In the new world of business, staying ahead of the curve often means embracing change, adapting to new regulations, and setting new standards.
One area where this is particularly evident is in Environmental, Social, and Governance (ESG) and climate reporting.
Singapore is making significant strides in this area to join the global effort to reduce carbon emissions through more sustainable practices — all while leveraging the benefits of a new green economy.
Let us delve deeper into what this means and why it matters to you and your business.
Understanding Climate Reporting and its Relation to ESG
Defining Climate Reporting
Climate reporting refers to the process by which companies disclose their environmental impact, particularly their greenhouse gas emissions.
This form of reporting is becoming increasingly important as stakeholders, including investors, customers, and regulators, demand greater transparency around companies’ environmental footprints.
The Connection Between Climate Reporting and ESG
Climate reporting is a key component of ESG reporting, which covers a company’s environmental, social, and governance performance. ESG reporting goes beyond financial metrics to provide a more comprehensive view of a company’s long-term sustainability and societal impact.
Climate reporting, as part of the “Environmental” aspect of ESG, helps companies demonstrate their commitment to mitigating climate change.
Related Read: ESG Reporting 101: What Are the Components of an ESG Report?
Why Climate Reporting Matters
The Role of Climate Reporting in Business Sustainability
Climate reporting plays a crucial role in business sustainability. By measuring and disclosing their greenhouse gas emissions, companies can identify areas for improvement, set reduction targets, and monitor their progress.
This not only helps companies reduce their environmental impact but also enhances their reputation and can lead to cost savings.
Climate Reporting as a Competitive Advantage
In an increasingly eco-conscious world, companies that transparently report their climate impact can gain a competitive edge.
Investors are more likely to support companies that demonstrate a commitment to sustainability, while consumers are increasingly favouring brands that take their environmental responsibilities seriously.
Singapore’s Pioneering Role in Climate Reporting
Singapore’s Recent Advancements in Climate Reporting
Singapore is at the forefront of climate reporting in Asia. The city-state’s regulatory bodies have put forth proposals to make climate-related disclosures mandatory for both public and large private companies.
This move aligns Singapore with international standards and positions it as a trendsetter in climate reporting in the region.
Singapore’s Alignment with Global Standards
The planned disclosure rule would apply to companies with annual revenue of at least S$1 billion (US$750 million), starting in 2027. This aligns with guidelines laid out by the International Sustainability Standards Board, an independent body that sets global guidelines.
The advisory committee plans to conduct a review in 2027 to decide whether to expand the climate reporting requirements to unlisted companies with revenue of S$100 million (US$75 million) or more by around fiscal 2030.
The Ripple Effects of Singapore’s Climate Reporting Regulations
The Implications for Companies in Singapore
The new regulations will have significant implications for both listed and unlisted companies in Singapore. All listed issuers, overseas companies, REITs, and business trusts will be required to start climate reporting in 2025.
Non-listed companies with revenues of at least S$1 billion (US$750 million) will begin reporting in 2027. This move will ensure greater transparency and accountability in how businesses in Singapore are addressing climate change.
Related Read: Your Quick Guide to ESG Reporting and Compliance in Singapore
The Future Landscape of Climate Reporting in Singapore
The future of climate reporting in Singapore looks promising — with the new regulations, the city-state is set to become a leader in climate reporting in Asia. This will enhance Singapore’s reputation as a global business hub and encourage other countries in the region to follow suit.
Singapore’s Climate Reporting Move: A Step Towards Becoming a Sustainability Centre
Singapore’s Green Plan 2030 and its Impact on Climate Reporting
The mandatory climate reporting is part of Singapore’s Green Plan 2030, which aims to advance the city-state’s national agenda on sustainable development.
The plan underscores Singapore’s commitment to the United Nations’ 2030 Sustainable Development Agenda and its transition to a green economy. The introduction of mandatory climate reporting will further bolster this commitment.
Singapore’s Contribution to Global Sustainability Efforts
By making climate reporting mandatory, Singapore is making a significant contribution to global sustainability efforts. The move sends a strong signal to the rest of the world about the importance of transparency and accountability in tackling climate change.
At the same time, it positions Singapore as a role model for other countries looking to enhance their climate reporting regulations.
Preparing for the Future of Climate Reporting
The Role of Businesses in Climate Reporting
Businesses play a crucial role in climate reporting — by measuring and disclosing their greenhouse gas emissions, they can contribute to global efforts to mitigate climate change. Moreover, climate reporting can help businesses identify risks and opportunities related to climate change, enabling them to make more informed decisions and strategies.
The Benefits of Adapting to Climate Reporting Regulations
Adapting to climate reporting regulations can bring numerous benefits for businesses — it can enhance their reputation, attract investment, and lead to cost savings. Furthermore, it can help businesses stay competitive in an increasingly eco-conscious market.
How InCorp Can Support Your ESG Reporting Needs
The Importance of Expert Guidance in ESG Reporting
Navigating the complexities of ESG reporting can be challenging — that’s where InCorp comes in. With our expertise in ESG and climate reporting, we can guide you through the entire process, ensuring your reports are accurate, transparent, and compliant with regulations.
Why Choose InCorp for Your ESG Reporting Needs
At InCorp, we understand the unique challenges and opportunities that come with ESG and climate reporting. We offer tailored solutions to meet your specific needs, helping you turn sustainability into a competitive advantage. Contact us today to find out more about our ESG reporting services.
Where to Next for ESG and Climate Reporting in Singapore
The future of ESG and climate reporting in Singapore is bright. With its pioneering regulations, the city-state is setting a new standard for sustainability in Asia.
For businesses, this presents an opportunity to demonstrate their commitment to sustainability and gain a competitive edge. With expert guidance from InCorp, you can navigate the complexities of ESG and climate reporting with ease and confidence.
FAQs
How does climate reporting relate to ESG?
- Climate reporting is the "environmental" component of ESG reporting, which covers a company's environmental, social, and governance performance.
How can InCorp support my ESG reporting needs?
- InCorp offers expert guidance in ESG and climate reporting, helping businesses navigate the complexities of these processes and turn sustainability into a competitive advantage.
Why is climate reporting important?
- Climate reporting is important because it enhances transparency and accountability, helps businesses identify risks and opportunities, and can lead to cost savings.
Get your ESG reporting needs settled with InCorp!
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