Singapore ESG Regulations: What You Need to Know in 2026

Singapore is accelerating its ESG regulatory framework in 2026, with mandatory climate-related disclosures under ISSB standards now in effect for major listed companies, Scope 3 emissions reporting beginning for large firms, and carbon taxes rising significantly. Companies operating in Singapore must navigate these changes to maintain compliance and investor confidence.

Key Regulatory Changes Taking Effect in 2026

1. Mandatory ISSB-Based Climate-Related Disclosures (CRD)

Singapore has implemented a phased mandatory climate-related disclosures (CRD) regime aligned with IFRS ISSB Standards.

STI constituents (Straits Times Index) must report on Scope 3 emissions starting FY2026, covering indirect emissions from supply chains.

2. Carbon Tax Increases to S$45 per Tonne (2026)

Singapore's carbon tax will rise from S$25 to S$45 per tonne in 2026, significantly increasing the financial impact of emissions on business operations.

3. SGX Sustainability Reporting Guide Requirements

The Singapore Exchange (SGX) mandates that ESG activities reported in Sustainability Reports must minimally comply with TCFD for entities listed in Singapore.

Key SGX requirements:

• Publish sustainability report within 12 months of financial year end (for 2017, reduced to 5 months in subsequent years)
• Disclose based on material ESG factors identified through stakeholder assessment
• Include Board statement on ESG consideration in strategy formulation
• Select a sustainability reporting framework (or frameworks)
• Disclose policies, practices, and performance in descriptive and quantitative terms
• Set targets for the forthcoming year for each material ESG factor

4. Climate-Related Disclosure Requirements for Listed Companies

Starting FY2025, Singapore Exchange Regulation (SGX RegCo) requires all listed companies to disclose climate-related information based on IFRS ISSB standards.

Three-tier structure based on market capitalization:

1. Straits Times Index (STI) constituents - immediate compliance
2. Non-STI ≥ $1 billion market cap - phased to FY2028
3. Non-STI < $1 billion market cap - phased to FY2030

5. External Assurance Coming (FY2029)

External limited assurance for Scope 1 and 2 emissions becomes mandatory by FY2029 for all listed companies. Large non-listed companies receive this requirement by FY2032.

6. New Coastal Protection Bill (March 2026)

Singapore's Coastal Protection and Other Amendments Bill (passed Parliament March 6, 2026) signals a shift from ESG disclosure to concrete legal obligations.

This bill moves climate obligations beyond disclosure into direct operational compliance.

What Companies Must Disclose

Starting in 2026, Singapore-listed companies must disclose:

Supply Chain Implications for Singapore

If you supply to Singapore companies, expect requests for:

• Scope 1, 2, and 3 GHG emissions data
• Carbon tax impact calculations
• Climate risk assessments
• Sustainability policies and certifications
• Third-party ESG ratings (e.g., EcoVadis)

STI constituents and large companies must report Scope 3 emissions, making supply chain data critical for their compliance.

Action Steps for 2026 Compliance

1. Determine your tier: Identify if you're STI constituent, non-STI ≥$1B, or non-STI <$1B
2. Collect emissions data: Begin tracking Scope 1 and 2 emissions immediately (mandatory FY2025)
3. Prepare Scope 3: If you're STI or large company, start supply chain emissions data collection for FY2026
4. Update governance: Ensure Board statement on ESG oversight is included in reports
5. Select framework: Choose ISSB-aligned reporting framework for sustainability reports
6. Plan for assurance: Prepare for external limited assurance by FY2029
7. Carbon tax planning: Assess impact of S$45/tonne tax on operations

Risks of Noncompliance

• Penalties up to S$200,000 and imprisonment for Coastal Protection violations
• SGX listing penalties for failure to disclose required sustainability information
• Eroded investor confidence and limited access to ESG-focused capital
• Increased carbon costs from S$45/tonne tax

Strategic Advantages Beyond Compliance

• Investor trust: Robust ESG practices attract ESG-focused investment in Singapore's mature market
• Operational efficiency: Carbon pricing creates incentives for emissions reduction
• Regional competitiveness: Singapore as ESG hub enhances reputation across Asia

Bottom Line for 2026

All listed companies must report Scope 1 and 2 emissions from FY2025 (non-negotiable, no exceptions). STI constituents must report Scope 3 from FY2026. The carbon tax increase to S$45/tonne in 2026 makes emissions management financially critical.

Singapore's phased approach gives smaller companies until FY2030 for full ISSB compliance, but the regulatory trajectory is clear: mandatory climate disclosures with external assurance by FY2029. The new Coastal Protection Bill marks Singapore's shift from disclosure to operational compliance, signaling more binding ESG obligations ahead.

Reference:

1. SGX guidance

2. Singapore’s Coastal Protection Bill

3. Preparing for SGX’s New Climate Reporting Mandates: What You Need to Know

4. Director's guide

5. Datatrack

6. Navigating through SGX's ESG Disclosure Requirements

7. ESG Reporting in Singapore: Standards & Regulations