Published 23 Oct 2025 –
Singapore recently announced a five-year ISSB reporting delay for smaller listed companies until 2030, allowing them time to build the necessary corporate sustainability capabilities for mandatory ISSB-aligned climate disclosures.
Some argue it is a pragmatic move to give businesses much-needed breathing space, while others worry it risks fostering a sense of complacency, allowing companies to treat climate action as tomorrow’s problem.
While the extended timeline may seem like a step back, the reality is far more nuanced. For businesses in Singapore, the imperative to build robust sustainability capabilities has never been stronger.
This delay is not a pause button but a strategic window for preparation in an increasingly complex global landscape.
The Demand for High-Quality Reporting – Navigating the Revised ISSB Timeline
Many listed companies have been issuing sustainability reports since 2016, with climate reporting based on the Task Force on Climate-related Financial Disclosures (TCFD) framework becoming mandatory for key sectors in 2022.
What’s increasingly clear is that the market isn’t waiting for regulators. We’ve seen a consistent rise in business interest in sustainability reporting, even after the ISSB announcement.
The five-year ISSB reporting delay is being viewed by proactive companies as valuable time to learn the intricacies of the new standards and build the internal capabilities required for credible, high-quality disclosure.
Corporate Sustainability Remains a Key Driver for Regional Competitiveness and Investor Expectations
Global investors conduct holistic assessments and look beyond one metric to consider a country’s broader governance, social landscape, and the quality of existing disclosures.
Furthermore, the most significant pressure on Singaporean listed companies may not come from local regulations but from global supply chains.
As multinational corporations and jurisdictions like the European Union enforce stringent requirements like the Corporate Sustainability Reporting Directive (CSRD), Singaporean suppliers and partners will need to provide ISSB-aligned data to maintain access to these critical markets, regardless of the local deadline from regulators.
Industry Readiness and the SME Challenge
Conversations with Singapore listed companies reveal that the biggest barrier to ISSB compliance, especially for smaller companies, is not a lack of will but a lack of technical understanding. Many are still unclear on precisely what to report and how to measure it.
A report by SID highlighted that some challenges faced by companies included the lack of localised emission-factor databases, especially in Asia Pacific. With Singapore Business Federation leading the effort to build the Singapore Emission Factor Registry (SEFR).
The delay provides an essential window for education and capacity building. Even with the extended timeline, the commercial imperative remains. Larger SMEs and private companies are not exempt from market demands.
Presenting a credible sustainability report is increasingly a prerequisite for participating in tenders and procurement processes with both government and large corporate clients. The need for a decarbonisation roadmap or green certifications is already a reality of doing business.
The challenge for smaller listed companies is not a lack of data, but a lack of understanding of how to transform operational data into a coherent and compliant sustainability report.
How Technology has Empowered Over 1000 Companies on Corporate Sustainability
Technology can help bridge the gap and streamline sustainability reporting for the whole value chain, by reducing up to 90% effort, as proven from ESGpedia’s client base.
For companies lacking in-house expertise, ESG reporting platforms like ESGpedia can bridge the gap by:
- Automating Data Management: Integrating with various departments (Finance, HR, and BD teams) to automatically leverage data from existing bills and invoices for carbon emission calculation.
- Harmonising Standards: Translating a company’s data across multiple frameworks, from GRI to TCFD and ISSB, making it easier to meet diverse stakeholder demands.
- Ensuring Credibility: Creating a clear, auditable trail that transforms raw data into an investment-grade sustainability report. To ensure accurate and credible GHG calculations, the ESGpedia platform has an extensive base of >280,000 emission factors, hyper-localised to all Asia Pacific countries, and is a digital solution provider of the United Nations Global Compact Network Singapore’s LowCarbonSG programme, the Singapore Emission Factors Registry (SEFR) by the Singapore Business Federation, and more.
Our view is clear – boards and management teams must use this five-year window to invest in this digital infrastructure. The goal for listed companies should not be mere compliance by 2030, but building a foundation for credible, data-driven decision-making that will be a competitive advantage long after.
Witness how ESGpedia has empowered several listed companies across sectors such as Built and Construction, ICT and E-Commerce, and more.
Singapore’s Opportunity to Lead
Despite the extended timeline, Singapore has a unique opportunity to differentiate itself as a global hub for trusted sustainability data and reporting. Much like it has leveraged its strong governance to become a world leader in the trusted carbon credit market, it can do the same for corporate disclosure.
The nation’s largest companies already perform well in global sustainability rankings, providing a strong foundation of expertise.
By using this transitional period to help smaller listed companies build high-quality reporting capabilities, Singapore can ensure that when the mandate arrives, its corporate ecosystem is not just compliant, but a global benchmark for credibility and transparency.
While the exaggerated “ESG retreat” narrative continues to dominate headlines, particularly in the U.S., this is largely a political phenomenon. In Asia, the business of sustainability continues unabated, driven by economic necessity and market opportunity.
For listed companies in Singapore, the message is clear. The regulatory timeline may have shifted, but the expectations of investors, customers, and global partners have not. This is the time to act.
Ready to turn this challenge into a strategic advantage? The journey to credible, compliant reporting begins with a robust data foundation. Learn how ESGpedia can help you build yours today.
