Review Finds Progress in Climate Reporting by S'pore-Listed Firms

But only 28% provide all 11 recommended disclosures under global framework

- Sue-Ann Tan

Singapore-listed companies have made progress in climate reporting, but less than a third of them provided all the information required under a framework by the Task Force on Climate-Related Financial Disclosures (TCFD).

This is a globally recognised framework for companies to disclose climate-related impacts, risks and opportunities.

It comes at a "critical period" when listed companies are getting ready to meet the mandatory climate reporting requirements that kick in from the 2025 financial year, said Professor Lawrence Loh, director of the NUS Business School's Centre for Governance and Sustainability.

The centre and the Singapore Exchange Regulation (SGX RegCo) reported their findings in a review released on March 11. The review found that most listed companies have made initial steps towards climate reporting.

Of the 529 companies whose sustainability reports were reviewed, 97 per cent carried out climate reporting, having at least one disclosure based on the TCFD recommendations. This is an increase over the 73 per cent in the previous review in 2023.

But only 28 per cent of all listed firms provided the 11 recommended disclosures under the TCFD.

These disclosures include describing the board's oversight of climate-related risks and opportunities, and noting the climate-related risks and opportunities the organisation has identified over the short, medium and long term, among other things.

Prof Loh said this gap exists because listed companies are still making progress in their climate reporting efforts. TCFD-aligned disclosures have been mandatory for all listed firms in the financial industry, agriculture, food and forest products industry, and the energy industry, from the 2023 financial year.