writing a report—it involves collecting data across various departments, such as energy usage, waste generation, diversity ratios, and supplier sourcing practices. Companies will need robust internal systems and governance processes to track and verify this information.
4. Board-Level Accountability
SFRS makes sustainability not just a middle-management issue but a boardroom priority. Directors must understand the risks and opportunities posed by ESG issues and ensure they are addressed at a strategic level. Misreporting or poor governance can result in regulatory consequences.
How It Affects You (Even If You’re Not a Public Company)
You might think, “I’m not a listed company — why should I care?” But here’s how the Singapore Sustainability Reporting Standards may still influence you:
- As a Supplier: Large corporations will demand ESG data from their suppliers to fulfil their own reporting duties. If you can’t provide the required information, you may lose business opportunities.
- As an Employee, Sustainability reporting often includes workforce-related data like diversity and well-being. Companies may introduce policies or KPIs that impact your work environment and career development.
- As an Investor or Customer: More detailed reporting gives you better tools to evaluate which companies align with your values and are managing long-term risks.
Preparing for the Shift
If you’re part of a business that will be affected by SFRS — directly or indirectly — it’s important to start preparing now. Here are a few steps to consider:
- Conduct a Gap Analysis: Compare current ESG practices against the SFRS requirements to identify missing elements.
- Develop Internal Capabilities: Build a cross-functional ESG team or engage external consultants to help with compliance and reporting.
- Establish Data Systems: Invest in tools and technology that help track, store, and analyse sustainability metrics.
- Educate Leadership and Staff: Ensure all levels of the organisation understand why SFRS matters and what role they play.
- Engage Stakeholders: Communicate with investors, customers, and suppliers about how you’re aligning with the new standards.
Final Thoughts
The introduction of Singapore Sustainability Reporting Standards is more than just a regulatory shift—it’s a sign of evolving expectations around corporate responsibility and transparency. Businesses that respond proactively will not only comply but also differentiate themselves in an increasingly ESG-conscious marketplace.
Whether you’re a decision-maker, stakeholder, or part of the broader supply chain, these standards will affect how you operate, collaborate, and succeed in the modern economy. Embracing this change now is not only wise — it’s necessary for long-term growth.