Sustainability has become a major focus for businesses in Singapore. Across industries, companies are paying more attention to how their operations impact the environment, their employees, and the broader community. Whether through resource management, workplace practices, or ethical governance, sustainability is now part of long-term business strategy rather than a temporary trend.
In Singapore, discussions around sustainability reporting have picked up significantly in recent years. Larger organisations, especially SGX-listed companies, have already integrated formal sustainability disclosures into their reporting structure. More companies are now taking an interest in these topics as expectations evolve — not only from regulators, but also from customers, partners, and investors.
Initially, Singapore planned to expand mandatory climate reporting to large non-listed companies by financial year 2027. However, the implementation timeline has been delayed, giving businesses more time to understand the landscape and prepare internally.
This guide provides a clear explanation of what sustainability reporting is, the basics of Scope 1, Scope 2, and Scope 3 emissions, and how companies in Singapore can begin strengthening their internal processes to stay ready for future developments.
Sustainability reporting refers to the process of communicating a company’s performance and impact in three key areas: environmental, social, and governance (commonly known as ESG).
This focuses on how the business uses resources and manages environmental impact.
Key areas include:
This relates to how the company treats people — employees, customers, partners, and the community.
Common topics:
This is about how the business is run responsibly and ethically.
Examples include:
Together, ESG reporting helps stakeholders understand how responsibly a company operates and how well it manages long-term risks.
Even though formal sustainability reporting is not yet required for most businesses, understanding sustainability concepts has become increasingly important. Several factors are contributing to this shift:
Under the Singapore Green Plan 2030, the country aims to advance resource efficiency, reduce carbon emissions, and support a green economy. Businesses play a significant role in achieving these objectives.
Customers today prefer brands that act responsibly. Business partners, including multinational companies, often request information on their suppliers’ sustainability practices to ensure responsible sourcing.
International reporting frameworks are becoming more common, especially in regions such as Europe and the Asia-Pacific region. Companies with international exposure may face increasing pressure to disclose more information.
Understanding sustainability-related risks — from resource scarcity to social responsibility — helps businesses plan strategically and stay resilient.
Sustainability reporting is not only about compliance; it is also about strengthening business foundations, improving efficiency, and building trust.
A major topic under environmental reporting is greenhouse gas (GHG) emissions. To make emissions easier to understand and compare, global standards classify them into three categories: Scope 1, Scope 2, and Scope 3.
Here is a breakdown of what each scope means:
Scope 1 emissions refer to emissions produced directly by assets or activities the company controls.
Examples:
These are emissions the business directly creates through its operations.
Scope 2 emissions come from the energy a business purchases and uses.
In Singapore, this primarily refers to:
Although companies do not generate the electricity themselves, the emissions produced during electricity generation are still attributed to the business based on how much electricity it consumes.
Scope 3 is the broadest and often largest emissions category. These emissions come from activities not directly controlled by the business but related to its operations.
Examples:
For many companies, Scope 3 emissions form the majority of their overall carbon footprint due to the breadth of activities included.
Sustainability reporting requirements differ depending on the classification of the business.
Here is the updated landscape:
1. SGX-listed companies
Companies listed on the Singapore Exchange must publish sustainability reports. These reports include climate-related disclosures aligned with global standards.
Mandatory climate reporting for this group was originally planned for financial year 2027, but the timeline has been delayed. The government is reviewing the schedule and will issue updates accordingly.
SMEs currently:
For SMEs, the focus right now is on awareness and foundational understanding rather than compliance.
Even with the delayed timeline, gaining early knowledge and strengthening internal processes benefit businesses in several ways:
Tracking resource usage can help identify cost-saving opportunities, such as reducing electricity consumption or minimising waste.
A company perceived as responsible and forward-thinking tends to attract customers, talent, and partners more easily.
When the reporting timeline is finalised, businesses that have prepared early will be able to adapt without significant disruption.
Good documentation, clear processes, and transparent management practices are essential for long-term stability and scalability.
Before businesses even begin thinking about reporting, the first step is building strong internal systems. Many of the elements that support sustainability — such as transparency, data accuracy, and documentation — start with reliable accounting and HR processes.
Accurate bookkeeping helps companies analyse:
This creates a clearer picture of how the company operates.
A strong HR framework ensures:
These practices contribute to the “Social” and “Governance” pillars of sustainability.
If sustainability reporting expands to more businesses in the future, companies with structured financial and HR systems will be much better prepared. Proper documentation today helps reduce administrative challenges later.
Through reliable support in accounting, payroll, HR management, and compliance processes, JWC Accounts & HR helps businesses maintain strong internal foundations that align with good governance and long-term operational readiness.
Sustainability reporting in Singapore continues to evolve, and while mandatory requirements for many businesses have been delayed, the direction is clear: companies are expected to become more aware of their environmental and social impact over time.
By starting with understanding — what sustainability means, how emissions are classified, and why these concepts matter — businesses can make informed decisions and prepare for future developments. Coupled with strong accounting and HR foundations, companies will be ready to respond confidently as expectations continue to grow.